Europe

The week has once again been dominated by the eurozone crisis, with a crucial meeting taking place today, while the regulator has warned the Arch cru debacle may not be anyone's fault.

The president of the European Commission has warned the eurozone's banking system needs to be fully recapitalised to ward off a systemic crisis, at cost of hundreds of billions of euros.

The Treasury is concerned the EU directive MiFID II will distort the UK advice market by restricting the commission ban to independent advisers.

Former Prime Minister Sir John Major has told the BBC Europe must recapitalise its banks and Greece "needs to default" on its debts, to help bring an end to the eurozone debt crisis.

ON EUROPE

ON UK INCOME

Invesco Perpetual's co-head of fixed income, Paul Read, has told investors now is the time to be bullish on bank debt in the UK, US and Europe, with valuations at three-year lows despite huge improvements in balance sheets.

The European Central Bank has held rates at 1.5% despite mounting pressure on policymakers to resolve the sovereign debt crisis.

Markets have broken their three-day rally this morning, forced down by concerns some countries will be forced to take larger writedowns on Greek bonds.

Martin Currie is planning to convert its European fund into an income mandate as co-manager Eric Woehrling departs the firm, Investment Week understands.