Europe

Newton income manager Iain Stewart has warned the problems in Greece are just the tip of the iceberg of a ‘monetary distortion' across the developed world and could trigger 'debt dominoes' throughout Europe.

German Chancellor Angela Merkel and French President Nicolas Sarkozy have hammered out a common position on the euro debt crisis.

Manager says Greece's austerity and ‘bipolar' sentiment in US pose crucial headwinds.

The European Banking Authority (EBA) will post the results of stress tests on 90 European banks today, amid criticism from analysts the tests will fail to detail banks' weaknesses.

Raings agency Fitch has branded European Absolute Return (AR) funds "prone to performace disappointment" and "mis-selling" to unsophisticated investors.

European leaders last night bowed to the inevitable and conceded Greece is likely to default on its massive debt burden, which would be a first among the 17 countries using the euro, according to reports.

J.P. Morgan's Jim Campbell, manager of the European Smaller Companies investment trust, has predicted shares across Europe will rise by at least 10% or more by the end of the year.

Allianz Global Investors has warned European growth will not return to pre-credit crisis levels for years to come.

ON EUROPE

Scottish Widows Investment Partnership (SWIP) has announced plans to close five of its oeics, including two funds run by the group's head of European equities, Steven Maxwell.