Europe

Sometimes the simplest ideas are the best. Complicating investment gets in the way of what really works - simple things like dividends, keeping costs down and buying well-diversified markets simply and cheaply.

Markets across Europe fell at the start of trading as an earthquake measuring 5.1 on the Richter scale hit Spain and commodities were heavily sold off in the US.

Julius Baer's Andy Kastner is rotating his absolute return portfolio into defensive sectors including utilities and pharmaceuticals amid ongoing turmoil in European stock markets.

The European Central Bank is likely to hike interest rates just 25bp to 1.5% by the end of the year, as core inflation remains steady and has barely increased, said Alan Brown at Schroders.

Asset managers may have to undertake a "root and branch" reassessment of business models amid a wave of European regulation set to trigger "huge upheaval", warns State Street.

Portugal's caretaker prime minister Jose Socrates has announced he has reached agreement on a bail-out from the EU and the International Monetary Fund.

Head of European high yield at Aberdeen believes low interest rate climate makes income from high-yield bonds more attractive to investors

ON EUROPE

Mark Page has quit LVAM handing the £227m LV= European ex-UK Growth fund to Richard Falle until a new hire is made.

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