Europe

PIIGS STILL A CONCERN FOR EURO CREDIT

Henderson is to merge away both its UK and European Opportunities funds as part of its rationalisation programme following the acquisition of New Star.

Neptune's Rob Burnett says the EU authorities will be pushed to take stronger action in the first half of next year to shore up the sovereign states and European banks.

Moody's has slashed Ireland's credit rating, and warns more downgrades are set to follow.

EUROZONE DEFAULT A CERTAINTY

DOES EUROZONE CONTAGION MATTER?

European Union leaders have agreed to set up a permanent mechanism to bail out any member state whose debt problems threaten the 16-nation eurozone, the BBC reports.

ON EUROPE

Germany has refused to give any ground on Europe's rescue machinery despite the escalating political and economic crisis across much of the eurozone periphery, guaranteeing a bitter clash with EU partners at a crucial summit in Brussels today.

Deputy governor of the Bank of England Charles Bean says another eurozone sovereign debt crisis could "derail" Britain's recovery, hitting businesses and households hard.