Eurozone

FUND MANAGER VIEWS

For the past 12 months and much of the past two years, two issues dominated investor mentality, at least when it comes to macro-related thinking: one is the US and the other is Europe.

FIXED INCOME

GREEK DEFAULT

Standard & Poor's has increased its rating of Greece's sovereign debt by six notches, after efforts by its eurozone neighbours to keep it in the currency union.

A bet on the demise of the eurozone has caused sizeable losses for John Paulson, the hedge fund boss renowned for making millions from the US financial collapse.

Eurozone leaders have agreed a plan by the Spanish authorities to restructure four of its major banks.

Eurozone finance ministers have negotiated a rescue package for the rapidly deteriorating Greek economy following ten hours of intense talks in Brussels.

Henderson's Richard Pease expects improving economic indicators, combined with hedge funds putting their cash back to work in equities, will lift European markets towards the end of the year.

It has been a hectic year for investors, with the eurozone debacle driving core bond yields to record lows, while equity markets were buffeted by fears over China and the US.