Eurozone

SPAIN

George Soros has said Germany's central bank must recognise its policies may be increasing the threat of a deflationary debt trap in the eurozone.

Fund managers are snapping up cheap portfolio insurance ahead of an expected market pull-back, after the VIX index hit pre-recession lows in March.

European markets have paused for breath in early trading after yesterday's heavy sell off, as contagion fears in the eurozone resurfaced.

Paul Read, fund manager at Invesco Perpetual, has urged investors keen to buy into financials to focus on the debt offered by banks and their peers, rather than snap up shares in the companies.

EUROPE

Europe's economic and financial affairs commissioner Olli Rehn has warned Portugal may need a fresh bailout within a year.

MARKETS

Spain has announced plans to cut its budget by €27bn in 2012 as part of one of the toughest austerity drives in history.

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