Federal Reserve

The US Federal Reserve will push ahead with QE3 although it will make policymakers "look like fools again", said outspoken investor Jim Rogers.

PIMCO's Bill Gross, the manager of the world's biggest bond fund, has cut his stake in US Treasuries by 12%, ahead of a crucial meeting by the Fed later when it may announce further quantitative easing.

Shares across the globe fell overnight as renewed fears about Germany's likelihood of approving rescue plans plagued investors once again.

PIMCO's Bill Gross has said the Federal Reserve and other central banks are to blame for "the current shipwreck" that is the global economy.

Gold has climbed to its highest level in more than five months as speculation the next round of QE in the US is just weeks away pushed the precious metal higher.

QE3

UK shares were making tentative moves higher in mid-morning trading, ahead of the Jackson Hole speech by Federal Reserve chairman Ben Bernanke later today, with other markets also rising.

PIMCO's Bill Gross said the US economy needs to grow by 3% and upwards for several quarters in order to avoid another round of QE.

Barings' Khiem Do has said the chances of the Federal Reserve carrying out QE3 are remote, with economic indicators in the US still "reasonably strong" and by no means justifying further action.

The spot price of gold climbed by over 1% to $1,655 an ounce as the Federal Reserve said it is likely to ease monetary policy soon unless there is a sharp change in economic data.