France

The UK fund management industry faces complete transformation if the financial transaction tax - or Tobin tax - is implemented, commentators have warned.

The financial crisis engulfing the eurozone took a fresh twist on Friday after Standard & Poor's cut the credit rating on nine eurozone countries, including France's prized AAA, and Greece's debt talks collapsed without agreement.

Standard & Poor's has downgraded the credit ratings of a raft of eurozone nations including Italy, Spain and Portugal as well as stripping France and Austria of their AAA status.

German chancellor Angela Merkel has said she cannot guarantee support of the controversial financial transaction tax - known as the Tobin tax - which threatens to create a rift between Germany and France days before a crucial European summit.

We ask investment experts for their forecasts for 2012.

EURO BONDS

ELECTIONS

Europe's single currency reached a 15-month low against the dollar following a French bond auction this morning which saw almost all of the €8bn of debt targeted being sold.

THE EUROZONE

Head of the International Monetary Fund (IMF) Christine Lagarde has warned the world economic outlook is "gloomy" and no country is safe from rising risks.