For the first time in five years, Goldman Sachs is more bullish on US growth than global consensus.
Fund managers cannot agree on whether stagflation is the next threat to the UK recovery and are adopting radically different strategies to protect portfolios in a higher inflation, low growth environment.
The US government needs to make a decision on whether to raise its debt limit to fend off rating agencies in the light of Japan's downgrade, according to OMAM's head of fixed income Stewart Cowley.
London's leading share index rose this morning, recovering from yesterday's fall following news the UK economy contracted by 0.5% in the fourth quarter of last year.
Fund managers are split on what the unexpected contraction in UK growth means for the future of the economic recovery.
UK GDP contracted by 0.5% in the last three months of 2010, shocking economists who had predicted growth of between 0.2% and 0.6% and sending sterling into freefall.