Germany

Stocks received a lift in afternoon trading as social networking giant Facebook prepares to make what could be one of the largest market debuts in history.

ON JAPAN

Bond heavyweights have begun shorting UK gilts ahead of an expected correction, warning yields have reached ‘extreme' lows.

Schroders' head of global macro Bob Jolly has revealed he is shorting long-dated treasuries and German bunds in the expectation the ongoing economic recovery will reduce demand for safe havens.

Neptune founder and CEO Robin Geffen has ruled out the possibility of a eurozone breakup following a meeting with Italian Prime Minister Mario Monti.

EQUITIES

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

WHY GERMAN YIELDS COULD FALL FURTHER

Germany's economy shrank by approximately 0.25% in the fourth quarter of last year, raising fears Europe's second largest economy is on the brink of recession.

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.