Spain

THE FUTURE OF EMU

Eurozone leaders in Brussels have come to a ‘in principle' agreement on economic policy, designed to rescue Europe from its debt crisis, European Union President Herman Van Rompuy has announced.

Negotiations to find a solution to the European sovereign debt crisis will end in a messy compromise that fails to resolve the peripheral solvency problem, says Stuart Thomson at Ignis Asset Management.

Portugal is set to receive a financial rescue package from the EU within a month, as the country's high borrowing costs are increasingly untenable, says Chris Iggo at AXA.

ON EUROPE

Difficulties in the eurozone pose the most serious threat to recovery in developed equity markets, despite a positive outlook for growth, says Schroders' Alan Brown.

PIIGS STILL A CONCERN FOR EURO CREDIT

The dollar rose against major currencies yesterday following more upbeat US economic data, while the euro took a beating after Moody's placed Spain's ‘Aa1' credit rating on review for a possible downgrade.

Credit rating agency Moody's has placed Spanish government bonds under review for downgrade on concerns the country will face difficulty raising cash next year.

Ignis' Chris Bowie has offloaded £200m of Santander debt on concerns over the impact of the sovereign debt crisis on the banking giant.