Spain

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Lombard St Research has expressed concerns Spain may have to leave the euro if it does not take drastic steps to improve its public finances.

EUROPEAN EQUITIES

The spread on Spanish government bonds over German bunds reached an all-time high today on continued economic concerns for the Mediterranean country.

Fears over Spain escalated yesterday as investors sold off government bonds on warnings of funding problems for the country's companies and banks.

Investors are placing bets on a Black Monday-style crash in the UK stock market at the fastest rate since the collapse of Lehman Brothers in 2008, the Bank of England warns.

RWC Partners has made significant changes to its Global Convertibles fund since the departure of former managers Miles Geldard and Lee Manzi.

Banks in the eurozone will suffer "considerable" loan losses in 2010 and 2011, potentially leading to €195bn (£165bn) in futher write-downs, the European Central Bank warns.

Updated 12.30pm: The FTSE plunged in midday trade after Chancellor George Osborne unveiled details of the coalition government's £6.2bn spending cuts.