UK

Britain's relationship with Europe has been dealt a further blow as the nine European states who last night opted not to sign up to the new European treaty have had a change of heart.

THE BIG QUESTION

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Markets across Europe sold off in early trading, while bond yields in core European countries rocketed towards danger levels, after investors failed to be convinced by an overnight deal to save the eurozone.

Economic growth in the UK will be subdued and output will fail to reach 2008 levels until 2013, according to the National Institute for Economic and Social Research (NIESR).

Manager plays yield curve and looks for ‘dull' core holdings in long-standing fund.

Outspoken investor Jim Rogers this week gave his forecast for the gold price, while Goldman Sachs analysts outlined their six key trades for 2012.

The government has confirmed the credit crunch which plagued markets in 2008 has returned.

Ratings agency Fitch has said the updated fiscal and economic projections from the UK's Office for Budget Responsibility mark a "significant deterioration" in prospects.

Chancellor George Osborne has slashed his growth forecast for the next few years but says the UK is unlikely to slide into recession.