UK

Ernst & Young has downgraded its forecast for UK gross domestic product (GDP) to just 0.9% this year - significantly below the 1.4% it predicted three months ago - as it described the economic situation "worse than we thought".

Paul Read and Paul Causer's £130m City Merchants High Yield trust is considering moving offshore for tax reasons, despite imminent rule changes designed to improve the competitiveness of the UK as a domicile.

INSURANCE UPDATE

£75BN MORE QE

About 4,000 people are planning a mass demonstration outside the London Stock Exchange to protest against "financial injustices", in a move to expand the Occupy Wall Street demonstrations that began in New York.

Economist Roger Nightingale has warned the UK economy is facing the real possibility of a depression after policymakers failed to act quickly enough to tackle the downturn.

The National Institute for Economic and Social Research (NIESR) has warned the UK faces the weakest economic recovery since the First World War, as GDP remains well below its pre-recession high.

EAST OR WEST...

Marlborough Special Situations and UK Micro Cap Growth manager has moved to cash in anticipation of buying opportunities.

Invesco Perpetual's co-head of fixed income, Paul Read, has told investors now is the time to be bullish on bank debt in the UK, US and Europe, with valuations at three-year lows despite huge improvements in balance sheets.