UK

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.

Prime minister David Cameron has appealed for Britain to emulate the optimism seen in emerging economies such as China and India instead of being overwhelmed by the onslaught of negative data.

The UK economy grew at just 0.1% in the second quarter,lower than previously expected, the Office for National Statistics has revealed.

UK business managers are preparing for a double-dip recession and also warn the private sector will fail to replace jobs lost to public sector cutbacks.

Standard & Poor's has maintained its AAA long-term credit rating for the UK and said the outlook remains stable, while warning GDP will be lower than forecast for the next three years.

Leading UK asset managers have warned against the implementation of a new tax, which could be imposed Europe-wide on all financial transactions.