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J.P. Morgan has reportedly agreed to pay an £8bn ($13bn) fine as part of a settlement with the US over its role in the mortgage-backed securities market, which led to the near-collapse of the US financial system.

The US Congress has passed a bill to reopen the government and raise the federal debt limit, with just hours to spare before the nation risked default.

Fitch has become the first ratings agency to threaten a US credit ratings downgrade over the latest debt ceiling impasse.

Janet Yellen's appointment as chairman of the US Federal Reserve could see tapering of quantitative easing (QE) as early as December, experts say.

There were signs of tentative progress on the US fiscal deadlock yesterday as President Obama indicated he would accept a short-term increase in the nation's borrowing authority to avert a default.

Ratings agency Moody's has said it expects US politicians to reach an agreement on the country's debt ceiling, with a default "extremely unlikely".

UK shares had a shaky start to the week as negotiations over the US debt ceiling continue to drag on.

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Christine Lagarde, managing director of the International Monetary Fund (IMF), has warned failure to raise the debt ceiling could be far worse than the current US government shutdown.

Henderson retail fixed income head John Pattullo is favouring core companies in core countries across Europe to provide thematic bond investing in a low inflation environment, alongside opportunities in the US.