News

World markets including the FTSE fell in early trading as weak economic data and Moody's downgrade of 15 banks unnerved investors.

Shares on the major US stock markets shed more than 2% overnight as weak manufacturing data from the US, Europe and China fuelled fears of a global slowdown.

Fixed income managers using credit default swaps as hedges are exposing themselves to 'very dangerous positions' due to price dislocation between the derivatives and the underlying market, said Kames Capital's Stephen Snowden.

Credit rating agency Moody's has downgraded 15 financial institutions overnight, including major UK and US banks.

A eurozone ‘divorce' is inevitable, according to Jupiter's John Chatfeild-Roberts, who suggested a German exit from the single currency might be a solution to the crisis.

J.P. Morgan has created a $100bn new multi-asset unit which will see a restructure of the firm's global fixed income team.

Rating agency Moody's is preparing to downgrade several UK banks this evening, including RBS, Barclays and HSBC, according to reports.

A top official at the Financial Services Authority (FSA) has warned Britain's four largest banks face more questions over their sale of interest rate hedges to small business customers.

The Bank of England has warned hedge fund managers the eurozone crisis could result in a clampdown on their activities.

Martin Gilbert, the chief executive of Aberdeen Asset Management, has sold almost one-sixth of his stake in the firm.