News

The UK's inflation rate posted another surprise drop in May, falling to 2.8%, as the lack of activity in the UK continues to bring prices down sharply.

Henderson Global Investors' bond fund manager John Pattullo said the current crisis in Spain will result in Spanish bank bondholders taking severe haircuts, after a similar scenario in Ireland last year.

Some 54% of fund managers are set to increase their exposure to ETPs and ETFs over the next three years, with a quarter anticipating an increase of 10% or more.

Yesterday's relief rally prompted by the Greek election on Sunday failed to translate to Asian markets overnight, as concerns over Spain's economy dominated trading.

The International Monetary Fund has amassed a $456bn crisis fund to help save the eurozone from the financial storm currently besieging it.

Hector Sants has warned London's position as a global financial centre is under threat because the UK's financial sector is not rethinking its business models quickly enough to keep pace with political upheaval and regulatory change.

The Serious Fraud Office (SFO) has dropped its probe into property tycoon Vincent Tchenguiz, following an investigation which was branded "incompetent" by a High Court judge.

Banking stocks across Europe were falling this afternoon, with investors fretting over Spain's ability to fund itself after yields spiked above 7% once again.

Jenna Barnard, Henderson Global Investors' bond fund manager, has warned soaring Spanish yields have left the country's sovereign bond market at breaking point.

Niall Gallagher, European equities manager at GAM, has found value in unloved peripheral European equities overlooked by risk-averse investors.