News

Markets across Europe sold off in early trading, while bond yields in core European countries rocketed towards danger levels, after investors failed to be convinced by an overnight deal to save the eurozone.

Regulators should have greater powers to block hostile bank takeovers in order to avoid a crisis like the one that forced Royal Bank of Scotland(RBS) to accept a £45bn taxpayer bail-out, the chairman of the FSA will say on Monday.

The hedge fund industry is in line to post its second worst year since 1990, with returns only lower during 2008, according to data from Hedge Fund Research.

Credit rating agency Moody's has downgraded three of France's largest banks, warning their creditworthiness has been damaged by the European debt crisis.

Prime minister David Cameron has caused the EU to fracture after refusing to sign up to a new treaty over concerns about financial services regulation.

Shares in European financials have dropped in late trading as the latest European Banking Authority stress tests said the industry must raise €115bn in capital by June 2012.

HSBC has announced it will take responsibility for all customers mis-sold investment products by NHFA, a care fees advice business it acquired in 2005.

Legal & General Investment Management is planning to merge two income offerings into its £53m Managed Monthly Income fund, run by Michel Canoy.

EQUITIES

The Financial Services Authority (FSA) has warned investors against dealing with a clone of asset manager GAM.