News

UPDATE 12pm: The FTSE is up a third of a percent and other key European markets have jumped 1.3% on news Portugal has succeeded in raising £1bn in a bonds auction, easing concerns over the country's need for an EU bailout.

Not owning gold during the current financial turmoil is "a form of insanity", according to Cazenove's Robin Griffiths.

Asset class correlation risk has never been higher and markets could fall in unison in 2011, warns PSigma CIO Tom Becket.

Gartmore's share price jumped 5% in early trading as the market absorbed Henderson's offer to buy the troubled fund manager in a £335m deal.

The Hong Kong dollar is more likely to disappear than the euro, based on a shift in manufacturing and political factors, says Distinction Asset Management's Ana Armstrong.

Investec's joint head of fixed income John Stopford says developed market sovereign debt, the search for yield, and inflation will be the three dominant themes this year.

The next 12 months will be marked by unintended consequences of the "extreme policy" implemented in 2010, which may include rising bond yields and inflation, says Cazenove's Chris Rice.

Omega Insurance, a Lloyds of London insurer in which Invesco Perpetual's Neil Woodford is the largest shareholder, has received a takeover approach from rival Canopus.

Britain's banks were given the go-ahead last night to pay unlimited bonuses, drawing to a close a two-year political battle to rein in the City.

UK blue chips made a strong start on Tuesday despite weakness in the US overnight and a mixed performance in Asia.