News

Strong buying of government debt by the UK's banking sector is needed to prevent a rise in gilt yields as overseas demand wanes, says Simon Ward, the chief economist at Henderson Global Investors.

BP shares soared 7% to a six-month high on the FTSE 100 yesterday as compensation payouts for its spill in the Gulf of Mexico looked set to be lower than expected.

London opened marginally weaker on Wednesday, continuing the softer trend seen towards the end of Tuesday's session, with retailers in focus in early trading.

The US Federal Reserve will push ahead with its $600bn (£385bn) stimulus programme - dubbed QE2 - as it is not convinced by improved economic data in the US, meeting notes show.

Manufacturing grew at its fastest pace for 16 years in December, an industry survey suggests.

Four sector specific funds have taken the top performing slots in the newly-named IMA Global sector after moving across from the Specialist peer group.

Investec multi-asset managers Philip Saunders and Max King outline seven key themes for investors in 2011:

PIMCO's CIO Bill Gross has recommended investors look to non-US dollar bonds on the view the US dollar will continue to devalue.

JO Hambro Capital Management has hired a pair of former Thames River European fund managers to launch a dynamic fund next month.

Economics research firm IHS Global Insight has revealed its predictions for the UK economy in 2011, forecasting GDP growth of 1.8% and average CPI inflation of 3.2% over the course of the year.