News

The American economy is not headed for a double dip recession and is likely to gradually strengthen over the coming year, US Treasury Secretary Timothy Geithner believes.

Ignis' chief economist Stuart Thomson believes another round of quantitative easing "on a larger scale and over a longer period" is needed on both sides of the Atlantic to avoid a double-dip recession.

Managers expect the gold price to rebound back to all-time highs in the current uncertain environment, despite the dip seen over the past month.

Martin Currie is planning a raft of new launches, fund changes and an increased focus on investment trusts following an 18-month strategic review.

Fund rationalisation is expected to continue in the near term after the number of closures and mergers last year climbed to its highest level since 2005.

The UK's four major banks have passed EU stress tests, although five Spanish banks failed, the Committee of European Banking Supervisors (CEBS) said.

UK GDP increased by a surprise 1.1% in the second quarter, almost double the consensus estimate.

The FTSE 100 has opened flat following yesterday's climb as markets await European bank stress tests results.

UK equity income managers say companies are beginning to pay dividends again, despite research forecasting a decline in UK dividends of 6.5% this year.

Several of Spain's 18 savings banks have failed tests to see how they would cope with worsened economic conditions, according to reports.