Economics / Markets

PIMCO's Bill Gross, manager of the world's biggest bond fund, has apologised to his investors for a "stinker" of a year after failing to anticipate the fear driving markets since the summer.

Ernst & Young has downgraded its forecast for UK gross domestic product (GDP) to just 0.9% this year - significantly below the 1.4% it predicted three months ago - as it described the economic situation "worse than we thought".

Standard & Poor's has delivered another blow to sentiment across Europe after cutting Spain's long-term credit rating by one notch, from AA to AA-.

Banks shares extended losses this afternoon as Fitch Ratings downgraded Lloyds and RBS' long-term credit rating from AA- to A and placed Barclays on a negative watch.

An asset manager best known for winning a Sunday Times fantasy fund manager competition before establishing his own investment business has outperformed every one of his peers over the last three months, as markets suffered.

Eurozone banks may have to raise €200bn to boost their capital reserves under a proposal from the European Banking Authority (EBA).

A corrupt cop, dodgy tax collector and the bad guys will win from compulsory pensions; our round up of this morning's news from the nationals.

UK gilts extended declines as the Bank of England refused to buy bonds maturing in 2017 in Monday's auction, after traders aggressively drove up prices.

The S&P 500 closed up 3.4% overnight, boosting Asian shares and lifting the US index nearly 11% from lows seen last week.

George Osborne has insisted that British banks would "ride out the storm" of the eurozone crisis.