Economics / Markets

This week: Tony Yousefian, CIO at OPM Fund Management, asks if the €750bn bail-out fund is a short-term fix for the euro or a long-term solution.

Bank of England governor Mervyn King yesterday set out his reasons for the overshoot of CPI inflation last month in a letter to new Chancellor George Osborne. They were all dubious, says Henderson chief economist Simon Ward.

George Osborne is set to announce cuts to corporation tax tomorrow in an effort to defuse the controversy over plans to increase capital gains tax (CGT).

The Consumer Prices Index (CPI) hit a 17-month high of 3.7% in April, forcing Bank of England Governor Mervyn King to write to new Chancellor George Osborne to explain why.

The FTSE has made steady gains in afternoon trading as London shares were buoyed by the Dow's positive start to trading and concerns over the EU debt fallout subsided.

The FTSE 100 edged higher in early afternoon trading Monday on optimism BP is beginning to take control of the oil spill in the Gulf of Mexico, but the euro continues to languish.

Investors are risking their money by moving it in an over-optimistic reaction to the UK political deal, Bestinvest warns.

The FTSE suffered a sharp drop in afternoon trading to close more than 3% in the red as concerns over EU debt and another Greece bomb attack rattled markets.

Prudential's plans to buy AIG's Asian business edged a step closer as regulators look set to approve the deal.

The Cautious Managed sector was the top seller on Cofunds in April whilst UK All Companies saw a net outflow as the uncertain political situation weighed heavily on investor sentiment.