UK

UK funds blossomed in May as, despite UK sectors seeing outflows, four were placed in the top 20 overall selling funds, according to figures from platform Cofunds.

Supervision of the scandal hit Libor interest rate could move to Paris under plans being drawn up by the European Commission, dealing a potential blow to London's financial pre-eminence.

Britain's recovery is gathering momentum on the back of a "stunning" resurgence in manufacturing, economists said, as advertising spending - another economic bellwether - bounced back to levels not seen since the recession struck.

Investor complacency and a "feeding frenzy" for yield represent the biggest current threats to investors, according to David Coombs, head of multi-manager investments at Rathbones.

F&C's co-head of multi-manager Gary Potter - a self confessed bear on Japan for many years - said the country is turning around for the first time in two decades.

The UK's stagnating economy avoided a triple-dip recession today after initial estimates showed it expanded 0.3% in the first quarter of 2013.

Ratings agency Fitch has downgraded the UK to AA+ from AAA, citing a weaker economic and fiscal outlook.

Investors who go it alone will have to dedicate ten hours a week to managing their portfolio in order to beat inflation, according to one external asset manager.

Gottex Fund Management is to take a majority stake in UK multi-asset boutique Frontier Investment Management.

Neil Woodford, manager of Invesco Perpetual's £20bn Income fund range, has become more cautious on UK equities after a strong six-month showing from the FTSE 100.