UK

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.

Yields on UK government debt were climbing early this morning following Moody's decision to downgrade the UK's credit rating to Aa1, but equity investors shrugged off the news to send markets higher.

Moody's has stripped the UK of its AAA credit rating on fears over rising government debt and years of slow economic growth ahead.