UK

The International Monetary Fund has raised its forecast for UK growth this year in the face of sharp cuts to world, US, eurozone and emerging market predictions as it warned that "downside risks to global prospects still dominate".

An offshore property fund investing in student accommodation around the UK has been hit with claims investors cannot redeem their investments.

ON UK INCOME

Aviva Investors head of equities David Lis lists financials, media, mining, support services and smaller companies as the places he is seeing the most value in the UK equity market.

The UK economy grew by 0.6% in the three months ending May, driven primarily by growth in the production and private services sectors, according to the National Institute of Economic and Social Research (NIESR).

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.