US

The FSA has signed an agreement to share confidential information with US state regulators, in a deal the Americans say may be at the forefront of a trend towards collaborative regulation.

Three European asset management firms have accused banks including Bank of America Corp., JPMorgan Chase & Co., HSBC Holdings Plc, Barclays Bank Plc and Credit Suisse Group AG of conspiring to manipulate Libor.

Warren Buffett, Bill Gross and UK fund stars including Jim Leaviss have seen their warnings on US treasuries proved right as S&P downgraded its outlook for US credit.

The US equity market has experienced an about-turn and is offering investors a wealth of opportunities, writes Mark Piper, co-fund manager of the Collins Stewart Select Opportunity fund.

GDP figures for Q4 2010 have been revised up to 3.1% from the 2.8% forecast last month, helped by a rise in consumer spending and businesses restocking their inventories.

The Dow Jones posted strong gains in early trading on Thursday as a cooling operation at the tsunami-hit Fukushima Daiichi nuclear plant eased investor fears.

US GDP grew to an annualised rate of 3.2% in Q4 2010, driven by consumer spending.

The Dow Jones broke through the 12,000 level for the first time since June 2008 on Wednesday, following calls for a cut in corporate taxes and a unanimous vote by policymakers to maintain a $600bn bond-buying plan.

The combination of high valuations for US bonds and large retail inflows suggests a bubble about to burst, says Henderson's Simon Ward.

Ruth Lea, economic advisor to the Arbuthnot Banking Group and senior fellow of the Adam Smith Institute, says 2011 holds some room for optimism but overall the near future isn't bright.