fiscal policy

The S&P 500 has opened down 1.4% and the Dow Jones Industrial Average has shed 200 points in the first trading session after President Obama's election victory.

US FISCAL CLIFF

The manager of the world's largest bond fund has pointed to the US, UK, Spain, France, Japan and Greece as serial debt addicts whose government borrowing is spiralling out of control.

The Japanese government is being forced to consider suspending state spending as it emerged it could run out of cash within a month.

The International Monetary Fund has trimmed its US GDP forecasts and warned the nation's economic recovery remains fragile.

PIMCO's chief executive Mohamed El-Erian described Chancellor Merkel's decision to insist on fiscal reform as a ‘burden' to an already challenged political construct that is trying to restore order.

The debt position of Greece, officially Europe's most indebted country, is set to be to worse than previously expected this year.

Riskier assets will benefit from benign monetary policy in the short term but frequent bouts of investor doubt will increase volatility, Aberdeen's Mike Turner believes.

With the end of the recession in sight, investors in the US need to be wary of the example of Japan's markets in the 1990s and beware of broad-based economic deflation