No respite for banks

Following the European Central Bank's (ECB) decision earlier this year to prop up the euro - through buying up the bonds of the eurozone's weakest members - sentiment towards the banks has improved markedly. That decision has, says Barry Norris, founding partner of fund manager Argonaut Capital, "convinced markets that the threat of a sovereign default is now minimal". Indeed, bank shares have recovered strongly since the summer - Lloyds' shares, for example, have soared by over 80 per cent since early June. But just because a eurozone break-up now looks less likely, investors shouldn't assume that all is well in the banking sector - it's far from it.

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