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Madrid was dealt a double blow on Thursday after it emerged that almost €100bn in capital had left the country in the first three months of the year and the head of the European Central Bank lambasted its handling of Bankia, the troubled Spanish lender.

James Gorman, Morgan Stanley chief executive, has defended his bank’s performance as lead underwriter on Facebook’s public offering, despite waves of criticism from investors and a potential legal review of the deal’s marketing, the Financial Times reports.

JPMorgan Chase is spinning out the “special investments group” from its troubled chief investment office as executives clean up the division that caused $2bn trading losses, say people familiar with the matter. The FT reports.

Graff Diamonds has pulled its planned $1 billion Hong Kong IPO less than two days before its deadline – the latest sign of weakness in global equity markets.

Millionaires are still rare in Poland, but  luxe goods are no longer a rare sight in Warsaw's shops and streets.

This time, India may not be available to help revive an ailing global economy: The rupee is down, investment is down; inflation is up and so are deficits.

When Mariano Rajoy climbed the victory podium in November, having won the biggest electoral majority in his party’s history, he would never have imagined that six months later his country’s destiny could be slipping out of his hands. The FT reports.

A Spanish plan to recapitalise Bankia, the troubled lender, by indirectly tapping the European Central Bank for cash, was bluntly rejected as unacceptable by the ECB, European officials said, the Financial Times reports.

Faced with so much market volatility and uncertainty, fund managers say they have sharply scaled back their exposure to countries in the euro-era “periphery”. They have, moreover, become highly selective about investing in banks, the Financial Times reports.

Newedge, a leading broker, is abandoning the Greek stock market in a sign of mounting concern over the country’s future in the eurozone, the FT reports.

The technocratic government of Mario Monti has made significant progress towards overhauling Italy’s economy since it came to office last year, but has not done enough to combat tax evasion and the country’s sizeable black economy, an EU finding to be released this week has determined, the Financial Times reports.

Spain, Italy and Greece, already fighting a financial and economic crisis, are now facing an oil crisis. Olive oil, that is. the Financial Times reports.

Earlier this month, I asked the leaders of a group of U.S-based companies what – if anything – they were doing to prepare for “Grexit”, or a possible exit of Greece from the euro zone. The responses from the manufacturers were rather vague. The FT reports.

Some of Europe’s biggest fund managers have confirmed they are dumping euro assets amid rising fears over a possible Greek exit from the euro zone and single currency turmoil, the Financial Times reports.