Big EU fund managers on collision course over the pound

London

SOME of Europe's biggest fund managers are set for a face-off on how best to trade the UK's first potential interest-rate increase in a decade.

Allianz Global Investors GmBH is looking to fade any rally in the pound or a slump in gilts, betting that the Bank of England won't signal further policy tightening given lingering economic and political risks. Fidelity International has a similar view.