Eurozone

Annual eurozone consumer price inflation rose to a 16-month high of 1.5% in April, driven by rising energy prices, according to data released last week by Eurostat.

Fund managers are predicting the downfall of the beleaguered euro, with M&G bond vigilante Richard Woolnough among those forecasting an end to the single currency.

Fund managers fear strong near-term pressures on gilts and sterling after the market reacted poorly to a hung parliament last week.

Insight head of currency Dale Thomas believes the European Central Bank will need to pump billions into the perhiperal Europe to alleviate the debt spiral and pressure on the single currency.

Greece has agreed to make major austerity cuts in return for a huge 100bn euro bail-out from the eurozone and the IMF.

Greece has agreed the outline of a €24bn (£21bn) austerity package, including a three-year wage freeze for public sector workers, in return for a multibillion-euro loan from the eurozone and the International Monetary Fund, according to people familiar...

The eurozone is not offering Greece enough cash to get it through the debt refinancing is faces this year, managers believe.

Greece bowed to international pressure last week by formally requesting a bailout from the eurozone member countries and the International Monetary Fund.

Morgan Stanley has warned Germany could withdraw from the eurozone as the fallout from the Greek debt bailout continues.

Eurozone members have pledged up to €30bn in loans to Greece over the next year to help dodge a debt crisis which is seen as most serious challenge in the euro's existence.