greece

F&C Thames River bond duo Peter Geikie-Cobb and Paul Thursby have warned German bunds are ‘extraordinarily' overvalued and in line for a major correction.

SAVING THE EURO

Former Prime Minister Sir John Major has told the BBC Europe must recapitalise its banks and Greece "needs to default" on its debts, to help bring an end to the eurozone debt crisis.

TOUGH CHOICES AHEAD

SOLVING THE DEBT CRISIS

Cazenove's European fund manager Chris Rice has said he expects policymakers across Europe to stand firm and keep the eurozone intact despite growing expectations parts of it will break away.

News that Greece will fail to meet deficit reduction targets pushed the FTSE 100 down 2.8% at open, dragging it below 5,000 points.

German MPs have voted in favour of increasing the country's commitments to the European Financial Stability Facility as part of an expansion of the bailout fund.

Bob Michele, global CIO of fixed income and currency at J.P. Morgan Asset Management, has said Greek bond holders should take a huge hit to help resolve the debt crisis in Europe.

Markets have broken their three-day rally this morning, forced down by concerns some countries will be forced to take larger writedowns on Greek bonds.