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BIG INTERVIEW

ITALY

Angela Merkel and Francois Hollande will meet later this week to decide on whether to ease the terms of Greece's bailout package after the country yesterday pleaded for more time.

Greece is seeking a two-year extension to its austerity programme from the European Union and IMF as it struggles to find room for another €11.5bn of spending cuts.

Italian Prime Minister Mario Monti has described a psychological rift deeply ingrained within the eurozone that could potentially rip Europe apart.

Spain has sunk further into recession, after official data showed its stricken economy shrank by 0.4% in the second quarter of this year.

The European Central Bank (ECB) could face extended losses as it prepares a last-ditch attempt to prevent a Greek exit from the eurozone.

Investment bank Citigroup has forecast a 90% chance Greece will leave the euro in the next 12 to 18 months.

Investors have had to reassess their strategies to stand out from peers in recent months, as range-bound markets play havoc with long-held approaches.