Turmoil hits the financial world as Greek banks are shut for a week, triggering a new phase of the eurozone crisisIntroduction: Deepening crisisCapital controls: the key points 7.57am BST The Economist Intelligence Unit reckons Grexit is now more likely than not:#Greece referendum is game changer. Team revise probability of Grexit to 60%. Vote likely to either reject bailout deal, or reject Gov. 7.56am BST Mohamed El-Erian, the chief economic adviser at German financial services firm Allianz, believes there is only a 15% chance that Greece will stay in the eurozone.“There’s an 85 percent probability that Greece will be forced to leave the euro zone.” “What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it’s going to make continued membership of the euro zone very difficult for Greece. 7.50am BST Overnight, the Greek government released details of its capital control measures..Here are the key points: 7.44am BST Overnight, markets from Mumbai to Tokyo were rattled by the Greek debt crisis: 7.37am BST Good morning. Continue reading...
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