Portugal

As Michael Lewitt says, "the interconnected nature of global financial markets render Europe's problems the world's problems. There is no longer any periphery."

The question is not whether Greece will default but what will happen once it has. If Greece defaults but stays in the euro, not only will it not solve the underlying lack of competitiveness, but markets will immediately turn their attention…

Moody's has "heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilisation targets". They conclude that will result in "growing risk that Portugal will require a second round of official…

As had been anticipated, the Greek parliament has approved the austerity measures along party lines. The parliament will vote on the implementation bill tomorrow. This may be a bit stickier, but it too is likely to pass. Assuming so,…

William Black writes that the non-payment of debt – including bank debt – by the nations on the periphery would lead to severe banking crises and a return to recession in the core of eurozone. This is what is behind the stance of the ECB,…

Various news wires are reporting leaks of the IMF/EU/ECB review of Greece. Apparently they are concluding that the implementation of the conditions for last year's aid package have ground to a halt. They are also concluding that the Greece…

There is unlikely to be a dramatic market reaction to the Portuguese election results. The news stream from Greece is seen as more important.

Greece is clearly insolvent. The Europeans should put a plan in place to deal with Greece and to reduce contagion. The contagion to Italy and Belgium is happening because of uncertainty and the inability to put forward a credible solution…

It bears remembering that the German banks are very exposed to the periphery as we contemplate the Spiegel article on Greece's alleged desire to defect from the euro zone.

The euro took another leg lower in thinned afternoon North American markets after Der Spiegel online reported that Prime Minister Papandreou is contemplating a Greek exit from the euro zone and that the EC is calling a "confidential"…