EUROZONE-GREECE/UK STOCKS-ANALYSIS Greece 'No' vote means 70-80% chance of a Grexit - analyst

Record ID: 148245

  • Title: EUROZONE-GREECE/UK STOCKS-ANALYSIS Greece 'No' vote means 70-80% chance of a Grexit - analyst
  • Date: 6th July 2015
  • Summary: LONDON, ENGLAND, UK (JULY 6, 2015) (REUTERS) VARIOUS OF PEOPLE ON PHONES ON TRADING FLOOR (SOUNDBITE) (English) MARKET ANALYST, BGC PARTNERS, MIKE INGRAM, SAYING: "It doesn't really matter which way the vote went in a way because Greece either goes soon or at some point in the not too distant future. So it is effectively down to timing. A no vote on a lot of people's recko
  • Embargoed: 21st July 2015 13:00
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  • Topics: General
  • Reuters ID: LVADXYPO4D6AP25D30IOUIYGB97P
  • Aspect Ratio: 16:9
  • Story Text: European bank shares fell almost 2 percent on Monday (July 6) after Greeks overwhelmingly rejected conditions of a rescue package from creditors, throwing the future of its banks and its eurozone membership into doubt.
    Greece's banks could run out of cash within days and the European Central Bank's (ECB) decision about whether to extend emergency liquidity will be crucial.
    In a referendum on Sunday (July 7), Greeks overwhelmingly rejected conditions of a rescue package from creditors. Official figures showed 61 percent of Greeks had rejected a deal that would have imposed more austerity measures on an already ravaged economy.
    Mike Ingram, market analyst at BGC Partners in London said that Greece looks like it's moving closer to a break up from the Eurozone.
    "It doesn't really matter which way the vote went in a way because Greece either goes soon or at some point in the not too distant future. So it is effectively down to timing. A no vote on a lot of people's reckoning probably translates into something like a 70-80% chance of a Grexit," he said.
    Ingram added that the 'No' vote has had a negative effect on the markets.
    "The epicentre here of course is Greek debt itself. Where the two year bond is now trading at just 42 cents on the dollar, clearly discounting a significant credit event in the not too distant future and also the Euro was initially under some pressure, coming back a little bit, but of course difficult to argue that you should be buying the Euro heavily at this point in time."
    In Asia, shares in Hong Kong suffered their biggest one day fall in 3 years, as investors worried that the Greek debt crisis could deepen. In London, the blue-chip FTSE 100 index fell less than other European markets, with some traders saying Britain was benefiting from being viewed as a relative "safe haven" away from the problems of the eurozone.
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