Europe

Citigroup's top economist Michael Saunders has forecast Greece will exit Europe's single currency on 1 January 2013, and its new currency will immediately depreciate by 60%.

The worse-than-expected decline in UK GDP is likely to spur the Bank of England into injecting another £50bn into the economy next month, said Henderson's Simon Ward.

EUROPE

German Chancellor Angela Merkel and other senior European Union (EU) officials last night called on Greece to shelve plans to quit the single currency and urged it to see out its austerity programme.

European equity markets have given up all yesterday's gains as investors remain on the back foot ahead of today's EU summit.

Greece will stay in the euro despite on-going political instability as the potential economic fallout from its exit would significantly hit global markets, a fund manager has said.

David Cameron will urge eurozone leaders to "make up or break up" today as he fears the euro unraveling will further dent the British economy.

EUROPE

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