DESPITE ELECTION RESULT IN GREECE, EURO ZONE STILL FACING MANY PROBLEMS - One investment risk and analysis firm is still advising clients that even if Greece were to leave the euro it doesn't have to spell disaster either for Greece or the single currency. Nick Bullman, the founder of investment risk and analysis firm CheckRisk, says there is an immediate sense of relief around the world after pro-bailout conservatives came ahead in a Greek election. He says a major negative has been taken off the table, but that risks remain and the next 72 hours are going to be critical for both Greece and the euro zone.
Mr Bullman says that the euro zone issues are much bigger than the results of the Greek election. He says that Spain looks like it needs much more than the €100 billion it has secured for its banking sector. The problems are expected to spread from Spain to Italy and maybe even to the French banks. He says the only way to deal with the euro zone problems is to deal with growth, insolvency and liquidity in one go. The analyst says there is no point in dealing with any of these problems on their own, they have to be sorted together. He predicts the euro zone will break up into north-south blocks and adds that he is advising his clients to stay clear of investing in the euro zone for now.
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MORNING BRIEFS - Greece will likely dominate the G20 meeting of the leaders of the world's wealthiest nations which kicks off today in Mexico just as it did the last summit in November. Coinciding with that G20 meeting in Cannes, the then Greek prime minister George Papandreou caused a stir by proposing to hold a referendum on Greece's bailout programme. Six months on and it seems very little has changed - the euro zone debt crisis is no closer to a solution, the markets are roiling and once again Athens is the epicentre of the crisis.
*** A probe by the UK's competition commission into Ryanair's near 30% stake in Aer Lingus begins this week.
Separately trade union Unite is warning of likely passenger disruption as a result of possible industrial action this summer. That follows Aer Lingus' decision to exit a lease on a maintenance hanger at Shannon airport and move most of its long haul aircraft maintenance operations to Dublin. Unite said it presented Aer Lingus with alternatives to match the estimated €1.5m in savings from that move but the union says it was met with a "frosty" reception by the company. Aer Lingus says it is still in consultation with staff and unions about the potential relocation of maintenance operations to Dublin.
