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| Greece crisis: Will Greek troubles spill over to the rest of Europe and UK? | |
| (about 17 hours later) | |
| How worried should we be about Greece? According to the Bank of England there has been no sign so far that the crisis is spreading to other vulnerable nations in Europe, such as Spain and Portugal, let alone to stable countries like the UK. | How worried should we be about Greece? According to the Bank of England there has been no sign so far that the crisis is spreading to other vulnerable nations in Europe, such as Spain and Portugal, let alone to stable countries like the UK. |
| But Jon Cunliffe, the deputy governor of the Bank of England, said on Thursday that they were monitoring the situation in Greece very closely in case that changes. | But Jon Cunliffe, the deputy governor of the Bank of England, said on Thursday that they were monitoring the situation in Greece very closely in case that changes. |
| "It's a very volatile situation. It's a very fluid situation. It is a very dangerous situation.... We have to prepare for the worst," he said. | "It's a very volatile situation. It's a very fluid situation. It is a very dangerous situation.... We have to prepare for the worst," he said. |
| Today's business podcast: @bankofengland Dep Gov Jon Cunliffe told @SimonJackToday the Greek crisis is very dangerous http://t.co/XOQAdStlhn | Today's business podcast: @bankofengland Dep Gov Jon Cunliffe told @SimonJackToday the Greek crisis is very dangerous http://t.co/XOQAdStlhn |
| What are the potential knock on effects for Europe and the UK? | What are the potential knock on effects for Europe and the UK? |
| In Greece, pensioners are fighting for their weekly allowance after the banks opened to serve them. | In Greece, pensioners are fighting for their weekly allowance after the banks opened to serve them. |
| Experts say pensions in the rest of Europe should be safe, however. | Experts say pensions in the rest of Europe should be safe, however. |
| Laith Khalaf, a senior analyst at Hargreaves Lansdown, said that UK investors have little direct exposure to Greece, however they do have considerable exposure to Europe, where sentiment is clearly sensitive to the twists and turns of the ongoing Greek saga. | Laith Khalaf, a senior analyst at Hargreaves Lansdown, said that UK investors have little direct exposure to Greece, however they do have considerable exposure to Europe, where sentiment is clearly sensitive to the twists and turns of the ongoing Greek saga. |
| Pensioner wait to get their pensions outside a National Bank of Greece branch in central Athens on July 2, 2015, as banks only opened for pensioners to allow them to get their pensions, with a limit of 120 euros. "UK shares are also susceptible to setback, not too surprising seeing as Europe is our largest trading partner and economic distress over there is inevitably going to ripple across the Channel," Khalaf said. He estimated that the typical UK pension fund has around 15 per cent invested in Europe and around 35 per cent invested in the UK. | Pensioner wait to get their pensions outside a National Bank of Greece branch in central Athens on July 2, 2015, as banks only opened for pensioners to allow them to get their pensions, with a limit of 120 euros. "UK shares are also susceptible to setback, not too surprising seeing as Europe is our largest trading partner and economic distress over there is inevitably going to ripple across the Channel," Khalaf said. He estimated that the typical UK pension fund has around 15 per cent invested in Europe and around 35 per cent invested in the UK. |
| UK pensions will only be affected if the crisis spreads to Europe. "Far from a tidal wave of economic destruction, as some doomsday economists have predicted, the prospect of a Greek exit from the Euro has been on the cards for a number of years and most European nations have been prepared," said Chris Williams, ceo of Wealth Horizon, an online investing advisory service. | UK pensions will only be affected if the crisis spreads to Europe. "Far from a tidal wave of economic destruction, as some doomsday economists have predicted, the prospect of a Greek exit from the Euro has been on the cards for a number of years and most European nations have been prepared," said Chris Williams, ceo of Wealth Horizon, an online investing advisory service. |
| Don’t worry if you have a holiday to Greece booked. Now could actually be a good time to go. Neither the UK Treasury nor the Foreign Office has issued travel warnings related to Greece. | Don’t worry if you have a holiday to Greece booked. Now could actually be a good time to go. Neither the UK Treasury nor the Foreign Office has issued travel warnings related to Greece. |
| Travellers are asked to take as much cash as they will need for their stay – but prices in Greece are much cheaper than they were before the crisis started. | Travellers are asked to take as much cash as they will need for their stay – but prices in Greece are much cheaper than they were before the crisis started. |
| The situation is unlikely to worsen during a two-week stay. If Greece were to leave the euro, it would take around 18 months for the drachma to be reintroduced, during which time the euro would still be the legal currency. | The situation is unlikely to worsen during a two-week stay. If Greece were to leave the euro, it would take around 18 months for the drachma to be reintroduced, during which time the euro would still be the legal currency. |
| "Looking back to the last time that things reached a head in Greece in 2013, the short term impact was a lack of availability of cash at ATMs and a reluctance by shops and restaurants to accept credit or debit cards," said Andrew Brown, spokesperson for Post Office Travel Money. | "Looking back to the last time that things reached a head in Greece in 2013, the short term impact was a lack of availability of cash at ATMs and a reluctance by shops and restaurants to accept credit or debit cards," said Andrew Brown, spokesperson for Post Office Travel Money. |
| Tourists holding off their holidays to Greece is hurting travel companies like Tui and Thomas Cook. Analysts from the investment bank Credit Suisse have said that Greece makes up 15 per cent of summer bookings for Tui, a tour operator in the FTSE 100 most profitable UK companies and Thomas Cook. Shares in both firms crashed this week. | Tourists holding off their holidays to Greece is hurting travel companies like Tui and Thomas Cook. Analysts from the investment bank Credit Suisse have said that Greece makes up 15 per cent of summer bookings for Tui, a tour operator in the FTSE 100 most profitable UK companies and Thomas Cook. Shares in both firms crashed this week. |
| Carphone Warehouse owner Dixon Carphone, which has a Greek electricals business called Kotsovolos, and Marks & Spencer, which has 28 stores in Greece, have been particularly badly affected. | Carphone Warehouse owner Dixon Carphone, which has a Greek electricals business called Kotsovolos, and Marks & Spencer, which has 28 stores in Greece, have been particularly badly affected. |
| HSBC tops the list of European banks that could be affected by the crisis – it has $6 billion of Greek assets, or around 3.7 per cent of its total net asset value. | HSBC tops the list of European banks that could be affected by the crisis – it has $6 billion of Greek assets, or around 3.7 per cent of its total net asset value. |
| Property companies, however, could benefit as rich Greeks look to invest overseas. | Property companies, however, could benefit as rich Greeks look to invest overseas. |
| "Middle-class Greeks are looking to acquire London property as a hedge against the effects that a return to the drachma would have on pensions and similar investments they hold in Greece," said Camilla Dell, managing partner at Black Brick, a property agency. | "Middle-class Greeks are looking to acquire London property as a hedge against the effects that a return to the drachma would have on pensions and similar investments they hold in Greece," said Camilla Dell, managing partner at Black Brick, a property agency. |