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Greeks say No

Greeks say No

So after a week long of “Will they? Won’t they?” the results from the Greek Referendum showed that the Greeks voted “NO”. The bailout package which was no longer on offer, has been retrospectively rejected by the Greek people and so it is back to the drawing board for PM Tsipras and the Eurogroup leaders.

Negotiations will be held without the outspoken Finance Minister Varoufakis who had previously stated that he would not continue in his role if the “yes” votes succeeded. He also said he would rather cut off his arm than agree to the current terms. Fortunately it has not come to that, but he has seen fit to resign.

So, where do we go from here? Well, according to PM Tsipras, we’re going back to the negotiating table. With the strong backing from the Greek people, he is hopeful a new deal which is much more beneficial for his electorate will be agreed within the next 48 hours. Unfortunately, I’m not convinced negotiating works this way, and he could find that he has an even more resolute Eurogroup to deal with. The situation is worse than it was when the bailout was initially offered and the Greeks are running out of money and time. Major banks are now factoring in a Grexit.

This morning, there will be a conference call between the Heads of the European Commission, Eurogroup and ECB, and tomorrow there is a meeting between the Heads of State of the Eurogroup. In the very short-term, Greek banks are running out of physical cash so these matters need to be resolved as soon as possible.

Surprisingly, there has not been huge levels of volatility just yet with the Euro standing relatively firm but this could change when US markets open and with any further news…

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