Europe still in a credit crunch environment says RBS

Alberto Gallo, head of European credit strategy at Royal Bank of Scotland, talks about Greece’s second bailout package, its impact on private investors, and the outlook for Europe’s credit markets and banking industry. Gallo speaks on Bloomberg Television’s ‘In Business With Margaret Brennan’.

He reckons Europe is still in a credit crunch environment with capital outflows in the eurozone periphery countries also continuing. The fundamentals remain challenging for Greece. Banks are taking losses on bonds while the ECB is not, setting a bad precedent. The near term picture is improved but that is all.