It emerges from an poll, conducted by the Global Alliance of Investors, dealing with institutional investors in Europe, that 80% of those questioned, believe in the ability of the euro to cope with current challenges. British investors are less optimistic.

We have exhausted our recourse to borrowing. Other ways must be found if we want to avoid general bankruptcy

The current trend on european small cap will continue, reversing a period of almost ten years in which small caps performed better than large caps. In the period ahead investors should think big, focussing on large companies with fat balance sheets and generous dividends.

Mike Story, economist at Western Asset Management, analyses the outcome of the four potential scenarios to the Eurozone crisis: no Eurozone restructuring, orderly Eurozone restructuring, disorderly Eurozone restructuring or Eurozone implosion.

The Euro is, in principle, the common currency of the Europeans, however the crisis of sovereign has uncovered something completely unexpected and previously hidden. The Euro is, in fact, proving itself to be a foreign currency.