Morgan Stanley warns of 35% chance of eurozone collapse

In a note sent out to clients on Friday the firm raised its in-house forecast of a eurozone collapse by 10%, now giving it a 35% chance of happening. In the note, from Morgan Stanley's European research team, it said: "While a eurozone break-up is not our base case scenario, we raise our subjective probability to 35% from 25%." Morgan Stanley also reduced the timescale of a possible break up to 12-18 months, from its previous forecast of five years. In the note the investment bank maintains the most likely scenario from Greece exiting the single currency will be an eruption of cont...