Portuguese government to collapse within 48 hours

The chief economist at Saxo Bank has said that the Portuguese government will fall in the next 48 hours, according to Portuguese media. Protestors assembled in Lisbon last night - the banner above reads "obviously, you are dismissed".

Steen Jakobsen, chief economist at Saxo Bank, said "Portugal will ask for a second bailout in the next six months. Especially because the yields to 10 years and 8% are unsustainable."


Despite the refusal of the Prime Minister to resign, more ministers are expected to announce their resignation today, following two high-profile ministers quitting over the past two days.

The Eurogroup chief still expects Portugal to continue with its austerity programme.