Media playback is unsupported on your device

Portuguese bank 3.6bn euros loss 'deeply concerning'

1 August 2014 Last updated at 12:16 BST

The share price of Portugal's largest private lender, Banco Espirito Santo, dropped by more than 40% on Thursday after the bank posted a record loss of 3.6 billion for the first half of the year.

The troubled bank said "extraordinary events" had resulted in costs totalling 4.25bn euros during the period.

Bill Blain, chief strategist at Mint Partners, said the bank's loss is "deeply concerning" and could lead to a "reignition" of the sovereign debt crisis seen in Europe from 2010-12.

First broadcast on BBC Radio 4's Today programme on Friday 1 August.

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.