May 14: Spanish deflation fears hit euro

Fears of deflation in Spain spooked European markets on Friday, sending the euro to new 14-month lows and the Eurofirst 300 index down 1.7 per cent, led by sharp declines in Spanish equity markets. Rob Budden, deputy markets editor, talks to Daniel Garrahan about why the historic Greek bailout earlier this week hasn't eased fears in the markets about the debt crisis spreading.