New York Times | The Greek Rules Wall Street Journal Inspectors from the International Monetary Fund are disputing €2 billion of the €13.5 billion savings package that the Greek government unveiled Monday. The budget police say that Athens's plan for laying off civil servants is too vague. They've asked ... Greek Government Proposes Deep Cuts in Bid to Please Foreign Lenders Greek 2013 budget sees sixth year of recession Greek Budget Predicts Economy Will Shrink for Sixth Year |
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Tuesday, October 2, 2012
The Greek Rules
Stocks End Mixed, but Spain Worries Linger
CBC.ca | Stocks End Mixed, but Spain Worries Linger CNBC.com Stocks finished mixed in volatile trading Tuesday, but uncertainty over the timing of Spain's bailout request and ongoing fears over the slowing global economy put a lid on gains. “The market's swinging around and there's no conviction—people are ... US Stocks Slump as Hope Wanes for Spain's Bailout Request Euro Rises a Second Day as Spanish Bailout Speculation Persists S&P 500 Falls as Spain Says Bailout Not Imminent; Aussie Slumps |
UPDATE 1-Greece pushes for austerity deal as time runs short
Economic Times | UPDATE 1-Greece pushes for austerity deal as time runs short Reuters ATHENS Oct 2 (Reuters) - Greece held a new round of talks with foreign lenders to bridge differences over 2 billion euros of disputed austerity cuts on Tuesday, with time running short to clinch a deal before a meeting of euro zone ministers next week. Greece Submits 2013 Budget Draft as Bailout Talks Resume Greece Proposes Another Austerity Budget, Its Lenders Decide It's Not Cruel ... |
Orders being taken for Greek pastries
Orders being taken for Greek pastries The Citizen.com The annual holiday Greek Pastry Sale for Philoptochos (Friends of the Poor) of St. Christopher Hellenic Orthodox Church is now taking place. Pastries include Spanakopita (buttery filo triangles of spinach, feta, cream cheese, eggs and onions), Tiropita ... |
US's $60 Trillion Debt Burden Rivals That of Greece: Gross
CNBC.com | US's $60 Trillion Debt Burden Rivals That of Greece: Gross CNBC.com Were the U.S. to include its current entitlement program liabilities and U.S. government bonds, the country would have an eye-popping debt burden that dwarfs Greece and could engulf the economy in a "ring of fire", Pimco founder Bill Gross said on CNBC ... PIMCO's Gross says indebted US to resemble Greece US could start to look like Greece if it doesn't act, Pimco's Bill Gross warns ... America could 'resemble Greece' before 2020 |
Spain's PM says bailout not imminent
Mariano Rajoy dismisses speculation he is close to negotiating rescue package that could release €400bn in EU loans
Spain's prime minister, Mariano Rajoy, has ruled out a multi-billion euro bailout before this weekend, despite the worsening economic situation and pleas from Madrid's neighbours for a resolution to the current crisis.
Rajoy dismissed persistent speculation at a meeting of MPs that he was close to negotiating a rescue package with Brussels that could release up to €400bn in EU loans.
His comments sent stock markets into reverse after a rally earlier in the day that gained momentum as a bailout appeared imminent.
The FTSE fell 11 points to 5809 after a climb of 60 points in the morning on the expectation of a bailout announcement.
Rajoy said Spain's financial situation would be helped if the 17 regional governments succeeded in cutting their annual spending deficits.
Traders have become mesmerised by the twists and turns of the Spanish economy as it gets closer to joining Greece, Portugal and Ireland in formally requesting rescue funds from the European Financial Stability Facility.
Rajoy, who is becoming notorious for prevarication, is understood to have asked for a delay until after elections in his home region of Galicia set for next month.
The prime minister fears his PP party will lose the election if he is forced to accept a humiliating rescue package in advance of the vote.
Angela Merkel, the German chancellor, is believed to have acceded to his request, after arguing that it would be easier for Brussels to focus on Madrid after Greece had been given the all-clear to receive its second bailout package.
Talks between Greece and its lenders are dragging on as officials say the International Monetary Fund insists on stricter spending cuts before releasing funds.
Troika officials have reportedly cast doubt over as much as €3bn worth of cuts at the heart of Athens' plan, leaving finance ministry officials pessimistic about agreeing upon the €11.5bn package acceptable to MPs before a meeting of eurozone finance ministers this month.
One official complained that "it almost seems as if they want us to re-write the whole package".
Greek media said Poul Thomsen, the IMF's mission chief, had the "harshest stance", triggering fears that the Washington-based fund was working to a different agenda and did not want to resolve the package, or release the next €31.5bn tranche of aid, until after the US elections on 8 November.
Troika officials, representing the EU, European Central Bank and IMF, denied a Reuters report 10 days ago that claimed their report would be held back until after the race for the White House.
However, they have insisted that wages, pensions and benefits be further slashed, claiming such cuts will bring "immediate results".
The Greek finance minister, Yiannis Stournaras, is hoping that the troika's rounds of various ministries will produce "enough evidence" to prove that the proposed cuts can be implemented.
Meanwhile City analysts remained optimistic that Spain would end the months long uncertainty and request a bailout.
Spain's borrowing costs dropped 12 basis points to 5.77%, well down on the 7% they reached at the height of the crisis in the summer.
"There's a sense of optimism, but there are still a lot of hurdles that need to be cleared, so we have to be wary of that," said Orlando Green, a rate strategist at Credit Agricole. "Today's [fall in yields] may prove to be just another leg in an up-and-down move … There could be more volatility in the future."
Markets are also waiting on the outcome of a Moody's rating review, in which Spain could lose its investment grade rating. That could trigger a new round of selling in Spanish bonds.
Many investors are unsure whether to anticipate a downgrade after a tight 2013 budget was relatively well received by the bond market.
The agency was expected to announce a decision in September but it said on Tuesday it still had to assess factors such as domestic banks' capital needs and the budget plan, so the announcement would be later this month.
"A Moody's downgrade for Spain could tip the balance for lower 10-year Bund yields towards 1.3%," Commerzbank strategists said. "However, we see the odds slightly in favour of a rating confirmation and thus expect to see some relief in the periphery."
Debt crisis: troika demand even tougher austerity on stricken Greece
Telegraph.co.uk | Debt crisis: troika demand even tougher austerity on stricken Greece Telegraph.co.uk Greece, which this week warned its economy was heading for a sixth year of recession, has asked Brussels to relax the terms of its bail-out conditions to allow the economy time to recover. The troika is reviewing Greece's progress on austerity measures ... US economic hopes shore up markets despite ongoing uncertainties over Spain ... The debt crisis spreads from Greece across Europe Eurozone faces October of unrest, with Greece, Spain troubles in focus |
Greece Submits 2013 Budget Draft as Bailout Talks Resume
The Associated Press | Greece Submits 2013 Budget Draft as Bailout Talks Resume HispanicBusiness.com As the draft was unveiled, the government resumed talks with representatives of international lenders to finalize the 13.5 billion euros austerity and reform package for 2013-2014 needed to secure the release of further bailout loans to debt-crippled ... Greece, Troika Differ Over Cutbacks; Greece Aims for 2013 Primary Surplus Greece proposes deep cuts to please foreign lenders Greece to stay in recession for 6th year, 2013 draft budget shows |
Greece's Piraeus Bank reaches initial deal to buy Geniki-sources
Greece's Piraeus Bank reaches initial deal to buy Geniki-sources Reuters ATHENS Oct 2 (Reuters) - Greece's Piraeus Bank has struck a preliminary deal with French lender Societe Generale to acquire its loss-making Greek unit Geniki , two sources familiar with the matter told Reuters on Tuesday. Both sides had confirmed in ... |
Greece's Piraeus Bank reaches initial deal to buy Geniki: sources
Greece's Piraeus Bank reaches initial deal to buy Geniki: sources Reuters ATHENS (Reuters) - Greece's Piraeus Bank (BOPr.AT) has struck a preliminary deal with French lender Societe Generale (SOGN.PA) to acquire its loss-making Greek unit Geniki (GHBr.AT), two sources familiar with the matter told Reuters on Tuesday. |
Crisis Pushes Greeks Far From Home
Crisis Pushes Greeks Far From Home New York Times Yet the crisis has had the unexpected effect of pushing some Greeks in the fashion world toward new countries and fresh starts. For Christoforos Kotentos, that came in the form of Bouclier. French for shield, Bouclier is a Los Angeles-based fashion ... |
Greek FinMin unsure if Troika deal will be done by the EU summit
Greek FinMin unsure if Troika deal will be done by the EU summit ForexLive (blog) More time to pay or more money are the options fro a third greek bailout. My bet is that they will require both… EUR/USD is consolidating losses in the mid1.2930s after beaking around 1.2968 late in Europe. Spanish PM Rajoy's comment on a bailout from ... |
Blasphemy in democracy's birthplace? Greece arrests Facebook user.
Christian Science Monitor | Blasphemy in democracy's birthplace? Greece arrests Facebook user. Christian Science Monitor Paisios, who died in 1994, is well-known in Greece for his spiritual teachings. There have been dozens of books published about him and his prophecies, including such topics as the end of the world, the upbringing of children, couples' relationships ... |
Analysis: Uneasy role for IMF in euro zone crisis
WASHINGTON (Reuters) - The euro zone debt crisis is pushing the International Monetary Fund into new, and at times, uncomfortable territory. The global lender is preparing to monitor some of Europe's largest economies possibly without its biggest weapon - money. The IMF lacks the financial heft to come to the aid of economies the size of Spain or Italy on its own, even though its monitoring and enforcement role would be in demand. ...
Greek militants jailed for 2009 bombings, group linked to attack targeting Merkel
Greece Troika Making 'Good Progress,' Cyprus's Shiarly Says
Greece Troika Making 'Good Progress,' Cyprus's Shiarly Says Businessweek Officials from the so-called troika that oversees euro-area bailouts have made “good progress” in Greece, Cypriot Finance Minister Vassos Shiarly will tell a meeting of the International Monetary Fund in Tokyo on Oct. 13. “Since July, the mission has ... |
Greece debt in worse state now than six months ago
Economic Times | Greece debt in worse state now than six months ago Economic Times Monday's 2013 budget plan contained some positive news - for example, the expectation that Greece will have a primary budget surplus, before debt financing costs, for the first time since 2002 - as well as some more alarming forecasts. Chief among ... |
Banks help push FTSE lower but Babcock bounces as it benefits from austerity drives
Royal Bank of Scotland and Lloyds among the biggest losers after downgrade from house broker
As leading shares edged lower on renewed worries about the eurozone and the effects of austerity measures on the likes of Greece and Spain, support services group Babcock International confirmed it is positively benefiting from government cost cutting drives.
The group said it was experiencing buoyant conditions, in both civil and military markets, as customers continued to seek increased efficiency:
We believe the current economic climate will continue to create significant medium and long term growth opportunities both in the UK and overseas.
John Lawson at Investec repeated his buy rating and raised his target price from 970p to £10. In the market Babcock bounced 22.5p to 945p.
Overall, investors were uncertain which tack to take, given confusion over whether - or rather when - Spain would seek a bailout. Suggestions it could come this weekend were seemingly dismissed by the country's prime minister, Mariano Rajoy, who said a bailout request was not "imminent." But the lack of clarity continued to unsettle the markets. So the FTSE 100 finished down 11 points at 5809.45, having traded within a 60 point range. Angus Campbell, head of market analysis at Capital Spreads, said:
If Spain does seek a bailout then those investors who have bought in the last couple of days will be sitting very pretty, as you can expect a risk on rally to follow as it would open the door for the European Central Bank to buy Spanish bonds and really drive their borrowing costs down.
Banks were among the main fallers, not helped by the continuing crisis in Europe. Royal Bank of Scotland fell 8.9p to 257.5p and Lloyds Banking Group lost 0.95p to 39.025p following news that analysts at the banks' broker UBS had cut their recommendation from buy to neutral, highlighting concerns about their capital requirements.
Meanwhile Bank of Georgia was the biggest faller in the mid-cap index, down 84p to £11.94 as the country's president conceded defeat in parliamentary elections. Analyst Sue Munden at Seymour Pierce said:
The impact on Georgia in the short term will be a higher degree of risk and uncertainty until the new government is formed and makes its policies clear. Moreover, the efficacy of the new government will rely on a cohesive coalition since the [outgoing] United National Movement will have a sizeable minority position.
In terms of Bank of Georgia, one would expect operations to continue with business as usual. We would, however, expect the share price to be weak until there is clarity on the new government and its intentions. We understand that investors may want further reassurance but we believe that the shares at these price levels represent a buying opportunity.
Wolseley ended 15p lower at £26.68 despite the building materials group unveiling a special dividend of £350m. Full year profits rose 10% but its European markets continued to be weak.
Back among the risers, International Airlines Group, owner of British Airways and Iberia, climbed 4.7p to 159p. The move follows reports Qatar Airways may join the oneworld alliance, which includes BA, as well as Monday's buoyant assessment of the industry outlook from the International Air Transport Association.
ITV added 0.65p to 90.6p on renewed takeover speculation, while Tesco rose 5.7p to 336.7p ahead of its first half figures on Wednesday.
Bumi, which fell sharply at the end of last month after unveiling a probe into possible irregularities at its Indonesian operations, rose 9.7p to 159.5p. The troubled 20% subsidiary said it would consider selling mines or even a rights issue to raise cash.
Bwin partydigital put on 5.9p to 110.8p on continuing bid speculation. Malaysia's Genting has been mentioned by traders as one possible bidder. Following news that Bwin would sell its Ongame poker network for up to €25m, Michael Campbell at Daniel Stewart - who has a 177p price target and hold recommendation - said:
The sale should be seen as welcome news and leaves [the company] to focus on integrating its core assets post the Bwin and Party Gaming merger which we believe is well on track. There is no impact on earnings; however the initial [payment] will boost 2012 cash reserves by €15m and in so doing further boost a balance sheet with significant firepower.
Bwin trades on an attractive multiple [but] we have the stock on hold despite our target price and this is based upon regulatory uncertainty in its single largest market, Germany. We retain this view until there is clarity on regulation out of Germany.
Satellite operator Inmarsat came down to earth ahead of an investor day next week.
Its shares have been flying high in recent times, partly on hopes for its Global Xpress super-fast broadband network which will be delivered by the (yet to be launched) Inmarsat-5 satellite. Indeed last week it was lifted by a positive note from Jefferies based on the prospects for Global Xpress.
But it lost 9p to 585p after HSBC downgraded from overweight to neutral and cut its target price from 650p to 640p ahead of the 9 October presentation by the company. The bank said it was time to be cautious:
We are sceptical regarding management's ability to offer full visibility on the Global Xpress ramp up one year ahead of first launch.
SUNNY GREEK SUPPER
SUNNY GREEK SUPPER Chicago Sun-Times If you want to make your own Greek-inspired spice mix, go into your spice rack and combine two parts oregano and thyme with one part basil, marjoram, minced onion and minced garlic. Store leftovers in an airtight container for as long as six months. |
One step forward, two back for Greece on debt
One step forward, two back for Greece on debt Reuters BRUSSELS (Reuters) - Every step Greece takes to shore up its finances seems to make it harder for Athens to make the numbers add up in the long-term, especially when it comes to its spiraling debt. Monday's 2013 budget plan contained some positive ... |
International Backgrounds Shape Education Entrepreneurs
France, Finland want swift Spain, Greece solutions
France, Finland want swift Spain, Greece solutions Reuters PARIS (Reuters) - France and Finland want solutions agreed in the next few weeks to the debt crises in Spain and Greece, President Francois Hollande said on Tuesday following a meeting with Finnish Prime Minister Jyrki Katainen. "On Spain and Greece, ... |