How the world sees Greece
Europe, ECB Spar on Relief for Greece Wall Street Journal Greece faces a key Treasury-bill repayment in less than two weeks, and the money isn't there unless governments provide additional aid or the ECB agrees to lend Greek banks the money to roll over the debt. It is a particularly sensitive issue for the ... |
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Torture Victims Win Case Against UK, But WWII Greek Victims Still Await Justice Huffington Post (blog) Congratulations to the three Mau Mau Kenyan torture victims who recently won a landmark victory of immense global repercussions against their former colonizers, the UK. Kudos to the honorable judges of Britain's High Court for their brave decision ... |
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Democratic Left party, a partner in conservative-led alliance, pledged it would not support the austerity bill
Furious Greek unions have vowed to stage "the mother of all strikes" as the country's parliament prepares to vote on new austerity measures, the condition for further rescue funds that will keep bankruptcy at bay and, in so doing, secure continued membership of the euro.
The fresh round of cutbacks and tax increases – the fourth such package since the outbreak of Europe's debt crisis in Athens three years ago – is likely to be passed, but not without a fight, as public and sector employees walk off the job on Tuesday in a 48-hour showdown with prime minister Antonis Samaras's fragile coalition.
"These measures may be voted through, but they cannot be enforced because the tolerance levels of Greeks have really passed their limits," said Panos Skourletis, spokesman of the main opposition Syriza party.
"The government does not have the political legitimacy to pass policies which it promised it would renegotiate during the election campaign [in June] and which it knows will lead to the annihilation of our nation. The only way out is fresh elections here and now."
With cuts amounting to more than 5% of GDP, the €13.5bn package has stirred ferocious passions, both in the governing coalition where politicians have spent almost five months negotiating the reforms with international creditors at the EU and IMF, and on the street where anti-bailout forces have pledged to do "whatever it takes" to stop the implementation of measures that will undoubtedly exacerbate the debt-choked country's economic freefall.
Indicative of the heightened political tensions, the small Democratic Left party, a junior partner in Athens' conservative-led alliance, pledged it would not support the austerity bill, which foresees the retirement age being increased from 65 to 67, controversial wage and pension cuts and a radical overhaul of the labour market – all in return for a crucial €31.5bn cash injection to keep the moribund Greek economy afloat.
"We will abstain from voting in favour of the austerity programme because we disagree fully with the labour reforms that are also included in the package," said Dimitris Hadzisokratis, the party's economics chief.
With Greece mired in its worst recession since the second world war amid record levels of poverty and unemployment, the party has argued that further cuts to wages and severance payments will devastate a workforce that has already borne the brunt of the crisis. But Hadzisokratis rejected mounting rumours that the leftist party was considering quitting the coalition, predicting that far from being explosive the social backlash to the measures would be limited. "My own personal feeling is that social reaction will not correspond to the weight of the measures and will be much less than anticipated because people can see there is no alternative," he said.
Addressing his own wavering MPs, Samaras insisted that the choice was stark. Either the measures were passed, or bankruptcy and euro exit beckoned. "The problem is not whether this measure or the other is adopted … [but] what would happen if the measures did not pass, if the loan agreement was not finalised," he said conceding that ordinary wage earners had already lost 35% of their income over the past two years. "If we were forced to leave the euro now, we would lose at least twice that amount within a few weeks. Our standard of living would fall by about 80%," emphasing that the spending cuts would be the "very last" to be imposed on a nation that has come ever closer to breaking point.
But unions beg to differ. With over a quarter of the country's entire workforce out of work and extremism rising on left and right, many fear the package will prove to be the tipping point for Greeks.
Increasingly MPs in the government's other party, the once mighty socialist Pasok, have also revolted with as many as seven deputies refusing to back the measures. Politicians have argued that further belt-tightening will be counter-productive when, far from being tamed, Greece's monumental debt load is projected to hit a record 192% of GDP in 2014 – despite private creditors accepting a write-down in the value of Greek bonds in March.
The country's economy is expected to contract for a sixth straight year in 2013 with national outlay estimated to drop by 4.2% – bringing total losses since the crisis erupted to a whopping 25% of GDP.
"Everyone knows that our debt is totally unsustainable and with that in mind it has made voting for these measures seem even more pointless," confided one socialist deputy.
Dissent in Pasok means that the government is unlikely to pass the measures with anything more than a slim majority which will add to the turmoil in Greece as the coalition's viability comes under ever greater question.
"Elections are inevitable," said Nikos Filis, editor of the Avgi, paper widely aligned with the views of the main opposition Syriza party. "It is one thing to hear about measures, another to have them applied. The more these are enforced, the greater the reaction will be and the greater the loss to the government's authority."
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 CTV News | US Stocks Rise Before American Elections on Greek Woes Bloomberg U.S. stocks gained, following last week's advance in the Standard & Poor's 500 Index, as Americans prepared to vote in the presidential election. The S&P 500 (SPX) advanced 0.2 percent to 1,417.26 at 4 p.m. New York time. “People are more like holding ... US Stocks Mostly Lower Ahead of Election; Utility Sector Lags |
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 The West Australian | Greece Submits Reforms, Cutbacks Bill to Parliament Wall Street Journal ATHENS--Greece submitted to Parliament Monday a draft bill cutting public servants's salaries and pensions and increasing the retirement age as part of 13.5 billion euro austerity plan demanded by international creditors. In a copy of the draft bill ... The Greeks Are on the Brink Once More 'Devil's week' ahead for Greece |
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 TIME | TREASURIES-Bonds rise before US vote; Greece still worries Reuters By Luciana Lopez and Ellen Freilich NEW YORK, Nov 5 (Reuters) - U.S. Treasuries prices rose on Monday as investors fretted about Tuesday's U.S. presidential election and as strikes and protests in Greece over yet another austerity package clouded the ... Treasuries Snap Gain Before U.S. Service Industries Data |
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Greek workers began a week-long series of protests today, upping the pressure on the government to vote down a crucial austerity package in parliament this week.
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China complains to World Trade Organisation that Italy and Greece have unfairly favoured domestic solar panel suppliers
An escalating row between solar panel makers stepped up a gear on Monday when China complained to the World Trade Organisation that Italy and Greece had unfairly favoured domestic suppliers.
China, the world's largest solar panel maker, accused the European Union of breaching world trade rules only days after saying it would consider blocking imports of solar technology from Europe.
It said the crux of its complaint centred on offers by Rome and Athens of higher electricity prices to solar power producers that use mainly locally sourced components.
Concerns that the financial crisis would bring simmering protectionist disputes to the surface proved misplaced until this year. During 2012 the WTO received 25 complaints compared to eight in 2011. Analysts blame the downturn in global growth this year for sparking a series of disputes that range from the US and Mexico complaining about Argentinian import restrictions on meat and fruit to objections from Brazil over South African anti-dumping duties on Brazilian frozen meat.
The biggest disputes involve the four major trading blocs – the US, China, Japan and the EU. Solar panels have become a flashpoint after Chinese panel makers maintained production despite a sharp slowdown in demand.
Washington has come under intense pressure to raise tariffs on Chinese goods after firms objected to panels being dumped in the US market.
Congress recently sanctioned sweeping restrictions on goods it says are dumped by China under rules allowing "the application of countervailing measures to non-market economy countries".
China has responded with a series of complaints to the WTO, one of which appears to be the same complaint that the EU and Japan have brought against Canada for protecting its solar panel industry.
"The Chinese government has the right and the responsibility to fight for a fair international trade environment for China's solar industry," Chinese Ministry of Commerce spokesman Shen Danyang said in a statement.
Shen said all countries should strengthen industry cooperation and reject short-term "protectionist" measures.
By lodging its complaint, China triggers the formal process for a WTO dispute and, if talks with the EU fail to resolve the issue, after 60 days it could ask the global trade body to adjudicate.
While Germany has built a strong domestic solar industry, much of it in the former communist region around Liepzig, Italy and Greece have struggled against local corruption and a reluctance among investors to build solar farms to replicate the same manufacturing base.
However, the EU is the world's largest market for solar products and is a particular target for Chinese manufacturers.
Tensions rose earlier this year after Chinese firms dropped their prices 30% after a long period of over-supply. EU countries accused the Chinese authorities of dumping artificially low cost panels that undermined domestic businesses.
About 60% of China's exports of solar panels and components went to the EU in 2011, generating €21bn (£17bn) and accounting for 7% of all Chinese exports to the region, according to Bloomberg.
A group of 25 European companies, led by Germany's SolarWorld, filed a complaint with the European Commission in September, claiming Chinese rivals were unfairly benefiting from illegal subsidies.
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Game on: Greek austerity bill submitted to parliament ForexLive (blog) The vote comes tomorrow. The bill is expected to pass narrowly with several defectors from the ruling coalition anticipated. A failure to pass the austerity law would send the entire bailout process into chaos and rise the very real prospect of Greece ... Greek bailout deal not expected at Nov 12 summit: Reuters |
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Greek MPs are reluctant to vote for latest austerity measures – but without them the government will be unable to pay its bills
It's easy to see why many Greek MPs are reluctant to vote for the latest austerity measures demanded by the International Monetary Fund, the European Union and the European Central Bank. The economy is still shrinking after a five-year slump, so the idea of further slashing demand hardly appeals. Yet without the austerity Greece will not get the next tranche of its bailout, leaving the government unable to pay its bills. The words rock and hard place spring to mind.
Despite mounting public unrest, Greece is trying to make itself more competitive by cutting wages, pensions and welfare benefits. This process, internal devaluation, is the only logical policy for countries that reject the traditional remedies: making the currency cheaper or defaulting on its debts.
This was the approach followed by Argentina just over a decade ago, when it found pegging the peso to the US dollar a crippling burden. South America's second biggest economy enjoyed several years of strong growth after it ended dollar convertibility and welched on its debts. Most of the country's creditors agreed to take a substantial haircut but a hardcore group held out for claims to be paid in full. Last week, their case was upheld in a New York court.
Even if Argentina has to pay the vulture funds in full – and it is currently expressing defiance – Buenos Aires might still argue that devaluation and default in 2002 was better than the alternative. Greece may eventually come to the same conclusion, but Argentina's experience shows that for Athens it is a question of choosing the least bad option. There are no unambiguously good ones.
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News Summary: Greek unions start 3 days of anti-austerity action as lawmakers ... Washington Post THE SHOWDOWN: Greek unions on Monday launched three days of escalating strikes against austerity proposals that must win lawmakers' support if the debt-crippled country is to get more aid and stave off bankruptcy. THE STAKES: The spending cuts and ... |
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TIME | TREASURIES-Bonds up before US elections; Greece worries fuel bid Reuters By Ellen Freilich NEW YORK, Nov 5 (Reuters) - U.S. Treasuries prices rose on Monday, driven by unease over whether Greece will gain the needed support for austerity measures that are critical to maintaining its aid package and on uncertainty over the ... Treasuries Snap Gain Before U.S. Service Industries Data |
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The Greeks are on the Brink Once More Businessweek Not too long ago, the only people who would watch votes in Greek Parliament were those paid to do so as part of their jobs. Over the last couple of years, though, ballots in the historic and often raucous House have become required viewing for ... |
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 Wall Street Journal | Greece, Portugal Turn to World Bank for Technical Advice Businessweek Greece and Portugal, two countries engulfed by the European debt crisis, have turned to the World Bank for technical assistance, seeking advice from an institution focused on reducing global poverty, the lender's president said. The two governments ... Portugal, Greece seek technical advice from World Bank: Kim Greece's Siren Call World Bank in talks to help Greece, Portugal |
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 MarketWatch | MARKET COMMENT: US Election, Greece Weigh on Europe stocks Wall Street Journal LONDON (MarketWatch)--European stock markets dropped Monday, as uncertainty over the coming U.S. presidential election and worries about structural reforms in Greece weighed on investors' minds. The Stoxx Europe 600 index lost 0.6% to close at ... European Stocks Fall on Earnings Disappointment, Greece Concern Europe stocks off on U.S. election, Greece jitters |
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 Livemint | Global stocks slip, dollar firm before US election Reuters NEW YORK (Reuters) - World stocks fell and the dollar edged up on Monday as investors played it safe before Americans choose their president and Greece headed into two key votes to secure further rescue funds. Some investors see the U.S. election as a ... Euro Falls Vs. Dollar on Greece Aid Worry Unsteady Greek Coalition Faces More Strikes Greek hospital, transport, media workers walk off the job as anti-austerity ... |
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All Greek honors for achieving STL women STLtoday.com All Greek honors for achieving STL women. Print Email. 2012-11-05T11:15:00Z 2012-11-05T11:03:26Z All Greek honors for achieving STL womenBy Joe Holleman jholleman@post-dispatch.com 314-340-8254 stltoday.com. 2 minutes ago • By Joe Holleman ... |
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Poor non-manufacturing surveys from China, UK and US leave markets nursing losses as America prepares to vote
Mining shares led the market lower on renewed worries about a slowdown in China and news that Australia was scrapping plans for additional listings for foreign companies.
Disappointing non-manufacturing data from China - a key consumer of commodities - sent copper prices to a two month low and hit the whole resources sector. Kazakhmys closed 17.5p lower at 717.5p, Eurasian Natural Resources Corporation fell 12.2p to 321.3p and Rio Tinto lost 69p to £31.45. Vedanta Resources dropped 42p to £11.18, not helped by Citigroup downgrading the group from buy to neutral.
On top of that, Australia's stock exchange has reportedly decided against a proposal to quote unsponsored depository receipts of foreign companies. If the move had gone ahead it would have narrowed the spread for dual listed companies like Rio and BHP Billiton, 30.5p lower at 1991.5p.
The sector's decline weighed on the whole market, leaving the FTSE 100 29.49 points lower at 5839.06. There were also poor monthly service sector surveys from UK and US, while investors were unsettled by the imminent American election, as well as the forthcoming vote in the Greek parliament on its austerity package and 2013 budget.
Angus Campbell, head of market analysis at Capital Spreads, said:
Markets trod cautiously at the beginning of this week as uncertainty surrounding the outcome of the US presidential elections dominated trade putting investors on the back foot. With the outcome far from certain the future shape of the US political landscape remains in doubt. With both candidates offering two very separate paths the result of this election is as significant for the US economy as much as it is for the global economy.
Banks were also under pressure. HSBC fell 8.1p to 618p following a disappointing update and news of hefty money laundering fines, while Lloyds Banking Group lost 0.575p to 42.85p despite weekend reports it was considering a sale of its 60% stake in wealth manager St James Place, down 3.6p to 394.9p. Gary Greenwood at Shore Capital said:
At the current share price, Lloyds stake is worth around £1.2bn, albeit we think the shares are currently undervalued by the market, so a sale at this price would not maximise value for Lloyds' shareholders.
Two years after Prudential failed to buy Asian rival AIA, the insurer has made a move in the fast growing region.
In another challenge to AIA, Pru is paying £368m in cash for Thailand's Thanachart Bank, following its announcement of plans to open an office in Cambodia. The deal includes a 15 year exclusive partnership to sell bancassurance in Thailand through Thanachart branches.
The Pru's shares slipped 2.5p to 856p, and Andy Hughes at Exane BNP Paribas repeated his underperform rating.
Heading in the other direction was Weir, up 80p at £18.31, after the pumps and valves group said it was on track to meet full year expectations despite a weak oil and gas sector.
Accounting software specialist Sage added 1.9p to 313.6p as Numis raised its recommendation from hold to add.
But George O'Connor at Panmure Gordon kept his sell rating despite applauding some of the company's moves:
Research from industry analysts IDC points to European IT users accelerating their 'cloud' deployment. Fortunately Sage is just in time demonstrably weaving cloud technology into its core products – we note CRM and ERP X3 in particular. While the moves may seem piecemeal they do not appear to be a case of 'too little/too late' but will do little to drive Sage's missing ingredient - growth.
Our sell recommendation is predicated on those false take-over stories (gone in a puff of smoke) which have inflated the share price and lead to a valuation, a PE of 16.5 times, well ahead of the operational and valuation reality.
Centamin recovered some of the ground which it lost last week on reports an Egyptian court had ruled its rights to operate the Sukari gold mine were invalid.
The reports wiped around 40% off its share price, but the company eased some of the concerns, and they bounced back 14.05p to 74.55p, a 23% increase which made it the biggest riser in the FTSE 250.
It has now received the court's ruling, which rejected any attempt to terminate the company's concession agreement although it said insufficient evidence had been submitted to demonstrate ministerial approval had been given to allow the company to mine.
Centamin said it would appeal the decision and maintained it had documents showing the minister of petroleum and mineral resources had given approval, although these were somehow not in the court papers
But Telecity dropped 78p to 835p despite an in-line update, as the European data centre operator unveiled what analysts said was an expensive - albeit small - acquisition.
The company said trading remained strong across Europe, and its full year earnings were expected to be in line with City forecasts. But it also announced the €28m cash purchase of Academica in Finland. Analyst James Goodman at Investec said:
At €28m for 1MW of operational capacity, today's (admittedly small) deal seems very expensive. However, the business has an expansion plan to quadruple the capacity to 4MW which would clearly lessen the price, but would depend on the incremental capital expenditure required.
Dixons Retail, boosted last week following news that rival Comet was going into administration, suffered a bout of profit taking as investors had second thoughts about how much benefit the electrical retailer would actually get from the situation. Dixons dipped 0.93p to 24.91p.
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