Alexis Tsipras has told his first cabinet meeting that the new Greek government must not let voters downTsipras tells ministers “We will push for debt relief”Sale of power company and port are frozenShares tumbleCivil service layoffs to be stopped 10.12am GMT Alexis Tsipras’s determination to renegotiate Greece’s borrowings will alarm many in the eurozone, particularly the north.But as HSBC’s well-respected chief economist, Stephen King, explains, it takes two to create a debt crisis:It's amazing to think that creditors believe they are in no way responsible for the €zone crisis.1/2 Germans struggle to understand that a large BoP surplus means their savings are used to acquire foreign rather than domestic assets...2/2 ....and that those foreign assets may, at times, offer the wrong mix of risk & reward. Creditors and debtors two sides of same coin. 9.59am GMT And here’s finance minister Yanis Varoufakis attending the first cabinet meeting, where PM Tsipras warned the government faces a very difficult task. 9.51am GMT 9.43am GMT Greek bonds have weakened sharply since Greece froze its privatisation plans and vowed to seek debt relief. That has driven up the yield, or interest rate, further into dangerous levels. 9.32am GMT Greek banking stocks have shed a third (!) of their value this week:Update: Greek bank stocks not liking Syriza's victory, -32% so far this week, on for 2nd biggest weekly fall ever: pic.twitter.com/qSlURYFLao 9.27am GMT Alexis Tsipras then told his cabinet that the international mood towards Greece is changing. He predicts positive talks with Jeroen Dijsselbloem, who heads up the eurogroup of finance ministers, in Athens on Friday.We must not disappoint the voters who gave us a mandate. 9.22am GMT *GREEK GOVT SIGNALS BEGINNING OF NEW ERA, TSIPRAS SAYS 9.20am GMT Alexis Tsipras has just held his first cabinet meeting in Athen, and details are hitting the wires now.We are a government of national salvation. Our aim is to negotiate debt relief."This gov't has no other dependencies or bosses than the people," Greek PM Tsipras tells his cabinet in its first meeting #GreeceOh. Tsipras already lowering expectations... *TSIPRAS: GREEKS DON'T EXPECT TO CHANGE ECONOMY IN ONE DAY 9.11am GMT Economist Megan Greene of Manulife Asset Management (a eurozone-crisis expert) says Tsipras’s government is ready for a fight with its lenders:All indications so far (coalition w Indy Greeks, Varoufakis as finmin) point to new Greek govt going into talks w the troika w guns blazing. 9.05am GMT The sell-off is accelerating:#Greece Athens stock exchange -3.81%, Banks -10%, PPC -7.74, OLP -8.9% 9.01am GMT Greece’s new foreign minister, Nikos Kotzias, has insisted this morning that Athens still wants to play a full part in European affairs.#Greece ForMin:Anyone who thinks that in the name of the debt, Gr will resign its sovereignty &its active counsel in EU politics is mistaken 8.59am GMT Greek bank shares are also falling again, sending the main ATG index into the red for the third day running. 8.45am GMT Shares in energy firm PCC and Piraeus Port have both tumbled by around 7% at the start of trading in Athens, after the government halted plans to sell its majority stake in both firms. 8.28am GMT Syriza is also planning to help poorer Greeks by raising the minimum wage:New Greek gov't has crossed off Piraeus port & energy privatisations. SYRIZA wants raising of minimum wage to be 1st bill #Greece 8.22am GMT Germany’s biggest newspaper isn’t showing much sympathy for a Greek debt deal, flags up ING analyst Carsten Brzeski:Asking for the Grexit by accident? This morning's Bild lists earlier German statements ruling out debt forgiveness for Greece. 8.16am GMT European stock markets have inched higher, despite events in Greece.The FTSE 100 has gained18 points or 0.3% in early trading to 6830. Investors are cheered by Apple, which smashed profit forecasts last night.FOMC policy statement today Patience the buzz But tightening via dollar strength & balance of external risks strengthen case for later hike. 8.04am GMT The new Greek government has also pledged to reverse the unpopular ‘mobility scheme’ which was used to lay off thousands of public sector workers, rolling back another key bailout measure.George Katrougkalos told Mega TV:“It will be one of the first pieces of legislation that I will bring in as a minister.”Day 1, potential major stand-offs: privatisations(Piraeus Port, Public Power Co.), public sector layoffs/re-hires, Russia sanctions #Greece 8.01am GMT Good morning, and welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.“We will halt immediately any privatisation of PPC.”#Greece Productive Reconstruction Min Lafazanis said PPC will 'return to the state', its privatisation will be halted imminently. #economyOne of the first decisions announced by the new government was stopping the planned sale of a 67% stake in the Piraeus Port Authority, agreed under its international bailout deal for which China’s Cosco Group and four other suitors had been shortlisted.“The Cosco deal will be reviewed to the benefit of the Greek people,” Thodoris Dritsas, the deputy minister in charge of the shipping portfolio, told Reuters.Handover ceremony at Finance Ministry to take place tomorrow at 2 p.m. #Greece Continue reading...
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