Eurogroup to discuss bridging loan and ECB considers emergency bank funding 7.58am BST Yields for Spanish, Portuguese and Italian bonds have dipped after the Greek vote, with investors showing some cautious optimism for the outlook. They fell up to 4 basis points to around six-week lows. 7.52am BST Well it comes under the category of stating the obvious, but the head of the European Stability Mechanism has warned Greek banks could collapse without a third bailout.Klaus Regling, head of the agency which gives financial support to eurozone countries, told German broadcaster ARD:If everything should fail, then the Greek banking system would collapse. If the four biggest systemically relevant banks in a country no longer work, this has grave consequences not just for Greece... but also for the whole eurozone. 7.42am BST Asian markets edged higher after the news of the Greek vote, and European markets are expected to open in positive territory ahead of the ECB meeting:Our European opening calls: $FTSE 6788 up 34 $DAX 11651 up 112 $CAC 5091 up 44 $IBEX 11419 up 84 $MIB 23601 up 208European stocks are expected to rejoice higher at the market open on Thursday after parliamentary approval overnight in Athens makes the Greek bailout deal as good as done. A bridge financing arrangement to allow Greece to meet its July 20 payment to the ECB using European Union funds is also nearly in place after agreeing protection for non-Eurozone countries such as Britain.The 10,000 protestors outside parliament in Athens and the resignation of the deputy finance minister suggest the next risk for Greece’s stability is political. PM Tsipras will try a cabinet reshuffle but if that fails to sure up confidence in Syriza, a worst case scenario would be snap elections. 7.41am BST Good morning and welcome to our rolling coverage of the Greek financial crisis.So, if this week’s deal between Greece and its creditors was a Pyrrhic victory for Alexis Tsipras - given the bailout terms were worse than the previous offer - what then of last night’s vote? Related: EU ministers begin drive to deliver bailout as Greece gives bitter consent Confirmation just went out: #Eurogroup teleconference tomorrow 10 AM #Greece Continue reading...
 |
| READ THE ORIGINAL POST AT www.theguardian.com |
