Financial investors are watching the political fallout in Athens after its third aid programme was agreedEnergy minister: Confidence vote unavoidableIntroduction: Merkel tries to calm dissent 8.28am BST Greece’s energy minister also hinted this morning that the country could “go to elections soon”, in as little as three or four weeks.And if that happens, Alexis Tsipras would be pushing for an outright majority, Panos Skourletis told Skai News:“Based on my feeling of how things stand... I think such a goal is attainable,” 8.13am BST A Greek government minister has dropped a clear hint that prime minister Alexis Tsipras will call a confidence vote in the coming days.I consider it self-evident after the deep wound in Syriza’s parliamentary group for there to be such a move [a confidence vote]. 8.11am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.We’ll be fighting off the August lull today, I fear, as policymakers and traders take a summer breather after a fairly turbulent 2015. Related: Greece bailout deal: Angela Merkel expects IMF involvement #greece #germany must be bad when merkel takes to evening tv to make her caseThe events in China were a timely reminder to investors that all may not be well with the world’s second largest economy, as the authorities attempt to reinvigorate a flagging economy, at a time when economic data in some of its key export markets are also showing signs of flagging. Currency markets in particular will be looking for signs of further weakness in the Chinese currency given the comments by the Chinese central bank at the weekend, which warned markets to expect further two way volatility in the coming weeks. While Chinese authorities aren’t likely to openly admit they want a slightly weaker currency, last week’s actions saw the die cast and it seems improbable that the yuan won’t slowly weaken in the coming weeks, and in the process exercise further downward pressure on global inflation. Continue reading...
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