Less than one euro to the pound at many UK airports

By Ian Pollock
Business reporter, BBC News
10 October 2016

BBC

The continued fall in sterling's value means that the average rate available at 17 airport bureaux de change is now just 99 euro cents to the pound.
The worst rate is currently 88 euro cents at Moneycorp at Southampton airport and the best is €1.06 from the Change Group at Glasgow Prestwick.
Since the UK's Brexit vote in June, the pound has fallen sharply in value.
The average US dollar rate at the airports is down to $1.08 to the pound.
What's the pound exchange rate near you? Please tweet your pictures of currency exchange rate boards to @BBCBusiness and let us know
The survey of airport bureau de change currency rates was carried out by travel money firm FairFX on Monday morning.

Greece Clears Hurdle Toward Another Round of Bailout Aid

Greek economic overhauls win approval from eurozone finance ministers; $3 billion more in aid coming

The Wall Street Journal

By VIKTORIA DENDRINOU
Oct. 10, 2016 2:03 p.m. ET


LUXEMBOURG—Greece has completed a set of key economic overhauls, eurozone finance ministers agreed Monday, marking the end of the first review of its fiscal bailout and clearing the way for disbursement of new loans to Athens.

The ministers, who were here for their monthly meeting, gave their blessing to €2.8 billion ($3.12 billion) in the next stage of financial aid, but they stopped short of signing off on it immediately. Instead, they said the country would receive the funds at the end of the month, when data on repayments Greece has made to domestic contractors should also be available.

While the next slice won’t be made immediately available, the fact that Greece’s creditors agreed that all the economic overhauls have been implemented essentially completes the lengthy first review of the country’s third bailout, which could amount to €86 billion

IMF says still engaged with Greece, no decision yet on bailout role

Sun Oct 9, 2016 | 12:21pm EDT

Reuters

The International Monetary Fund said on Sunday it is still fully engaged in talks to join the Greek bailout program and has not yet decided on what role it will take.

The IMF's comment came after two sources with direct knowledge of the Greek bailout talks told Reuters on Saturday that negotiations for the fund to commit financial resources to the program are making little headway and the IMF likely would accept a special advisory status with limited powers.

"We remain fully engaged, with the aim of reaching agreement on a program that the fund can support with a new arrangement, as requested by the authorities," IMF spokesman Gerry Rice said in an emailed statement on Sunday. "In this regard a mission team will visit Athens soon."

EU Sagas of Greece, Transaction Tax Back in Focus: Brussels Beat

Bloomberg

  Jonathan Stearns

October 10, 2016 — 1:00 AM EEST

Don't Miss Out — Follow Bloomberg On

Two European Union financial sagas return to the spotlight this week. One is Greece. The other is the financial transaction tax being pursued by 10 EU governments.
During much of last year, it would have been reasonable to bet that the FTT initiative had a better chance of succeeding than Europe’s efforts over half a decade to keep Greece in the euro area. Concerns about the health of Deutsche Bank AG and other European lenders add to the reasons why that’s no longer the case -- and just how far the tables have turned will be on display when EU finance ministers gather in Luxembourg on Oct. 10-11.

London Won’t Easily Surrender Role as Euro Clearinghouse, Hammond Says

Chancellor of the Exchequer says the City should keep the business after Brexit

The Wall Street Journal

By INYOUNG HWANG
Oct. 6, 2016 1:37 p.m. ET


The City of London won’t quietly relinquish its central role in derivatives trading even after the U.K. completes its exit from the European Union, a British official said Thursday.

Philip Hammond, the chancellor of the Exchequer, said firms in London will continue to handle transactions on euro-denominated derivatives. The location of clearing, in which funds are transferred from one account to another, and of settlement, in which financial institutions agree on account balances, has emerged as a key issue in Britain’s departure from the bloc.

London is home to some of the region’s biggest clearinghouses, which are intermediaries that stand between buyers and sellers of financial instruments and act as a buffer should one side fail to hold up its obligation. A threat to the clearing and settlement business could strike at the heart of the city’s large financial industry.

Dollar flat after U.S. data, euro rises with bond yields

Wed Oct 5, 2016 | 3:30pm EDT

Reuters

By Richard Leong | NEW YORK
The dollar was little changed against a basket of currencies on Wednesday as encouraging data on the U.S. services sector offset a weaker-than-expected report on private-sector job growth, while the euro was broadly higher in step with a rise in higher euro zone bond yields.

U.S. services industries grew at their fastest pace in 11 months in September, reinforcing the view of a steady economic expansion which would allow the Federal Reserve to raise interest rates later this year, analysts said.

Wednesday's upbeat snapshot of the services sector from the Institute for Supply Management followed perceived hawkish remarks from regional Fed presidents Loretta Mester and Jeffrey Lacker earlier this week.

Greece’s 2017 Budget Plan Sticks With Robust Growth Forecast

But analysts say austerity and tight credit conditions are likely to weigh on economy

The Wall Street Journal

By STELIOS BOURAS
Oct. 3, 2016 11:21 a.m. ET
0 COMMENTS
ATHENS—Greece’s budget plan for 2017 sees the economy rebounding strongly after a seven-year slump, but analysts say continued austerity and tight credit conditions are likely to weigh on its recovery prospects amid uncertainty over the country’s public debt.

Finance Minister Euclid Tsakalotos submitted a draft copy of the budget to parliament on Monday that is expected to be finalized in coming weeks after the country resumes talks with lenders on its reform program.

The 53-page budget sticks with Greece’s previous forecasts that the economy is expected to contract by 0.3% this year before growing by 2.7% in 2017. Many see these targets as too optimistic, saying the economy is now entering a period of stagnation, rather than growth, having shrunk by more than 25% since the debt crisis erupted in 2010.

Sterling hits three-year low versus euro as Brexit deadline set

Mon Oct 3, 2016 | 4:31am EDT

Reuters

By Jemima Kelly | LONDON
Sterling slid to a three-year low against the euro and a three-month low versus the dollar on Monday, after a March deadline was set for the start of the formal process that will split Britain from the European Union.

Britain's Prime Minister Theresa May told her Conservative party's annual conference on Sunday that she was determined to move on with the process and win the "right deal", in a move to ease fears inside her party that she may delay the divorce.

To fix Greece, get your figures straight

 10/01/2016 12:29 pm ET
The Huffington Post


Michael G. Jacobides
Sir Donald Gordon Chair of Entrepreneurship and Innovation, London Business School
Greece has been making headlines again - and for all the wrong reasons. Egged on by government propaganda, the judicial system has allowed a rather grotesque case to be made against Mr Andreas Georgiou, former president of the Hellenic Statistical Authority (ELSTAT). His alleged crime was using applicable international rules to report the Greek government’s budget deficit, which had the effect of increasing it by just under 3% to a whopping 15% of GDP. Confusing cause and effect, some hot-headed Greek prosecutors claim that Georgiou’s un-sugarcoated report caused financial and social damage, leading to the EU/IMF Memorandum. Several commentators have already pointed out that shooting the messenger is a spineless, head-in-the-sand attitude. Now we have to accept that only accurate, internationally comparable figures can begin to save Greece from its financial woes.

What’s Derailing Greece’s Plan to Sell State Assets? Its Own Government

The ruling Syriza party must privatize chunks of the country’s infrastructure to meet bailout terms. Many of its ministers are standing in the way

The Wall Street Journal

By NEKTARIA STAMOULI
Updated Oct. 3, 2016 12:09 a.m. ET

ATHENS—The day that Christos Spirtzis became responsible for much of Greece’s ambitious privatization program, he vowed to ensure it failed.

Greece’s leftist infrastructure minister has resisted every sale of roads, airports and trains, even though he and his government have promised to raise €50 billion from privatizations as part of the country’s international bailout.

“I hope the deal will not bear fruit,” the combative, chain-smoking former labor unionist said after his government, under pressure from Greece’s creditors, confirmed the sale of 14 regional airports to a German investor. He backed calls for local referendums to scuttle the deal. When he finally had to sign the contract, he did so “with a great deal of pain,” he told Greek radio listeners in a trembling voice.

Greece’s Least Wanted Man Lives in Maryland

Andreas Georgiou fixed the country’s fake stats, now he faces criminal charges.
 Robert Schmidt
  Bloomberg Businessweek

For 21 years, Andreas Georgiou worked in relative obscurity as an economist at the International Monetary Fund in Washington. When the European debt crisis hit and his home country of Greece began teetering toward bankruptcy, Georgiou felt a patriotic urge to help. In early 2010 he applied online to run a newly created office designed to clean up Greece’s much maligned economic statistics. He got the job, and in August 2010 he moved to Greece for a five-year term as president of the Hellenic Statistical Authority.

Greece says Erdogan's remarks on islands 'dangerous' to relations

Fri Sep 30, 2016 | 12:07pm EDT

Reuters

Greece on Friday accused neighboring Turkey of endangering ties between the two NATO allies by questioning the wisdom of an almost century-old treaty that established the modern boundaries between the two countries.

At a speech in Ankara on Thursday, Turkish President Tayyip Erdogan said the Treaty of Lausanne, a 1923 peace accord which forged modern Greece and Turkey's borders, was essentially a defeat for Turkey because it "gave away" islands to Greece.

Η Συνθήκη της Λωζάνης και η Τουρκία

Η συζήτηση, ανάμεσα στις πολιτικές δυνάμεις της σύγχρονης Τουρκίας, για την σημασία της Συνθήκης της Λωζάνης, δεν είναι σημερινή ούτε και ασήμαντη. Αυτοί που επικράτησαν στην σύγχρονη Τουρκία, μετά την ήττα των Ελληνικών δυνάμεων στην Μικρά Ασία, δηλαδή οι Κεμαλιστές, ουσιαστικά κυβέρνησαν, μέχρι την 15η Ιουλίου 2016, όταν το πραξικόπημα του στρατού  απέτυχε και ο Ρ Τ Ερντογάν πήρε τον έλεγχο όλου του κράτους από όσους μέχρι τότε τον αμφισβητούσαν. Ποιοι ήταν αυτοί που τον αμφισβητούσαν; Με μια λέξη  μπορούμε να πούμε ότι ήταν οι πολιτικοί απόγονοι του Κεμάλ, που έχασαν μετά από σχεδόν εκατό χρόνια τον έλεγχο της Τουρκίας. Ένα δείγμα αυτής της συζήτησης από την πλευρά των αναθεωρητών της συνθήκης, αυτών δηλαδή που πιστεύουν ότι είναι μια ήττα της Τουρκίας, ακολουθεί στο άρθρο της εφημερίδας Sabah.

A New Twist on Greece’s Old-Style Dysfunction

A complex scandal signals Syriza is reviving the government-bank-media axis the party once campaigned against.
By YANNIS PALAIOLOGOS
Sept. 28, 2016 3:54 p.m. ET

The Wall Street Journal

There’s been a lot of hand-wringing in Europe about the rise of right-wing populism, about the clampdown on media freedom and judicial independence in places such as Hungary and Poland. But Greece’s populist government, led by the hard-left Syriza party, seems to share many of the same authoritarian instincts of its formerly communist partners, whose values Syriza claims to abhor.

More Parent Groups In Northern Greece Speak Out Against Refugee Children Joining Schools

One group suggested refugee children could be housed in a completely different location, but the Ministry of Education rejected their proposal.
 09/27/2016 03:45 pm ET

The Huffington Post


Danae Leivada
Reporter, The Huffington Post

Two parents associations in northern Greece voted last week to oppose refugee children attending their schools, publicly denouncing the government’s plans to include the children in the Greek education system.

Following the example of parents in Oreokastro and Filippiada, in northern and western Greece respectively, parents from two primary schools in the northern town of Alexandria voted on Friday against 60 refugee children joining their schools.

Greece passes new reforms for fresh batch of bailout aid

Tue Sep 27, 2016 | 3:02pm EDT

Reuters

Greek lawmakers on Tuesday passed reforms sought by the country's creditors to cut pension spending and expedite privatisations in exchange for financial aid under the country's latest international bailout.

Signalling the conclusion of a first review of bailout terms, parliament voted by a majority to reform the country's electricity market and transfer state assets into an umbrella sovereign wealth fund.

The reforms were passed by a majority vote in the 300-seat parliament by members of Prime Minister Alexis Tsipras' leftist-led government. Passage of the reforms may unlock 2.8 billion euros of loans when deputy euro zone finance ministers meet this week.

Fatigued Investors Want Draghi to Buy Greece Before They Do

 Nikos Chrysoloras

September 28, 2016 — 4:03 AM EEST Updated on September 28, 2016 — 10:05 AM EEST

Bloomberg

Michel Danechi isn’t buying the Greek turnaround story just yet.
As Greek business leaders and government officials presented to investors last week in London a list of reasons why valuations of the country’s assets make them attractive, Danechi’s Duet Asset Management took note. But what he wants to see is for Greece to show it can make good on pledges made to euro-area creditors so it can be included in the European Central Bank President Mario Draghi’s quantitative easing program.

Greece approves plan to transfer state utilities to new asset fund

State assets, including water and electricity utilities, are to be transferred to a new asset fund created by international creditors. The plans have sparked demonstrations and public sector strikes across the country.

Deutsche Welle
28-9-2016

Greece's parliament passed new reforms on Tuesday night to cut pension expenditure and transfer control of public utilities to a new asset fund.
 The reforms seek to unlock 2.8 billion euros ($3.14 billion) in financial loans as part of the country's latest bailout program.
The reforms were passed by a narrow 152-141 majority vote in Greece's 300-seat parliament, after 152 parliamentary members of the ruling Syriza-Independent Greeks coalition approved the reform bill. Only one member of the coalition voted against the bill, along with all opposition members.
The reforms will see public assets transferred to a new asset fund created by Greece's creditors. Assets include airports and motorways, as well as water and electricity utilities. The holding company groups together these state entities with the country's privatization agency, the bank stability fund and state real estate. It will be led by an official chosen by Greece's creditors, although Greece's Finance Ministry will retain overall control.

Economic imbalances risk 'destabilising' euro zone: ECB's Draghi

Mon Sep 26, 2016 | 5:11pm EDT

Reuters

Economic imbalances within the euro zone risk destabilising the currency bloc, top European Central Bank officials said on Monday, stressing the responsibility of governments to help boost growth while respecting EU rules.

ECB President Mario Draghi and board member Benoit Coeure also acknowledged the limitations of the ECB's ultra-expansionary policy of low interest rates and money printing.

"In our Economic and Monetary Union, in particular, the economic governance framework is essential to avoid imbalances that would eventually risk destabilising the euro area," Draghi told a European parliamentary committee in Brussels.

Greece, lenders agree supervisors for new privatisation fund

Mon Sep 26, 2016 | 8:28am EDT

Reuters

Greece and its lenders have agreed on a five-member supervisory board for a new privatisation fund following wrangling over its composition, government sources said on Monday, meeting a key condition under the country's 86 billion euro bailout.

Athens had to agree on nominations with its EU/IMF lenders by the end of September to conclude a first progress assessment and qualify for a further 2.8 billion euros in bailout loans.