Monday, December 5, 2016
Fearing abandonment by Trump, CIA-backed rebels in Syria mull alternatives
The Washington Post
By Karen DeYoung and Louisa Loveluck December 3 at 6:03 PM
Three years after the CIA began secretly shipping lethal aid to rebels fighting against Syrian President Bashar al-Assad, battlefield losses and fears that a Donald Trump administration will abandon them have left tens of thousands of opposition fighters weighing their alternatives.
Among the options, say U.S. officials, regional experts and the rebels themselves, are a closer alliance with better-armed al-Qaeda and other extremist groups, receipt of more sophisticated weaponry from Sunni states in the Persian Gulf region opposed to a U.S. pullback, and adoption of more traditional guerrilla tactics, including sniper and other small-scale attacks on both Syrian and Russian targets.
China says Trump clear about Taiwan, in touch with his team
Mon Dec 5, 2016 | 5:20am EST
Reuters
By Ben Blanchard and Roberta Rampton | BEIJING/WASHINGTON
U.S. President-elect Trump is clear about China's position on the Taiwan issue and China has maintained contacts with his team, the foreign ministry said on Monday, as Trump took to Twitter to complain about Chinese economic and military policy.
Trump's unusual call with Taiwan President Tsai Ing-wen on Friday prompted a diplomatic protest on Saturday, though U.S. Vice President-elect Mike Pence played down the telephone conversation, saying it was a "courtesy" call, not intended to show a shift in U.S. policy on China.
Reuters
By Ben Blanchard and Roberta Rampton | BEIJING/WASHINGTON
U.S. President-elect Trump is clear about China's position on the Taiwan issue and China has maintained contacts with his team, the foreign ministry said on Monday, as Trump took to Twitter to complain about Chinese economic and military policy.
Trump's unusual call with Taiwan President Tsai Ing-wen on Friday prompted a diplomatic protest on Saturday, though U.S. Vice President-elect Mike Pence played down the telephone conversation, saying it was a "courtesy" call, not intended to show a shift in U.S. policy on China.
Markets stabilise after Italian referendum
5-12-2016
BBC
The euro was hit after Mr Renzi announced his intention to resign. At one stage the euro hit $1.0505, its lowest level against the US currency since March 2015.
But it rebounded from that low to stand at $1.0634, a fall of just 0.3%.
Shares in Italian banks opened lower before recovering ground.
The troubled Monte dei Paschi was down by more than 5% in the first few minutes of trade, but then rebounded and had edged into positive territory. Shares in Unicredit and Intesa also fell sharply at first before recovering.
BBC
The euro was hit after Mr Renzi announced his intention to resign. At one stage the euro hit $1.0505, its lowest level against the US currency since March 2015.
But it rebounded from that low to stand at $1.0634, a fall of just 0.3%.
Shares in Italian banks opened lower before recovering ground.
The troubled Monte dei Paschi was down by more than 5% in the first few minutes of trade, but then rebounded and had edged into positive territory. Shares in Unicredit and Intesa also fell sharply at first before recovering.
Greece sees final solution on debt crisis amid euro uncertainty
Sun Dec 4, 2016 | 12:22pm EST
Reuters
Political uncertainty in Europe has created fresh momentum for a "comprehensive and permanent" solution to the Greek debt crisis before the year ends, a government spokesman said on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term debt relief for Greece, and Germany's Wolfgang Schaeuble said it must implement reforms instead of hoping for further debt forgiveness.
Greece remained optimistic for a final debt deal, however, just as Italians are voting on a constitutional referendum on Sunday and a victory for the opposition 'No' camp may push the euro zone toward fresh crisis.
Reuters
Political uncertainty in Europe has created fresh momentum for a "comprehensive and permanent" solution to the Greek debt crisis before the year ends, a government spokesman said on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term debt relief for Greece, and Germany's Wolfgang Schaeuble said it must implement reforms instead of hoping for further debt forgiveness.
Greece remained optimistic for a final debt deal, however, just as Italians are voting on a constitutional referendum on Sunday and a victory for the opposition 'No' camp may push the euro zone toward fresh crisis.
Greece and Its Creditors Get Back on a Collision Course
Greece’s woes oblige the eurozone to do something it has rarely appeared capable of doing: take a collective political decision, Simon Nixon writes.
The Wall Street Journal
By SIMON NIXON
Updated Dec. 4, 2016 1:44 p.m. ET
9 COMMENTS
In a continent beset by multiple crises, Greece remains the cradle of European dysfunction. The country may have dropped out of the headlines in recent months, its multiple challenges seemingly buried under a tide of bailout cash. Yet it still presents the greatest risk to the survival of the eurozone. That is because Greece’s circumstances oblige the eurozone to do something it has so far appeared incapable of doing, except under conditions of extreme financial stress: take a collective political decision.
The Wall Street Journal
By SIMON NIXON
Updated Dec. 4, 2016 1:44 p.m. ET
9 COMMENTS
In a continent beset by multiple crises, Greece remains the cradle of European dysfunction. The country may have dropped out of the headlines in recent months, its multiple challenges seemingly buried under a tide of bailout cash. Yet it still presents the greatest risk to the survival of the eurozone. That is because Greece’s circumstances oblige the eurozone to do something it has so far appeared incapable of doing, except under conditions of extreme financial stress: take a collective political decision.
Sunday, December 4, 2016
WHY THE FRAGILE STABILITY IN GREECE MAY NOT LAST MUCH LONGER
A crunch summit with creditors begins Monday.
BY JOSH LOWE ON 12/3/16 AT 2:59 PM
Newsweek
It was late November in Athens, and the city felt empty. A string of surprise thunderstorms kept people imprisoned indoors and outside the Greek parliament in Syntagma Square—where anti-austerity protests raged throughout the summer of 2015—was bare but for a few brave tourists and one quizzical-looking stray dog watching the Evzones guards perform their distinctive, shuffling shift change routine, complete with pom-pom shoes and kilts. With so much unrest elsewhere in Europe, it would be easy to think Greece is heading toward relative quietude.
The coming weeks could change all that. On December 5, the finance ministers of the Eurozone will meet in Brussels for their last scheduled summit of the year. On the agenda is the ongoing second review of Greece’s bailout program, which since 2015 has allowed the country to receive financial assistance from European creditors that will eventually total €86 billion ($91.7 billion) in exchange for carrying out reforms including shrinking the public sector, reining in government spending and raising taxes.
BY JOSH LOWE ON 12/3/16 AT 2:59 PM
Newsweek
It was late November in Athens, and the city felt empty. A string of surprise thunderstorms kept people imprisoned indoors and outside the Greek parliament in Syntagma Square—where anti-austerity protests raged throughout the summer of 2015—was bare but for a few brave tourists and one quizzical-looking stray dog watching the Evzones guards perform their distinctive, shuffling shift change routine, complete with pom-pom shoes and kilts. With so much unrest elsewhere in Europe, it would be easy to think Greece is heading toward relative quietude.
The coming weeks could change all that. On December 5, the finance ministers of the Eurozone will meet in Brussels for their last scheduled summit of the year. On the agenda is the ongoing second review of Greece’s bailout program, which since 2015 has allowed the country to receive financial assistance from European creditors that will eventually total €86 billion ($91.7 billion) in exchange for carrying out reforms including shrinking the public sector, reining in government spending and raising taxes.
Greece needs reforms, not debt relief: Germany's Schaeuble
Sat Dec 3, 2016 | 6:30pm EST
Reuters
Structural reforms rather than debt relief will help Greece to achieve sustainable growth and stay in the euro zone because rates and repayment are putting hardly any burden on its budget, Gerany's finance minister was quoted as saying on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term measures to lighten Greece's debt burden and to assess Athens' progress in reforms required within its third bailout program.
Asked in an interview by Bild am Sonntag newspaper whether it might be time to tell German voters that a debt cut for Greece was inevitable, Finance Minister Wolfgang Schaeuble said: "That would not help Greece."
Reuters
Structural reforms rather than debt relief will help Greece to achieve sustainable growth and stay in the euro zone because rates and repayment are putting hardly any burden on its budget, Gerany's finance minister was quoted as saying on Sunday.
Euro zone finance ministers will meet in Brussels on Monday to discuss short-term measures to lighten Greece's debt burden and to assess Athens' progress in reforms required within its third bailout program.
Asked in an interview by Bild am Sonntag newspaper whether it might be time to tell German voters that a debt cut for Greece was inevitable, Finance Minister Wolfgang Schaeuble said: "That would not help Greece."
Friday, December 2, 2016
Eurozone Bailout Fund Proposes Short-Term Debt Relief for Greece
ESM proposes extension on some maturities and locking in the interest on some loans to ease Greece’s debt load
The Wall Street Journal
By VIKTORIA DENDRINOU
Updated Nov. 30, 2016 7:57 a.m. ET
2 COMMENTS
BRUSSELS—Confidential proposals drawn up by the eurozone’s bailout fund could reduce Greece’s debt load by about a fifth in 2060.
A six-page document, dated Nov. 25 and seen by The Wall Street Journal, was produced by the European Stability Mechanism, the Luxembourg-based eurozone bailout fund. It outlines measures that could be taken in the near future to reduce Greece’s large debt load.
The paper proposes to ease Greece’s debt load by extending some maturities and locking in the interest on some of Greece’s loans to shield it from future interest-rate increases.
The Latest, Greatest Threat to the Euro: Populism
Elections and referendums in the year ahead pose a far different challenge from the financial crisis of recent years
The Wall Street Journal
By GREG IP
Updated Nov. 30, 2016 11:32 a.m. ET
The euro has survived sovereign default, recessions, banking crises and bailouts. It may not survive populism.
In the coming year, the eurozone will host at least five elections or referendums that could bring a populist, euroskeptic party to power. In effect, the common currency is about to play multiple rounds of Russian roulette.
The populist threat is qualitatively different from the financial crisis that first erupted in Greece in 2009 and eventually engulfed half the region. In that case, what worried private investors was that a country, or its banks, would default on its debt and be forced to leave the euro. Investors fled, driving interest rates sky-high and plunging the continent into recession.
The Wall Street Journal
By GREG IP
Updated Nov. 30, 2016 11:32 a.m. ET
The euro has survived sovereign default, recessions, banking crises and bailouts. It may not survive populism.
In the coming year, the eurozone will host at least five elections or referendums that could bring a populist, euroskeptic party to power. In effect, the common currency is about to play multiple rounds of Russian roulette.
The populist threat is qualitatively different from the financial crisis that first erupted in Greece in 2009 and eventually engulfed half the region. In that case, what worried private investors was that a country, or its banks, would default on its debt and be forced to leave the euro. Investors fled, driving interest rates sky-high and plunging the continent into recession.
Tired of Syriza, Greece embraces a mainstream party
The centre-right New Democracy party is dull, technocratic and leading the polls
Dec 3rd 2016 | ATHENS
The Economist
THE headquarters of New Democracy, a centre-right political party, is in an unexpected part of Athens. The building, surrounded by warehouses, housed a branch of a Japanese technology firm before standing derelict for years. Few other political types are nearby. The rent, at €9,800 ($10,400) a month, is a tenth of what the party’s old office used to cost. Yet the relocation, which happened in August, is also symbolic. As the opposition party has moved to a cheaper part of town, so too does it hope that it can present itself to the public as a new, improved alternative to the Greek government. With Alexis Tsipras, the prime minister (pictured, on the left), growing less popular, New Democracy may well have a chance.
Tuesday, November 29, 2016
Eurogroup should be 'realistic' on Greece fiscal targets: Dijsselbloem
Tue Nov 29, 2016 | 4:45am EST
Reuters
The chair of the Eurogroup of euro zone finance ministers said on Tuesday that European lenders should be "realistic" in the fiscal targets they set for Greece after 2018, when a program of financial aid will end.
"We need to be realistic," Jeroen Dijsselbloem told the economic affairs committee of the European Parliament, saying that the International Monetary Fund has a point when it says "running a primary surplus of 3.5 percent for a very long time is a huge thing to ask".
Reuters
The chair of the Eurogroup of euro zone finance ministers said on Tuesday that European lenders should be "realistic" in the fiscal targets they set for Greece after 2018, when a program of financial aid will end.
"We need to be realistic," Jeroen Dijsselbloem told the economic affairs committee of the European Parliament, saying that the International Monetary Fund has a point when it says "running a primary surplus of 3.5 percent for a very long time is a huge thing to ask".
Greece can meet 2017 primary surplus, must conclude bailout review- cenbanker
Tue Nov 29, 2016 | 3:25am EST
Reuters
Nov 29 Greece can achieve a primary budget surplus of 2 percent next year, the head of the country's central bank said on Tuesday, warning that the main risk for the economy would be a failure to conclude a crucial bailout review.
"Despite the positive projections ... serious risks remain," Yannis Stournaras told a conference in Athens. "The main risk would be the eventuality of failing to reach agreement on the second bailout review and any delays in implementing the programme or backtracking."
Reuters
Nov 29 Greece can achieve a primary budget surplus of 2 percent next year, the head of the country's central bank said on Tuesday, warning that the main risk for the economy would be a failure to conclude a crucial bailout review.
"Despite the positive projections ... serious risks remain," Yannis Stournaras told a conference in Athens. "The main risk would be the eventuality of failing to reach agreement on the second bailout review and any delays in implementing the programme or backtracking."
Thursday, November 24, 2016
Trump nominates two prominent GOP women: DeVos as education secretary, Haley as U.N. ambassador
The Washington Post
By Jerry Markon, Robert Costa and Emma Brown November 23 at 4:08 PM
President-elect Donald Trump on Wednesday selected two prominent Republican women for Cabinet-level positions, adding diversity to an inner circle that was already coming under fire for being composed mostly of white men.
In a potentially controversial choice, Trump intends to nominate billionaire philanthropist Betsy DeVos for education secretary, turning to a conservative activist who has forcefully pushed for private school voucher programs. Her nomination is expected to face strong opposition from public school advocates, who oppose her efforts to funnel taxpayer dollars from public to private and religious schools.
Weak Tea After Brexit
The May government’s additional spending won’t spur growth.
The Wall Street Journal
Nov. 23, 2016 8:47 p.m. ET
Theresa May’s government delivered another budget statement Wednesday, and we’re pleased to report that not all of the proposals are bad. But whether not-so-bad is good enough to give the economy the boost it will need to power through Britain’s exit from the European Union is another question.
Regarding the good, the best headline to come out of Chancellor Philip Hammond’s Autumn Statement is that the government intends to stick to its schedule for corporate tax cuts, with rates falling to 17% in 2020 from 20% today. That’s down from 28% under Labour Prime Minister Gordon Brown and would be roughly half the rate paid by companies in France and Germany. Mrs. May has also indicated she’s prepared to come down below 15% if necessary.
The Wall Street Journal
Nov. 23, 2016 8:47 p.m. ET
Theresa May’s government delivered another budget statement Wednesday, and we’re pleased to report that not all of the proposals are bad. But whether not-so-bad is good enough to give the economy the boost it will need to power through Britain’s exit from the European Union is another question.
Regarding the good, the best headline to come out of Chancellor Philip Hammond’s Autumn Statement is that the government intends to stick to its schedule for corporate tax cuts, with rates falling to 17% in 2020 from 20% today. That’s down from 28% under Labour Prime Minister Gordon Brown and would be roughly half the rate paid by companies in France and Germany. Mrs. May has also indicated she’s prepared to come down below 15% if necessary.
Turkey and E.U. Near Breaking Point in Membership Talks
By ROD NORDLAND and JAMES KANTERNOV. 23, 2016
The New York Times
ISTANBUL — The European Parliament is likely to vote on Thursday to suspend negotiations to bring Turkey into the European Union, infuriating Ankara and possibly hastening the end of a long and troubled process.
While the vote is advisory rather than binding, the government of President Recep Tayyip Erdogan is smarting from European criticism of its crackdown on opponents and on the news media after a failed coup attempt in July. So it has suggested that, in any event, it may pull out of the process altogether if there is no progress by the end of the year. Such progress now seems improbable.
The New York Times
ISTANBUL — The European Parliament is likely to vote on Thursday to suspend negotiations to bring Turkey into the European Union, infuriating Ankara and possibly hastening the end of a long and troubled process.
While the vote is advisory rather than binding, the government of President Recep Tayyip Erdogan is smarting from European criticism of its crackdown on opponents and on the news media after a failed coup attempt in July. So it has suggested that, in any event, it may pull out of the process altogether if there is no progress by the end of the year. Such progress now seems improbable.
Wednesday, November 23, 2016
RPT-INSIGHT-Euro zone nations turn to hedge funds to meet borrowing needs
Tue Nov 22, 2016 | 2:00am EST
Reuters
(Repeats story published on Monday)
* Belgium, Italy and Spain see spike in hedge fund take-up
* Bankers warn trend could exacerbate market volatility
* Risks stir memories of euro zone's sovereign debt crisis
* Long-dated bonds sustain heavy losses in recent sell-off
By Abhinav Ramnarayan and Helen Reid
Reuters
(Repeats story published on Monday)
* Belgium, Italy and Spain see spike in hedge fund take-up
* Bankers warn trend could exacerbate market volatility
* Risks stir memories of euro zone's sovereign debt crisis
* Long-dated bonds sustain heavy losses in recent sell-off
By Abhinav Ramnarayan and Helen Reid
Greece to continue bailout talks, aiming to finish before December 5
Tue Nov 22, 2016 | 1:42pm EST
Reuters
Greece will continue talks with international creditors on fiscal and labor reforms, aiming to wrap up the second review of its bailout program by early next month ahead of a euro zone finance ministers' meeting, government officials said on Tuesday.
Mission chiefs of the creditor institutions overseeing the program's implementation - the euro zone's ESM rescue fund, the European Central Bank, the International Monetary Fund and the European Commission - left Athens on Tuesday, leaving remaining issues to be resolved by technical staff and via teleconference.
Reuters
Greece will continue talks with international creditors on fiscal and labor reforms, aiming to wrap up the second review of its bailout program by early next month ahead of a euro zone finance ministers' meeting, government officials said on Tuesday.
Mission chiefs of the creditor institutions overseeing the program's implementation - the euro zone's ESM rescue fund, the European Central Bank, the International Monetary Fund and the European Commission - left Athens on Tuesday, leaving remaining issues to be resolved by technical staff and via teleconference.
Tuesday, November 22, 2016
Euro, Dollar Flirt With Parity
Trump outlook and Fed’s likely move are strengthening dollar, and ECB may not help stop euro’s fall
The Wall Street Journal
By MIKE BIRD and IRA IOSEBASHVILI
Updated Nov. 20, 2016 10:00 p.m. ET
A 10-day losing streak for the euro against the U.S. dollar is rekindling an old debate: Will the common currency reach parity with the dollar?
In the last two weeks, the euro has fallen 4% against the dollar, hitting $1.06, a level last seen 12 months ago.
The sharp shift in expectations for U.S. interest rates and economic growth since the American presidential election has refueled the euro’s fall against the greenback. If the Federal Reserve increases rates, expectations are the dollar would rise further by drawing money to the U.S. looking for higher returns.
The Wall Street Journal
By MIKE BIRD and IRA IOSEBASHVILI
Updated Nov. 20, 2016 10:00 p.m. ET
A 10-day losing streak for the euro against the U.S. dollar is rekindling an old debate: Will the common currency reach parity with the dollar?
In the last two weeks, the euro has fallen 4% against the dollar, hitting $1.06, a level last seen 12 months ago.
The sharp shift in expectations for U.S. interest rates and economic growth since the American presidential election has refueled the euro’s fall against the greenback. If the Federal Reserve increases rates, expectations are the dollar would rise further by drawing money to the U.S. looking for higher returns.
Here's When the Dollar and the Euro Are Expected to Hit Parity
Forbes
by Lucinda Shen @ShenLucinda NOVEMBER 21, 2016, 10:59 AM EST
Good news for dollar bulls. Bad news for the global economy.
The euro and the U.S. dollar could be trading one-for-one next year as Europe struggles with political uncertainty and the U.S. is expected to go on a fiscal splurge.
In a note late last week, a team of analysts from Goldman Sachs predicted the two currencies will reach parity by the fourth quarter of 2017. The dollar has risen 4.4% against the euro, and 2% against a basket of world currencies since Donald Trump won the U.S. presidential election Nov. 8. The euro is currently trading at $1.06.
by Lucinda Shen @ShenLucinda NOVEMBER 21, 2016, 10:59 AM EST
Good news for dollar bulls. Bad news for the global economy.
The euro and the U.S. dollar could be trading one-for-one next year as Europe struggles with political uncertainty and the U.S. is expected to go on a fiscal splurge.
In a note late last week, a team of analysts from Goldman Sachs predicted the two currencies will reach parity by the fourth quarter of 2017. The dollar has risen 4.4% against the euro, and 2% against a basket of world currencies since Donald Trump won the U.S. presidential election Nov. 8. The euro is currently trading at $1.06.
Monday, November 21, 2016
EU’s position in Brexit negotiations does not make sense, Philip Hammond says
The Chancellor accepted that negotiations could create uncertainty for the British economy
The Independent
Jon Stone Political Correspondent
The EU’s hardline stance against the UK in the upcoming Brexit negotiations “doesn’t make a lot of sense”, the Chancellor has said, as he warned that the talks will bring uncertainty to the British economy
Subscribe to:
Posts (Atom)