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".
Tuesday, November 29, 2016
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
A Falling Euro Is Neither A Collapse Nor A Disaster - It's The Solution
NOV 20, 2016 @ 05:35 AM
Forbes
Tim Worstall , CONTRIBUTOR
I have opinions about economics, finance and public policy.
Opinions expressed by Forbes Contributors are their own.
The Express is getting rather overeager to tell us that a falling euro/dollar exchange rate is a collapse, an imminent disaster. When, of course, a change in exchange rates is the cure for what ails economies. That’s rather the point of having them in the first place rather than just the one world currency. So that if one economic area is doing differently than some other we can let the exchange rate take the strain of adjustment, rather than having to do that internal devaluation. You know, as the euro itself has forced Greece and Finland to do?
Forbes
Tim Worstall , CONTRIBUTOR
I have opinions about economics, finance and public policy.
Opinions expressed by Forbes Contributors are their own.
The Express is getting rather overeager to tell us that a falling euro/dollar exchange rate is a collapse, an imminent disaster. When, of course, a change in exchange rates is the cure for what ails economies. That’s rather the point of having them in the first place rather than just the one world currency. So that if one economic area is doing differently than some other we can let the exchange rate take the strain of adjustment, rather than having to do that internal devaluation. You know, as the euro itself has forced Greece and Finland to do?
Friday, November 18, 2016
EU Sees ‘Smooth Sailing’ If Greece Implements Needed Reforms
Richard Bravo
Matthew Miller
November 18, 2016 — 11:15 AM EET Updated on November 18, 2016 — 11:35 AM EET
Greece and the institutions managing its bailout, currently negotiating policy reforms in Athens, could clear the way for discussions next month to ease the terms of the nation’s debt burden, which could presage a successful resolution of its rescue program, according to the head of the euro area’s Economic and Financial Committee of finance deputies.
“You need to do the reforms and that will bring back growth and that will then unlock those measures which in reality we’ve already agreed on,” Thomas Wieser, head of the Euro Working Group, said in an interview with Bloomberg Television. “I’m very positive by the end of this year we’ll be there then it should be comparatively smooth sailing for the rest of the program.”
Matthew Miller
November 18, 2016 — 11:15 AM EET Updated on November 18, 2016 — 11:35 AM EET
Greece and the institutions managing its bailout, currently negotiating policy reforms in Athens, could clear the way for discussions next month to ease the terms of the nation’s debt burden, which could presage a successful resolution of its rescue program, according to the head of the euro area’s Economic and Financial Committee of finance deputies.
“You need to do the reforms and that will bring back growth and that will then unlock those measures which in reality we’ve already agreed on,” Thomas Wieser, head of the Euro Working Group, said in an interview with Bloomberg Television. “I’m very positive by the end of this year we’ll be there then it should be comparatively smooth sailing for the rest of the program.”
May's changing vocabulary signals shift from 'hard Brexit'
Nov 18, 2016 | 7:48am GMT
Reuters
By Elizabeth Piper | LONDON
There is a recognisable repetition in Theresa May's speeches about Britain's decision to leave the European Union: "Brexit means Brexit", making "a success of it" and getting "the best deal" for Britain are some of her stump phrases.
But a closer look at her speeches suggests her position on key aspects of Brexit has evolved since she took office in the aftermath of the June 23 vote to leave.
Together with public comments by ministers in her Conservative government, the changes appear to suggest May has shifted from favouring a "hard Brexit" - a clean break with the EU's single market of 500 million consumers - to supporting continued membership of that market if possible.
Reuters
By Elizabeth Piper | LONDON
There is a recognisable repetition in Theresa May's speeches about Britain's decision to leave the European Union: "Brexit means Brexit", making "a success of it" and getting "the best deal" for Britain are some of her stump phrases.
But a closer look at her speeches suggests her position on key aspects of Brexit has evolved since she took office in the aftermath of the June 23 vote to leave.
Together with public comments by ministers in her Conservative government, the changes appear to suggest May has shifted from favouring a "hard Brexit" - a clean break with the EU's single market of 500 million consumers - to supporting continued membership of that market if possible.
Who rules? Euro zone budget tensions surface
Thu Nov 17, 2016 | 11:51am EST
Reuters
By Alastair Macdonald and Jan Strupczewski | BRUSSELS
Berlin's brusque "Nein" on Thursday to a call from Brussels for it to loosen its budget to help the euro zone's struggling south exposed tensions over who should control the currency union and police its rules.
Wolfgang Schaeuble, whose German finance ministry rejected the European Commission's call for it to spend more, went public last month to say the EU executive had become too "political" to act as impartial enforcer of euro zone fiscal rules and should hand the role to a new supervisor.
Reuters
By Alastair Macdonald and Jan Strupczewski | BRUSSELS
Berlin's brusque "Nein" on Thursday to a call from Brussels for it to loosen its budget to help the euro zone's struggling south exposed tensions over who should control the currency union and police its rules.
Wolfgang Schaeuble, whose German finance ministry rejected the European Commission's call for it to spend more, went public last month to say the EU executive had become too "political" to act as impartial enforcer of euro zone fiscal rules and should hand the role to a new supervisor.
Wednesday, November 16, 2016
Another Financial Warning Sign Is Flashing in China
Bloomberg
Bloomberg News
November 15, 2016 — 11:00 PM EET
Add another credit indicator to the financial warning signs flashing in China.
The adjusted loan-to-deposit ratio, which includes a range of off-balance sheet items and is an indicator of the banking system’s ability to weather stress, climbed to 80 percent as of June 30, according to S&P Global Ratings. For some smaller lenders, the ratio has already topped 100 percent, S&P estimates.
Obama Urges Europe to Address Its Debt Crisis
Leaders should favor growth over austerity in response to rising populism, president says
The Washington Post
By CAROL E. LEE and NEKTARIA STAMOULI
Updated Nov. 15, 2016 12:14 p.m. ET
123 COMMENTS
ATHENS—President Barack Obama urged Europe to resolve lingering issues from its debt crisis, saying on Tuesday that leaders should favor growth over austerity, as part of their response to the rising populism in Western countries exemplified by the election of Donald Trump.
Mr. Obama made the appeal after meeting with Greek Prime Minister Alexis Tsipras, who said it is time for Greece to receive significant debt relief from Europe.
The Washington Post
By CAROL E. LEE and NEKTARIA STAMOULI
Updated Nov. 15, 2016 12:14 p.m. ET
123 COMMENTS
ATHENS—President Barack Obama urged Europe to resolve lingering issues from its debt crisis, saying on Tuesday that leaders should favor growth over austerity, as part of their response to the rising populism in Western countries exemplified by the election of Donald Trump.
Mr. Obama made the appeal after meeting with Greek Prime Minister Alexis Tsipras, who said it is time for Greece to receive significant debt relief from Europe.
Obama Keeps Hope Alive for Crisis-Ridden Greece
Bloomberg
Marcus Bensasson
Eleni Chrepa
16-11-2017
When a U.S. president last visited Greece, the economy was booming, Athens had been awarded the Olympics and the country was preparing to join the euro.
That was in 1999, and as Barack Obama gives his keynote speech on Wednesday defending democracy in its birthplace, the spotlight will inevitably fall on Greece’s deterioration. Its journey to the brink of bankruptcy, dragging down financial markets worldwide, was among the defining international events of Obama’s eight years in office and few places better show the ensuing forces of populism that ultimately brought in Donald Trump to replace him.
Marcus Bensasson
Eleni Chrepa
16-11-2017
When a U.S. president last visited Greece, the economy was booming, Athens had been awarded the Olympics and the country was preparing to join the euro.
That was in 1999, and as Barack Obama gives his keynote speech on Wednesday defending democracy in its birthplace, the spotlight will inevitably fall on Greece’s deterioration. Its journey to the brink of bankruptcy, dragging down financial markets worldwide, was among the defining international events of Obama’s eight years in office and few places better show the ensuing forces of populism that ultimately brought in Donald Trump to replace him.
Monday, November 14, 2016
Japan economy: Exports help faster-than-expected growth
BBC
Japan's economy expanded at a faster-than-expected rate between July and September, due to higher exports.
Gross domestic product rose at an annualised rate of 2.2% in the three months to September, the third consecutive quarter of expansion.
Japanese firms have relied on overseas sales to make up for lacklustre domestic demand.
There are concerns a Donald Trump US presidency will hurt Japan if anti-free trade rhetoric became a reality.
Trump shapes White House, hires establishment figure, firebrand
Mon Nov 14, 2016 | 1:34am EST
Reuters
By Susan Cornwell and Alana Wise | WASHINGTON
President-elect Donald Trump was weighing contenders for other top jobs in his administration after choosing Washington insider Reince Priebus as White House chief of staff and firebrand outsider Stephen Bannon as senior counselor.
Less than a week after his upset win over Democrat Hillary Clinton in last Tuesday's presidential election, Trump's choice on Sunday of Priebus, the Republican National Committee chairman and friend of House of Representatives Speaker Paul Ryan, could help him repair his strained relations with members of the Republican Party establishment.
But Trump also named Bannon, the combative former head of the right-wing website Breitbart News, as his strategist and senior counselor. The statement said Bannon and Priebus would be "working as equal partners to transform the federal government."
Reuters
By Susan Cornwell and Alana Wise | WASHINGTON
President-elect Donald Trump was weighing contenders for other top jobs in his administration after choosing Washington insider Reince Priebus as White House chief of staff and firebrand outsider Stephen Bannon as senior counselor.
Less than a week after his upset win over Democrat Hillary Clinton in last Tuesday's presidential election, Trump's choice on Sunday of Priebus, the Republican National Committee chairman and friend of House of Representatives Speaker Paul Ryan, could help him repair his strained relations with members of the Republican Party establishment.
But Trump also named Bannon, the combative former head of the right-wing website Breitbart News, as his strategist and senior counselor. The statement said Bannon and Priebus would be "working as equal partners to transform the federal government."
Trump shift puts euro markets back on edge as elections loom
Mon Nov 14, 2016 | 1:07am EST
Reuters
By Dhara Ranasinghe | LONDON
Anti-establishment votes in Britain and the United States have roiled markets twice this year and investors are determined not to be caught off guard again.
In 2017, voters in the Netherlands, France and Germany - and possibly in Italy and Britain too - will vote in elections that could be colored by the triumphs of Donald Trump and supporters of Brexit, and the politics that drove those campaigns.
A litmus test for Europe is around the corner in Italy's referendum on constitutional change on Dec. 4. On the same day, Austria holds a re-run of a presidential election in which one of the two candidates is from the far-right.
Reuters
By Dhara Ranasinghe | LONDON
Anti-establishment votes in Britain and the United States have roiled markets twice this year and investors are determined not to be caught off guard again.
In 2017, voters in the Netherlands, France and Germany - and possibly in Italy and Britain too - will vote in elections that could be colored by the triumphs of Donald Trump and supporters of Brexit, and the politics that drove those campaigns.
A litmus test for Europe is around the corner in Italy's referendum on constitutional change on Dec. 4. On the same day, Austria holds a re-run of a presidential election in which one of the two candidates is from the far-right.
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