OCT 22, 2016 @ 11:57
Stephen Pope , CONTRIBUTOR
Forbes
Over the past week, foreign exchange markets have been offered opposing views on the next play in European and American monetary policy. The differences are wider than the Atlantic Ocean.
In Europe, the Bank of England (BOE) faces many problems as the falling level of Sterling threatens to ignite inflation from its current 1.0% at a time when the economy is struggling to accommodate the uncertainty over the terms of Brexit.
A larger dilemma faces the European Central Bank (ECB). With a tepid economy, GDP growth just 0.3% and unemployment of 10.1% coupled to a fragile banking system it is obliged to hold open the door for further monetary stimulus in December and maintain that accommodation deep into 2017.
Sunday, October 23, 2016
Scotland demands to be equal partner in Brexit negotiations
The lead Scottish minister in the process is concerned that the UK is heading for a hard Brexit
The Independent
David Hughes, Lucinda Cameron
The Scottish Government has demanded to be treated as an “equal partner” by Theresa May in the Brexit negotiations, as the Prime Minister called for a “grown up” relationship with the devolved administrations.
The Prime Minister will host the leaders of Scotland, Wales and Northern Ireland on Monday to discuss the Brexit process and her Government's economic plans.
The Independent
David Hughes, Lucinda Cameron
The Scottish Government has demanded to be treated as an “equal partner” by Theresa May in the Brexit negotiations, as the Prime Minister called for a “grown up” relationship with the devolved administrations.
The Prime Minister will host the leaders of Scotland, Wales and Northern Ireland on Monday to discuss the Brexit process and her Government's economic plans.
Thursday, October 20, 2016
Rodrigo Duterte’s impetuous pivot
Is the Philippines, until now a staunch American ally, falling into the Chinese camp?
Oct 19th 2016 | Asia
The Economist
EVEN in a year of extraordinary reversals, few would have expected it. In July China reacted with fury when an international tribunal upheld a complaint from the Philippines and rubbished China’s territorial claims in the South China Sea. This week it is rolling out the red carpet for the mercurial Philippine president, Rodrigo Duterte. He is being feted in a four-day state visit, with 400-odd businessmen in tow. Rub your eyes: America’s strongest ally in South-East Asia appears to be plopping like a ripe mango into China’s hands.
Greece Might Just Get a Boost From an Unlikely Source
The cash-strapped nation stands to gain a lift to demand from the aid effort for refugees
Bloomberg
Nikos Chrysoloras
October 20, 2016 — 7:01 AM EEST
As European Union leaders gather in Brussels on Thursday with the refugee crisis on the agenda, some of them may repeat the claim that their economies can't bear the cost of aiding people fleeing war and persecution. Greece ought not to be one of them.
After all it has been through in the past six years, the arrival of tens of thousands of refugees from across the Aegean may in fact be giving the country a mild, short-term stimulus.
Hundreds of millions of euros have been spent so far to provide shelter, provisions, and support to migrants and asylum seekers, in a period when government-funded spending has taken successive cuts.
Bloomberg
Nikos Chrysoloras
October 20, 2016 — 7:01 AM EEST
As European Union leaders gather in Brussels on Thursday with the refugee crisis on the agenda, some of them may repeat the claim that their economies can't bear the cost of aiding people fleeing war and persecution. Greece ought not to be one of them.
After all it has been through in the past six years, the arrival of tens of thousands of refugees from across the Aegean may in fact be giving the country a mild, short-term stimulus.
Hundreds of millions of euros have been spent so far to provide shelter, provisions, and support to migrants and asylum seekers, in a period when government-funded spending has taken successive cuts.
World’s Fourth-Biggest Currency Trader Sees Euro Decline Ahead
Lananh Nguyen
Bloomberg
Deutsche Bank AG is sticking with its weaker euro call.
The currency dropped to the lowest in almost three months and the world’s fourth-largest foreign-exchange trader says it’s got further to fall. The bank sees the shared currency declining to $1.05 by year-end, more bearish than the $1.10 median estimate of analysts surveyed by Bloomberg. Traders will be watching the European Central Bank’s policy-setting meeting Thursday for signals about its monetary stimulus efforts, which haven’t prevented the euro from climbing this year.
Wednesday, October 19, 2016
Saudi Arabia to Offer International Investors $17.5 Billion in Bonds
Gulf countries are increasingly raising funds through international markets
The Wall Street Journal
By NICOLAS PARASIE and CHRISTOPHER WHITTALL
Oct. 19, 2016 7:27 a.m. ET
0 COMMENTS
DUBAI—Saudi Arabia plans to raise up to $17.5 billion by selling bonds for the first time to international investors this week, two people aware of the transaction said Wednesday.
The kingdom also tightened its pricing guidance for the potential multi-tranche issue, which along with the estimated issue size reflects a strong appetite for the potential issue, bankers say.
For the five-year tranche, Saudi Arabia said it would pay around 140 basis points above U.S. Treasurys, compared with an initial guidance of around 160 basis points above U.S. Treasurys.
The Wall Street Journal
By NICOLAS PARASIE and CHRISTOPHER WHITTALL
Oct. 19, 2016 7:27 a.m. ET
0 COMMENTS
DUBAI—Saudi Arabia plans to raise up to $17.5 billion by selling bonds for the first time to international investors this week, two people aware of the transaction said Wednesday.
The kingdom also tightened its pricing guidance for the potential multi-tranche issue, which along with the estimated issue size reflects a strong appetite for the potential issue, bankers say.
For the five-year tranche, Saudi Arabia said it would pay around 140 basis points above U.S. Treasurys, compared with an initial guidance of around 160 basis points above U.S. Treasurys.
Tuesday, October 18, 2016
Turkey will fight Isis in Mosul, President Erdogan says
Bitter row between Ankara and Baghdad over role of Turkish troops in battle to retake Mosul threatens future of operation, US says
Bethan McKernan Beirut
Independent
It is “out of the question” for Turkish troops to stay out of the US-backed Iraqi army offensive to retake the northern city of Mosul from Isis, the Turkish president has said.
“We will be in the operation and we will be at the table,” Recep Tayyip Erdoğan stated in a televised speech on Monday. “Our brothers are there and our relatives are there. It is out of the question that we are not involved.”
Mr Erdoğan's comments came as Iraqi prime minister Haider al-Abadi announced that the long-awaited operation to reclaim the city has begun.
Bethan McKernan Beirut
Independent
It is “out of the question” for Turkish troops to stay out of the US-backed Iraqi army offensive to retake the northern city of Mosul from Isis, the Turkish president has said.
“We will be in the operation and we will be at the table,” Recep Tayyip Erdoğan stated in a televised speech on Monday. “Our brothers are there and our relatives are there. It is out of the question that we are not involved.”
Mr Erdoğan's comments came as Iraqi prime minister Haider al-Abadi announced that the long-awaited operation to reclaim the city has begun.
The Iraqi army begins the liberation of Mosul
Even with backing from Kurds, Shia militias and an American-led international coalition, the campaign will be hard
Oct 17th 2016 | Middle East and Africa
The Economist
“THE time of victory has come…today I declare the start of these victorious operations to free you from the violence and terrorism of Daesh [Islamic State].” With these words, broadcast at 2am on October 17th, Iraq’s prime minister, Haider al-Abadi, announced the start of the long-awaited offensive to liberate Mosul, the country’s second-biggest city, which was seized by IS in June 2014, and is the only significant place in Iraq that the jihadists still hold. Mr Abadi added: “The Iraqi flag will be raised in the middle of Mosul and in each village and corner very soon.” Across the rest of Iraq, following a series of victories this year, it already has been.
Will Italy Leave the Euro? Follow the Money
30 OCT 17, 2016 1:31 AM EDT
By Mark Whitehouse
Bloomberg
Will Italy follow the U.K.'s example and leave the European Union? Far-fetched as it may seem, capital flows suggest that some people aren’t waiting to find out.
To keep the euro area's accounts in balance, Europe's central banks track flows of money among the members of the currency union. If, for example, a depositor moves 100 euros from Italy to Germany, the Bank of Italy records a liability to the Eurosystem and the Bundesbank records a credit. If a central bank starts building up liabilities rapidly, that tends to be a sign of capital flight.
By Mark Whitehouse
Bloomberg
Will Italy follow the U.K.'s example and leave the European Union? Far-fetched as it may seem, capital flows suggest that some people aren’t waiting to find out.
To keep the euro area's accounts in balance, Europe's central banks track flows of money among the members of the currency union. If, for example, a depositor moves 100 euros from Italy to Germany, the Bank of Italy records a liability to the Eurosystem and the Bundesbank records a credit. If a central bank starts building up liabilities rapidly, that tends to be a sign of capital flight.
'Brexit' May Hurt Britain Where It Thrives: Science and Research
By KIMIKO DE FREYTAS-TAMURA
OCT. 17, 2016
The New York Times
LONDON — When Adam Durant started his company analyzing climate-related threats to aircraft, he and his team of researchers symbolized the possibilities offered by the European Union.
Soon after graduating from college, Mr. Durant received a prestigious European Union grant to study atmospheric chemistry and conduct climate-related research. When he started his business, he hired staff members from Belgium and France without having to sponsor their visas.
But since Britain voted in June to leave the bloc, Mr. Durant has become the archetype of something very different: a nervous entrepreneur, unsure about future funding and even considering leaving the country.
OCT. 17, 2016
The New York Times
LONDON — When Adam Durant started his company analyzing climate-related threats to aircraft, he and his team of researchers symbolized the possibilities offered by the European Union.
Soon after graduating from college, Mr. Durant received a prestigious European Union grant to study atmospheric chemistry and conduct climate-related research. When he started his business, he hired staff members from Belgium and France without having to sponsor their visas.
But since Britain voted in June to leave the bloc, Mr. Durant has become the archetype of something very different: a nervous entrepreneur, unsure about future funding and even considering leaving the country.
Monday, October 17, 2016
Global Economy Week Ahead: China GDP, U.S. Industrial Production, ECB Meeting
Inflation data are due from the U.K. and the U.S., as well as retail sales from China
The Wall Street Journal
By WSJ STAFF
Oct. 16, 2016 3:00 p.m. ET
1 COMMENTS
The week’s economic calendar provides insight into how the world’s two largest economies are faring. It kicks off with a gauge of U.S. industrial activity, followed by a round of economic data out of China. From Europe comes a report on consumer confidence and a policy decision from the European Central Bank.
Nine Things You Need to Know About a ‘Hard Brexit"
Bloomberg
Simon Kennedy
October 17, 2016 — 7:00 AM EEST
Just when you finally grasped the meaning of “Brexit,” the subject grows more complicated. In London and the capitals of continental Europe, political leaders are preparing to discuss the terms and conditions of the U.K.’s coming separation from the European Union. Two broad options are being shorthanded as "hard Brexit" and "soft Brexit," with the U.K.’s prime minister, Theresa May, thought to lean toward the "hard Brexit" camp.
Kurdish Troops Advance on ISIS-Held Villages East of Mosul
By MICHAEL R. GORDON and TIM ARANGOOCT. 17, 2016
The New York Times
BADANA PICHWK, Iraq — Kurdish forces on Monday morning began advancing on a string of villages east of Mosul, the start of a long-awaited campaign to reclaim Iraq’s second-largest city from the Islamic State, which seized it more than two years ago, officials said.
About 4,000 Kurdish pesh merga troops are involved in the operation to retake 10 villages, the opening phase of a battle that could take weeks or months and could involve nearly 30,000 Iraqi and Kurdish troops, with American warplanes providing air support. Iraqi counterterrorism forces, which work closely with American Special Operations commandos in Iraq, are also expected to join the Kurdish forces in the coming days.
Greece's lenders to launch new review as Athens digs in on debt relief
Sun Oct 16, 2016 | 4:06am EDT
Reuters
By Michele Kambas and Lefteris Papadimas
Greece and its creditors start a fresh round of talks this week on reforming its labor market, a tricky task for a leftist government sliding in opinion polls but needed if the recession-hit state can ever win debt relief.
Prime Minister Alexis Tsipras was re-elected a year ago promising to fight to revive collective bargaining and resist reforms that may lower the minimum wage. But he also needs a swift conclusion of the review to achieve Athens's primary goal of restructuring a mountain of debt, the highest in the euro zone, and mollifying an increasingly jaded public worn by years of austerity and unemployment.
Reuters
By Michele Kambas and Lefteris Papadimas
Greece and its creditors start a fresh round of talks this week on reforming its labor market, a tricky task for a leftist government sliding in opinion polls but needed if the recession-hit state can ever win debt relief.
Prime Minister Alexis Tsipras was re-elected a year ago promising to fight to revive collective bargaining and resist reforms that may lower the minimum wage. But he also needs a swift conclusion of the review to achieve Athens's primary goal of restructuring a mountain of debt, the highest in the euro zone, and mollifying an increasingly jaded public worn by years of austerity and unemployment.
Friday, October 14, 2016
Brexit means…higher prices
The economic impact of devaluations
Oct 13th 2016, 10:29 BY BUTTONWOOD
The Economist
THE economic arguments for and against Brexit in the course of the referendum campaign were quite esoteric and confusing to the average voter. Similarly, sterling’s decline in the currency markets might seem like the kind of thing that only concerns City traders.
So the row that has broken out between Tesco, Britain’s biggest supermarket chain, and Unilever, the Anglo-Dutch multinational, has made the story concrete in ways that were not apparent before. Unilever wants to raise prices across a range of goods to reflect the fall in the pound, which has dropped from around $1.50 on the day of the referendum to less than $1.22 at the time of writing. Similar falls have been seen against the euro; indeed travellers who change their money at the airport are getting less than a euro per pound.
Oct 13th 2016, 10:29 BY BUTTONWOOD
The Economist
THE economic arguments for and against Brexit in the course of the referendum campaign were quite esoteric and confusing to the average voter. Similarly, sterling’s decline in the currency markets might seem like the kind of thing that only concerns City traders.
So the row that has broken out between Tesco, Britain’s biggest supermarket chain, and Unilever, the Anglo-Dutch multinational, has made the story concrete in ways that were not apparent before. Unilever wants to raise prices across a range of goods to reflect the fall in the pound, which has dropped from around $1.50 on the day of the referendum to less than $1.22 at the time of writing. Similar falls have been seen against the euro; indeed travellers who change their money at the airport are getting less than a euro per pound.
Wednesday, October 12, 2016
U.S. says foreign forces in Iraq should be there with Baghdad's approval
Tue Oct 11, 2016 | 4:36pm EDT
Reuters
Foreign military forces in Iraq should be there with the approval of the Baghdad government and under the umbrella of the anti-Islamic State coalition, the U.S. State Department said on Tuesday.
Turkey and Iraq disagree over the presence of about 2,000 Turkish troops at a base in northern Iraq, as the coalition prepares for an attack on the Islamic State-held city of Mosul.
Reuters
Foreign military forces in Iraq should be there with the approval of the Baghdad government and under the umbrella of the anti-Islamic State coalition, the U.S. State Department said on Tuesday.
Turkey and Iraq disagree over the presence of about 2,000 Turkish troops at a base in northern Iraq, as the coalition prepares for an attack on the Islamic State-held city of Mosul.
4 more Turkish servicemen lose asylum claim in Greece
Published October 11, 2016
Fox News
THESSALONIKI, Greece – A state asylum service in Greece has rejected claims by four more Turkish military servicemen who fled in the wake of their country's failed coup attempt in mid-July.
Eight servicemen fled to the Greek border town of Alexandroupolis by helicopter, and all remain in police custody in Athens. Seven have now had their asylum claims rejected, following the latest decision announced Tuesday, with a decision pending for the eighth.
Fox News
THESSALONIKI, Greece – A state asylum service in Greece has rejected claims by four more Turkish military servicemen who fled in the wake of their country's failed coup attempt in mid-July.
Eight servicemen fled to the Greek border town of Alexandroupolis by helicopter, and all remain in police custody in Athens. Seven have now had their asylum claims rejected, following the latest decision announced Tuesday, with a decision pending for the eighth.
Tuesday, October 11, 2016
EU Sagas of Greece, Transaction Tax Back in Focus: Brussels Beat
Jonathan Stearns
October 10, 2016 — 1:00 AM EEST
Bloomberg
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.
Euro-area finance chiefs will decide on Monday whether Greece, in its third international rescue program since 2010, qualifies for another disbursement of aid. At stake is a 2.8 billion-euro ($3.1 billion) payout tied to Greek overhauls in areas in such as pensions, bank governance and the energy market.
October 10, 2016 — 1:00 AM EEST
Bloomberg
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.
Euro-area finance chiefs will decide on Monday whether Greece, in its third international rescue program since 2010, qualifies for another disbursement of aid. At stake is a 2.8 billion-euro ($3.1 billion) payout tied to Greek overhauls in areas in such as pensions, bank governance and the energy market.
On Greece's Lesbos, migrants remain in limbo in squalid camps
by Reuters
Monday, 10 October 2016 15:20 GMT
Thomson Reuters
The flow of new arrivals has slowed to a trickle, but thousands of migrants remain in limbo on Greece's islands, in grim camps they liken to prisons
* Nearly 15,000 refugees languish on Greek islands
* Tents unheated, sanitation poor as winter approaches
* Local people say crisis has hurt tourism
By Karolina Tagaris
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.
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
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
Monday, October 10, 2016
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."
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.
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.
Friday, October 7, 2016
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.
Thursday, October 6, 2016
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.
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.
Tuesday, October 4, 2016
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.
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.
Monday, October 3, 2016
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.
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.
Saturday, October 1, 2016
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.
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.
Friday, September 30, 2016
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.
Thursday, September 29, 2016
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.
Wednesday, September 28, 2016
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.
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.
Tuesday, September 27, 2016
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.
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.
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.
Greece govt populism made adjustment worse: EU's Dombrovskis
Mon Sep 26, 2016 | 9:28am EDT
Reuters
Greece has had to go through tougher austerity than it would have otherwise been necessary, because of the populist stance of the left-wing government of Alexis Tsipras in 2015, European Commission Vice-President Valdis Dombrovskis said on Monday.
Tsipras, who took power in January 2015, rejected belt-tightening in public finances requested by lenders in exchange for emergency loans and reversed some of the reforms introduced by the previous Greek governments.
As new loans were frozen, Greece defaulted on the International Monetary Fund in July 2015 and had to introduce capital controls to prevent its banking system from collapse.
Reuters
Greece has had to go through tougher austerity than it would have otherwise been necessary, because of the populist stance of the left-wing government of Alexis Tsipras in 2015, European Commission Vice-President Valdis Dombrovskis said on Monday.
Tsipras, who took power in January 2015, rejected belt-tightening in public finances requested by lenders in exchange for emergency loans and reversed some of the reforms introduced by the previous Greek governments.
As new loans were frozen, Greece defaulted on the International Monetary Fund in July 2015 and had to introduce capital controls to prevent its banking system from collapse.
The Deutsche Bank crisis could take Angela Merkel down – and the Euro
MATTHEW LYNN
Matthew Lynn 26 SEPTEMBER 2016 • 4:43PM
The Telegraph
here are some words that make such an unlikely pairing that we find it hard to put them together. Italy and efficiency, for example. Or Bake Off and Channel 4. And ‘Germany’ and ‘banking crisis’ is another one. Our image of German banks, and the German economy, as completely rock solid is so strong that it takes a lot to persuade us they might be in trouble.
And yet it has become increasingly hard to ignore the slow-motion car crash that is Deutsche Bank, or to avoid the conclusion that something very nasty is developing at what was once seen as Europe’s strongest financial institution. Its shares have been in free-fall for a year, touching a new low of 10.7 euros on Monday, down from 27 euros a year ago. Over the weekend, the German Chancellor Angela Merkel waded into the mess, briefing that there could be no government bail-out of the bank.
Friday, September 23, 2016
Greece Rejects Asylum Requests by Three Turkish Officers
Trio were part of group of eight soldiers who fled after failed coup attempt in Turkey
The Wall Street Journal
By STELIOS BOURAS and NEKTARIA STAMOULI
Sept. 21, 2016 1:08 p.m. ET
ATHENS—Three of the eight Turkish army officers who fled to Greece after July’s failed coup attempt in Turkey have had their asylum requests rejected, a Greek government official said Wednesday.
The requests of two of the officers were rejected owing to a lack of cooperation with authorities, a second Greek government official said. All three have the right to appeal.
Amnesty: Refugees in Greece Live in 'Appalling Conditions'
By THE ASSOCIATED PRESS
SEPT. 22, 2016, 9:55 A.M. E.D.T.
The New York Times
ATHENS, Greece — Most of the roughly 60,000 refugees and other migrants stranded in Greece are living in "appalling conditions" and face "immense and avoidable suffering," rights group Amnesty International said in a report Thursday slamming Europe's response to the refugee crisis.
The group criticized Europe for failing to fulfill commitments to relocate refugees from the countries they entered, saying only 6 percent — about 4,000 people — of the 66,400 relocations promised over two years have taken place.
SEPT. 22, 2016, 9:55 A.M. E.D.T.
The New York Times
ATHENS, Greece — Most of the roughly 60,000 refugees and other migrants stranded in Greece are living in "appalling conditions" and face "immense and avoidable suffering," rights group Amnesty International said in a report Thursday slamming Europe's response to the refugee crisis.
The group criticized Europe for failing to fulfill commitments to relocate refugees from the countries they entered, saying only 6 percent — about 4,000 people — of the 66,400 relocations promised over two years have taken place.
COSCO sees Greece's Piraeus among world's top 30 ports by 2018
Thu Sep 22, 2016 | 2:10pm EDT
Reuters
By Angeliki Koutantou | ATHENS
China's biggest shipping company, COSCO Shipping, plans to ramp up container volume at Greece's biggest port in Piraeus by 35 percent by 2018, the port's new managing director, Fu Cheng Qiu, told Reuters on Thursday.
COSCO Shipping, which owns the world's fourth-largest container shipping fleet, bought 51 percent of the port's operating company last month for 280.5 million euros ($315.5 million), one of Greece's biggest and most strategic privatizations since a debt crisis began in 2009.
Reuters
By Angeliki Koutantou | ATHENS
China's biggest shipping company, COSCO Shipping, plans to ramp up container volume at Greece's biggest port in Piraeus by 35 percent by 2018, the port's new managing director, Fu Cheng Qiu, told Reuters on Thursday.
COSCO Shipping, which owns the world's fourth-largest container shipping fleet, bought 51 percent of the port's operating company last month for 280.5 million euros ($315.5 million), one of Greece's biggest and most strategic privatizations since a debt crisis began in 2009.
Potemkin Euro-armies
Grand talk of a “defence union” risks exposing Europe’s weakness
Sep 24th 2016 | From the print edition
The Economist
THE idea of a European army is as old as the hope for European unity. After creating the European Coal and Steel Community, the embryo of today’s European Union, the six founding members agreed in 1952 to form a supranational European force. But the plan was voted down by the French parliament; thereafter countries focused on gradual economic integration.
Banks Said to Plan for Loss of Euro Clearing After Brexit
Bloomberg
September 22, 2016 — 2:01 AM EEST Updated on September 22, 2016 — 2:33 PM EEST
Executives at global investment banks in London expect France and Germany will prevail in a tussle over the clearing of $570 billion of euro derivatives and are making plans to deal with the fallout, according to people at four of the biggest firms.
They assume the City of London will eventually be stripped of the ability to clear euro denominated swaps after Britain formally exits the European Union, said the people involved in their firms’ contingency planning, who asked not to be identified because the details are private. While that might take years to happen, employees and operations central to the clearing function will be among the first moved to the continent once Brexit is triggered, one person said.
Sign up to receive the Brexit Bulletin, a daily briefing on the biggest news related to Britain's departure from the EU.
September 22, 2016 — 2:01 AM EEST Updated on September 22, 2016 — 2:33 PM EEST
Executives at global investment banks in London expect France and Germany will prevail in a tussle over the clearing of $570 billion of euro derivatives and are making plans to deal with the fallout, according to people at four of the biggest firms.
They assume the City of London will eventually be stripped of the ability to clear euro denominated swaps after Britain formally exits the European Union, said the people involved in their firms’ contingency planning, who asked not to be identified because the details are private. While that might take years to happen, employees and operations central to the clearing function will be among the first moved to the continent once Brexit is triggered, one person said.
Sign up to receive the Brexit Bulletin, a daily briefing on the biggest news related to Britain's departure from the EU.
Sunday, September 11, 2016
Greece’s Alexis Tsipras Seeks to Revive his Political Fortunes on Economic Promises
Europe’s most electorally successful populist has become nearly as unpopular as the Greek political establishment he ousted almost two years ago
The Wall Street Journal
By NEKTARIA STAMOULI and MARCUS WALKER
Sept. 11, 2016 2:15 p.m. ET
THESSALONIKI, Greece—Greek Prime Minister Alexis Tsipras, languishing in polls, sought to reboot his premiership over the weekend. But his economically depressed country has largely given up hope on the imminent change he is promising.
Europe’s most electorally successful populist has become nearly as unpopular as the Greek political establishment he ousted almost two years ago. A recent survey showed only 19% of Greeks view him favorably and 85% are dissatisfied with his government.
Syriza Strains Greece’s Credibility
The country’s hard-left government continues to put politics before reform.
The Wall Street Journal
By YANNIS PALAIOLOGOS
Sept. 7, 2016 3:23 p.m. ET
Independent institutions remain anathema to the government in Greece. Two cases that have dominated the headlines in recent weeks demonstrate how the country’s populist government, led by the hard-left Syriza party, continues to put politics before reform and refuses to learn the right lessons from the country’s recent past.
The criminal case against economist Andreas Georgiou returned to the spotlight last month when it was reopened by the country’s Supreme Court. A longtime official with the International Monetary Fund, Mr. Georgiou had been appointed six years ago to head the independent Hellenistic Statistical Authority, or Elstat. The prime minister at the time, George Papandreou, created Elstat as a response to the discovery that the government under his predecessor, Costas Karamanlis, had underreported the country’s fiscal deficit.
'Times are changing, pay your taxes', euro zone chief tells corporations
Sat Sep 10, 2016 11:50am EDT
Reuters
By Francesco Guarascio and Jason Hovet | BRATISLAVA
Multinational companies should refrain from tax-avoidance practices and pay their fair share, the head of euro zone finance ministers said on Saturday in a new endorsement of the European Union's fight against tax-dodging.
In the wake of the 'Panama Papers' revelations of widespread tax-avoidance practices, Brussels has toughened up its drive for fairness by tightening controls and adopting stricter rules.
The recent shock multi-billion euro tax demand on Apple (AAPL.O) was part of that trend as the EU also drafts plans for a common corporate tax base and a single European blacklist for tax havens.
Reuters
By Francesco Guarascio and Jason Hovet | BRATISLAVA
Multinational companies should refrain from tax-avoidance practices and pay their fair share, the head of euro zone finance ministers said on Saturday in a new endorsement of the European Union's fight against tax-dodging.
In the wake of the 'Panama Papers' revelations of widespread tax-avoidance practices, Brussels has toughened up its drive for fairness by tightening controls and adopting stricter rules.
The recent shock multi-billion euro tax demand on Apple (AAPL.O) was part of that trend as the EU also drafts plans for a common corporate tax base and a single European blacklist for tax havens.
Did Hillary Clinton just make her own ‘47 percent’ gaffe?
The Washington Post
By Aaron Blake September 10 at 2:11 PM
Update: Clinton has expressed "regret" for using the word "half." See her statement at the bottom of this post.
Hillary Clinton said Friday night in New York that half of Donald Trump's supporters are racist, sexist, xenophobic, homophobic and/or Islamophobic.
At an "LGBT for Hillary" fundraiser, where Barbra Streisand performed, Clinton expanded on previous comments about many Trump supporters falling into a "basket of deplorables" that includes the groups listed above.
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