Wednesday, January 15, 2014

World Bank Raises Growth Forecasts as Richest Nations Strengthen

By Sandrine Rastello - Jan 15, 2014
Bloomberg
The World Bank raised its global growth forecasts as the easing of austerity policies in advanced economies supports their recovery, boosting prospects for developing markets’ exports.

The Washington-based lender sees the world economy expanding 3.2 percent this year, compared with a June projection of 3 percent and up from 2.4 percent in 2013. The forecast for the richest nations was raised to 2.2 percent from 2 percent. Part of the increase reflects improvement in the 18-country euro area, with the U.S. ahead of developed peers, growing twice as fast as Japan.

Tuesday, January 14, 2014

Irish industrial production growth highest in EU

Pamela Newenham

Last Updated: Tuesday, January 14, 2014, 10:41
Ireland recorded 13.2 per cent growth in industrial production between November 2012 and November 2013, according to the latest figures from the EU’s statistics office Eurostat.

This is the highest increase in the EU ahead of Slovakia (+12.7 per cent), the Czech Republic (+8.8 per cent) and Romania (+8.7 per cent).

Ireland also had the highest month on month increase between October and November last year, rising 11.7 per cent, compared to EU average growth of 1.5 per cent and a Euro Area average of 1.9 per cent.

Insight: Gold mine stirs hope and anger in shattered Greece

Mon, Jan 13 2014
By Deepa Babington and Lefteris Papadimas
OURANOUPOLI, Greece (Reuters) - A Canadian quest to mine for gold in the lush forests of northern Greece is testing the government's resolve to prove Europe's most ravaged economy is open again for business.
The Skouries mine on Halkidiki peninsula - a landscape of pristine beaches and rolling hills dotted with olive groves - is among the biggest investments in Greece since it sank into a debt crisis four years ago.
But it has set Greece's desperate need for finance to rebuild the economy against the interests of its vital tourism industry, and aroused anger on the peninsula - site of the famed Mount Athos monasteries - over the environmental cost.

Monday, January 13, 2014

Italian Bonds Gain After Nation Sells Most Debt Since May 2011

Bloomberg Businessweek
http://www.businessweek.com/news/2014-01-13/italian-bonds-gain-after-nation-sells-most-debt-since-may-2011
By Eshe Nelson and David Goodman January 13, 2014
Italy’s government securities advanced for a second day as the nation raised the largest amount from an auction of bonds in a single day since May 2011.

The nation’s two-year note rose for the first time in four days as the government sold three-year notes at a record-low yield. German bunds gained for a second day, with 10-year yields falling to match the lowest level in four weeks, after a U.S. report last week showed companies added workers at the slowest pace since January 2011. Bonds from Spain to Greece have rallied this year amid signs the European debt crisis is easing.

Is China Really The World's No. 1 Trader?

1/12/2014  6:37PM |2,220 views
by Gordon G Chang
Forbes
“It is very likely that China has overtaken the U.S. to become the world’s largest trading country in goods in 2013 for the first time,” said Zheng Yuesheng, spokesman for China’s General Administration of Customs, on Friday while announcing December—and therefore full year—exports and imports.

China’s trade volume, he said, was $389.8 billion in December, a monthly record.  Exports, by the way, accounted for a spectacular $207.7 billion.

Friday, January 10, 2014

Deflation is deflation even if you deserve it

BY JAMES SAFT
Thu Jan 9, 2014 5:06pm EST
(Reuters) - Here is some unwelcome news for the likes of Greece, Ireland and Cyprus: Apparently it isn't really deflation if you deserve it.

That's the takeaway from remarks by ECB chief Mario Draghi, who despite persistently falling prices in some euro zone peripheral economies, was at pains on Thursday to define the problem away.

Greece Takes EU Helm, Still Focused on Self

Six-Month Presidency Could be Overshadowed by Demands of Bailout

By MATINA STEVIS
Updated Jan. 9, 2014 2:26 p.m. ET
Greece's turn at the helm of the European Union, a largely administrative role that rotates every six months, could find itself overshadowed by something close to home: Greece's own bailout.

According to EU etiquette, the country holding the presidency is expected to leave aside its national agenda and focus on managing legislative drafts and negotiations, wearing a neutral, EU hat. That option isn't available to Athens.

Thursday, January 9, 2014

Greece Dreams of Bond Sale in Rally From Ireland to Portugal

By Neal Armstrong and David Goodman - Jan 9, 2014
Europe’s financial markets are picking up where they left off 2013, extending a rally in bonds and stocks that’s making the region’s sovereign debt crisis little more than a fading memory.

Ireland sold bonds this week, returning to financial markets after completing a three-year bailout program. Portugal -- another aid recipient -- is holding a sale today. Banks in Spain and other periphery countries have never been able to borrow as cheaply as they can now. The Stoxx Europe 600 Index of stocks closed at its highest level since May 2008 yesterday and the euro is about its strongest since 2011 against the dollar.

Wednesday, January 8, 2014

Greek Police Hunt for Convicted Terrorist Who Disappeared on Furlough

January 7, 2014
The New York Times
By NIKI KITSANTONIS
ATHENS — The Greek authorities on Tuesday began a nationwide search for a convicted member of the dismantled November 17 group, once the country’s deadliest guerrilla organization, after he failed to report to the police during a prison furlough, fueling fears of a resurgence of political violence.

Tuesday, January 7, 2014

Fresh Signs of a Cooling Economy in China

January 6, 2014
By REUTERS
BEIJING — Growth in China’s services industries slowed in December, separate surveys have found, echoing a slowdown in manufacturing and confirming views that the economy lost steam at the end of last year.

HSBC on Monday released its purchasing managers’ index for services, compiled by Markit Economics, showing a drop to 50.9 in December, its lowest level since August 2011, from 52.5 in November. But the figure remained above the 50-point level that indicates expansion in activity. New business growth was the slowest in six months.

Strategies for sustainable growth

The Washington Post
By Lawrence Summers, Published: January 6
Lawrence Summers is a professor and past president at Harvard. He was Treasury secretary from 1999 to 2001 and economic adviser to President Obama from 2009 through 2010.

Last month I argued that the U.S. and global economies may be in a period of secular stagnation in which sluggish growth and output, and employment levels well below potential, might coincide for some time to come with problematically low real interest rates. Since the start of this century, annual growth in U.S. gross domestic product has averaged less than 1.8 percent. The economy is now operating nearly 10 percent, or more than $1.6 trillion, below what the Congressional Budget Office judged to be its potential path as recently as 2007. And all this is in the face of negative real interest rates for more than five years and extraordinarily easy monetary policies.

Saturday, January 4, 2014

Greece to overhaul defense buying after scandal

BY HARRY PAPACHRISTOU
ATHENS Fri Jan 3, 2014 12:15pm EST
(Reuters) - Greece will overhaul arms procurement to make it more transparent, Defense Minister Dimitris Avramopoulos said on Friday, after a wide-ranging corruption inquiry led to the arrest of a former defense official and two arms dealers.

Heavy arms spending was one of the reasons Athens piled up debt and had to be rescued with European Union and IMF bailouts totaling 240 billion euros ($328 billion) in 2010 and 2012.

These were accompanied by strict conditions that have increased poverty and unemployment, so the scandal has touched a raw nerve with many Greeks.

Friday, January 3, 2014

GREECE - Factors to Watch on January 3

Fri Jan 3, 2014 8:44am GMT
ATHENS, Jan 3 (Reuters) - Here are news stories, press
reports and events, which may affect Greek financial markets on
Friday:
   
    EUROBANK PROPERTIES BUYS COMMERCIAL REAL ESTATE IN ATHENS,
THESSALONIKI

Can Greece repair its reputation?

Is Greece, the country that nearly brought Europe to its knees, fit to take over the EU presidency?
By Colin Freeman7:49PM GMT 02 Jan 2014
The Guardian
Brussels bureaucrats are not known for their humorous side, nor indeed are German politicians or Eurozone finance chiefs. But anyone wandering through Syntagma Square in Athens these days could be forgiven for thinking that someone in the EU hierarchy clearly has a sense of mischief.
In recent weeks, after five years as a battleground between Greek police and anti-austerity protesters, the square has been undergoing repairs to its marble. The refurb marks not the end of Greece’s austerity years – far from it – but the start of what many might otherwise assume was a drunken New Year’s prank by someone in Brussels’ protocol and scheduling department.

Thursday, January 2, 2014

Greece takes charge of the European Union


For the next six months, Greece holds the presidency of the European Union. The country is virtually bankrupt, and has been bailed out several times by the EU. Now it's in charge of the EU's daily agenda.
Greece is still in serious economic crisis. Unemployment is at a record high of 27 percent. Taxes are rising, and public spending is down. The country is hundreds of billions of euros in debt. Konstantinos Karagkounis, a member of the Greek parliament, describes the situation as a "humanitarian catastrophe," and the situation is improving only very slowly.

Tuesday, December 31, 2013

Happy New Year Euro Zone. Now Reform.

December 31, 2013, 5:07 AM ET
ByDavid Cottle
It’s been quite some time since the euro zone could look a New Year in the eye with quite the straight and level gaze it can in dawning 2014.

Chatter about the currency’s implosion has been largely stilled in the mainstream of market discourse, largely restricted once again to dark corners from whence perma-skeptics have always prophesied eurogeddon. Bailed-out Ireland is returning to the bond markets, proving that redemption is possible even for grievous former sinners.  The long-vexed question of what to do about future failed banks even has a blueprint for resolution.

The good news about 2014 (maybe)


By Robert J. Samuelson, Published: December 30

For four and a half years, we have waited for a powerful and self-sustaining economic recovery. More than once it seemed imminent. Then, for various reasons, it vanished, and we returned to a plodding expansion with too much unemployment and too little confidence. Could 2014 be the year when the recovery actually feels like a recovery? Well, it could.

I say this with humility. True, many forecasts have turned optimistic. Economic growth will (finally) accelerate. But similar predictions were made in the past, including by me, and were wrong. The same could happen again. Still, the case for a healthier recovery now seems the most plausible since the recession’s nadir in mid-2009. The reason: Many economic “fundamentals” are improving simultaneously.

Here are four.

More than 2,000 sign up to redundancy plan at Greece's NBG-source

ATHENS Mon Dec 30, 2013 2:46pm EST
Dec 30 (Reuters) - More than 2,000 people have signed up for a voluntary redundancy scheme at Greece's biggest lender, National Bank (NBG), aimed at shedding about 15 percent of its workforce to cut costs, an NBG official told Reuters on Monday.

Hammered by Greece's six-year recession, the country's four major lenders had billions pumped into them to prop them up after a sovereign debt restructuring last year and rising bad loans and are now restructuring to trim their cost base.

Greece: Former minister sentenced to 4-year suspended imprisonment

30/12 13:09 CET
Former Transport Minister Michalis Liapis was sentenced to four year suspended imprisonment, redeemable for 50 euros a day, after being arrested for driving an uninsured vehicle with fake number plates.

Gunmen in Greece Attack German Ambassador’s Residence

December 30, 2013
The New York Times
By LIZ ALDERMAN
Assailants raked the German ambassador’s residence in Athens with gunfire early on Monday in an attack that caused no injuries, Greek police officials said.

The police found 60 spent bullet casings at the scene and detained six people in connection with the incident, which occurred around 3:30 a.m. in an affluent suburb north of Athens. The bullet casings came from two Kalashnikov assault rifles, according to the police.

No one claimed responsibility for the attack, in which four bullets hit a security gate. But anti-German sentiment has been festering among many Greeks struggling with record unemployment and reduced salaries under a harsh austerity plan required for Greece’s international bailout, which Germany had a major role in selecting the terms of.

“Nothing, but really nothing, can justify such an attack on a representative of our country,” the German foreign minister, Frank-Walter Steinmeier, said in a statement in Berlin. He said Germany took the attack seriously, and a Foreign Ministry spokesman said that the Greek authorities had reacted swiftly and assured Germany they would strengthen security in Athens.

Chancellor Angela Merkel of Germany received a phone call from Prime Minister Antonis Samaras of Greece, according to a spokesman for the German government, Steffen Seibert. He added that Greece, which on Wednesday will take over the rotating presidency of the European Union, can count on Germany’s full support.

“The Greek government expresses its abhorrence and utter condemnation of today’s cowardly act of terrorism, the sole and obvious target of which was Greece’s image abroad just a few days before the start of the Hellenic presidency of the Council of the E.U.,” the Greek Foreign Ministry said in a statement.

Germany is the largest contributor to Greece’s 240 billion euro, or roughly $330 billion, bailout. Recently, Mr. Samaras has been pressing Germany to reduce and renegotiate Athens’s delinquent debts as it grapples with a wrenching five-year recession — something Germany has refused to do.

That has also fed a persistent low-grade anger over hundreds of billions of euros in reparations that Greeks say Germany owes the country from World War II, money that some say should go toward helping to forgive Greece’s debt bill. Greek newspapers regularly run articles on how much money Germany owes Greece.

Greece has made some progress in improving its finances to meet the terms of the bailout — so much so that it is forecast to have a primary surplus before debt payments in 2014 for the first time in five years. But Greece still faces a mountain of debt that economists say is all but unpayable unless some new form of debt forgiveness is extended to Athens.

Over the weekend, Jens Weidmann, the chairman of the German Bundesbank and a member of the European Central Bank’s Governing Council, ruled out another reduction in Greece’s state debt, saying in a German newspaper interview that Athens still needed to press ahead with a number of reforms as required by the terms of its bailout.

While financial markets have calmed recently, he told the newspaper Bild, “this could be some misleading safety. The crisis could be fanned again like a fire.”

His remarks echoed those of the German finance minister, Wolfgang Schäuble, who is widely reviled in Greece. During a visit to Athens this summer, the police locked down the center of the city to pedestrian and car traffic as helicopters flew overhead, leaving the streets in a ghostly state of quiet. The scenes were reminiscent of when Ms. Merkel visited Greece in 2012.

Representatives of the so-called troika of lenders — the European Central Bank, the International Monetary Fund and the European Commission — are scheduled to return to Athens in January to resume talks over a fresh 4.9 billion euro tranche of aid.

The same building as the one struck on Monday was targeted in a rocket attack in May 1999 claimed by the terrorist group November 17, which has since been dismantled.

Although no group has claimed responsibility for the attack on Monday, the incident follows an apparent rise in violent episodes by both far-right and far-left groups in Greece.


Niki Kitsantonis contributed reporting from Athens, and Alison Smale from Berlin.