Post Tagged with: "Greece"
Dollar Mostly Softer as Greek Deal Inches Closer
The dollar is extending its recent losses on hopes that Greece is inching closer to a deal that would ensure the next bailout payment, though the major currencies remain in relatively tight ranges
Has the Euro Broken Out?
Given market positioning and the anticipated long-term repo operation at the end of the month, it is tempting to see this move above $1.3250 as a breakout. Is it a breakout
Greek protests turn very anti-Germany
This is how it’s going down in Greece right now. The sentiment is very Anti-German on the eve of the austerity/bailout decision. The debt haircut and writedowns coming of upwards of 50% is a default in everything but name. Technical default is a real possibility as well
Tuesday’s Surprises from Australia and Japan
The dollar is mixed against the majors and EMs but largely remains confined to recent ranges. The EuroStoxx 600 slid for a second straight day, currently down 0.5%; MSCI Asia index holds recent highs. Demand in Greek bill sale eased slightly and refinancing costs moved higher; Portugal’s 10-year up 22bp
Euro Dragged Lower on Greece Uncertainty
The dollar looks set to begin the week higher against the majors and EMs over lack of progress in Greece. European stocks are down 0.6%, with the EuroStoxx 600 trimming its 6-month high; EZ banks down 1.3%. German manufacturing orders higher in December; soft Australian retail sales support further RBA cuts
The Unlikely Bull Market
This is not the time to be fully invested but neither is it the time to be side lined. We are in a nervous market where great opportunities present themselves at regular intervals. We recommend holding 25-50% in cash or cash like instruments (depending on your risk profile) which can be deployed at short notice when those opportunities arise
With heavy Greek exposure, three largest banks in Cyprus now junk
Cyprus is not an important player on the world’s financial stage but it does bear noting that banking and sovereign debt problems run both wide and deep in the European Union. The latest news underscoring these difficulties comes via Fitch, which has just downgraded the largest banks in Cyprus to below investment-grade status
Auerback: Austerity during recession is equivalent to medieval bloodletting
Here’s a good video performance by Marshall Auerback on BNN’s Business Day program. Marshall thinks the Greek default deal is actually a relatively good one. But sees a Portuguese default after the Greek default as a real possibility and envisions a scenario in which Portugal and Spain look to extract similar terms. Moreover, the quid pro quo for Greece is austerity – and that makes getting debt loads down harder when implemented during a downturn
Is the Greek PSI Sweetener Enough?
Even if the private sector participation sufficiently high, will it be enough to put Greece’s debt on a sustainable path? This seems unlikely and there is increasing risk that the ECB forgoes getting anything but its initial investment back
Greek private sector involvement: So what?
The market has been focused on the negotiations over the private sector involvement in reducing Greece’s debt burden. Yet, the PSI is so yesterday. There are many moving parts and the PSI, which has dominated the market’s attention, is being superseded by other developments, even if an agreement is still not in hand
On how Portugal is the next Greece
Portugal appears to be headed down that same road. While we have warned in the past of risks that Portugal would need a second aid package, it is only since S&P joined the other major rating agencies on January 13 that more market participants have come over to this view
Dollar Falls on Fed, Potential Greek Debt Deal
Dollar extended losses overnight and into the European session following the Fed’s dovish policy stance. Global stocks are broadly high off the back of Fed and Greek debt deal; EuroStoxx up 0.6%, banks up 0.7%. Economic data saw German consumer confidence improve; UK’s CBI retails sale retrenched in January