Reuters blog archive
A reminder that while the euro zone crisis may be in abeyance, it still has the ability to bite.
Portugal will blow 4.4 billion euros of the 6.4 billion euros left from Lisbon’s recently exited international bailout programme shoring up troubled lender Banco Espirito Santo which will be split into "bad" and "good" banks. Junior bondholders and shareholders will be heavily hit.
BES’s tale of woe is so specific that there is no obvious reason to think it will be replicated. But it is a reminder that bank stress tests later this year could throw up other nasties and more immediately the saga leaves Lisbon short of rescue funds should anything else blow up. The bond market is likely to react adversely. The 4.4 billion euros will come in the form of a state loan to a bank resolution fund which the government insists will be paid back.
Jean-Claude Juncker, the new European Commission President, will visit Athens for talks. The point at which Greece will ask its euro zone peers for some form of further debt relief is nearing amid signs of its economy finally pulling out of recession after six years.
EU officials have warned that Greece is slowing down on the reform front after the opposition, anti-bailout Syriza party won the country's EU election in May.
Interesting intervention from former Russian finance minister Alexei Kudrin late yesterday who warned that Russia risked isolation and having its efforts to modernize derailed.
That sort of internal criticism is rare but Kudrin has done so before without censure which suggests Vladimir Putin is – or has been - willing to hear it. Kudrin added that Moscow should not intervene militarily in eastern Ukraine.
EU leaders meet for a summit at which they were supposed to decide who gets which European Commissioner posts – one for each member state – in what will be a huge carve-up, so huge in fact that it may well be that only a very few jobs are decided tonight.
Current best guesses – though they are just guesses – are that despite a willingness among some to play nice with the Brits, Prime Minister David Cameron may lose out again having voted against Juncker at a June summit. He is seeking one of the big economic portfolios; internal market, trade or competition but putting forward a low-profile politician as his point person in Brussels has not that made that any more likely.
Who are the two most important people in the EU? It’s hard to argue against Angela Merkel and Mario Draghi and they meet today in Berlin.
It’s supposed to be a private meeting but of course we’ll be digging, particularly for any signs that the German leader is for or against the European Central Bank printing money if it is required to beat back deflation.
Fresh talks between Russia, Ukraine and the European Commission in Berlin will aim to resolve a gas price dispute that Moscow has warned could make it cut off supplies next week.
Ukraine has said the price for 2014 should be agreed before it starts making any payments. Russia's energy minister has said Moscow and the EU have proposed that Kiev pay Gazprom $2 billion, and another $500 million before June 7, as a precondition for a price discount and further talks.
from Photographers' Blog:
By Stoyan Nenov
A woman with heavy make-up, wearing leotards steps into a taxi.
"To the hospital" she says. The driver looks suspiciously at her but starts the car.
Leonsiya Dokuzova, a 42-year-old Bulgarian, can tell many stories like this one.
from Global Investing:
Fund managers searching for yield are increasing exposure to frontier markets (FM) as a diversification from emerging markets (EM), as the latter have been offering negative relative returns since January, according to MSCI data.
Barings Asset Management said on Monday it plans to launch a frontier markets fund in coming weeks, with a projected 70 percent exposure to frontier markets such as Nigeria, Saudi Arabia, the UAE, Sri Lanka and Ukraine.
(Photo: An Orthodox priest holds up a box containing bones believed to be the relics of John the Baptist, in Sofia, November 12, 2010/Oleg Popov)
Bulgaria's main Orthodox cathedral is displaying jaw and arm bones and a tooth said to be relics of John the Baptist, in a move state officials hope will boost tourism to the Black Sea resort where they were found. Prominent politicians and simple believers flocked to the Alexander Nevsky Cathedral in Sofia to view the remains, which were found near the town of Sozopol in July and are on display in the Bulgarian capital through Sunday.
John the Baptist, a Christian saint also revered in Islam, announced the coming of Jesus and baptised him in the River Jordan. The Gospels say King Herod had John beheaded at the request of his stepdaughter Salome after she danced for him.
from Our Take on Your Take:
Boian Hristov has been a regular contributor to Your View for some time now but it's his pictures from the recent masquerade festival in Bulgaria that have struck me the most. Boian has managed to capture the individual stories within the festival and created compelling portraits of those involved by pulling them clear of the background. A selection of some of the best are below.
from Global News Journal:
As the new European Union executive prepares to debate fresh policy proposals which might unblock the stalemate over approving genetically modified crops for feed, processing or cultivation, there are few signs that Europe's fears over what some have termed "Frankenstein foods" are easing.
On Friday Bulgaria's ruling GERB party proposed a five-year moratorium on the production of genetically modified (GM) crops for scientific and commercial reasons following public outcry over a new legislation.