Chief Markets Correspondent, London
Jamie's Feed
Jun 28, 2015

Low rates fuelling global financial, debt, growth instability -BIS

LONDON, June 28 (Reuters) – Global interest rates are too
low and pose a rapidly growing risk to financial stability and
economic growth, the Bank for International Settlements said on
Sunday.

In its strongest warning yet that policy normalisation
should come sooner rather than later, the central bankers’
central bank said economic growth across the world is uneven,
debt burdens in many areas are high and rising, and the
explosion of credit growth shows financial imbalances are
building up again.

Jun 28, 2015

Policy error risk rising for inflation-targeting central banks -BIS

LONDON, June 28 (Reuters) – Central banks with inflation
targets are at growing risk of policy errors because they are
struggling to adequately understand what drives inflation, the
Bank for International Settlements said on Sunday.

The warning from the “central banks’ central bank” comes
half-way through a year in which 29 monetary authorities around
the world have eased policy to support growth, counter the
threat of deflation, or both.

Jun 26, 2015

Some say back to the drachma for a Greek reboot

LONDON (Reuters) – Mainstream economic thinking may hold that Greece should stay in the euro zone, but there are those who argue that abandoning the single currency will give the cash-strapped and debt-laden country just the boost it needs.

Greece’s economy is so depressed, they argue, that unless it regains the competitive edge a massive one-off currency devaluation could offer, it will remain lifeless.

Jun 23, 2015

Bond market liquidity will get worse, not better -industry experts

LONDON, June 23 (Reuters) – The problem of thin liquidity
fueling volatility across global fixed income markets is going
to get worse over the next few years, not better, an industry
conference in London was told on Tuesday.

The combination of tighter regulation with banks reducing
their borrowing capabilities and changing their business models
has contributed to a loss of liquidity. That has exacerbated
price moves in many fixed income markets, even the generally
safe and steady areas such as top-rated government bonds.

Jun 22, 2015

Hopes for last-ditch Greek deal lift global stocks

LONDON, June 22 (Reuters) – Global stocks and peripheral
euro zone bonds rose on Monday, lifted by hopes that crunch
meetings in Brussels between Greece and its international
creditors can still produce a last-minute deal to help Athens
avert default.

German stocks rose as much as 3.5 percent, the 10-year yield
on Spanish and Italian bonds fell as much as 14 basis points,
and U.S. stocks were called to open up 0.7 percent.

Jun 22, 2015

Global markets – Investors ride wave of last-minute Greek deal optimism

LONDON (Reuters) – Global stocks and peripheral euro zone bonds rose on Monday, lifted by hopes that crunch meetings in Brussels between Greece and its international creditors can still produce a last-minute deal to help Athens avert default.

German stocks rose as much as 3.5 percent, the 10-year yield on Spanish and Italian bonds fell as much as 14 basis points, and U.S. stocks were called to open up 0.7 percent.

Jun 22, 2015

Signs of last-minute Greece deal lift optimism

LONDON (Reuters) – Global stocks, the euro and peripheral euro zone bonds all rose on Monday, lifted by a wave of optimism that Greece and its international creditors will strike a last-minute deal that will see Athens avert default.

Greek Prime Minister Alexis Tsipras will meet the heads of the European Commission, European Central Bank and International Monetary Fund on Monday ahead of a summit of euro zone leaders later in the day aimed at reaching a deal over debt talks.

Jun 19, 2015

Greek assets hold their ground as crisis enters “11th hour”

LONDON, June 19 (Reuters) – Greek financial assets held
their ground on Friday, putting a bruising week behind them as
investors pinned their hopes on an emergency meeting of euro
zone leaders next week producing an agreement to unlock aid for
Athens and avert looming default.

The benchmark prices of stocks — especially in the
financial sector — stabilised, while government and corporate
borrowing costs dipped.

Jun 18, 2015

Bookmaker William Hill re-opens book on “Grexit”

LONDON, June 18 (Reuters) – British bookmaker William Hill
has re-opened its book on whether Greece will leave the euro
zone by the end of this year, it said on Thursday.

Greece will default on debt repayments to the International
Monetary Fund on June 30 unless it reaches an agreement with its
international creditors, which free up further aid. A default
could ultimately lead to its leaving the euro zone.

Jun 18, 2015

Fed keeps lid on dollar, yields; Greece hurts stocks

LONDON, June 18 (Reuters) – Bond yields and the dollar fell
on Thursday after the Federal Reserve signalled that U.S.
interest rates would rise more slowly than markets had expected,
while Greece’s drift closer to default pushed European stocks
lower.

Euro zone finance ministers meet later in the day, but
expectations are low that Greece and its international creditors
will reach a deal to prevent the cash-strapped country from
defaulting at the end of the month.