ATHENS (Reuters) – Greece’s banking stocks plunged for the second day in a row on Tuesday, holding down the main Athens index which otherwise looked as if it was turning the corner after the previous day’s record rout.
With lenders in dire need of recapitalisation after a flight of euros from deposits for most of this year, the banking index was down more than 29 percent, bumping up against the 30 percent daily loss limit at which trading is halted. It hit that limit on Monday.
ATHENS (Reuters) – Greece’s banking stocks plunged for the second day in a row on Tuesday, dragging the main Athens index down in a graphic illustration of the country’s financial and economic woes.
There were signs, however, that the rout that took 8 billion euros off the market on Monday may be ending as already historically low valuations fall to levels at which investors start moving back in.
ATHENS (Reuters) – When Greece shut its stock market in late June it was far from a unique occurrence. Financial issues have plagued Greece, but the history of closures on the 139-year old bourse is also the history of war, invasion, coups and natural disasters.
It reflects the complex story of modern Greece, which has struggled to develop against a wave of outside and self-inflicted setbacks since gaining the first foothold of independence from the Ottoman Empire in 1821.
ATHENS (Reuters) – Greece will take another step away from full-on crisis mode on Monday by opening its stock market for the first time in five weeks, although immediate heavy losses are expected.
Trading on the Athens bourse was suspended in late June as part of capital controls imposed to stem a debilitating outflow of euros that threatened to collapse Greece’s banks and hurl the indebted country out of the euro zone.
The U.S. and British central banks are scrambling to be the first of the majors to raise interest rates after a long period of unprecedented monetary generosity. It won’t happen immediately but both Janet Yellen, who chairs the U.S. Federal Reserve, and Bank of England Governor Mark Carney say there will be a hike this year (Yellen) or around the end of the year (Carney). Might this be a bit of a rush? Not everything in the world economy is as sanguine as the U.S. and British economies purport to be.
In the euro zone, European Central Bank President Mario Draghi has promised rock-bottom interest rates for the foreseeable future and pledged to see through the bank’s monthly 60 billion euro asset purchases until September next year. In Asia, China’s policymakers are struggling to contain stock market mayhem that could still undermine attempts to reverse a growth slowdown. Japan is still embarked on a massive quantitative easing asset-buying programme and has just cut its growth outlook.
LONDON (Reuters) – The race is on between the U.S. and British central banks to be the first major economy to raise interest rates after a long period of unprecedented monetary generosity.
It won’t happen immediately but both Janet Yellen, who chairs the U.S. Federal Reserve, and Bank of England Governor Mark Carney signaled in the past week that higher rates are close.
LONDON, July 14 (Reuters) – Europe is failing to shake off
the threat of deflation, with prices falling in Sweden,
flat-lining in Britain and barely registering any increase in
Germany and Italy.
Data on Tuesday underlined that central banks across the
continent are making little headway in boosting inflation
despite flooding their economies with cash through rock-bottom
interest rates and/or outright money-printing.
There is one day to go before Greek Prime Minister Alexis Tsipras is supposed to meet EU bigwigs in a push for a political agreement on cash-for-reforms. Oneﾠglitch, though: the EU has only just received Tsipras’s new proposal, one that was supposed to have been handed over on Friday. Germanyﾒs Angela Merkel, Franceﾒs Francois Hollande and European Commission President Jean-Claude Juncker are not being given much time to prepare for their chat with the Greek leader.
Juncker, formerly as about as close to a Tsipras supporter as you could find in the EU, was very annoyed at the delay. So much so that he refused a telephone call from the Greek premier last week.
One of the sideshows of the Greek crisis has been the noise on the subject from the United States, which in short just wants Europe to get on with it and make a deal. There was more of this over the weekend at the Group of Seven meeting in Germany, although not quite so blunt as some recent forays. Barack Obama was keen to join Germany in hoping for a speedy solution. But the White House did again remind those who may not be aware that global financial markets may get unhappy if there is no agreement.
U.S. interference in European matters tends to irritate many EU leaders and frankly can put their backs up. You only have to look back a decade or so at Washington’s public advocacy of EU membership for its NATO ally Turkey. Some of the response then was along the lines of “Yes, and you make Mexico the 51st state”.
LONDON (Reuters) – A blues fan’s 1967 reel-to-reel tape recording of four then-relatively unknown British musicians is to be released on CD in April, capturing live what today would be dubbed a supergroup.
John Mayall, Peter Green, Mick Fleetwood and John McVie were together for just three months that year as part of Mayall’s Bluesbreakers band.