…pound would rise, while safe governments such as those of the US, Japan, Germany and even the UK could borrow more cheaply. And it’s not all bad news – the oil price may well fall sharply. 6. Political backlash As eurozone governments and the European Central Bank face enormous losses on the loans they gave to Greece, public opinion in Germany may turn against providing the even larger…
Eurozone finance ministers and the IMF have agreed on a deal on emergency bailout for debt-laden Greece. They have agreed to cut debts by 40 billion euros ($51 billion) and have paved the way for releasing the next tranche of bailout loans – some 44 billion euros. Greek Prime Minister Antonis Samaras welcomed the deal, saying “a new day begins for all Greeks”, but it was condemn…
credit ratings of 16 Spanish banks late on Thursday. It also cut the debt rating on Santander UK, a subsidiary of the Spanish banking giant. However, shares in Santander reversed early losses to trade 3% higher, and Bankia shares jumped 9% following Thursday’s 14% slump. Moody’s said there were several reasons behind the downgrade, including Spain’s slide back into recession, the…
…aking part in the unrest, said she objected to “the decisions taken at European meetings where Merkel manipulates the participants”. “I have a doctorate and I make 900 euros a month, 400 less than before. We have children that go hungry and most of the parents are unemployed,” she told AFP news agency. Vana Koronaiou, a shop owner selling German-made handbags near Syntagma…
…years. It is also being asked to put in place economic and structural reforms, including changes to the labor market and a renewed privatization drive. The measures are needed to qualify for the next 33.5 billion-euro installment of its second 130bn-euro bailout. Angela Merkel and Francois Hollande are set to hold talks in Berlin on whether to give Greece more time to make the cuts required by i…
ch as the country’s loss-making railways to have met this bailout target. Still worse, Greece’s economy is shrinking faster than most had forecast. The Bank of Greece expects GDP to shrink 5% this year in its deepest recession since the 1930s. As a result, economists calculate that Greece may need a third rescue package worth up to 50 billion Euros. The re-run of general elections and…
leaders met Greek President Karolos Papoulias on Wednesday. Final talks to form a coalition failed on Tuesday, raising new concerns over Greece’s eurozone future. No party won a majority in the 6 May election. There has been deadlock since the election over whether to continue with the austerity measures required by an international bailout agreement. The uncertainty pushed the euro to a ne…
…e will meet Jean-Claude Juncker, the head of the Eurogroup of finance ministers later, and the French and German leaders later this week. At issue is whether Greece has done enough to receive its next 31.5 billion-euro bailout payment. Failure to unlock the funds could lead to Greece defaulting on its vast public debt and possibly leaving the euro. Greek Prime Minister, Antonis Samaras, has calle…
recession. Last week, an EU report forecast that Greece would end years of recession in 2014 with growth of 0.6%, in line with an earlier forecast by the IMF. Following what the IMF forecast will be a 4.6% contraction of the economy this year, the Fund warned that attempts to “artificially” stimulate growth should be resisted….
…years. It is also being asked to put in place economic and structural reforms, including changes to the labor market and a renewed privatization drive. The measures are needed to qualify for the next 33.5 billion-euro installment of its second 130 billion-euro bailout. Greece needs the funds to make repayments on its debt burden. A default could result in the country leaving the euro. Antonis Sam…
…ently receiving the second of two bailouts. Last week, Greece started to receive the latest tranche of the bailout funds from the European Union and International Monetary Fund. They agreed to release 49.1 billion euros ($57 billion) after continuing austerity work by Greece, and a buyback of some of its debt. A total of 240 billion euros has been earmarked for Greece from the two bailout loans. S…
…the turn of the century. When the banking system came close to collapse, withdrawals were banned. The peso dropped in value, leading to high inflation, after Argentina defaulted on its public debt in 2002. Recent reports have pointed towards English currency printer De La Rue as a possible source of new drachma banknotes. Director of marketing for De La Rue, Rob Hutchison, will not comment on spe…
…rope and the whole world. He said he looked forward to “fruitful” discussions with other G8 leaders, with a strong focus on economic growth. Francois Hollande, who was elected president on 6 May, is also to have talks with British Prime Minister David Cameron. David Cameron said that Greece must decide if it wants to remain in the euro. “We need decisive action from eurozone coun…
…years. It is also being asked to put in place economic and structural reforms, including changes to the labor market and a renewed privatization drive. The measures are needed to qualify for the next 33.5 billion-euro installment of its second 130bn-euro bailout. Greece needs the funds to make repayments on its debt burden. A default could result in the country leaving the euro. …
…ros ($38 billion). Earlier in the week, Prime Minister Antonis Samaras said Greece would suffer a much deeper recession than thought this year. He expects the economy to shrink by 7%, greater than the 5% forecast by the crisis-hit country’s central bank. Antonis Samaras said Greece would not return to growth until 2014. He is expected to ask for more time to repay its loans. Jose Manuel Barr…
…h, she said. The summit has been the first opportunity for President Francois Hollande to shift the emphasis from austerity to growth – a key message he gave to French voters, who elected him on 6 May. The French Socialist leader’s victory is seen as a challenge to the prevailing austerity drive in the EU, which is favored by Germany. …
…he 300-seat chamber. However, coalition talks may not be easy. In addition to Syriza’s showing, four other parties which oppose or want a radical overhaul of the bailout look set to take between 60 and 70 seats. They include the far-right Golden Dawn, which has about 7% of the vote. New Democracy and Pasok have said they will keep the bailout in a renegotiated form. The leader of Pasok, Evan…
e, sort of kicking it off. It’s a big honor and a privilege and I’m just trying to take it all in.” The torch is due to travel 2,900 kms (1,800 miles) through the country, carried by 500 torchbearers, on a route circling the country and travelling out to Crete. Greece has seen huge demonstrations of social unrest in previous months, sparked by financial chaos and efforts to reach…
…credit rating again, citing a risk of default despite a recent debt write-off deal Moody’s said the planned debt exchange, which involves private investors of Greek debt writing off much of the 206 billion Euros in Greek bonds they hold, “would constitute a distressed exchange, and hence a default”. The agency acknowledged that the deal was necessary to help stabilize Greece. Bu…
…ee-year lows against the pound. The main European stock markets fell early on before recovering. In Germany, the DAX fell by more than 2%, but by mid-afternoon was only down by 0.1%. In Paris, the CAC 40 recovered to trade up by 0.7%. Athens shares fell by as much as 8.3%. In London, markets were closed for a bank holiday. Euro fell against the dollar and the pound on Monday following French and…
archists throwing petrol bombs near parliament in Athens The government of conservative Prime Minister Antonis Samaras is proposing to save money by slashing pensions and raising the retirement age to 67. But it has also urged the troika representing Greece’s lenders – the European Commission, the European Central Bank (ECB), and the International Monetary Fund (IMF) – to give it…
…re banned in the two weeks before the election. Tough austerity measures were attached to the two international bailouts awarded to Greece, an initial package worth 110 billion Euros ($138 billion) in 2010, then a follow-up last year worth 130 billion Euros. While five of the seven main political groups reject the last bailout, only one – the Communists – wants the country to abandon t…
Evangelos Venizelos, leader of Greek Socialist Pasok party, has announced that the country is set to go to the polls again after days of coalition talks failed to produce agreement on a new government. A final round of talks on Tuesday morning broke up without a deal. In elections on 6 May, a majority of Greek voters backed parties opposed to austerity plans demanded by the EU and IMF in return f…
w Democracy and Pasok parties expelled seven lawmakers from their ranks for failing to back the package. The adopted plan includes a two-year increase in the retirement age from the current average of 65, as well as salary cuts and labor market reforms, including cuts to holiday benefits, notice periods and severance pay. Workers fear this will just make it easier and cheaper for them to be fired…
stake in the gaming monopoly Opap. Yannis Stournaras said there were “very few details left to work out” on the austerity package. Greek governing coalition agreement comes the day after 50,000 anti-austerity protesters took to the streets of Athens The deal comes the day after 50,000 anti-austerity protesters took to the streets of Athens. The spending cuts are reported to be worth…
Fast Food: Advertisements vs. RealityPhotographer Dario D was fed up with his fast food order not looking quite as appetizing as it did on the advert and decided to see how the food sold over the counter matched…
Dell reports 79% fall in profits as more consumers shift to smartphones and tabletsDell has reported a 79% slide in net profit, underlining a fall in personal computers sales as more consumers shift to smartphones and tablets. The PC maker's net profit…
Pope Francis condemns money cult in his first major speech on financial crisisIn his first major speech on the financial crisis, Pope Francis has called on world leaders to end the "cult of money" and to do more for the poor. Free market economics had…
Steven T. Miller: Acting IRS commissioner resigns over targeting conservative groups for special scrutinyActing head of the US Internal Revenue Service (IRS) Steven T. Miller has quit after it emerged his staff singled out conservative groups for extra scrutiny, President…
France enters its second recession in four years France has entered its second recession in four years after the economy shrank by 0.2% in the first quarter of 2013, according to official figures. The country’s economy…
Nikkei index passes 15,000 for first time since 2008Japan’s shares have climbed past the 15,000 mark for the first time since January 2008, as the yen continues to weaken - boosting the earnings potential for exporters. The…
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