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Eurozone deal reached on Greek bailout but faces battle in Greek parliament

Posted on July 13, 2015 at 11:13 am GMT

Eurozone leaders and finance ministers finally struck an agreement on Monday morning after non-stop talks lasting 17 hours over the weekend. There were concerns after Sunday’s full EU summit was cancelled because the Eurogroup meeting overran but Eurozone leaders did meet in the evening to push for a deal at an all-night summit. Greece’s latest proposals were initially met positively by the Eurogroup but optimism turned to pessimism after some Eurozone members, notably Germany, Finland and Slovakia, expressed strong doubt [..]

Hopes raised on latest Greek proposal as Eurogroup to decide on new bailout

Posted on July 10, 2015 at 1:53 pm GMT

Greece has requested a loan of €53.5 billion from the European Stability Mechanism that will cover the period from now till the end of June 2018. From the €53.5 billion, €46 Billion will be used for the repayment of bonds held by European Central Bank and the loans given by the IMF. While €7.5 billion euro will be returned to the public institutions as repayment for the money taken from their funds. The Greek proposal has small differences from the [..]

Week Ahead – Inflation and central bank decisions in focus as markets eye positive resolution in Greek crisis

Posted on July 10, 2015 at 12:19 pm GMT

After a turbulent week where the Greek crisis and China’s equities slump dominated market headlines, the focus should return to economic developments and central bankers in the coming week, pending a positive outcome over the weekend’s debt negotiations with Greece and its creditors. It is hoped that the Greek crisis will come to a conclusion next week as Saturday’s Eurogroup meeting is seen as the final deadline for the Greek government to agree to a solution. If an agreement is [..]

Aussie lifted from strong jobs growth and bounce in Chinese shares

Posted on July 9, 2015 at 10:25 am GMT

The Australian dollar got some respite on Thursday after heavy losses over the past week have sent it tumbling to six-year lows. Better-than expected employment figures as well as signs of stabilization in China’s stock market helped the aussie make gains of 1% in Asian trading on Thursday. Unemployment in Australia rose to 6.0% in June from a downwardly revised 5.9% in May. Expectations were for a figure of 6.1%. Employment increased by 7,300 to 11,768,600, versus estimates there would [..]

UK cuts corporation tax but rise in minimum wage risks upsetting business

Posted on July 8, 2015 at 2:10 pm GMT

The UK Chancellor of the Exchequer George Osborne delivered his first Conservative budget since the party won the May elections with an overall majority. In his speech, the Chancellor downgraded GDP growth forecast for 2015 to 2.4% (from 2.5%) but there was no change for 2016 forecast of 2.3% and 2014 growth was revised up from 2.6% to 3.0%. The budget deficit is expected to fall to 3.7% as a proportion of GDP in 2015/16, down from 10.2% in 2010. [..]

RBA keeps rates unchanged as Aussie slumps to 6-year low

Posted on July 7, 2015 at 11:24 am GMT

The Reserve Bank of Australia kept its overnight cash rate on hold at 2% at its scheduled policy meeting on Tuesday. The no change was widely expected by analysts but markets are pricing in one more cut by the end of the year following two quarter point cuts in February and May this year. The statement that followed the rate announcement was dovish in tone as the Governor Glenn Stevens maintained his view that the Australian dollar needs to depreciate [..]

Eurozone leaders set to meet on Greek ‘No’ vote but ECB decision also eyed

Posted on July 6, 2015 at 11:05 am GMT

Markets were relatively calm on Monday following the strong ‘No’ vote in Sunday’s referendum in Greece. The terms of the latest bailout proposal put forward by Greece’s creditors was rejected by a wide margin of 61.3%, which took Eurozone leaders by surprise. In a further development, the Greek finance minister, Yanis Varoufakis, resigned from his post as a move designed to smoothen negotiation efforts with the country’s creditors following weeks of acrimonious exchanges between Varoufakis and senior figures from the [..]

Week Ahead – Focus on Greek referendum but industrial output should also draw attention

Posted on July 3, 2015 at 12:24 pm GMT

Important data scheduled to come out next week run the risk of becoming overshadowed by the outcome of Greece’s referendum on the bailout program. Key data on industrial production, trade balance and employment could get sidelined whatever the outcome of the referendum. Negotiating efforts are likely to get stepped up as both the Eurozone and the ECB will be faced with a dilemma if the outcome is a “No”. While a “Yes” vote could lead to political instability as the [..]

Dollar falls after June jobs data fails to impress

Posted on July 2, 2015 at 2:16 pm GMT

The dollar went into reverse to give up earlier gains after June’s jobs data disappointed. The all-important change in nonfarm payrolls for June came in at 223,000 against expectations of 233,000. The previous month’s figure was revised lower from 280,000 to 254,000, which contributed to the shift in outlook of a more moderate recovery in the jobs market than anticipated. The unemployment rate was the only positive component of the jobs data as it fell to 5.3% from 5.5%, against [..]

Half-year review: Dollar rally stalls; euro resilient as Asian majors fall

Posted on July 1, 2015 at 3:06 pm GMT

The US dollar gave up some of its gains in the second quarter of the year after rising sharply in the first quarter. The dollar index, which measures the average value of the dollar against a basket of currencies, had risen by around 10% on rising expectations that the Fed would raise interest rates in the first half of the year. But the greenback lost momentum after the Fed removed the word “patient” from its FOMC statement in March. Although [..]

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