"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Friday, March 9, 2012

Greece in last ditch scramble to avoid default

Greece in last ditch scramble to avoid default - Telegraph: "Greece in last ditch scramble to avoid default . . .  the biggest bond restructuring in history. But it was still unlikely to be enough to avoid default. Officials in Athens estimated that between 75pc and 80pc of private creditors had accepted the €206bn (£173bn) bond swap shortly before the 8pm GMT deadline. The level is enough for the deal to go through, but only if the government uses its controversial Collective Action Clauses (CACs). Ratings agencies have warned they will declare a default if Greece activates the CACs, which allow the government to impose the deal on the remaining bondholders. The CACs will be used if the take up falls below the desired 95pc level but above the required 66pc. The International Swaps and Derivatives Association (ISDA) is poised to convene again to decide if the vast restructuring amounts to a "credit event" that should trigger billions of euros of credit default insurance. Athens said the figures would be revealed at 6am GMT (Friday). The 17 eurozone finance ministers have scheduled a conference call at lunchtime to review the deal. They will meet on Monday to decide if Greece's €130bn bail-out funds can now be released. . . . "
Eurozone crisis: live blog
Financial Times (blog)
According to a confidential analysis prepared for eurozone finance minsters last month, 95 per cent of all bondholders must be included in the debt restructuring for Greece debt to reach 120 per cent of economic output by 2020, the target of its new ...

ECB Sees Shrinking Euro Zone
Wall Street Journal
By GEOFFREY T. SMITH LONDON—The European Central Bank Thursday said that the euro-zone's economy is likely to contract this year, and that inflation will exceed the bank's medium-term target. It was the third quarter in a row where the ECB revised ...

Eurozone crisis live: Deadline day for Greek debt swap
The Guardian
... the banks rescued by the Irish taxpayer and the international bailout,to announce 2500 redundancies later today (as my colleague Henry McDonald reported last night) 8.00am: Good morning, and welcome to our live coverage of the eurozone debt crisis.

The Guardian

TSX Jumps On Euro Zone Optimism - Canadian Commentary
NASDAQ
(RTTNews.com) - Canadian stocks were extending gains for a second session Thursday morning as commodities rebounded on hopes that Greece would secure a bailout package after a pledge by major banks and pension funds to take part in the bond swap deal.

Euro Zone: ECB: rates on hold
FXstreet.com
The recovery is, however, extremely unbalanced and led mainly by Germany, while many eurozoneeconomies, which have undertaken serious measures to correct their imbalances, will face tough periods. According to the ECB, the growth profile remains ...

UK 'must plan for euro collapse'
BBC News
Ministers should draw up plans to deal with a break-up of the eurozone "as a matter of urgency", a committee of MPs and peers has warned. The joint committee on the government's National Security Strategy (NSS) said the full or partial collapse of the ...

BBC News

Eurozone debt crisis: ECB set to put policy on hold as debt storms calm
Economic Times
FRANKFURT: No changes in eurozone interest rates are expected Thursday as the European Central Bank assesses whether recent moves to flood banks with cash have averted a credit crunch, analysts said. The ECB's governing council, meeting for its regular ...

Eurozone stabilizing, Draghi says
CBC.ca
ECB head Mario Draghi said the eurozone economy was showing "signs of stabilization." He also made his outlook for the economy slightly less pessimistic, dropping the word "tentative" from his remarks to reporters that he used to describe the signs in ...

CBC.ca

Euro zone shares to look pricey until earnings lift
Economic Times
LONDON: Gloomy growth prospects for Europe and lingering sovereign debt risk will keep euro zoneshares looking cheap against risk-free government bonds until corporate profits start to heal. The extra return demanded by holders of euro zone equity ...

Eurozone crisis: Spain to test risks of growth against austerity tradeoff
Economic Times
LONDON: With Greece's second bailout seemingly in the bag at last, Spain is shaping up as the next big test of whether euro zone policymakers can keep striking the right balance between carrot and stick to reconcile the very different interests of ...

MPs call for eurozone collapse plan
Herts and Essex Observer
Ministers should draw up plans to deal with a collapse of the eurozone "as a matter of urgency", a high-powered committee of MPs and peers has warned. The joint committee on the Government's National Security Strategy (NSS) described the full or...

Herts and Essex Observer

Eurozone Crisis: UK 'at Risk of Economic Refugee Tide'
IBTimes UK
By Shane Croucher: Subscribe to Shane's RSS feed Britain could be awash with economic refugees if the eurozone collapses and the EU descends into social and political turmoil, according to a group of MPs and peers. Reporting on the government's...

IBTimes UK

McDonald's sales bit by eurozone woes
Financial Times
By Alan Rappeport in New York McDonald's, the world's largest restaurant chain by revenues, reported sales growth that fell short of analysts' forecasts in February, as troubles in Europe countered the resurgent US market. The company said on Thursday ...

Draghi says 3-year loans to Eurozone banks are "unquestionable success"
FinFacts Ireland
By Finfacts Team Mario Draghi, ECB president, said at a press conference in Frankfurt today following the decision of the governing council to keep the benchmark rate unchanged at 1%, that the central bank's 3-year loans to Eurozone banks at a 1% ...

FinFacts Ireland

Eurozone crisis cuts into exports
Daily Star Online
Exports fell 8 percent to $1.98 billion in February from the previous month, as demand for apparel, the main export item, dropped in the Eurozone due to an economic crisis. Exports fell short of the monthly target by 7.97 percent, according to data ...

Question of balance as euro zone crisis mutates
Reuters India
By Alan Wheatley, Global Economics Correspondent | LONDON (Reuters) - With Greece's second bailout seemingly in the bag at last, Spain is shaping up as the next big test of whether euro zonepolicymakers can keep striking the right balance between ...

Should wages be cut in euro-zone countries?
FTSE Global Markets
The 'troika' – the European Commission, European Central Bank and International Monetary Fund – has called upon Greece to cut wages in the belief that excessively high wage costs are exacerbatingeuro-zone problems. But wage cuts will only be of ...

Asian Stocks Rebound On Euro Zone Hopes
NASDAQ
(RTTNews.com) - Asian markets ended higher Thursday amid hopes that Greece would secure a bailout package after a pledge by major banks and pension funds to take part in the bond swap deal. Overnight gains in the US markets, following an upbeat report ...

German industrial orders fall sharply
CNN
January's drop in industrial orders included an 8.6 per cent fall in demand from non-eurozonecountries. Economists said Germany could still escape a technical recession and remained poised for activity to speed up again after a weak end to 2011.

The Eurozone Crisis and the Future of Europe Seminar at Drexel University
Hellenic News of America
By Dimitri Soultogiannis and Eva-Iro Soultogiannis Philadelphia, PA---On Wednesday, February 29th 2012 the Hermes Expo and the Hellenic News of America hosted a panel discussion on the Eurozone Crisis and the Future of Europe that took place at Drexel ...

Hellenic News of America

The Crisis is Dangerously Smoldering in the Eurozone Periphery
Cause and Effect in European Politics and Economy
The crisis in the periphery of the eurozone, although not raging as until recently, is dangerously smoldering. Events in the countries, pressed by debts and deficits and stifled by lack of economic growth, show that they are not out of the woods yet ...

Cause and Effect in European Politics and Economy

Greece closes in on target in bond swap deal
Huffington Post
The complex bond swap, known as the Private Sector Involvement, or PSI, is critical for Greece to secure its second bailout – a euro130 billion ($171 billion) package of rescue loans from othereurozone countries and the International Monetary Fund.

ECB lowers 2012 euro zone growth outlook
Reuters India
| FRANKFURT (Reuters) - The European Central Bank has further reduced its forecast for growth this year, according to new staff forecasts which also raised its outlook for inflation for 2012/2013. The ECB has started seeing signs of stabilisation at ...

Greece should be allowed to default on debt and exit the eurozone
The Australian
The best solution for Greece and Europe is for Greece to be allowed to default and exit theeurozone. A reinstated drachma would plummet in value, massively boosting Greece's competitiveness. The government could deflate its bloated bureaucracy, ...

Mandelson calls for 'eurozone mark II' with finance ministry
PublicServiceEurope.com
by Dean Carroll A "eurozone mark II" should feature a powerful finance ministry with tax-raising powers and the ability to set ceilings on spending in member states, Lord Mandelson told PublicServiceEurope.com today. Offering support for increased ...

PublicServiceEurope.com

Eurozone sentiment boosts Aviva
What Investment
Aviva, which is heavily exposed to Eurozone economies, had seen its share price drop in November after it revealed that falling Eurozone government bond prices had wiped 30 per cent off its surplus. The improved European sentiment in early 2012 has ...

What Investment

Growth, Not Greece, Is the Problem Now
Wall Street Journal (blog)
For the moment at least, the risk of contagion will subside and the cost of peripheral funding should continue to slide. But those costs probably won't slide fast enough or far enough to compensate for a much bigger problem that is appearing on the ...

The Eurozone youth of today
FT Alphaville (blog)
Eurozone unemployment at 10.7 per cent, up from 9.5 per cent a year ago. Greece's rate is 19.9 percent, up from 14.1 per cent a year ago. Germany 7.8 per cent, Austria 8.9, The Netherlands 9.0, Spain 49.9, Greece 48.1. In other words, the average masks ...

The IT Impact of a Euro Crisis is Scarier Than Many Think
By Andrea Di Maio
The first one, from a government organization, agreed that the impact of some euro crisis scenarios on immigration would be massive, including on IT systems, but he was not aware that his organization, which is indeed responsible for the ...
Andrea DiMaio

A Political Perspective on the Euro Crisis | MIPIMWorld Blog
By Joanne
The Grand Hall was packed with hundreds of attendees eager to hear an individual who was a key figure in Eurozone relations during a decade of growth, prosperity and optimism. A light show accompanied by techno music more fitting to a ...
MIPIMWorld Blog

In The Money: Eurozone Optimistic About Greek Bond Swap
By J. Kahn
Eurozone Optimistic About Greek Bond Swap. The market is trading higher in early trading, seemingly taking most of its cues from overseas markets. There isn't a whole lot in terms of market moving economic data or corporate news in the U.S. ...
In The Money

Eurozone ministers to hold teleconference at 1300 GMT on Friday ...
By Adam Button
In order for ministers to discuss Greece, CNBC is reporting.
ForexLive

Eurozone edges closer to recession | Business | guardian.co.uk
GDP in the single currency area fell 0.3% in the fourth quarter of 2011 in the first contraction since the eurozone left recession in 2009.
www.guardian.co.uk/business/.../eurozone-closer-to-recession

On Contagion: How The Rest Of The World Will Suffer | ZeroHedge
Excess debt is causing global banking problems. Euro-Area debt is estimated to be 443% of GDP, third highest in the world, far above the US at 355% and ...
www.zerohedge.com/.../contagion-how-rest-world-will-suffer

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