Here’s why there’s no jubilation at a Greek debt deal
Today the sun rose on an agreement to finally deliver the money that Greece needs to keep the lights on. But European financial markets don’t seem especially impressed. The German DAX Index closed up just 0.55% and the French CAC 40 dipped by 0.08%. Why no dancing on the trading floors?
European finance ministers take a spreadsheet break: A sign that a deal on Greek debt could emerge today?
I doubt that we’re going to see an early decision today on the Greek rescue payment but I am mildly optimistic that we will get a decision today from the meeting of European finance ministers. In a sign that a decision is more likely than not, the group took an hour-long spreadsheet break. In my experience you don’t run spreadsheets unless you’re trying to see how far apart alternative decisions leave the bottom line.
Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...EuroZone finance ministers go into today’s meeting sounding optimistic (again) on a deal to send cash to Greece (again)
The deal would strike a compromise with the International Monetary Fund and would send 44 billion euros, not just 31.5 billion, to Greece on December 5
Saturday Night Quarterback says, For the week ahead expect…
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...Volatile enough for ya? What to buy and sell as the market vibrates between fear and hope
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...EuroZone meeting ends in chaos but European markets rally on the bad news
Yesterday’s meeting of European finance ministers ended in a complete botch: No approval for the next 31.5 billion euro payout to Greece and public fighting between Eurogroup President Jean-Claude Juncker and International Monetary Fund Director Christine Lagarde. And yet the German DAX stock index finished up (yes UP!) by 0.4%; the French CAC 40 index rose 0.6%, and the Spanish IBEX 35 climbed 1.7%.
ECB looks like it will lend Greek banks money to buy Greek bonds to be used to pay debts to the ECB–buying the EuroZone maybe two weeks of bargaining time
Yes, that’s where we are in the Greek debt crisis—where an agreement to have the European Central Bank lend money to Greek banks so they can buy Greek government debt and avoid a Greek default is being seen as progress. And European stock markets don’t tank on the news
The news on the Greek debt deal is bad enough that I’m raising some cash today
Not only does there appear to be almost no chance that European finance ministers will vote to approve the cash that Greece needs on Monday,—but also now it appears like any payout to Greece will have to wait on resolution of a bigger deal that will require EuroZone countries to cough up another 15 billion to 30 billion euros or that will require a big write down in the value of Greek bonds held by the European Central Bank. Or both
More delays in a decision to send Greece the next rescue payment; no approval likely at November 12 meeting, sources say
European markets continued to move lower as more unnamed sources insist that European finance ministers won’t be able to approve the next 31.5 billion euro payout to Greece on Monday, November 12. The Troika’s final report won’t be ready by then. That would push the decision off until November 26.
