Labor Reforms And Wage

Highlights - An acceleration in deposit withdrawals, combined with the prospect of an anti-austerity party winning the next election, has brought to the fore concerns about a potential Greek exit from the euro zone. - Our base case assumption is that under the most likely scenario, the Greek election will lead to a government that sticks to an EU/IMF program, even if the terms are renegotiated. - However, we do believe that Greece needs a further restructuring of its debt and we do think the country will ultimately exit the euro - we're just not convinced that Europe is ready for this to happen at the moment. - If an accident does occur and Greece does leave the euro in the near term, it would have global financial ramifications that could range from severe to catastrophic. ...

(Reuters) - Fierce debate is growing in Europe over whether austerity or growth offers the best strategy to overcome the continent's sovereign debt crisis. As if it were that simple. As the euro zone hovers on the brink of its second recession in three years, the battle launched in academic journals, blogs and the financial press has spread to the hustings in France, Greece and soon in EU economic powerhouse Germany too. "Europe can't cut and grow," Sony Kapoor, head of the Re-Define think-tank, and Peter Bofinger, a member of the German Council of Economic Advisers, said in an article before European Union leaders adopted a budget discipline pact last month. "The EU needs a growth compact, not a fiscal one. Swift action on tax and jobs is the way out of the crisis." The growth camp ...

(Reuters) - The euro weakened against the dollar on Monday, after the failure of Greek coalition parties to approve the terms of a new bailout package rekindled worries about a chaotic default that could spread to other debt-ridden, euro zone countries. A European Commission spokesman said Greece had already gone beyond the deadline for finalizing talks on the second financing package from the euro zone and the International Monetary Fund, and Athens needed urgently to take decisions. Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet. Continued failure to reach a deal would leave the prospect of an unmanaged Greek debt default when bond repayments fall due in March. A meeting of Greek political ...

(Reuters) - The euro fell on Monday on mounting investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout, keeping alive the risk of a messy default that could ensnare other countries such as Portugal. Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet, with a Greek government official denying that there was a deadline for the parties to respond to. A spokesman of the PASOK socialist party which is a coalition partner, said on Sunday that leaders of the three parties had to give their responses by 5 a.m. ET on Monday. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns rising that Athens might be ...

(Reuters) - The euro fell on Monday on mounting investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout, keeping alive the risk of a messy default that could ensnare other countries such as Portugal. Greece's coalition members must agree to painful terms of a new bailout worth 130 billion euros before euro zone finance ministers next meet, with a Greek government official denying that there was a deadline for the parties to respond to. A spokesman of the PASOK socialist party which is a coalition partner, said on Sunday that leaders of the three parties had to give their responses by 5 a.m. ET on Monday. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns rising that Athens might be ...

Forex News and Events: High yielding currencies continued to outperform as the developed nations central banks have all committed to a sustained period of ultra-loose monetary policy (unlimited free liquidity) and the contraction of volatility has put the carry trade back on the map. As with the crowded dividend trading in the equity markets, we suspect that growth projections in many of these nations have already been priced in. So the kicker at this point will only be the interest rate differentials and trading momentum. Australian retail sales came in slightly weaker than expected at -0.1% m/m vs. 0.2% exp although there was little spillover into the AUD. AUD OIS are pricing in a 70% probability of a 25bp cut at tomorrow RBA meeting so we are also looking for a quarter worth of ...

(Reuters) - The euro fell broadly on Monday on investor concern that Greek coalition parties had yet to sign off on the terms of a new bailout with a deadline imminent, keeping alive the risk of a messy default which could rock the currency bloc. Greece's coalition members must tell the European Union by noon on Monday (5 a.m. ET) whether they accept the painful terms of a new bailout worth 130 billion euros, with euro zone ministers postponing a meeting planned for Monday due to the delay in Athens. So far there appears some distance between the Greeks and the targets proposed by the IMF-EU-ECB troika with concerns mounting that Athens might be opposed to more austerity measures like labor reforms and wage cuts. "Investors are a bit cautious about the euro ahead of the deadline with a ...

Weekly Economic and Financial Commentary U.S. Review The Story of Moderate Growth Continues To Unfold Personal income figures for November indicated that personal income rose a meager 0.1 percent. Personal spending rose slightly for the month supported in part by consumers choosing to save less. Housing starts came in better than expected in November as unusually warm weather and possible seasonal adjustment factors helped to boost the headline number. The final estimate of third quarter GDP indicated that the economy grew at a 1.8 percent pace in the that quarter on news that healthcare consumption fell. Stronger Home Building Activity Supports Q4 Growth The majority of economic indicators focused on the housing market this week with the release of housing starts and ...

More pieces are coming together. Day by day, the puzzle takes shape. Not a pretty picture. An epic battle is taking place. Between the forces of… …inflation and deflation …growth and depression …credit expansion and credit destruction …centralization and de-centralization …politics and markets …managed paper money and gold …managed capitalism and the real thing …control and wealth …bull and bear …greed and fear …zombies and real working people. Yes, dear reader, it’s quite a fight. Better than Frazier vs. Ali. And who’s gonna win? Europe faces its “toughest hour since WWII,” says Angela Merkel. What does she propose? More centralization. Centralization got Europe into this mess — harmonizing interest rates so that the Greeks and Italians could borrow more. And now, more ...