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Private Sector BondholdersTitle:
Greek Debt Crisis: Answers to Frequently Asked Questions
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. ...
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Anti-austerity ballot backlash rattles euro zone
(Reuters) - An anti-austerity backlash by voters in Greece and France shook the euro zone on Monday, causing jitters for the euro currency and stock markets amid deepening doubts about whether Greece has a future in the single currency.
Greece, where Europe's sovereign debt crisis began in 2009, slid into turmoil after an election on Sunday boosted left and right-wing fringe parties, stripping the two mainstream parties that backed a painful EU/IMF bailout of their parliamentary majority.
Uncertainty over whether the country could avert bankruptcy and stay in the euro deepened on Monday when Antonis Samaras, leader of the conservative New Democracy party which won the biggest share of the vote, failed within hours to cobble together a government.
Samaras had had three days to form a ...
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Worries dominate investor`s behavior following the French and Greek elections
Worries dominates investor`s trades on Monday after the results of French and Greek elections had raised concerns the euro zone would not be able to come out of the debt crisis.
The main focus in the market has turned from grim fundamentals released recently to the political race in France and Greece as investors know that the winners of the contest would lead their economies to a new critical phase after the efforts done by European officials to contain the debt crisis.
Now, all the efforts done by European officials, starting from bailing out Greece, expanding the European permanent rescue fund and liquidity pumping from the ECB, could evaporate with new leaders refusing sharp austerity measures.
Hollande, who got 52% of the votes versus 48% for Sarkozy, said after his wining in the ...
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Calmness in markets, eyes to track Greece after getting approval for a second bailout
Tranquility dominates trades on Friday amid the absence of important fundamentals in the European session, where more attention is given to the progress by the U.S. economy seen by the improvement in the recent released data.
Today, the euro area only economic data is trade balance which is expected to show a deficit January from surplus in December.
Yet, eyes are still tracking the latest developments of the Greek debt crisis to see how the debt-riddled country will adopt the strong austerity measures while avoid falling deeper into recession after getting approval for a second bailout from euro area finance ministers and the IMF.
Last week, euro area finance chiefs signed off on Greece's 130 billion euro aid package, which required 3.2 billion euros in additional spending cuts by the ...
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German Investor Confidence to Continue Surging After the Approval of Greece's Second Bailout
German investor confidence will probably continue its rise in March after climbing to 10-month high in February as global growth picks up, especially with the improvement in the United States, and debt crisis eases.
The ZEW Center for European Economic Research will release its investor confidence today, where the index of investor and analysts expectations is predicted to show a surge to 10.0 in March from a prior of 5.4.
The current situation gauge is also estimated to rise to 41.5 from 40.3 in February.
After the improvement in global growth, especially in the U.S. which will probably induce the Fed not to announce another round of stimulus, confidence is restored gradually.
With higher relevance, as the debt crisis abates after the approval of a second bailout for Greece by ...
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Euro on hold before euro area finance ministers' meeting, eyes to track BoJ and Fed meetings
The euro and U.S. dollar are on hold before euro-area finance ministers meet today in Brussels to approve Greece's second bailout and ahead of tomorrow's monetary decision by the Fed and BoJ.
Euro-area finance chiefs will gather today in Brussels to approve Greece's 130 billion euro second bailout after the nation fulfilled all the requirements set by international lenders, including a deal with the private sector bondholders, which was completed last week on Friday.
Three days ago, finance ministers provided a tranche of 35.5 billion euros in payments and interests to Greece's creditors, while set to consent the rest today, to help Greece avoid default when 14.5 billion euros of debt matures on March 20.
While Greece's second bailout approval is considered a positive thing, the use of ...
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Greece Ends the Debt Swap Deal, Finance Ministers Agree to Hand Greece the Financial Aid
The European common currency ended a strongly bearish week, where on Friday the euro cut all the gains recorded during the week and reversed sharply to the downside. Greece was able to strike an agreement with the private sector and now fears eased as the nation averted a catastrophic default late this month, the thing that encouraged finance ministers to pass the previously approved second financial aid to Greece.
However, the International Swaps and Derivatives Association (ISDA) declared on Friday that Greece has triggered a “credit event” and now bondholders who hold credit default swaps (CDS) will be compensated by insurers with around $3.2 trillion, the thing that affected markets are prevented the euro from extending the gains.
In addition, the U.S. jobs report strengthened the U. ...
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Weekly Economic and Financial Commentary : 10/03/2012
Weekly Economic and Financial Commentary
U.S. Review
Nonfarm Payroll Report Continues to Show Progress
The big headline for the week was the nonfarm payroll report which showed the labor market added 227,000 jobs in February with the unemployment rate unchanged at 8.3 percent. The private sector added 233,000 jobs with the largest gains in temporary help, manufacturing, education & health and leisure & hospitality.
The real trade deficit of the United States widened in December to -$49.1 billion from -$48.3 billion. While much of the drop was due to an increase in petroleum prices, we expect trade to be a drag on first quarter economic growth.
Positive Jobs Report Continues to Support Growth
This week's economic indicators continued to signal a moderate pace of economic ...
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Greece averts immediate default, markets skeptical
(Reuters) - Greece averted the immediate threat of an uncontrolled default on Friday, winning strong acceptance from its private creditors for a bond swap deal which will eat into its mountainous public debt and clear the way for a new bailout.
With euro zone ministers set to approve the 130 billion euro ($172 billion) rescue, French President Nicolas Sarkozy declared the Greek problem had been settled - just as Germany said that any impression the crisis was over "would be a big mistake."
Markets sharply marked down the value of new Greek bonds to be issued to the creditors, reflecting the risk of paralysis after elections expected this spring and doubts about whether Athens can bring its debt to a more manageable level by 2020.
Sarkozy, who is trailing his socialist challenger for the ...
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