The Corner | July 1, 2015 | Spanish manufacturing PMI, one indicator of the economic pace of a country, posted 54.5 in June, down slightly from 55.8 in May. However, operating conditions have now strengthened in each of the past 19 months, according to Markit analysts. Manufacturers reported having hired extra staff to meet higher production requirements and prospects of future growth.
ATHENS | June 29, 2015 | By Nick Malkoutzis via MacroPolis| Too often SYRIZA approached its dialogue with creditors as it would a street protest. And while the institutions spoke of flexibility, they only showed a limited amount of it in their approach.
LONDON | June 29, 2015 | Barclays | Greek PM Tsipras surprised everyone by calling for a referendum to be held on 5 July. The referendum will ask the Greeks whether or not they accept the latest proposal presented by the Institutions. The Greek government supports a “no” vote.
LONDON | June 26, 2015 | Barclays | The lack of an interim deal between Greece and its creditors signals that the two sides remain divided despite being closer than they have been. Crucially, Greece agrees on pension savings worth 1% of GDP but it plans to get there mainly via higher contributions, while creditors prefer phasing out top-up pension payments and aggressively cutting early retirement.
ATHENS | June 25, 2015 | By Nick Malkoutzis via MacroPolis | It seems the easiest option for a left-wing party coming to power and needing to save money: cut defence spending. However, despite being under intense pressure from Greece’s lenders to find a way to meet fiscal targets over the next few years, making some of the savings it needs from reducing expenditure on the military is not as easy as it first seems for Syriza.
MADRID | June 24, 2015 | J. P. Marín Arrese | European leaders have probably concluded that expelling Greece from the common euro house might rock its foundations. The high price of supporting a failing partner also helps to fuel a change in sentiment towards the stubborn and rebellious Tsipras government, not to mention mounting pressures from the US administration and the FED.
LONDON | June 24, 2015 | BARCLAYS | Although the news from Greece’s programme negotiations was mildly positive, we remain cautious on the eventual outcome as the situation remains very tense, particularly with respect to the banking sector.
BRUSSELS | June 23, 2015 | By Alexandre Mato | Tax hikes and pension system cuts were the main measures offered by Athens to European Institutions and the IMF in order to reach an agreement over the second rescue programme. The €8 billion in savings and new revenues over the next two years were described as important or broad steps. But the proposals are bittersweet.
The Corner | June 23, 2015 | Despite the Greek drama, the eurozone’s economy is picking up. Eurozone composite PMI jumped to 49-month high of 54.1 in June, according to research firm Markit.
ATHENS | June 22, 2015 | By Manos Giakoumis via MacroPolis | Almost a year ago, Greek banks successfully raised 8.3 billion euros in capital increases, which were over 1.5 times subscribed amid strong interest – primarily from international institutional investors.