Aena IPO likely to lead sentiment for Spanish markets
MADRID | Sean Duffy | The sale of 49% of Spanish airport group will be in focus from 12 onwards today.
Greece
The alternative of (tax-based) capital controls for Greece
By Marios Zachariadis via MacroPolis | At first glance, the potentially catastrophic consequences of Grexit on the rest of the Eurozone provide the Greek government with an important bargaining chip. However, the Greek government should take into consideration that Grexit is not the only possible alternative in case an agreement with the rest of the EZ cannot be reached soon.
HSBC scandal bad timing for Juncker
MADRDD | Sean Duffy | Markets are likely to remain volatile in the week ahead as investors await indication on Greek standoff.
Greek government has little to lose
MADRID | By JP Marín Arrese | By taking pre-emptive action against Greece, Draghi is behaving like the Nottingham Sheriff ruthlessly enforcing law and order according to Berlin rules. He was forced to act only by the end of this month. Taking on his own the task of imposing a 7-day ultimatum to Tsipras, he has shattered his neutral stance as a monetary policymaker. Yet, his move might backfire should Greece refuse caving in to pressure. After all, it has little to lose.
Greece edging close to exit?
MADRID | Sean Duffy | A defiant speech on Sunday in the Greek parliament from Alexis Tsipras has heightened tensions once again. The game of brinkmanship continues apace, but is the Greek Government edging itself towards a euro exit?
Greece: Another euro stitch unpicked
ATHENS | By Nick Malkoutzis via MacroPolis | If there was any doubt that the negotiations between the new Greek government and its lenders are going to be incredibly tense, there isn’t now. The European Central Bank’s decision on Wednesday night to stop accepting Greek government bonds as collateral from local lenders has minimal practical impact in the short-term but maximum effect in symbolic terms.
Greece and US payrolls likely to add pressure on European markets
MADRID | By Sean Duffy | Thursday brought some positive predictions on the Spanish economy from the European Commission, but buoyancy on European markets may be negated by data due from the US later today.
Draghi corners Tsipras
MADRID | By JP Marín Arrese | Tsipras rebellion was ruthlessly quelled by the ECB governing board last night. Neither Greek sovereigns, nor publicly-guaranteed bond issues, will stand as eligible collateral for funding facilities, thus plunging the financial system into a crippling credit-crunch. The emergency liquidity arrangement managed by the local central bank severely caps new public financing to a meagre €3.5 billion amount. The new government faces the unpalatable choice between surrender or bankruptcy.
Pressure on Greek debt: A nudge or a punch in Athens’ face?
MADRID | The Corner | Despite the markets’ first negative reaction to the ECB’s restricting Greece access to its direct liquidity lines, Morgan Stanley analysts reminded on Thursday that nobody should be that surprised: in 2012, one third of the Greek balance sheets were financed by the ECB, and most via ELA. Plus, Greek banks can still get ECB liquidity if they use ECB eligible collateral.
All smiles and handshakes for Tsipras’ EC visit (before ECB tightened the rope)
BRUSSELS | By Alexandre Mato | The leader of the European Commission, Jean Claude Juncker, offered a friendly welcome to the Greek Prime Minister at the Commission entrance on Wednesday. There were no speeches, nor questions from journalists. After posing in front of the cameras, Juncker took Tsipras’ hand, the two leaving the photo-call as ‘lovers’. And some hours later, in a not that surprising move, Draghi banned the use of the Greek debt as collateral for the European Central Bank’s. The euro continued falling versus the U.S. dollar after the news: it hit $1.1304 — close to its 11-year low — before stabilizing at $1.1354 around 0540 GMT.