Thursday, June 25, 2015

Creditors reject Greek proposals; talks to resume today

     Creditors reject Greek proposals; talks to resume today

    Creditors say Greek proposals rely too much on tax increases, which can impede growth, rather than spending cuts & structural reforms, which can boost growth
    Talks will resume today, but ruling SYRIZA coalition didn’t like the original proposals, so it’s likely to like any new proposals that meet the creditors’ requirements even less
    Greek PM Tsipras will have to get approval by Sunday night, otherwise it may be difficult to get the money in time to pay the IMF
    Without agreement Sunday, they may have to impose capital controls and Greek banks may not be able to open on Monday

     EUR largely unaffected, however

    Stock markets were down, but EUR was generally stronger!
    USD is moving on expectations for Fed policy now

     Today:

    Eurozone: Resumption of talks between Greek PM Tsipras & creditors will be the focus of attention, along with the start of the two-day EU leaders’ summit. Summit will also discuss UK demands for reform of EU as well as Greek issue.
    Indicators:  German Gfk consumer confidence for July
    US: Personal income & spending for May. Both forecast to accelerate = USD-positive

    Speakers:  SNB President Jordan

No comments:

Post a Comment