German Benefits From Greek Crisis Need Further Consideration – Institute

#AceFinanceReport – Aug.11: A representative of the Ifo Institute for Economic Research claims that reports that Germany has benefited from the ongoing Greek crisis by over $100 billion need further detailed consideration.

Original Article:


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#GREECE: Well is all over bar the shouting as creditors & bond markets get their pound of flesh – as 3rd debt restructure is clinched

#AceNewsReport – Aug.11: ATHENS (Reuters) #Greece and its international lenders clinched a multi-billion-euro bailout agreement on Tuesday after marathon talks through the night, officials said, raising hopes aid can be disbursed in time for a major debt repayment falling due in days.

After an 23-hour session that began Monday afternoon, exhausted Greek officials emerged in a central Athens hotel to announce the two sides had agreed details of the deal though a couple of minor issues remained to be ironed out.

“Finally, we have white smoke,” a finance ministry official said. “An agreement has been reached. Some minor details are being discussed right now.”

The pact is expected to be worth up to 86 billion euros ($94.75 billion) in fresh loans for debt-ridden Greece, but there was no immediate confirmation of its size.

Greek officials have said they expect the accord to be ratified by parliament on Wednesday or Thursday and then be vetted by euro zone finance ministers on Friday. This would pave the way to aid disbursements by Aug. 20, when a 3.2 billion euro debt payment is due to the European Central Bank.

An agreement would close a painful chapter of aid talks for Greece, which fought against austerity terms demanded by creditors for much of the year before relenting under the threat of being bounced out of the euro zone.

Still, popular misgivings run deep in Germany, the euro zone country that has contributed most to Greece’s two bailouts since 2010, about funnelling yet more money to Athens.

During talks which dragged through the night, the sides agreed on final fiscal targets that should govern the bailout effort, aiming for a primary budget surplus — which excludes interest payments –from 2016, a government official said.

Adapted from an earlier baseline scenario, the targets foresee a primary budget deficit of 0.25 percent of gross domestic product in 2015, a 0.5 percent surplus from 2016, 1.75 percent in 2017, and 3.5 percent in 2018, the official said.

Dealing with a mountain of non-performing loans (NPLs) in the banking sector were among the sticking points in talks. Athens wanted to set up a “bad bank” to take on the problem loans, while creditors want NPLs bundled and sold to distressed debt funds. It was not immediately clear how that was resolved.

Officials had also argued over how to set up a sovereign wealth fund in Greece designed to raise 50 billion euros from privatisations, three-quarters of which would be used to recapitalise banks and to reduce the debt.

Both sides had agreed to deregulate Greece’s natural gas market, finance ministry sources said.

(Additional reporting by Karolina Tagaris and Lefteris Papadimas; Writing By Michele Kambas; Editing by Deepa Babington and Mark Heinrich)

Greece, lenders clinch bailout deal after marathon talks


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MARKETS: FTSE 100 falls as China devaluation of Yuan raises costs of imports

#AceMarketsNews -LONDON (Reuters) Aug.11: In a surprise move China reverses currency decision and devalues the yuan. Of course l published a post last week about the China currency exchange adding the ruble to its bag thus affecting the U.S. dollar even further. Today this move now makes UK imports even more expensive.

Now if l was a betting man l would say this calculated moved heralds the next #BRICS move in getting Yuan as the next major currency. Next …..!

The affect of today’s move so far is:

Britain’s benchmark share index fell on Tuesday, hit by stock price falls for mining companies and luxury firm Burberry after China devalued the yuan, raising the costs of imports.

China devalued the yuan on Tuesday after a run of poor economic data, guiding the currency to its lowest point in almost three years in a move that economists said was aimed at helping exporters.

Burberry was the top faller in early trading, losing 2.2 percent.

“A weaker yuan makes imports more expensive and with China accounting for some 14 percent of the company’s sales, the implication is clear,” Trustnet Direct analyst Tony Cross said.

Mining groups BHP Billiton, Glencore, Antofagasta and Rio Tinto were down between 1.5 and 2.1 percent. Copper fell 1.5 percent after the move by China, which is the world’s biggest consumer of metals.

The mining sector was down 2.3 percent, moving back towards a six-year low hit in late July.

Britain’s FTSE 100 was down 40.61 points, or 0.6 percent, at 6,695.61 by 0738 GMT. Weakness in commodity stocks has contributed to recent falls in the index, which is now 6 percent off an all-time high hit in April.

Outside blue-chip stocks, Just Retirement rose 1.9 percent, making it a top FTSE 250 riser.

The British retirement specialists plan to merge with Partnership Assurance in an agreed all-share deal worth 669 million pounds, after both companies have been squeezed by recent pension reforms.

Partnership Assurance rose 8.2 percent.

“The merger represents a sensible strategy in our view for Just Retirement and Partnership to continue their growth in the changing retirement income space,” Banco Espirito Santo analysts said in a note.

Outsourcer Serco also rose 1.9 percent, having been as up as much as 6 percent after it posted a better-than-expected fall in revenue in its first half, allowing it to maintain its full-year profit guidance.

(Editing by Louise Ireland)

FTSE 100 falls as China devaluation hits Burberry, mining stocks


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