Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Doubts rise on Greek aid talks

While you were sleeping: Doubt rises as Greek aid talks continue

Nov. 27 (BusinessDesk) - The meeting of European Union finance ministers on extending aid to Greece hasn’t resolved and yet stocks have sold off and bonds have gained on doubts the 17 nations will be able to bridge their differences.

German bonds rose for the first time in six days and the euro declined against the yen as finance chiefs met in Brussels, the third such meeting in a month. They failed to thrash out an agreement in an all-night session last week. US Treasuries rose for the first time in five days, pushing the 10-year bond yield down 5 basis points to 1.64 percent

“Today is critical in terms of reaching the agreement, which is not very much expected,” Vassili Serebriakov, a currency strategist at BNP Paribas SA in New York, told Bloomberg.

Overdue for payment is some 44 billion euros that was originally due to be paid in May and Greece has been surviving on emergency loans since then.

The EU’s economic and monetary affairs commissioner, Ollie Rehn, urged the EU states and the International Monetary Fund to “go the last centimetre because we are so close to an agreement."

Stocks were weaker in Europe and the US. Germany’s DAX 30 fell 0.2 percent and France’s CAC 40 was down 0.8 percent.

On Wall Street the Dow Jones Industrial Average was recently down 0.5 percent. Macy’s Inc was among decliners, falling 3.6 percent as retailers extended Black Friday discounting.

Thanksgiving weekend sales rise 13 percent to US$59.1 billion, according to the National Retail Federation. That’s shy of the 16 percent gain in the same period last year.

The other leg of this week’s double is the resumption of talks between President Barack Obama and Republicans on the fiscal cliff. The Congress is seeking a budget deal to avoid $607 billion of automatic tax increases and spending cuts from kicking in on Jan. 1 – just 36 days away. Failure to act could drive the world’s biggest economy back into recession and result in a spiralling jobless rate.

Talks over Greece and the fiscal cliff are “just enough reason at this point in time to take risk off the table and wait for more insight and clarity,” Peter Sorrentino of Huntington Asset Advisors in Cincinnati told Bloomberg.

The British pound found strength in the surprise announcement that Bank of Canada chief Mark Carney has been tapped for the top job at the Bank of England.

"I think the markets will interpret this as perhaps ushering in a rather tighter monetary stance from the Bank of England," Stephen Lewis, an analyst at Monument Securities, told Reuters.

The pound strengthened to rose to $1.6016 against the dollar after Carney’s appointment was announced, from about $1.6003.

In other appointments, Elisse Walter, former senior executive vice president at the US Financial Industry Regulatory Authority, has been named as next chairman of the U.S. Securities and Exchange Commission as incumbent Mary Schapiro is to step down on Dec. 14 after being at the helm since 2009.

Schapiro climbed into a hornet’s nest as it faced fallout from the Bernard Madoff fraud and for its oversight of Lehman Brothers.

Meantime, New York City mayor Michael Bloomberg is seeking US$9.8 billion in federal funds to help pay for repairs from damage caused by Hurricane Sandy, whose total costs run to US$19 billion.

And Egyptian President Mohamed Mursi has been in talks with senior judges after violent protests over his move to increase his powers in the Middle Eastern nation.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news