The Greek Parliament finally passed its austerity budget on Sunday by 199 votes in favour to 74 against. However, the government still needs to detail how it will cut expenditure by €325 million. The leader of New Democracy, Antonis Samaras, who is seen at a potential Prime Minister after elections in April has already said that austerity measures should be renegotiated after April, which will continue to keep other Eurozone member governments nervous. Eurozone finance ministers are due to meet on Wednesday to confirm the bailout agreement. The deadline for a Greek default is March 20th when a coupon payment is due.
With no significant releases due today, markets will instead concentrate on other risk events this week. Aside from the Eurogroup Finance Minister’s meeting, the key remains Wednesday’s the UK's Inflation Report Press Conference. While Governor King should be able to point to falling inflation, we suspect that growth forecasts will have been shaded down, reflecting data releases over the past few months. King is likely to remain cautious on the outlook for growth, which the market will interpret as leaving the door open for more asset purchases after May, which in turn will be negative for GBP.
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Posted in Daily Market News on May 30 2014
An action packed day on the markets yesterday saw Greece’s coalition government almost reach an agreement on new austerity measures to secure a fresh Eurozone bailout fund of €130 billion. However, Eurozone ministers refused the supposed €3.4 billion austerity package proposed by the Greek government and set fresh demands with...VIEW FULL ARTICLE
Posted in Daily Market News on Feb 10 2012 by alex