Archive - Jun 12, 2015

On the heels of what appeared to be an ultimatum from EU creditors, Greece remains defiant on pension cuts and a VAT hike, testing the troika's resolve as the countdown to the next maybe-deadline continues. Meanwhile, Germany warns that Grexit could embolden EU "separatist" movements and Dijsselbloem reminds Tsipras that noncompliance isn't an option.

• Razor-edge U.S. Congress vote to decide fate of Obama Pacific trade pact (Reuters)
• EU Readies for Default as Tsipras Drives Greek Finances to Brink (BBG)
• Greece Can’t Plan a Barbecue, Let Alone a Currency, Nielsen Says (BBG)
• IMF quits Greece talks amid ‘air of unreality’ as deal unravels (FT)
• Greece Counts Cost of One Man's Gamble (BBG)
• Merkel urges Greece and creditors to keep pushing for deal (Reuters)
• Fearful ECB starts countdown on Greek funding lifeline (Reuters)
• Greek stocks suffer further pummelling (FT)

Moments ago, the troubled former head of the IMF whose reign at the top of the international bailout organization ended dramatically after an alleged 2011 rape scandal in a NYC hotel the charges for which were later dropped by not before terminating his employment at the IMF, his marriage and his political career, Dominique Strauss-Kahn finally got some good news when a French court cleared him of "aggravated pimping" charges in which he was accused of helping to operate a prostitution ring of seven women out of the Carlton Hotel in the northern French city of Lille.  At his trial in February, Strauss-Kahn calmly fended off the accusations, saying that while he was a libertine who enjoyed group sex, he was unaware any of the women attending the soirees had been paid to be there.

For a sense of what is driving sentiment this morning look no further than the Athens stock market which exploded higher yesterday on a Bloomberg story based on "two sources" that Germany was willing to compromise, only to close just as the IMF pulled a classis bad cop and announced it was halting work on Greece, and before further news from Bild that Germany was preparing for a Greek default while Europe had given Greece 24 hours to submit a final, workable proposal. As a result, it tumbled promptly at the open even as optimism persists and since the opening plunge, Greek stocks have continued to climb and are now back to yesterday's euphoric opening levels.