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Euro Jumps On News Of Latest Agreement Between Germans And French As Market Prices In Nth Greek Bailout
The EURUSD is pushing higher in the low volume afterhours session after a Reuter report that the German and French delegations have reached an agreement over Greece. Since this is about the 6th "pricing in" of Greek bailout, we can't help but be extremely skeptical that this short-lived bounce will promptly reverse especially since the USD is about to pop on comparable good news to come out from the Obama meeting with Boehner.
From Reuters:
Euro jumps half a cent to $1.4260 in Asia on news Germany and France had reached a joint position on a financial bailout for Greece . Adds to hopes Thursday's EU emergency meeting might actually make some progress on the impasse over Greek debt. Top private bankers will attend the meeting, which is due to start around 1000 GMT. But dealers all too aware that the market has been disappointed before and euro vulnerable to a pullback. Support at $1.4133 with resistance now at $1.4282.
Still plenty of uncertainty over the US debt ceiling talks, with much political manoeuvring going on. The Fed has been drawing up plans should the country default . USD broadly softer as a result, with its index off 0.5 pct at 74.849. It also edged down to 0.8197 Swiss francs and 78.88 yen. Asian focus on HSBC's flash PMI for China due at 0230 GMT, amid talk it could dip below 50.0. Such a result could rekindle worries of a hard landing, even though recent upbeat GDP data suggested the overall economy was still travelling well.
And from Bloomberg:
Merkel, Sarkozy listened to arguments brought forward by ECB
President Jean-Claude Trichet, who attended part of the meeting,
Steffen Seibert, Merkel’s spokesman said. They exchanged views
with EU President Herman Van Rompuy by telephone,
Seibert said. Joint Franco-German position will be presented to
leaders at today’s summit in Brussels by Van Rompuy, Seibert
said.
And from the FT:
No immediate details were available but Steffen Seibert, a spokesman for Angela Merkel, the German chancellor, said “a common German-French position” had been agreed and discussed with Jean-Claude Trichet, president of the European Central Bank, and Herman van Rompuy, president of the European Union.
The breakthrough came after Nicolas Sarkozy, French president, rushed to Berlin to hammer out a Greek rescue plan that could include €71bn (£63bn)
in bail-out funds from global lenders and a €50bn tax on eurozone banks, proceeds from which would be used to buy back 20 per cent of Greece’s €350bn in outstanding debt.The proposals, included in a plan circulated by the European Commission ahead of an emergency summit on Thursday, also include a bond exchange programme under which private owners of Greek debt would be encouraged to swap their holdings for new 30-year bonds. The swap plan could reduce Greek debt by an estimated €90bn. It would be offered, with credit sweeteners, to owners of bonds due in the next eight years.
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Transitory
+100 Very. Sell the EUR short; right now.
I went short euro at $1.44, sold that last week@ $1.40 and I am ready to go in again!
But I would have made more if I simply went long gold...
This time gold may stay steady for a week or so, tough.
I think George Constanza is running the market, seriously!
http://www.youtube.com/watch?v=RerJWv5vwxc
That was the best Jerrry!.. THE BEST !!!
Rock Rock Rock the boat, slowly down the waterfall...
This all is Novacain for the soul.
sd as belgian, you should be a happy man today
Today it rained again over here...
I have 2 kids running like they're on speed around the house who really need to go out and play...
My wife is all stressed out because of it, so chances are I ain't getting any tonight.
Best summer ever... it hasn't stopped raining for weeks now.
I just had to go on vacation when the weather over here was like all heatwave and come back when it started raining...
I'm going nuts over here and by this time around tomorrow, I'm out of beer and the shops will be closed because of the national Holiday.
The most funny thing was watching our King yell to everybody on television about our government and that we all have to get along or our economy will go down the shitters. WHERE HAS THIS GUY BEEN FOR THE LAST 3 YEARS?!
And then something about democracy which I didn't fully understand COMMING FROM A KING WHO WAS NOT DEMOCRATICLY ELECTED AND WHO'S ONLY KING BECAUSE HIS MOM FUCKED THE RIGHT GUY!
But hey, I bet they'll have beer at the fireworks tomorrow.
is it correct that he has a bastard daughter
I was visualizing Benny Hill there for a second running around and prostrating himself before a king like on Chitty Chitty Bang Bang.
I guess you just drank all your beer to he?
I'm European... over here, not everybody is 400 pounds overweight.
SD, NO BEER? Poor Planning makes for Pissless Performance...
I had 2 friends coming over who drunk my supply... I didn't really count on that.
I've never been in the army... I guess it's there that you learn how to cope with problems like that...
Bad logistics can cripple even the best armies.
Another line in the book of life lessons I guess.
My sincerest sympathies.
A Belgian without beer. The world is truly coming apart. Hang on, SD!
Raining here too.
Ask me about that democracy thing - never voted for the Euro, was never asked if I want to give up that Deutsche Mark, never asked to bailout anyone, never asked to vote for any of these clowns in Brussels - listen, things aren't sunny here as well. Low income Germans lost a staggering 23 % of their income since 2000. There is only one group in Germany - the well earning group that benefited since 2000 (so just >10 % of the population).
I look around and all I see here in my country - more closed shops, more closed public baths, more closed kindergartens, schools - sure, we don't need them. Oh, we don't have any debt at all...
Ever heard of that agreement in Germany - where West Germany sends money over to former East Germany - to rebuild it? Soli - as in solidarity? How did that turn out?
I give you a hint: Things in Western Germany got worse since then - West German cities are on the brink of bankruptcy, while some Eastern munis just payed off all their debt (with the money of that soli of course). Look, I am not saying everything went good for East Germans - it was hard time for them too...
Now I am in this union. Hey, I am not an enemy of the European idea - but do I think the EU is the best we can accomplish in Europe? Nope. It's not.
I do not want to rebuild Greece as they say now in every German newspaper - do you know what kind of words they use?
Marshall-Plan
Wiederaufbau
Hey, what happened? Did we invade Greece again? I might have missed the part.
Because I didn't see those http://weltkrieg2.de/Waffen/Kampfflugzeuge/Bomber/deutsche/Junkers-Ju-87... over Athens?
Why aren't we honest - just declare that there is no German nation anymore - no Austria, no France, no Greece, no Belgium - they ceased to exist - just the United States of Europe (you may like another name for it)
Or we go the opposite route - back to where everything was before the Euro - which according to some German analysts would mean the end of the European idea / union / culture - whatsoever - the end of everything else...
Just imagine, Sudden - dream with me - we might have a good chance to win that Soccer world cup...
sorry for the rant part - hey I've nothing against those Greek people, nothing against any other nationalities...it just pisses me off...you know - the last decade - for a normal German it was a lost one - no investment at all, closing everything we liked or had (trying to solve our debt issues), losing income, more tax, our society breaking more and more apart, getting ridiculed for that manufacturing (and our business elite are busy to ship that part to China too - they always tried to copy their American cousins)...
And now they want to switch off the lights on the Belgian highways...
That's pretty dangerous with all the potholes. Nearly killed me once when I hit one with the front wheel of my old bike.
I think I get their plan: They're shit scared of the bond market, and now do a funny dance to distract from the issue of their huge mistake, while they hope the repugnidemocraps in the new world finish their drama play. Because they really expected summer 2011 to be like summer 2010. Pissmonkeys.
What irks me the most (FWIW) is that they destroyed a perfectly good idea.
Eliminate bank tariffs, enable trade, let nations grow towards each other slowly (or not, if it doesn't work out)
But noooo, they had to corrupt everything and everyone they dealt with and wreck free capitalism in the process. Reward hollow promises with wads of community cash. Try to build empire on sneaky small print in treaties with the purpose of replacing Constitutions with a pieces of crap. Open backdoors to destructive forces that no one really wants here. Fuck them and everything they stand for. If tomorrow they mess it up, or pretend and then in 2 months fuck up, that means conflict. I'm not going to let them do a fucking TARP on us.
Rain here too. I welcomed it, working in a room with hot equipment. The birds seemed to like it. Got my M2000 NATO issue Gasmask in the mail today. The attire of modern man.
Hey, at least it's not black rain.
"If tomorrow they mess it up, or pretend and then in 2 months fuck up, that means conflict. I'm not going to let them do a fucking TARP on us."
I am with you.
+1
I always liked the European idea.
And I somehow still do. Peace and cooperation and so on.
Except for the fact that the political technocratic elite is just too keen to fuck everybody in the ass. But what's the alternative? Back to backward nation states?
Democracy is failing, in EU and US. So what are we going to do about it?
Yes, you still have plenty of time to restock on beer, fer godsake man!
goddam if belgian beer aint the best in the world
Always been partial to German beer myself, but Belgian definitely doesn't suck.
Stella! http://www.youtube.com/watch?v=S1A0p0F_iH8
agreed...Reinheitsgebot...fine pilsners, etc...depends on my mood but 14% abv belgians warm my blood im also keen on good ipas we're getting our brewing shit together here in the states finally
+1 Belgian beer...very crisp. I like Canadian beer, but only in Canada. The States waters down the imports, but they make some good brew in hockeyland.
My boyfriend introduced me to Hoegaarden.
If you haven't tried it, I seriously recommend.
Since I'm Belgian, too, I have to jump into the discussion.
Try Hoegaarden Grand Cru. That's the stuff.
(been drinking that mainly when I was 16-17 though).
Does the King speak Flemish, or Walloon? Don't you have a neighborhood pub?
You seem, to have found your Pub? 1.45 How does it feel to sit in your personal (OVAL OFFICE ?)
Can't believe that market believes it. Insane. Even if it works, it is about a month before we are back to the bailout table?
In 2 decades from now, we'll all make jokes about this.
with you around i haven't found myself ever waiting.
will it be a big joke when oil is priced in Euro's ?
This is Euro freegold transpiring right before our eyes.
Its all about the rally bitchez!!!! waaaahooooo PAR-TAY!!!!!
Let's pretend saving Greece say 99 times and I am confident everyone will feel the warm and cosy wealth effect.
Beatleguese beatleguese.... I am NOT saying it the third time
er, i thought Italy was the problem now, or is that fixed? or is it next weeks problem? or was it never a problem?
This 'world economy' is just one steaming pile of the worst kind of stinking s**t.
Italy can't be the problem yet, too big and skittish to handle for profit now.
Germany and France reached a "joint position"? WTF does that even mean? They are smoking a spliff?
the proper "joint position" is to the left
Puff, Puff, Pass... Bogart..
http://www.youtube.com/watch?v=WeYsTmIzjkw
oops
Markets freaking up about Spain in 1...2...3...
It's all clownage ... Now back to Godzilla, Rodan, Mothra ...
The Greek bailout has been priced in so many times surely the entire debt is paid off by now.
+10
They might even be running a surplus by now :)
48 hrs before the chaos erupts, low volume bulltrap. There will be no bailout for Greece time-warp redux. Germany and France (particularly France) have lost the plot, trying to push out rating agency influence in a bizarre old Europe communist asset cartel supporting thang. The attempt is managing a full default without calling it a default...The EZ is a mess. Germany should know better that socialist asset supporting conjobs collapse re: East Germany.
Gotta love those French CDS's widen...
I am guessing that no one from Greece was in the room.
Exactly. Just as there were no Czechs at the Munich Conference.
Ouh! That 's harsh.
I can't believe people still short the Euro. It is the braindead "I watch TV trade". I have said it countles times and I will say it again. The Dollar is an infinitely worse structural position that the Euro. But people continue to watch TV and misunderstand they are being fed a distraction--A costly distraction.
Examine reality.
Beyond the fact that California is in exactly the same position as Greece, and far larger, all the Western central banks are working together to maintain currency pegs. Beyond the fact that USA can print and Greece cannot print, all paper money is exactly the same thing. You are looking at the new SDR/global currency in action. It is cooperating central banks. And it is all going down in flames in the end.
Agreement between the French and Germans? Impossible!
Of course it's possible. They were buddy buddy in WWII (until we showed up.)
Invasion: the best way to make friends?
@Logans_Run
Renew! Renew! Renew!
"50 billion tax on EURO banks" hahaha what the f*ck does that French midget smoke...crack? Rather than haircuts on greedy french/german banks holding toxic PIIGS, a tax instead? They have gone insane...so we get to short EURO banks/bank indexes now. Fine. As a liquidity crunch for the EZ gets closer and closer. Goverments are dumb
What he means is a 50 Billion tax on European banks, i.e. the City of London - where all the f*cking big banks are. Now, we're not in the Eurozone, but that's never stopped the Eurotards sucking us dry (with the complicity of our treasonous politicians) to support their latest fantasy.
wont work. banks are genius at avoiding tax. dumb idea, haircuts are better, thats a market tax/punishment for greed...and it works. but the Eurozone have found communism again, bless them. rating agencies will slam this down though...
Germany better pray China's PMI isn't sub 50 next few hrs
All taxes are paid by consumers. A hidden bailout the cost of which is borne by taxpayers, of course...
The fundies haven't mattered in some time. With a quick look at the technicals...and based on one's particular objective...short term (tonight) or longer (next week), we could see a small pullback short term but longer, we will blow the $1.4282 out and head to an area closer to $1.4400 with clear potential for $1.4500. Reading the technicals as a leading indicator to the findamentals would say this budget deal with fall apart this week and we could see the boys in DC sweat the markets for another week. JMHO
those sons of Vichies
Is this bullish, or just bullshit?
The Euro has had about 50 last meals before it's day with the executioner. Pity that it might enjoy another 50 last meals prior to that relief....
we knew it would come to this. what else can we say? what else can we do?
http://www.youtube.com/watch?v=7ydRwCf9Qyw&feature=player_detailpage
Really...Franco-German position? I think I tried that once just for fun. I can see Sarko being called on the carpet by the French bankers...vite vite allez allez nous n'avons plus d'argent. Desperation.
the € rallied and the people rejoiced on word that germany and france agree. no word on what they've agreed to ... just that they agree. isn't it flat-out amazing just how excited people can be over two parties agreeing ...
tthis could get interesting
...market is now selling on rallies.
the deal essentially means banks will be writing-down greek bonds via a massive tax bill to fund a Greek Bailout.
total flop on confidence trick fail
I'm on sabbatical... Call me when the Bankstas get back from { Ponzi Central }
just zipped off a message to the sales folk at ftsales.support@ft.com --------
"There is no underground economic fight club - you understand? Or we will cut off your balls. We are the people who prepare your food."*HSBC China Flash PMI for June came in at 48.9 - the first reading below 50 since July 2010.
...and another thing so the banks get the hefty tax bill for the Greek bail-in, the EU lowers yields. Wouldn't the banks then sell or rollover debt into higher yields. Can't see banks wanting to hold Greek waste and also taxed for holding it.
Still smells like a default
Any bond nerds on here?
whatever is the solution after their todays meeting...it will cost money and they throw euros out of the window because the infrastructure in Greece is still the same... nobody is paying taxes, you only have to work up to the age of 55 and if are a ticket seller in the metro you earn 6000 Euros a month. There is no possibility that such a system can work :-)
6000€/months? Where have you such fantasious information from? Nice bunch of clichées anyway...
EZ PMI extreme slowdown...and EU want to tax the liquidity providers i.e banks? EUR is sell