Creditors

Frontrunning: April 29

  • Police enforce curfew in Baltimore, disperse protesters (Reuters)
  • Saudi king resets succession to cope with turbulent times (Reuters)
  • Euro-Area Bank Lending Increases for First Time Since 2012 (BBG)
  • Riksbank Increases Bond Purchases as Key Rate Left Unchanged (BBG)
  • Greek Banks Get More Funds as ECB Weighs Collateral Discount (BBG)
  • Greek bank deposits drop 1.36 pct in March for sixth month in a row (Reuters)
  • Sarao Remains in Jail After Failing to Pay Bail at Hearing (BBG)

Frontrunning: April 28

  • Maryland Governor Calls in National Guard to Control Baltimore Riots (BBG)
  • Fed Seen Delaying Liftoff to September to Push Down Unemployment (BBG)
  • Nepal PM says toll could rise to 10,000 (Reuters)
  • China Readies Fresh Easing to Tackle Specter of Debt (WSJ)
  • ‘Damned Lies’ Threaten to Overshadow U.K. GDP in Election Fight (BBG)
  • Uncertainty Over Impact of a Default by Greece (NYT)
  • Why the Cost of Hedging European Banks Stocks Has Soared (BBG)
  • Carinthia cash crunch gives Austria its own mini-Greece (Reuters)

S&P Futures Hug 2100 After China Denies QE, European Stocks Slide

Following yesterday's early MNI rumor that a Chinese QE is being "considered" and which sent the Shanghai Composite surging 3% and led to an initial boost in US stock futures, overnight the PBOC scrambled to once again deny such speculation. Of course, going full "cold Turkey" on Chinese stimulus would be too much for the market to handle, so in a piece by the WSJ also released overnight, the author said the PBOC would pivot from outright QE to mere LTRO, which is also not new and was reported over a week ago here in "China Floats QE Trial Balloon, PBoC May Launch LTROs." In any event, for now at least, Asian stocks are not happy despite Apple's latest blockbuster results, and neither is Europe, with the Stoxx 600 down 1%, and even the E-mini is hugging 2100 unable to levitate on any imminent central bank intervention.

Greece €400 Million Short For Wage And Pension Payments, Rushes To Pass Troika-Friendly Laws

According to Bloomberg, the Greek government is €400 million short of the amount needed for payment of pensions and salaries this month, citing a Kathimerini report. Surprisingly, this takes place even as Greece’s IKA, OGA pension funds have been informed by the government that amount needed for payment of pensions will be deposited today, while the Greece’s OAEE pension fund has said payment of pensions won’t be a problem. In other words, someone is not telling the truth: either there is enough money or there isn't. And if the latter case is valid, then either the government or the pensions are now openly lying to the population.

Greek Municipal Union Refuses To Hand Over "Confiscated" Cash To Central Bank

Earlier today, while the European markets were caught in the latest myopic buying frenzy resulting from the hope that an imminent termination of Yanis Varoufakis may mean a Greek debt deal is imminent, the Central Union of Municipalities and Communities of Greece ("KEDE") held a meeting in which it said that while it "declares it support for the national negotiating effort", it would not transfer any funds to the Bank of Greece.

Greek Blame Game: At Whom Will History Point The Finger?

If Greece does indeed end up exiting the common currency or if the intractable nature of debt negotiations end up triggering an "accident" that plunges the country into social unrest and years of unprecedented economic hardship, no one wants to be "the one holding the murder weapon." 

Under Pressure From Europe, Tsipras Prepares To Show Varoufakis The Door

On the heels of highly contentious (and largely unsuccessful) negotiations in Riga on Friday, Greek PM Alexis Tsipras is "reshuffling" his negotiating team in an effort to jumpstart talks with creditors. As Reuters reports, the well-liked deputy Foreign Minister Euclid Tsakalotos will now coordinate the team and will "have a more active role in face-to-face talks from now on." Meanwhile, Yanis Varoufakis hates "boring dinners."  

GoldCore's picture

While sentiment towards gold in the West is abysmal - even as gold languishes at record lows when adjusted for inflation - Asian demand remains insatiable. It would be wise for investors to inform themselves as to why this should be so. Demand for gold in Asia is often written off by Westerners as an irrational impulse of uneducated Asian peasant farmers and workers. 

Goldman Gets Cold Feet:"It Is Difficult To Predict How Negative The Market Reaction To Grexit Would Be"

"We think that, at the 10-year tenor, the spread between Spanish and Italian bonds yield versus Bunds yield could still widen to around 350-400bp before a policy response is enacted. We stress that the departure of a country from the ‘irrevocable’ monetary arrangements of the EMU would take us into unchartered waters and it is difficult to predict how negative the market reaction could be."

An Austrian Province Just Requested A State Bailout

Finance Minister Hans Joerg Schelling has said repeatedly that the Austrian government isn’t liable to cover Carinthia’s guarantees." Herr Schelling's warning is about to be tested. Yesterday, Carinthia officially asked Vienna for financial support. The spokeswoman said Carinthia would run out of money in June without help, confirming local media reports. No Austrian province has ever gone bankrupt and there is no legislation on how to handle such an event.

GoldCore's picture

UK debt has continued to rise throughout the recovery and has soared to an eye-watering £1.48 trillion. In recent days, a slew of foreign exchange analysts have warned that the pound is vulnerable to falling in value. The incumbent government have not reined in public and trade deficits and have been accused of juicing the property market and the economy to postpone a crisis until after the election. 

Futures Fizzle After Greece "Hammered" In Riga, Varoufakis Accused Of Being "A Time-Waster, Gambler, Amateur"

Even though no rational person expected that the Greek situation would be resolved at today's talks in Riga, Latvia, apparently the algos were so caught up in spoofing each other to new record highs that futures, after surging once more overnight following the latest Google miss which sent the company and the Nasdaq soaring, actually dipped modestly into the red following headlines that the latest Greek talks have broken down after a "hostile" Troika "hammered" the Greek finmin, who was accused by European finmins of "being a time-waster, a gambler and an amateur."

Greek Bank Will Write Off Up To €20,000 In Debt For "Poverty-Stricken" Borrowers

Instead of merely plugging the hole left from declining liabilities (deposits), what the ECB's ELA funding appears to also be doing is compensating for a rapid write down in bank assets (loans) as well, in the form of charged off Non-Performing Loans. According to Reuters, one of the leading Greek financial institutions, Piraeus Bank will write off credit cards and retail loans up to 20,000 euros ($21,484) for Greeks who qualify for help under a law the leftist government passed to provide relief to poverty-stricken borrowers, it said on Thursday.

"Obsessive" Buybacks Could Be Big Mistake, "Serious" People Tell Unserious People

"Companies that obsessively buy back their shares could be making a big mistake," Moody's head of head of leveraged finance tells CNBC, echoing what we have said on too many occasions to count. With IG supply at all-time highs and with companies pouring the money into share repurchases instead of investing in future productivity and growth, we say yet again that the theatre of financial engineering will continue only until it can no longer continue.