Saturday, June 6, 2015

Athens rejects the plan to creditors, Bags dive – The Republic

MILAN – Athens rejected the sender’s plan of international creditors “because it can not be accepted” and postpones the repayment to the IMF of more than 300 million installment due today: with a procedure unique setting, will pay all 1.6 billion due in June in a single tranche, later this month. A tactical move, to weigh the risk of a default in the chancelleries of Europe, but also a warning sign of the capacity of the public purse. News returning to remove the parts in the field for the negotiations, because the request for additional measures from 4.5 billion euro in the period 2015-2016 has created several malcontents in the most radical of Syiriza. In short, after talks “constructive” between Prime Minister greek Alexis Tsipras, Chancellor Angela Merkel and French President Francois Hollande, seems to have been made again a step back.

For these reasons, investors remain uncertain. Because while it tries to mend Tsipras with European partners, the other the most intransigent wing of Syriza , the majority party, has announced that “if the creditors do not soften their line are possible early elections in Greece “. Just today, it is also waiting the hearing of the Prime Minister in Parliament.

The reason the markets bleak surrounding Greece and cashing by exceeding expectations by the labor market of the United States : the US economy created 280,000 jobs in May, more than analysts’ expectations. The unemployment rate rose to 5.5% from 5.4% in April, but because of the many people who have entered the labor market.

In Milan, Piazza Business in the red by 2.1% below 23 thousand points, weighed down by the banking sector. London gives 0.8%, Frankfurt 1.26% and Paris 1.33%. Athens in the red of 4.96%. At the close of the EU markets, Wall Street advances weak: the Dow Jones sells 0.15% Nasdaq can not keep rising by 0.1%, the S & amp; P 500 is slightly below parity. Investors are struggling to interpret the data of work: on the one hand show a recovering economy, the other facing a rise in interest rates after the Fed that just yesterday the IMF had asked to wait until the first half of next year. Among individual stocks in Milan, Saipem bounces after strong sales related to the possibility of a capital increase. Carige also in the spotlight after fixing the price of the capital increase. Intesa Sanpaolo sold its life insurance company China Life Union (the share of 19.9%), to 165 million, with a positive impact on the income statement of about 50 million.

Read the correction phase on securities State of the Old Continent. The spread between BTPs and Bunds is smooth in area 135 basis points, but the performance delivered by the titles is increasing. For BTP, in fact, to reach the 2.2% that was missing since November last year, but also rising yields on German bonds (hence their price drops): the public debt securities are paying for the rise in inflation EU, announced by Eurostat and confirmed by the ECB. The same Mario Draghi made it clear to expect a period of volatility, given the special situation of the market generated by the action of Quantitative easing . The euro weakened to 1.1114 from 1.1239 last night. The single currency exchanges also to 139.59 yen while the relationship between the dollar and the yen stood at 125.58 (currencies). The Bundesbank, meanwhile, raised their estimates on growth in Germany in 2015 to 1.7% from + 1% forecast in December. For 2016, the estimate rises to 1.8% from 1.6%. 1.5% growth expected in 2017.

Closing negative, this morning, for the Tokyo Stock Exchange in the wake of the decline in foreign financial markets and the recovery of the yen against the euro. At the end of trading the Nikkei index lost 0.1% to 20,460.90 points. In terms of raw materials, prices of oil are little moved after the sharp falls in anticipation of today’s OPEC meeting in Vienna. Contracts on crude WTI expiring in July change hands at $ 58.03, the Brent is at $ 62.11. Rising prices of ‘gold in Asian markets after the sharp declines that led yesterday the precious metal at the lowest levels since early May at $ 1,173. Bullion for immediate delivery now goes away for $ 1,117 an ounce.

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