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This article was published June 29, 2015 at 8:25.
The last change is the 29 June 2015 at 24:32.
As feared, the markets react badly to the news of the referendum greek. After the interruption of the talks on the bailout of creditors and the Greek authorities, the ECB has frozen vital funds to Greek banks, leaving Athens with no other choice but to close the doors to prevent the collapse. Greek Banks and Stock Exchange will be closed for the whole week, with a limit of 60 euro per day for the cash withdrawn at ATMs.
“The risk of a ‘Grexit’ is growing,” wrote today in a note Goldman Sachs.
There is no panic: the markets are reversing the optimism that was leaked last week and in one sitting are rimangiando earnings developed in the previous five. Meanwhile, the greek prime minister, Alexis Tsipras, has written a letter to the heads of state and government of the Eurozone, in which it requested a one-month extension of the aid plan: “I ask you to re-evaluate your position on the issue – says the letter, sent Sunday. Tsipras defended, also, the decision to hold a referendum as a democratic right of the people greek “.
The effects were immediately felt. The spread between BTPs and German Bunds in startup reached almost 200 points, jumping by about 80 basis points over the previous Friday (123). Then the differential fell violently, ranking around 150. A movement that could mean that the ECB intervened to buy bonds and curb the spread. Unprotected from the protection of the ECB Greek bonds to two years flying to 33% from 21% the previous Friday.
The ECB however can not certainly intervene on the stock market where the implications are more obvious. The lists of the old continent see go up in smoke 340 billion euro based on the Eurostoxx 600 that leaves on the ground 3.25%.
At the Milan Stock declines widespread on all titles. The FTSE MIB has come to transfer 5%, and then stabilized with a decline to around 3.5%, and return to lose 4%, in line with other major European markets. Down Tokyo and Shanghai.
In sharp decline bank stocks with Intesa Sanpaolo and Unicredit returned to trading after a suspension for excessive downward. It is clear that an increase in spreads and yields on government bonds penalizes banks that hold the belly in a significant amount of securities.
In this situation remains tonic that the euro after slipping below 1.10 in the night is then directed to $ 1.11 (euro / dollar rate and currency converter).
Meanwhile, there are the first statements on a day that promises to be highly volatile, precisely in relation the words of the charges involved in developing the institutional crisis. According to Ewald Nowotny, a member of the Governing Council of the ECB, the situation in Greece “is certainly dramatic when banks and stock exchange remain closed for a week. One can only hope that after the referendum we can get to a solution, “he said, adding that in the case of a” no “to the proposal of the creditors,” it is obvious that the options for further constructive discussions will be very limited. ” Failure to pay the IMF “does not mean immediate default,” he concluded.
Yellow on negotiations. The EU Commissioner for Economic Affairs, Pierre Moscovici anticipates that Juncker will make a new proposal to Prime Minister greek Alexis Tsipras, to try to avoid default. “It will indicate the path to follow. I hope everyone will commit to a compromise. ” In the absence of an agreement, in all likelihood Greece will end up defaulting on the payment of 1.6 billion euro to be paid by tomorrow at the IMF. But when we learn from the EU it denied that Juncker – who yesterday published the document proposal advanced in recent days the government greek – will make a further proposal. To try to mediate in the weekend they were also attended by the US Secretary of State Lew, worried that Athens may come under the influence of Russia. “The creditors of Greece should demonstrate flexibility and to consider a debt restructuring in Athens as part of discussions on a possible agreement.” But the creditors at the time held a hard line on the renegotiation of the debt even if they remain “open to new talks if Tsipras wants”, as said German Chancellor Angela Merkel.
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