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11 May 2015
Eurogroup and Greece steal the show today – DB
FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, gave his views on today’s Eurogroup meeting with Greece taking centre stage.
Key Quotes
“Greece will no doubt be front and centre at today’s Eurogroup meeting, however the likelihood of any material outcome looks fairly slim with more ‘progress’ likely to be a popular term used by officials in both camps”.
“One topic which we await news on is the potential for increased haircuts on Greek collateral, which may or may not come to fruition depending on just how much ‘progress’ is made at today’s meeting”.
“There was little in the way of new news over the weekend on the subject. Instead, German finance minister Schaeuble was quoted as warning that ‘experience in other parts of the world has shown that a country can suddenly slide into bankruptcy’ in German press FAS, while Eurogroup President Dijsselbloem reiterated that today’s meeting ‘won’t be decisive’.
“Perhaps of more interest, pressure appears to be growing internally from German Chancellor Merkel’s Christian Democratic Party to give up on Greece for the sake of the single currency with arguments suggesting that the Euro will be stronger should Greece leave (Bloomberg)”.
“As well as digesting European official commentary on just how much progress is being made post today’s meeting, one eye will also be on tomorrow’s €750m IMF repayment with Greek press Ekathimerini commenting that some Greek officials are in favour of not repaying should today’s meeting be deemed ‘not satisfactory’.
Key Quotes
“Greece will no doubt be front and centre at today’s Eurogroup meeting, however the likelihood of any material outcome looks fairly slim with more ‘progress’ likely to be a popular term used by officials in both camps”.
“One topic which we await news on is the potential for increased haircuts on Greek collateral, which may or may not come to fruition depending on just how much ‘progress’ is made at today’s meeting”.
“There was little in the way of new news over the weekend on the subject. Instead, German finance minister Schaeuble was quoted as warning that ‘experience in other parts of the world has shown that a country can suddenly slide into bankruptcy’ in German press FAS, while Eurogroup President Dijsselbloem reiterated that today’s meeting ‘won’t be decisive’.
“Perhaps of more interest, pressure appears to be growing internally from German Chancellor Merkel’s Christian Democratic Party to give up on Greece for the sake of the single currency with arguments suggesting that the Euro will be stronger should Greece leave (Bloomberg)”.
“As well as digesting European official commentary on just how much progress is being made post today’s meeting, one eye will also be on tomorrow’s €750m IMF repayment with Greek press Ekathimerini commenting that some Greek officials are in favour of not repaying should today’s meeting be deemed ‘not satisfactory’.