Tag Archives: Greece

UPDATE sells Euro-2 zone bonds; Italy has set the best month since May | Instant News

* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr (Updates throughout)

By Elizabeth Howcroft

LONDON, July 31 (Reuters) – Eurozone government bonds were sold on Friday, both in the core and periphery, with Italian 10-year bonds set as the worst day since early May but still producing strong performance throughout the month.

With the market widely cautious on Friday, analysts said the sell-off could be triggered by an unusual month-end flow.

“I attribute it to long-term, long-term positions from dealers who may be mistaken because of the sale of real cash flow,” said Peter Chatwell, chief of multi-asset strategy at Mizuho.

Analysts were surprised by the move, because the month-end index extension – where funds rebalanced their portfolios to reflect activity during the month – was expected to support bonds at the start of the session.

Italian 10-year yields are at their highest level in more than a week, up 6 basis points (bps) at 1.092% at 1449 GMT.

However, Italian bonds have experienced a decent month, with yields set down 24 bps in July – the best month since May. The paper demand was driven by recovery funds agreed by the European Union last week.

The 750 billion euro fund, which will partly be offered as a grant to the member states hardest hit by the coronavirus, has been hailed as a game changer for the eurozone and has increased Italy’s debt, given concerns about the country’s sustainability. loan.

Italy’s risk premium pays Germany for 10-year debt falling to March lows when the fund was agreed, although it has risen again this week, and is 3 bps wider on Friday at 160.65 bps.

Mizuho Chatwell said the Italian rally that was easing this week could be due to oversupply.

“What happened to BTP was a bit exhausted after recording a number of supplies,” he said.

“I think the market is now saturated with this positivity, but supply continues to run,” he added.

The 10-year German Bund benchmark was set for the best month since April, as investors flocked to safe-haven debt, pushing yields below -0.5%.

Safe-haven bonds are likely to remain supported given the increasing number of coronavirus cases around the world, raising fears of new lockouts.

Global fund managers prefer to cut equities to their lowest level in four years in July while keeping bond allocations unchanged, as hopes for economic recovery fade, a Reuters poll shows.

Data on Thursday revealed a record contraction in Germany – the region’s leading economy – and sent Bund results to two and a half month lows, but there was little reaction on Friday to the euro zone GDP estimates.

But euro zone inflation suddenly rose in July, supporting the European Central Bank’s expectations that negative headline readings could be avoided. (Reporting by Yoruk Bahceli and Elizabeth Howcroft; editing by Gareth Jones and Mark Potter)


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Turkey, Italy speaks of economic ties in video conferencing | Instant News

30 Jul 2020

Turkey and Italy want to continue economic cooperation with each other, officials from the two countries said today.

Turkish Trade Minister Ruhsar Pekcan speaks with Italian Foreign Minister Luigi Di Maio via video conference on Thursday. Both discussed trade, EU and EU-Turkish steel imports Customs Union, The Turkish government-owned Anadolu Agency reported. The Italian Foreign Ministry also said both discuss trade by air, sea and land.

Turkey and Italy are both members of the G-20 and important economies in the Mediterranean region. Italy is Turkey’s fourth largest export market, according to the Anadolu Agency.

This conference is the latest sign of hospitality between Turkey and Italy at the lowest point in Turkish-European relations. In June, the Turkish and Italian navies participated in a joint training in the Mediterranean. Also in June, Italy met with the leaders of the Government of the Libyan National Agreement (GNA) and described the north African country as a “priority” for Rome. Turkey is a major international supporter of the GNA. In May, both of them Turkish and Italian embassies were fired on in GNA-controlled Tripoli during the attack by Libyan National Army General Khalifa Hifter.

Other European countries have recently had public disputes with Turkey. That The European Union opposes Turkey’s plan to drill gas in the eastern Mediterranean, bearing in mind the area in question is the maritime territory of Greece and Cyprus. German recently condemned Turkish exploration there this month. Turkey said it would do it stop the drilling plan near a Greek island this week and called for talks with Athens, but also said shortly thereafter that it would conduct research inside the Cypriot economic zone.

Tensions are very high between Turkey and Italy’s neighbor, France. The French military withdraw from the NATO Mediterranean mission earlier this month following alleged harassment of one of its ships by the Turkish navy.


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COLUMN: Point-Counter: Germany will soon be controlling EU fragments Column | Instant News

When I was young, and first interested in politics and world history, I always wondered why Europe was not allied as the United States did and operated as a group. I also wondered the same thing about other parts of the world, such as the confederations in North America – Canada, the US and Mexico – and one in South America, creating their own groups.

It amazes me, now that I’m old, things might slowly happen. Moreover, as a group, European countries at that time were almost the same as us in number and population, and not much was left behind in industrial production and trade. I was happy when I finally saw the EU form, and heard the countries begin to speak with one voice. Of course, like others, I don’t know what it means to form Europe into the EU for member countries or the world.

Problems began to form at once, when ministers in Belgium began ordering member states to do things that were contrary to the culture and customs of their nation. Countries are forced to take immigrants from other parts of the world, many of whom refuse to integrate in any way, creating small pockets of their own foreign divisions.

Government orders and laws made by individual countries are overwritten and counterbalanced, while ever increasing “contributions” are demanded from rich countries – mostly Germans – to pay for outrageous pension plans and glasses in poor countries. Can you say Greek? As a result, Germany began to control many things. After being forced to conquer Germany twice in the first half of the 20th century, other European countries would never let Germany control them without a fight.

Britain specifically rejected foreign EU intervention into its internal politics and business affairs, and began to slowly withdraw from the European Union, which culminated in a total break last year. Other countries are re-evaluating their involvement with the EU, and some are also slowly withdrawing from letting the EU dominate them.

My suspicion is that in the long run, only poor countries – Greece, for example – will live and continue to draw life from Germany, while others – such as France, Italy and Switzerland – will map their own paths. In 10 years, the EU will have fewer Western European countries, more Eastern European countries, and will still be controlled by Germany, because those countries are trying to get protection from the Russian Bear to the East.

Jonathan C. Jobe, from Crescent Valley, is a retired educator and a US Air Force veteran.


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The German Bund Safe-haven is supported by US / Chinese tensions | Instant News

* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr

By Dhara Ranasinghe

LONDON, July 27 (Reuters) – The benchmark 10-year German bond yield slumped Monday as a sign that jitters in world markets over rising US / China tensions pushed investors into safe haven assets.

China took over the place of the US consulate in the southwestern city of Chengdu on Monday, after ordering the facility to be vacated in retaliation for last week’s dismissal from its consulate in Houston, Texas.

Worsening relations between the two biggest economies in the world pushed safe havens such as gold and government bonds, allowing German debt to recover from price losses on Friday triggered by stronger-than-expected purchasing manager data (PMI).

Yields on German 10-year bonds were last down about 1.5 basis points at -0.456%, after rising 4 bps on Friday.

“Risk assets are struggling … while for the Bunds the textbook reaction to the PMI combined with another failed test of the -0.50% level leaves 10-year results in the middle of the range,” said Commerzbank pricing strategist Michael Leister.

Italian bond yields are slightly lower, with sentiment towards the periphery supported by increasing confidence that aggressive fiscal and monetary stimulus in the euro area will help dampen its economy from coronavirus attacks.

Yields on Italian 10-year bonds dipped to 1.06%, holding close to the lowest level of 4-1 / 2 months last week. The gap over the 10-year benchmark German Bund yields briefly narrowed to around 148 bps, the most stringent in five months.

European Union leaders last week reached an agreement on a 750 billion euro ($ 878 billion) COVID-19 recovery fund, agreeing to raise billions of euros on the capital market on behalf of all 27 countries, in an act of unprecedented solidarity.

“We think that (the spread of Italian / German bond yields) can tighten 15-20 bps from here, the amount becomes less important than the direction,” said Jorge Garayo, senior level strategist at Societe Generale. “This recovery fund is important because it marks a very important step towards something that was previously taboo – fiscal transfers.”

$ 1 = 0.8542 euros Reporting by Dhara Ranasinghe Editing by David Holmes


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Italian tourist dies after two cars crash from cliff in Mykonos | Instant News

Photo credit: www.Twitter.com/@Javimere1971

An eighteen-year-old tourist on vacation in Mykonos tragically died after being involved in a fatal car accident in which two vehicles drove on the road and fell off a cliff.

The devastating event occurred in the early hours of Thursday, July 23. The woman, along with 7 other international female travelers who were with the victims, initially visited the popular island destination to enjoy a relaxing holiday.

However, the plan became chaotic, as the group drove along the provincial road Agios Stefanos-Fanari, an area famous for its beautiful beaches and hotels.

According to police statements, the 8 tourists traveled in two cars, both of which moved in the same direction. At some point, vehicles veered off the road, resulting in passengers falling from a height and crashing into a rocky beach.

While 7 other passengers reportedly suffered only minor medical problems, the eighteen-year-old woman was seriously injured. The victim was immediately transferred to the Mykonos Health Center where he was later pronounced dead by health workers.

Initial investigations are being carried out by the Mykonos Police Department to find out the exact cause behind this unfortunate accident.

The deceased, as well as seven other passengers, were tourists from Italy.


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Germany accepts 18 migrant children from Greece News | DW | Instant News

Children and their families arrived at Kassel Airport in central Germany on Friday, after being moved from a camp in Greece.

As many as 83 people, including 18 children who needed medical care as well as their family members, boarded the plane.

Families, from Afghanistan, Iraq, the Palestinian territories, Somalia and Syria, will be distributed among nine German countries.

Read more: For refugees recognized in Greece, the difficulties are not over

As part of an effort to ease the pressure on camps in Greece, the German government said it would accept a total of 243 sick children.

The group landed at Kassel Airport, they will be distributed in various German states

Boris Pistorius, interior minister for the state of Hesse, said he was happy to welcome a new arrival.

“I am happy and relieved that we can bring more children from the unsustainable Greek camp conditions to Germany today,” he said.

In April, a group of 47 unaccompanied children landed in Germany after being evacuated from Greek camps. Luxembourg and Portugal have also taken minors from Greece, and other EU countries have agreed to do so in principle.

Read more: Germany seeks EU asylum reform

rc / msh (dpa, AP, AFP)


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UPDATE 2-Italian bonds are set for the best week in two months | Instant News

* Italian 10-year bond yields fell 16 bps this week

* Set for the biggest weekly decline in 2 months

* German Bund results briefly touched 2-month lows of -0.499%

* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr (Add comments, update prices to close)

By Dhara Ranasinghe

LONDON, July 24 (Reuters) – The Italian bond market is ready for the best week in two months on Friday, even as borrowing costs rise from 4-1 / 2 month lows set after this week’s agreement on a European Union recovery fund to support the economy hit by coronavirus.

Bond yields across the euro zone rose after data showing eurozone business activity recovered in July and signs of rising US / Chinese tensions prompted investors to take profits on rising prices this week and yields fell.

Yields on Italian 10-year bonds rose 2 basis points to 1.07%, from Thursday’s low of around 1.04%.

However, Italian yields fell around 16 bps this week, set for the biggest weekly decline in two months. According to Tradeweb data, Italian 10-year bond yields fell below 1% on Thursday for the first time since March.

Yields on Spanish and Portuguese 10-year bonds are down about 6 bps this week, Greek yields have fallen 10 bps.

“The impact of the recovery fund is not fully appreciated and is still not fully appreciated,” said Peter Chatwell, head of multi-asset strategy at Mizuho. “The structural part of this story is that it allows the risk of the euro to split to a level that has not been seen for some time.”

In Germany, yields rose from two-month lows after the euro zone flash Composite Purchasing Managers Index (PMI), seen as a good indicator of economic health, rose to 54.8, the highest since mid-2018 and above forecasts. The final reading for June is 48.5.

The 10-year Bund yield held up to 4 bps at -0.44%, after briefly touching a two-month low in early trade around -0.50% because German bonds also benefited from renewed optimism about the euro area.

Three forces seem to play a role – a strong fiscal response, an aggressive stimulus from the European Central Bank, and a perception of better handling the health crisis versus the United States.

It also helped raise the euro to 21-month highs against the dollar this week.

European Union leaders on Tuesday approved a 750 billion euro recovery fund, which according to Italian Prime Minister Giuseppe Conte would allow his government to change Italy. Italy and Spain, the two countries hardest hit by the pandemic, are among the biggest beneficiaries of the agreement.

“We think the Recovery Fund is a key element for Europe’s response to the shock. The ECB is helping to cope with large funding needs but cannot replace every foreign investor in the periphery, “analysts at BofA said in a note.

Reporting by Dhara Ranasinghe; edit by Larry King and Steve Orlofsky


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Italian bonds are set for the best week in two months | Instant News

* Eurozone periphery government bond yields tmsnrt.rs/2ii2Bqr

By Dhara Ranasinghe

LONDON, July 24 (Reuters) – The Italian bond market is ready for its best week in two months on Friday, with borrowing costs holding near 4-1 / 2 month lows after an EU recovery fund agreement that will provide support to economies like Italy devastated by coronavirus.

Even US-Chinese tensions that have weighed on investor sentiment and world stock markets failed to place a significant decline in the southern European bond market, which tends to move in line with world risk assets.

Italian 10-year bond yields stabilized around 1.05%, holding near Thursday’s 4-1 / 2 lows at 1.04%. According to Tradeweb data, Italian 10-year bond yields fell below 1% on Thursday for the first time since March.

Italian bond yields have fallen 18 basis points this week and are set for the biggest weekly decline in two months. Yields on Spanish, Portuguese and Greek 10-year debt each fell by around 10 bps.

The German Bund result is a touch lower on Friday at -0.49%.

European Union leaders on Tuesday approved a 750 billion euro recovery, which according to Italian Prime Minister Giuseppe Conte would allow his government to change Italy. Italy and Spain, the two countries worst hit by the pandemic, are also among the biggest beneficiaries of the agreement.

In addition, aggressive stimulus from the European Central Bank and signs that the eurozone economy is recovering from coronavirus attacks have boosted investor sentiment towards regional assets. The euro is trading near 21-month highs.

This background encourages what is called a carry trade, where investors borrow at low interest rates and invest in higher yield assets such as Italian debt.

“Flash” Purchasing Managers’ Index of economic activity data in July released on Friday could provide another impetus for sentiment, analysts said.

“Today’s PMI must provide further confidence to catch carry,” said Michael Leister, tariff strategist at Commerzbank. (Reporting by Dhara Ranasinghe; Editing by Catherine Evans)


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German Minister in Athens, Focusing on Eastern Medical Tensions | greek, politics | Instant News

ATHENS (AP) – German Foreign Minister Heiko Maas urged Turkey on Tuesday to fully engage in planned talks with the European Union and avoid “provocative actions” in the Eastern Mediterranean in an effort to prevent a potential crisis with neighboring Greece.

NATO allies Greece and Turkey are at odds over drilling rights in the region, with the European Union and the United States increasingly critical of Ankara’s plans to expand exploration and drilling operations in the coming weeks to areas claimed by Athens as its own.

“We have a very clear position: international law must be respected. Therefore, progress in relations with Turkey can only be achieved if Ankara avoids provocation in the eastern Mediterranean,” Maas said after talks in Athens.

″ At the same time, within the European Union we see the need to engage in dialogue with Turkey. ″

Maas, whose country holds the rotating presidency of the European Union, met in Athens with his Greek counterpart Nikos Dendias, and Prime Minister Kyriakos Mitsotakis and President Katerina Sakellaropoulou.

Greece hopes that Germany will use its influence with Turkey to urge the progress of negotiations.

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German Foreign Minister Heiko Maas, left, listens to Greek colleague Nikos Dendias, during a press conference and after their meeting, their meeting in Athens, on Tuesday, July 21, 2020. (AP Photo / Petros Giannakouris)

Earlier this month, Germany hosted unannounced talks with Greek and Turkish officials to try and restart the discussion.

Turkey accuses Greece of trying to exclude it from the benefits of oil and gas found in the Aegean Sea and the Eastern Mediterranean, arguing that the sea boundary for commercial exploitation must be shared between the Greek mainland and Turkey and does not include equal Greek islands. basic. Athens rejects this argument as a clear violation of international law.

Greece has urged other EU member states to prepare “crippling sanctions” against Turkey if they proceed with oil and gas exploration plans which are expected to begin in September, according to the Turkish state-run oil company, TPAO.

European Union foreign policy chief Josep Borrell said last week he would launch an initiative to involve Turkey in the talks, citing “alarming developments” in the Eastern Mediterranean and the civil war in Libya.



Grieshaber reports from Berlin. Iliana Mier in Athens contributed.


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UPDATE 2-Italy yields rise from lows after a European Union recovery agreement | Instant News

(Correcting days in the first paragraph to Tuesday)

* Eurozone periphery government bond yields: tmsnrt.rs/2ii2Bqr

By Elizabeth Howcroft

LONDON, July 21 (Reuters) – Eurozone bonds were sold on Tuesday, with Italian yields rising again after reaching the lowest level since early March in early London trade after European Union leaders agreed on a massive coronavirus recovery fund to support the bloc.

The European Union approved 750 billion euros ($ 860 billion) in the early hours of Tuesday after a long summit that lasted nearly five days. The agreement was welcomed by the market as a significant step in shoring up the eurozone economy against the shock of COVID-19.

In a compromise agreement, the package will consist of 390 billion euros in grants – less than the previously targeted 500 billion euros – and 360 billion euros in cheap loans.

The economy that is driven by Italian tourism is among the most severely affected by this virus. Prime Minister Giuseppe Conte said that 28%, or 209 billion euros, would be for Italy, giving the country the opportunity to “start over with force”.

Yields on Italian 10-year government bonds, which have dropped 70 basis points in anticipation of funds since it was first proposed on May 18, fell further on Tuesday morning. It reached 1.117% – the lowest since the first week of March – before recovering to 1.172% at 1457 GMT.

It was set to end the day for the first time after seven consecutive falls.

The spread between core and peripheral yields was tightened, with 10-year German-Italian yields approaching the narrowest in four months before widening again to around 162 basis points. .

“With protracted negotiations being avoided, we see the way cleared for the 10Y Italy-Germany deployment through our 150bp target this summer,” ING strategists wrote in a note to clients.

“The benefits of bringing in peripheral debt, and lower prospective volatility thanks to ECB intervention, make it a superior alternative to core bonds, in our view.”

The spread of Portuguese and Greek in Germany is also getting tougher.

German, French and Dutch results edged up around 1 basis point but were largely unchanged by the news. The German 10-year yield is at -0.454%, after moving in a narrow range of 12 bps so far this month.

“It is possible that the extraordinary non-compliance of the Bunds in the face of peripheral rally reflects the fact that the division of responsibilities promised by the IMF is even more tokenistic than it appears,” wrote Rabobank-level strategists.

The market takes confidence not only from the size of the fund itself but also from demonstrations of solidarity and debt sharing between EU countries.

But European Central Bank Vice President Luis de Guindos said on Tuesday that a new wave of the coronavirus crisis in areas such as the United States, Latin America and parts of Asia could reduce European growth.

ECB board member Isabel Schnabel was quoted on Tuesday as saying that investors should not read too much about decreasing ECB bond purchases, because they could increase later. He said that the ECB would likely use the entire bond purchase quota. ($ 1 = 0.8707 euros)

Reporting by Elizabeth Howcroft; Editing by Alison Williams


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