Tuesday, March 12, 2013

Greek debt sealed the deal - but doubts remain

Eurozone finance ministers finally reached € 130bn bailout deal for Greece, with private sector bondholders haircuts 53.5% on a notional Company debt (more than 50% of agreed beforehand).

As part of the package, the country's debt to GDP is expected to fall from about 160% to 120.5% in 2020, but doubts still remain over the long-term prospects of the country.

The European Commission will evaluate the contract that the eurozone economy by 0.3% in 2012 in contrast to previous estimates in November when said growth of 0.5%.

The biggest obstacle in the euro zone economy is Greece, which is expected to see a decline in output of 4.4% in 2012.

In November estimate only Greece and Portugal are expected to contract, but now Belgium, Spain, Italy, Cyprus, the Netherlands and Slovenia were added to the list.

Spain is expected to contract by 1% this year, but said that if the government took further cut budgets to meet the target, the economy contract by more than 1% commission.

The minutes of the February MPC meeting released last week, showed that all members choose to extend the QE program, with two members who want a bigger increase.

In January, UK retail sales rose 1.2% month on month after rising 0.6% in December - a figure that is significantly higher than economists' expectations of a 0.3%. Increase was primarily due to an increase in sales of furniture and sporting the goods which consumers tempted heavy discount.

Brent crude oil prices hit nine months, due to growing concerns about the supply of Iranian oil. Surge was triggered after Iran threatened to stop oil exports to European countries after the company cut its sales in France and England.

Tobacco giant BATS fell even sharing revenue rose 3% in 2011. The company has expressed concerns about the plan in the world to introduce plain packaging, which it believes will benefit the criminal groups that smuggle cigarettes. Sharing RBS rose on the opening weekend, though losses widened in 2011.

Banking Group made a loss before tax of £ 766m, compared with a loss of £ 399m in 2010, the year 2011 the number will hit Greek debt and provision for mis-selling PPI.

Whitbread knocked by comments from Credit Suisse last week, the company provides short-term "trading sell" recommendation. Said they "expect covers UK wants to see the trend will lead to pre-close the Whitbread disappointing and the stock trade down to 7% by multiple cycles, we recommend reducing ownership update before February 28 ".

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