Greece hopes to secure vital reform deal next week


Rolling business and financial news, as Athens races to produce a list of reforms to satisfy its lenders by next Monday

The Russian ruble has jumped by 1.5% against the US dollar , on the back of the oil price spike.

#Russia Ruble rallies on higher #oil price.

The oil prices has surged this morning, after Saudi Arabia launched military action against rebels in Yemen, raising the prospect of wider conflict in the Middle East.

The price of a barrel of Brent crude has jumped by 6%, or over three dollars per barrel, to $59.50.

#Oil extends gains on Yemen escalation. Brent crude up >6%.

The advance set the stage for a confrontation between Iran, which backs the rebels also known as Ansar Allah, and regional powers eager to halt the broadening of the Islamic Republic’s regional influence

Related: Saudi Arabia launches Yemen air strikes as alliance builds against Houthi rebels

Geo-political risk back in #oil traders minds...oil price spikes as Saudi & allies start targeted bombing in Yemen. WTI +18% last 5days

European stock markets have opened in the red, tracking losses on Wall Street following yesterday’s weak US data (see opening post for details).

Germany is the biggest faller, with the DAC shedding 1.4%.

DAX down 200 points at 8.06am - FTSE -40 points at 6950

While Greeks fret about potential bankruptcy, Germans are their most confidence in over 13 years.

GfK’s monthly survey of German consumer confidence has hit 10.0, up from 9.7% a month ago, which is the highest since October 2001.

“If a Grexit, where Greece renounces the euro and subsequently leaves the euro zone, were in fact to materialise, the German economy could suffer a severe setback as a result.”

Germans on a shopping binge: GfK consumer confidence increased to 10.0, highest level since Oct2001. (via ING)

George Stathaskis’s comments suggest that eurozone finance ministers may gather in Brussels early next week to discuss the Greek crisis again, and potentially release some aid.

The Greek government has declared it is confident that it can reach a deal on its economic reforms with the rest of the eurozone early next week.

Economy minister George Stathakis told Antenna TV this morning that a breakthrough - which would stave off the risk of bankruptcy - could be just days away.

“I believe that at the beginning of next week we will have an agreement on the package of reforms the Greek government is proposing, and on the funding of the country.”

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

It looks like another day dominated by Greece debt worries. Athens has until Monday to present a convincing set of economic reforms to its lenders, and its cash reserves are looking increasingly stretched.

In a balancing act not seen by any European administration in recent times, the cash-strapped coalition has sequestered the reserves of public bodies, seized EU subsidies destined for farmers and postponed all payments for state supplies in the scramble to continue servicing its debt and paying salaries and pensions.

Pension funds have been raided to raise money for Treasury bill auctions.

Related: Greek government takes desperate measures in battle to stay afloat

#Greece Gov't officials say detailed reform list to be delivered Monday, hope for #Eurogroup meeting Tuesday + unfreeze of subtranche.

Investors appear to be caught in two minds as to the health of the US economy, with the Federal Reserve on the one hand apparently gearing up for a rate rise, at the same time as revising down their growth and inflation expectations.

This uncertainty has not been helped by further disappointing US economic data, which has served to undermine investor confidence further.

Continue reading...
view The Guardian: Economics