The news that Greece has put its toe back into the financial markets, and not seen it bitten off, helped cheer investors in Europe today.
All the main stock markets rallied, with Britain’s FTSE 100 ending 57 points (0.8%) higher.
The euro also gained ground today, hitting a new two-year high against the US dollar at $1.17.
Naeem Aslam of Think Market thinks the euro may head higher.
The biggest news for the European markets which improved the sentiment among investors was Greece returning to the bond markets.
The borrowing cost was much lower purely because the risk level is not the same where it used to be. The Greek news also provided fresh tail wind for the euro which broke its 2015 resistance.
Now the route is clear and the target which everyone is looking and talking about is $1.20 against the dollar. A few robust economic readings and some hawkish comments from the ECB would simply do the job. The DAX index particularly performed well today as the result for business confidence surged to a record highs for three months straight.
And that’s a good moment to stop. Thanks for reading and commenting. GW
Journalist Paul Waldie of the Globe and Mail tweets:
More signs of EU turnaround: Greece returns to debt markets for the first time in 3 years, raising €3bn witha new five-year bond.
— Paul Waldie (@pwaldieGLOBE) July 25, 2017
Dimitri Sofianopoulos, capital markets partner at global law firm Norton Rose Fulbright, believes today’s auction is a boost for Athens.
“Greece’s successful return to the capital markets sends a clear signal that the country is finally turning a corner following its recent bailout programme. The level of investor appetite in the bonds will give Greece further confidence in its future finances.”
Capital Economics: Greek crisis isn't over
Jennifer McKeown of Capital Economics takes a more sceptical approach to today’s bond sale.
She says today’s foray into the bond market went “pretty well”, as Greece borrowed at a cheaper rate than in 2014.
The sale was well timed, she explains:
The return to markets was timed to take advantage of the drop in borrowing costs following the resumption of Greece’s bailout earlier this month. That, in turn, was the result of reform and austerity on the part of the Greek government and signs of an economic recovery.
However, McKeown reminds us that we have been here before. That 2014 bond sale was followed by the drama of 2015, when the left-wing Syriza government clashed with creditors and nearly took Greece out of the euro area.
Things look somewhat more promising this time around, she continues - Syriza has largely caved in to its creditors’ demands and the economy is growing again.
But a new government might fall out with Brussels, the ECB and the IMF - creating another crisis.
And even if it doesn’t, the Greek economy remains fragile - and another loan may be needed...
McKeown says:
Banks are in a very precarious state, with deposits yet to return and non-performing loans a serious burden. And crucially, the public debt mountain remains huge, at about 180% of GDP. The Greek government might therefore struggle to finance itself even at current market borrowing costs, which remain significantly higher than the average of 1.5% interest that it now pays on its largely officially-held debt. Unless euro-zone creditors agree to much deeper debt relief than that which is now on the table, it seems fairly likely that Greece will require a fourth bailout when the current one expires next August.
Updated
European Commissioner Pierre Moscovici has interrupted his trip to Athens to welcome the bond sale results:
1/ 2 Greek return to the markets welcomed by financial investors: this is good news & another positive signal of trust in the Greek economy.
— Pierre Moscovici (@pierremoscovici) July 25, 2017
2/2 Let's prepare the full return to markets in summer 2018! #Greece
— Pierre Moscovici (@pierremoscovici) July 25, 2017
Greece’s finance minister, Euclid Tsakalotos, has hailed the success of today’s bond auction.
Reuters has the details:
Finance Minister Euclid Tsakalotos said Tuesday’s bond sale was “a beginning” and a first sign of confidence in the country’s economy.
He said Greece remained focused on August 2018 to exit its worst crisis in decades.
“From now on, we are focused on August 2018,” Tsakalotos said in a televised statement.
“We know that Greek people have suffered a lot, more than they deserved.”
“There will be a second and a third (market foray), to approach August 2018 with confidence and emerge from the bailouts.”
Updated
GREECE PULLS OFF FIRST BOND SALE SINCE 2014
It’s official! Greece has made a successful return to the financial markets.
Athens has sold €3bn worth of its new five-year bond, at a yield (or interest rate) or 4.625%. That’s lower than the 4.95% that Greece last sold five-year bonds for, in 2014.
Government officials say that 200 bids were received, a sign that confidence is returning (or that the relatively high yield acted like catnip to investors....)
A government official says the sale was an “absolute success”, adding:
“It reaffirms the positive trajectory of the Greek economy which is making steady steps to exiting crisis and bailout programmes,”
There is already talk of further sales in the months ahead.
#GREECE | GREEK FIN MIN SAYS THERE WILL BE A SECOND AND A THIRD BOND SALE - RTRS
— Christophe Barraud🛢 (@C_Barraud) July 25, 2017
Greece’s current bailout programme expires in summer 2018. Athens is desperate to avoid a fourth rescue deal, so is hoping that today’s deal could be the first step towards gaining market access.
But... Greece still has a debt-to-GDP ratio of around 180%, and insists that its official creditors (who hold most of its bonds) must grant it significant debt relief.
Boom! US consumer confidence has hit its second highest level since 2000.
The monthly measure of American morale, from the Conference Board, has jumped to 121.1 this month from 117.3 in the previous month.
That’s a four-month high, and beats Wall Street expectations of 116.5.
July Consumer Confidence Rises to 121.1 from 117.3: (bucking the recent trend) pic.twitter.com/Y4g8T4Kzar
— Michael McDonough (@M_McDonough) July 25, 2017
Separately, US house prices jumped by 5.7% per year in May, according to the latest S&P/Case-Shiller home price index. That’s down from 5.8% in April, but still faster than earnings growth.
America’s stock market has hit another record high in early trading:
BREAKING: S&P 500 opens at new record high on the back of stronger-than-expected earnings reports https://t.co/4ngszVi4iX pic.twitter.com/IF4HK4I5T0
— CNBC (@CNBC) July 25, 2017
Back to Greece....and the latest word is that it has repriced today’s bond sale again!
The yield (interest rate) on the five-year debt has been trimmed to 4.625%, down from the original goal of 4.875% (which was cut to 4.75% this morning).
That’s another sign that investor are backing Greece’s offer - as Athens can then cherry-pick the best offers with the lowest yields.
Updated
Greg Clark, Secretary of State for Business, Energy & Industrial Strategy, has welcomed BMW’s decision:
BMW to build Electric MINI in UK. A landmark decision that is a vote of confidence in the workforce and in the determination of 1/2
— Greg Clark (@GregClarkMP) July 25, 2017
of our Industrial Strategy to make Britain the go-to place in the world for the next generation of vehicles. 2/2
— Greg Clark (@GregClarkMP) July 25, 2017
New all-electric Mini to be build in Oxford
Just in: BMW has decided to build its fully electric version of the Mini in the UK, ending worries that Brexit drive the project overseas.
The German carmaker has announced that the new new battery-electric, three-door hatch will be built at its Cowley plant, on the edge of Oxford, from 2019.
The decision follows months of speculation that Britain’s impending exit from the EU would deter BMW from investing in the UK.
Frank Bachmann, managing director of Plant Oxford, told the Oxford Mail that:
“This is good news for everybody on the team at Plant Oxford and this addition to the model line-up marks an important next step in the evolution of Mini.
“As the main manufacturer of the Mini three-door, with production expertise built up over many years, it makes sense for us to build this all-electric model.
“I know that everyone on the plant is looking forward to the project that lies ahead.”
Breaking excl: New electric Mini to be built at Cowley Plant https://t.co/1ap3xLbazu pic.twitter.com/TzPXug9pVT
— Michael Race (@OxMailMichaelR) July 25, 2017
The Mini will always have a special place in the nation’s heart, of course, partly thanks to antics like this...
A fully-electric version of the Mini is to be built at BMW's plant at Cowley, near Oxford, the car firm has announced pic.twitter.com/kp8ZGHJtR9
— Zora Suleman (@ZoraSuleman) July 25, 2017
A video clip of Alexis Tsipras meeting commissioner Pierre Moscovici in Athens has now arrived.
It shows Tsipras telling Moscovici that this is a “special day, the day that Greece is coming back to the markets in a successful way.”
Η επάνοδος της χώρας μας στις αγορές αποτελεί ιδιαίτερα σημαντικό ορόσημο στην πορεία προς την έξοδο από την κρίση. https://t.co/XaYVOSVNN7
— Prime Minister GR (@PrimeministerGR) July 25, 2017
Firefighters protest in Greece, and museum staff are next....
It’s not all hunky dorey in Greece today, reports Helena.
Firefighters, demanding renewal of short-term contracts, have been out on the streets protesting this morning. The protestors, some in full rescue gear, demonstrated in front of the Greek parliament in Syntagma square demanding that some 1,320 workers be immediately re-hired.
Fire-fighters have been among those affected by the hiring freeze imposed by the country’s creditors in exchange for emergency bailout funding.
If that wasn’t bad enough .... to the consternation of Greece tourist confederation, striking cultural ministry officials have announced they will close ALL archaeological sites when they walk off the job this weekend.
The news has prompted the confederation’s head, Yiannis Retsos, to write a letter to the cultural minister, Lydia Koniordou, imploring her to intervene. The 48-hour closure of sites that belong to world heritage will be a huge blow for the nation’s reputation at the height of the tourist season, he argues.
Retsos wrote:
“Greece’s cultural treasures, are part of world heritage and one of our competitive tourist advantages. Archaeological sites and museums in Attica and Athens are one of the most basic reasons for the decision to make the journey.
For many travellers, visiting the sites is a life goal since they won’t have the opportunity to make such a journey again.”
Nicholas Wall, portfolio manager at Old Mutual Global Investors, says everyone involved in the Greek debt crisis will be crossing their fingers and hoping for a good result today:
Greece’s prime minister, Alexis Tsipras, left behind ‘collision economics’ a long time ago, and has apparently decided that the best strategy for re-election in 2019 is to exit the bailout programme. For this, he needs economic growth, access to markets and cooperation with European partners.
A successful Greek exit from the aid programme would also be a boon to European policymakers, who have long faced criticism about their approach to the Greek crisis and don’t want to ask their taxpayers for more cash when this bailout package expires next summer.
In this environment, it seems to be in everyone’s interest for this bond sale to go well.
Analysts at Barclays have predicted that Greece will soon receive “meaningful” debt relief, and (finally) be included in the European Central Bank’s bond-buying stimulus scheme.
In a client note about today’s bond sale, they say:
The IMF Board approved last week in principle a precautionary Stand-by programme (€1.6bn), to become effective once specific and credible assurances on debt relief are received from Greece’s European partners to restore debt sustainability.
Public debt in Greece continues to be deemed unsustainable by the IMF without sizeable further debt relief. We do not expect debt relief measures to be delivered by Europe before the German elections (24 September). We also think that specific and credible assurances on debt relief measures are also a necessary condition for the ECB to include GGBs [Greek government bonds] into the PSPP programme, which is our baseline for 2018.
Barclays calling for ECB to start buying Greek bonds under QE in 2018 pic.twitter.com/6aIpU0NdJ8
— Chris Whittall (@Chris_Whittall) July 25, 2017
The orders are still coming in....
Greece Is Said To Have Received EUR7B In Offers For 5-Year Bond
— LiveSquawk (@LiveSquawk) July 25, 2017
The apparent jump in UK factory output in the last quarter has been welcomed by City experts.
Dennis de Jong, managing director at UFX.com, says it could ease concerns over Britain’s economy. However, the EU negotiations remain critical to the manufacturing sector’s future.
“After expectations for UK growth were revised down by the IMF yesterday, today’s survey data for the manufacturing sector offers some light relief.
“Despite dipping from 16 to 10, the orders balance is sitting at its second highest level in three years and the sector appears to be expanding at a healthy pace.
“However, all aspects of the UK’s economy, particularly manufacturing, will rely heavily on the success of Brexit negotiations. Until we have any clarity on how the UK may fit in, if at all, to the single market, it is difficult to be overly bullish on the country’s economic future.”
Howard Archer of the EY Item Club is encouraged that the price pressures faced by manufacturers are easing.
Upbeat July #CBI #industrial trends survey; #BOE will be pleased to see #price balance dip markedly https://t.co/BkJ476UQPR via @CBItweets
— Howard Archer (@HowardArcherUK) July 25, 2017
But Sam Tombs of Pantheon Economics is sceptical, pointing out that the CBI’s survey has been more optimistic than the official data this year.
Manufacturing surged in July, according to the CBI. Trouble is, the survey has said that throughout 2017, but official data have been dire: pic.twitter.com/ztDV9kPkoW
— Samuel Tombs (@samueltombs) July 25, 2017
UK factory growth hits 22-year high
Newsflash: Britain’s factories have just posted their strongest quarter of growth since 1995!
That’s according to the latest healthcheck on the sector from the CBI, which represents Britain’s bosses.
According to the CBI’s survey, production among UK manufacturers grew at the fastest pace since January 1995 in the three months to July.
The survey of 397 manufacturers also found that employee headcount increased at the fastest rate for three years, and firms expect to keep hiring over the next few months.
They’re also optimistic about export prospects over the next year, although new order growth has slowed.
Manufacturing output growth hit a 22-year high. Similar growth is expected over the next quarter. #CBI_ITS https://t.co/8mzJjNr87v pic.twitter.com/l2I9Mdc87z
— CBI Economics (@CBI_Economics) July 25, 2017
Rain Newton-Smith, CBI Chief Economist, believes that the slump in the pound since last June’s referendum is helping UK industry compete overseas.
She says:
“Output growth among UK manufacturers is the highest we’ve seen since the mid ‘90s, prompting the strongest hiring spree we’ve seen in the last three years. Cost pressures are easing and firms are upbeat about the outlook for export orders.
“It’s great to see the benefits from the decline in sterling for UK exporters feeding through. But the flipside is the broader hit to consumer spending power across the economy from stronger inflation, which is likely to have fuelled the slowdown in the economy in Q1 and is expected to pull down growth in Q2.”
Here are the key findings from the report:
- 18% of firms said they were more optimistic about the general business situation than three months ago and 13% were less optimistic, giving a balance of +5%. Optimism about export prospects for the year ahead grew (+13%) at a solid pace
- 43% of firms said the volume of output over the past three months was up and 12% said it was down, giving a balance of +31%, the highest since January 1995 (+33%)
- 35% of businesses reported an increase in total orders, and 21% a decrease, giving a balance of +14%
- Domestic orders (+19%), expanded at a broadly similar pace to the previous quarter, with export orders growth remaining strong, despite slowing (+17%)
- 32% of manufacturers said employee numbers were up, and 13% said they were down, giving a rounded balance of +18% - the highest since July 2014 (+26%)
- Average unit costs grew at a more subdued pace (+20%). Growth in average domestic prices (+21%) and average export prices (+24%) was broadly unchanged
- Stock building of raw materials (+20%) was the strongest since April 1977 (+22%), whilst stocks of work-in-progress rose (+16%)
Updated
Last night the Greek prime minister’s office issued a statement explaining why the government had moved ahead with the sale.
It attributed the timing to “a series of positive developments for Greece”, and called the market foray an important strategic step in the country’s quest to regain “viable and stable access” to international markets.
Several factors prompted today’s test run in the markets, including Moody’s decision to upgrade Greece’s credit rating to Caa2 last month, and the International Monetary Fund’s approval “in principle” to participate in the country’s current bailout programme, provided adequate debt relief is pledged by EU governments
Ending two years of speculation over whether it should join the programme, the Washington-based body approved what was described as a $1.6bn standby loan arrangement, or credit line, for Athens last Thursday.
Greek insiders: Optimism over bond auction
EU economic affairs commissioner Pierre Moscovici has now begun talks with prime minister Alexis Tsipras, following this morning’s press conference.
Helena Smith, our correspondent in Athens, reports:
The visiting commissioner was greeted by a beaming Tsipras at Megaron Maximou, the prime minister’s residence, where the discussions are now taking place.
Senior members of Tsipras leftist Syriza party are describing a “mood of jubilation.”
One insider told us:
“Interest in the bond sale is very high, there is a sense of real optimism.
If it goes as well as we hope we can start talking of the beginning of the end of darkness.”
Financial journalist Owen Sanderson of GlobalCapital has made an important point about today’s bond sale:
Quick Greece thread.....why would a heavily indebted country spend €78m of taxpayers' money (plus fees!) on a switch and tender?
— Owen Sanderson (@OwenPSanderson) July 25, 2017
It needs to prove "market access" in 2018. Proving market access is in fact retrospective - it must have HAD market access for a year
— Owen Sanderson (@OwenPSanderson) July 25, 2017
This explains why Greece is offering to buy back its old five-year bonds, at a profit. To get that profit, investors need to sign up for the new bonds too:
This is the crucial passage in the offer - you're only going to get your sweet sweet 2.6 points if you show up for the new bond pic.twitter.com/R7A6A7223u
— Owen Sanderson (@OwenPSanderson) July 25, 2017
tldr: The cheapness required to guarantee Greece market access is in the tender, not in the new issue
— Owen Sanderson (@OwenPSanderson) July 25, 2017
Updated
The latest on Greece's debt sale....
Newsflash! Greece’s bond sale seems to be going well.
Reuters is reporting that more than €5.5bn of bids have been received for Athens’ new five-year debt.
And this means Greece may get a better deal!
It has changed its guidance, and is now aiming to sell these bonds at a yield of 4.75%, down from 4.875% earlier today. A lower yield means smaller debt repayments, and is a larger vote of confidence from the markets...
Shares in posh tonic maker Fever-Tree has surged by 9% to a new record high after hiking its profit forecasts again.
Fever-Tree shares are now changing hands at £18.94, having floated at 134p in November 2014. That’s a remarkable rise, which turned its co-founders into multi-millionaires.
Back in the City of London, the FTSE 100 has jumped by 57 points, erasing most of yesterday’s losses.
Mining shares are leading the rally, with BHP Billiton and Antofagasta up 3.2% and Anglo American jumping by 6%.
That’s due to a rise in commodity prices, as the US dollar weakens ahead of tomorrow’s American interest rate decision.
Joshue Mahony of IG explains:
As we approach tomorrow’s conclusion to the July FOMC meeting, there is likely to be an increased degree of hesitancy for traders, with the FX markets in particular seeing recent trends turn to consolidation given the clear event risk ahead.
The FTSE is being helped by gains in the commodity sector, with the likes of Anglo American, BHP Billiton, and Antofagasta amongst the firms near the top of the leader board. The dollar weakness story of late is certainly a help for commodity prices, with copper and gold in particular gaining ground this week.
Finally, Pierre Moscovici is asked about the collapse in support for the socialist party in France, for which he was a former finance minister.
There is a need for social democracy in Europe, he replies, but we need to have ideas that are attractive, credible, reformist and pro-European.
There is “no future for the left out of the pro-European scope”, he declares.
He then tells his audience that it is vital for Brussels to speak with “all parts” of the Greek political spectrum. That’s why he’s meeting with both prime minister Alexis Tsipras and opposition leader Kyriakos Mitsotakis.
I’m a friend of Greece, with friends in all political parties, Moscovici insists, adding:
What matters first and foremost is the future of this great country, inside the eurozone, inside Europe whoever runs it.
I think Pierre Moscovici may have been watching the Tour De France.
He tells the press conference in Athens that Greece needs to successfully conclude its bailout, to build on its recent success.
As he puts it:
Confidence in Greece is really coming back, but we need to continue the good work.
We need to be on the bicycle, and keep on pedalling. That’s the case for Europe as a whole.
If you don’t go that way, then the bicycle falls.
Updated
Moscovici is also asked about debt relief, a long-held demand for Athens.
He says that Greece’s creditors must respect the measures agreed at the latest eurogroup meeting (they agreed to ‘recalibrate’ Greece’s debt pile, extending the maturity of some bonds)
European Commissioner Pierre Moscovici is giving a press conference in Athens now.
Moscovici says Greece is at a “turning point”, thanks to “several important and very positive developments” since his last visit in February.
Today’s bond sale is a “positive” signal, he continues, adding that he’s confident that Greece will successfully end its bailout programme in 2018.
But he also sticks to the Brussels’ script, saying Athens must stick to its reform efforts, and implement the latest austerity measure demanded by its creditors.
The press conference is being streamed online, here.
Greece prices its bonds
Newsflash: Greece’s five-year bond sale has begun.
And we can now see that Athens has priced this debt sale at a yield of 4.875%.
That’s below the the interest rate it paid in 2014, allowing prime minister Tsipras to argue that Greece is indeed on the road to normality.
New greek bond likely to have 4.875% coupon#bonds #Greece pic.twitter.com/zlKODxLENi
— Markus van de Weyer (@mvdweyer) July 25, 2017
Bond yields move inversely to prices, so a higher yield means a bond is seen as riskier.
And this price reflects the fact that Greece is still in a bailout, with no certainty that it won’t need a fourth rescue deal eventually.
In comparison, Portugal’s five-year bonds are currently trading at a yield of 1.1% while Italy’s are trading at just 0.75%.
Even so, one City analyst thinks this pricing doesn’t fully reflect Greece’s riskiness:
#Greece is out with new gov debt bond 5y at 4.875% area.
— Mario Cavaggioni (@CavaggioniMario) July 25, 2017
Another sign of madness in financial markets after Argentina 100y bond
Pierre Moscovici has also met with Greek opposition leader Kyriakos Mitsotakis, whose New Democracy party are leading the opinion polls.
According to this tweet, they discussed how to ‘ensure the success’ of Greece’s bailout programme.
Tête-à-tête politique et franc avec @kmitsotakis, leader de @neademocratia pour assurer la réussite du programme et de la #Grèce pic.twitter.com/WIVJitHLwS
— Pierre Moscovici (@pierremoscovici) July 25, 2017
After that, Moscovici popped in to see central bank chief Yannis Stournaras for a quick discussion about Greece’s economic prospects.
Discussion convergente avec gouverneur Stournaras sur les paramètres économiques et bancaires #bankofgreece pic.twitter.com/U24QBy0h2D
— Pierre Moscovici (@pierremoscovici) July 25, 2017
Stournaras was Greece’s finance minister back in 2014, when it held its last bond sale.
At the time, Stournaras hailed that sale as a “catalytic undertaking”, after Athens was swamped with demand from investors. However, many were left with burned fingers after Syriza stormed to power in an election in January 2015....
Moscovici tells Athens "You can count on us"
European commissioner Pierre Moscovici is visiting Athens today to hold talks with top political figures, and discuss Greece’s future.
He has already met with president Prokopios Pavlopoulos, who reminded Moscovici that Greece is determined to get debt relief.
The Athens-Macedonian News Agency has the details:
We will meet our commitments and when the time comes the partners will do what they have to do on the debt issue, Greek President Prokopios Pavlopoulos said on Tuesday in a meeting with EU Commissioner for Economic and Finance Affairs Pierre Moscovici who is paying a visit to Athens.
On his part, Moscovici said: “We want Greece to return to normality and stay on course. You can count on us.”
Rencontre toujours passionnante avec le Président grec, un Européen convaincu et engagé 🇬🇷🇪🇺 pic.twitter.com/HAS0voRpS9
— Pierre Moscovici (@pierremoscovici) July 25, 2017
Greek bond sale: What the experts say
Some financial experts have given Greece’s bond sale a thumbs-up.
Lutz Roehmeyer of Landesbank Berlin Investment says it is “perfect timing”.
Roehmeyer is planning to take part in the deal, and believes that things are looking up for Greece:
“It is after getting bailout money, after getting the go ahead for a debt reduction next year, after IMF said it is likely to join the bailout finally, after S&P rating action and still before ECB ends QE and started raising rates.”
Mohit Kumar, head of interest rates strategy at Credit Agricole, has also backed the sale.
Kumar explains:
“They’ve been doing well,”
“Psychologically, yields are below levels when they last came to the market. And it’s a good time to issue because if ECB starts tapering post summer, peripherals would come under pressure.”
Bloomberg has more details.
Updated
The agenda: Greece returns to the markets
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Greece is taking a significant step towards exiting its long debt crisis today, as it makes its first return to the financial markets since 2014.
Athens is attempting to raise fresh funds by issuing new five-year bonds to international investors. The deal is the Greek government’s first attempt to break its reliance on bailout loans since it accepted a third rescue package two years ago.
Six (count ‘em!) investment banks have been signed up to coordinate the sale, so it should go smoothly.
Greece’s current bailout runs for another year, so it doesn’t actually need to tap the markets. But psychologically, this deal is really important as Athens drives to put the worst of its debt crisis behind it.
The key is how much demand Greece finds for its debt, and what price investors are prepared to pay.....
#Greece finds out today how 1st foray into bond mkt since '14 went. Yield, subscription & quality of investors = key https://t.co/oOxPxjKW3F
— Nick Malkoutzis (@NickMalkoutzis) July 25, 2017
As we wrote yesterday, Greece is also offering to buy back the five-year bonds it issued in 2014.
Greek prime minister Alexis Tsipras is facing political pressure at home, where his Syriza party is trailing in the polls, so he needs this deal to fly.
Tsipras’s office said last night that:
“This decision is a significant step, part of Greece’s strategy to regain viable and steady access to international markets.”
I suspect Tsipras will also be hoping to sell his bonds at an interest rate below 4.95% - the level which his predecessor, Antonis Samaras, sold his five-year bonds in 2014.
Also coming up today
Yesterday was a bad one for European traders, with London’s FTSE 100 shedding 75 points (or 1%). Things should be better today, with the Footsie expected to rise this morning.
Our European opening calls:$FTSE 7396 up 18
— IGSquawk (@IGSquawk) July 25, 2017
$DAX 12245 up 36
$CAC 5140 up 13$IBEX 10479 up 32$MIB 21392 up 66
Technology shares could come under pressure, after Google’s parent company Alphabet posted a 28% drop in net profits last night.
We also get new surveys of business confidence in Germany and the US, and on British industrial trends.
The agenda
- 9am BST: German IFO business confidence survey
- 11am BST: CBI industrial trends survey of UK manufacturing
- 2pm BST: US Case-Shiller US home price index for May
- 3pm BST: US Consumer confidence report
Updated
