THE UK and France have joined forces to demand that Germany
underwrites Greece’s debts by issuing so-called eurobonds. Eurobonds
would pool sovereign debt issuance among all of the euro’s 17 member
states, allowing weaker countries such as Greece to lean on the triple-A
ratings of Germany and others.
Chancellor Angela Merkel has long opposed the use of eurobonds, arguing they would cut borrowing costs for
troubled Eurozone nations and remove incentives for them to make vital
economic reforms while putting the German taxpayer on the hook.
WORLD leaders at the G8 summit backed keeping Greece in the
Eurozone over the weekend and vowed to take all steps necessary to
combat financial turmoil while revitalising a global economy increasingly
threatened by Europe’s debt crisis.
GERMAN and French leaders meet this week to map out a revised plan
for the euro as the G8 exposed disagreement on a rescue strategy,
Greece lurched toward a possible exit and Spain’s budget deficit widened.
GREEKS are pulling euros out of the banks in fear that their country may
leave the European single currency despite the declared determination of
EU powers to keep Athens in the monetary union.
LOW WAGE rises and high inflation increased the pressure on UK
consumers in April and May, two reports showed today, threatening to
keep the economy in the doldrums.
MOST Brits are failing to save enough for their retirement, even though
their forecasts of how much they will need to be comfortable in old age has increased, according to a report published
today. The average saver believes they would feel comfortable on a pension of £24,500 – and almost double the £13,000
the average saver retiring at 65 is set to receive.
OVERNIGHT, Japan’s Nikkei average rose, recovering from sharp falls in the previous session, as a call from world
leaders for Greece to stay in the Eurozone and for Europe to balance austerity with growth helped ease investor worries
TODAY, Financial spreadbetters expect Europe’s main stock indexes to fall, extending their recent steep sell-off as the
outcome of the weekend’s G8 meeting failed to calm investors’ worries over debt-stricken Europe.
THE YEN dropped versus all of its major counterparts amid speculation the Bank of Japan will add to stimulus measures
this week to support growth and weaken the nation’s currency. BOND traders are cutting expectations for US inflation by
the most since December, providing Federal Reserve Chairman Ben Bernanke the scope for additional stimulus as the
central bank’s current effort winds down.
OIL Rose for the first time in seven days after Goldman Sachs Group Inc. said the balance between supply and demand
of crude is tightening and China’s government pledged to boost the nation’s economy. SAUDI Arabia has edged ahead
of Russia in being the world’s biggest crude oil producer for the first time since 2006, official data showed yesterday.
WHEAT rallied for a sixth straight session, advancing to the highest level in more than eight months, as dry weather
threatens harvests in the US and Russia, two of the world’s three biggest shippers this year. HEDGE funds reduced
wagers on a rally in commodities to the lowest this year on mounting speculation that Greece will leave the euro, slowing
global growth and curbing demand for everything from copper to soybeans.