GREEK politicians looked set to form a pro-bailout government with a very
narrow majority last night, after a close run election gave no party a
sizeable lead. Pro-bailout conservatives New Democracy came top with
29.5%, according to official projections last night, while anti-bailout radical
leftists Syriza came in second with 27.1% Pasok, the socialist former ruling
party that also supports the bailout, came third with 12.3% and is likely to
join the coalition.
CYPRUS has been helped for now by Greece’s election, according to
financial services analyst Stelios Platis, who said the election victory would
buy time, but not much, given the island’s exposure to Greek banks.
FRANCOIS Hollande’s Socialist party won an absolute majority in France’s
parliament yesterday, giving a boost to the President as he presses
Germany to support debt-laden Eurozone states hit by austerity measures.
WORLD leaders at the G20 summit in Mexico will begin their two-day
meeting where they are expected to pledge to stimulate growth while
balancing those efforts against steps to rein in budget deficits.
STRONG sales growth and rising profits have boosted business
confidence in London, a new study shows today, with the situation set to
improve further over the next 12 months.
SPAIN’S banks might need further help from the ECB after
underestimating their losses, a top minister said yesterday. Meanwhile Prime Minister Mariano Rajoy said he would not
adopt all of the IMF’s recommendations, refusing to raise VAT or cut public sector salaries.
UK SAVERS are facing losses of £18bn per year thanks to ultra-low interest rates and above-target inflation, according to
new research out today. The Bank of England’s 0.5% base rate and £325bn of quantitative easing, and competition
amongst banks is said to be to blame.
Markets:
OVERNIGHT, Hong Kong and China shares rose, led by riskier assets after pro-bailout parties won a slim majority in
Greece’s election, a result seen as crucial to European leaders’ efforts to hold the euro together.. Markets elsewhere are
expected to follow suit, with Dow Jones futures last night pointing to an 85-point rise in today’s trading.
TODAY, European shares are set to surge as a narrow election victory of Greece’s pro-bailout parties over radical leftists
eased concerns about the debt-laden country leaving the Eurozone, with cyclical stocks like banks seen rising sharply.
Currencies:
THE EURO rose to the strongest in almost a month as official projections showed pro-bailout parties won enough seats
to control Greece’s parliament, easing concern the country would be forced from the currency bloc.
Energy:
OIL ROSE to the highest in a week as gains by pro-bailout parties in Greek elections eased speculation that Europe’s
debt crisis will escalate and threaten global economic growth. JAPAN is poised to overtake Germany and Italy to
become the world’s second-biggest market for solar power as incentives starting July 1 drive sales for equipment makers.
Commodities:
GOLD fell for the first time in seven sessions on Monday as the risk of a Greek exit from the Eurozone subsided after
parties backing a bailout for the country won an election, denting the metal’s safe-haven appeal.
