European Economy

From Ambrose Evans-Pritchard: Top Syriza officials say they are considering drastic steps to boost liquidity and shore up the banking system, should the ECB refuse to give the country enough breathing room for a fresh talks.

With 60% of the Greek referendum vote counted it appears to be over: Who could have known that a sovereign people would tell a foreign power with whom they were previously at war to shove their blackmail demands?

It appears the Greek referendum that begins today is too close to call: From Credit Suisse via Forexlive here’s the scenarios: 1- “Victory of the “No” camp, would immediately cast markets in uncharted territory.

The FT makes the Greek situation as clear as is possible: Greece’s prime minister accused Europe’s leaders of attempting to “blackmail” Greek voters, just hours after apparently holding out an olive branch to the country’s creditors by accepting most of the terms of the economic reform plan they had tabled last weekend.

From RT: International Monetary Fund has confirmed it didn’t receive €1.5 billion from Athens that were due by the end of June 30, Brussels time.

All day I’ve been reading feel good pieces about Greece.

Greece is set to default on its IMF loan: And from Yanis’ own blog The Eurogroup Meeting of 27th June 2015 will not go down as a proud moment in Europe’s history.

Courtesy of FTAlphaville comes more views on Greece.

From Goldman Sachs: Our central case that a deal will come only after (or thanks to) the introduction of capital controls, a technical default on the IMF and issuance of IOUs/and a further build-up of arreas.

So here we are again.

I eventually expect Greece to exit from the eurozone.

By John Browne, cross-posted from EuroPacific Capital Inc Based on the continued failure of the negotiating parties to make any substantive progress in the talks over Greek debt payments, the financial world is tied up in knots over a possible Greek exit from the European Union.

by Chris Becker For almost five years, MB has been calling for an inevitable default in Greece, not borne out of bearishness but the realpolitik of the situation that was at hand and has now unfolded.

From BofAML: The European proposal is asking three times more fiscal measures than what the former Greek government was willing to accept, despite a much lower primary surplus target.

China A cautionary tale from the muddy waters of Chinese business – FT.com Weak Chinese Demand Is Pummeling Mining Stocks Everywhere, Except in China – Bloomberg China pushing ‘build now, pay later’ model to emerging world – Bruegel Development Finance with Chinese Characteristics?

Greece blinked first then: Eurogroup statement on Greece The Eurogroup reiterates its appreciation for the remarkable adjustment efforts undertaken by Greece and the Greek people over the last years.

From the FT: …A high-stakes meeting of eurozone finance ministers over the future of Greece’s bailout unexpectedly broke down early in deliberations after Athens angrily objected to a proposal that it continue with the terms of its current €172bn bailout, calling it “absurd” and “unacceptable”.

Cross-posted from Yves Smith at Naked Capitalism.

From Goldman Sachs: EMU Peripheral Yields Have Decoupled from Greece in Levels … Greek sovereign bond yields have been going up since last September and, since January, the term structure has become inverted.