Wednesday, January 28, 2015

Europe Morning Watch ( January 28 , 2015 ) - Greece dumps austerity measures and pivots to Russia - bluff or just two countries with common adversaries amid pressures from markets ? Markets in Greece under another day of huge pressures , Russia reserves continue to dwindle - note test of its proposed national payment system starts in February , Ukraine still on the edge of default , USD strength continues ....

Evening Tweets  wrap.......







Blitzkrieg turned mayhem: Hacktivists claim they reveal Ukrainian troops’ annihilation










Schaueble hasn't said why he wont contribute more to Juncker plan directly. My guess is he wants flexibility for Germany's budget











European unity on Russia sanctions crumbling: complains over EU sanctions statement against .










Morning Tweets......






UKRAINE SAID TO HIRE LAZARD TO HELP RESTRUCTURE DEBT: REUTERS






US provides up to $3 billion in loan guarantees to on top of last year $1 billion US-backed eurobond,









Ten days ago, before the smashing success of Greece's anti-austerity party, Syriza, we noted that Russia gave Greece a modest proposal: turn your back on Europe, whom you despise so much anyway, and we will assist your farmers by lifting the food import ban.
And, sure enough, Greece's new premier Tsipras did hint with his initial actions that Greece may indeed pivot quite aggressively away from Europe and toward Russia in general and the Eurasian Economic Union in particular (as a tangent recall "Russia's "Startling" Proposal To Europe: Dump The US, Join The Eurasian Economic Union").

....








Greece wants a mutually beneficial agreement with EU; country’s bailout program has failed: govt spokesman Gabriel Sakellaridis







Handover at FinMin. Varoufakis says bailout deals were "toxic mistake," we are determined to change logic of how crisis is tackled





former FinMin Hardouvelis sees 'acute financing needs in March'. ← Syriza's sword of Damocles




  retweeted

: "we must turn away from "ponzi" austerity."





"Aim is for agreement to bridge between previous programmes & new deal between Greece, EU & ECB," says new finmin








Greek Fin Min: Creditors Gave More Money Than They Ought, But It Has Been Thrown Into a Black Hole






  retweeted

Greek government: Fast Forward with anti-austerity measures


Alexis Tsipras and his junior coalition partner Panos Kammenos pushed the Fast Forward button to restore a series of so-called “reforms”, that is austerity measures imposed by the country’s lenders, the Troika. Several new appointed ministers of the SYRIZA-Independent Greeks coalition started to announce thorough changes, right after they assumed office on Tuesday – and some even before they took their portfolio. Among the left-wing reforms are:  scraping planned privatizations, scraping fees in public hospitals and prescriptions, restore “the 13th pension” for low-pensioners and other actions that SYRIZA had promised before the elections.
......




Capital flight RT : ase -8.21, NBG -27.77%, Piraeus -25.71%, Alpha Bank -19.19%, Eurobank -18.72%






": The EU statement on possible further sanctions against Russia does not have 's consent. More to follow soon. "











Russia to start test-mode connection to national payment system in February








Acc to IFF danger line is about $330B - BUT reserves not as large as they appear due to Russia's high levels of ext debt








Chart: Russian foreign exchange reserves; the cost of defending the ruble -









Whoosh...Greek banks down 20%, German/Greek 10y spread wider by 93bps and Greek 3y yield up 260bps to 16.3%. Dream start for




sell-off accelerates. Athens stock market index ASE drops >6%.




Tsipras talks the talk, investors walk the walk. Greek bonds roiled, Yields soared.




's 3yr yields jump by 184bps as Greek PM Tsipras calls for 'fair, viable solution to debt reduction.'










The almighty Dollar. The US stands for 22% of global GDP but the US Dollar for 44% of global payments via SWIFT.











































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