Greek parliament OKs civil union for same-sex couples

ATHENS, Greece -- Greece's parliament early on Wednesday approved a bill granting same-sex couples the right to a civil union, despite strong opposition from the influential Orthodox church.

The law was supported by 193 lawmakers out of 249 present, with 56 voting against it.

"This is an important day for human rights," Prime Minister Alexis Tsipras told the chamber.

Tsipras said the bill gives same-sex couples "equal rights in life and death," terminating a practice of "backwardness and shame" for Greece.

The new law resolves property and inheritance issues, but makes no provision for the adoption of children.

Amnesty International hailed the move as a "historic step" but noted that lesbian, gay, bisexual, transgender and intersex (LGBTI) persons still faced hostility in Greece.

"Despite this first step, LGBTI people in Greece still live in a climate of hostility from which the authorities are failing to protect them adequately," said Gauri van Gulik, Amnesty International's Deputy Director for Europe and Central Asia.

"Physical attacks are on the rise, hate speech is common and goes unchecked by the authorities. Even displays of affection between same-sex couples are censored on television," van Gulik added.

Amnesty further pointed out that the law offers no gender recognition to transgender people.

Greece had been condemned for anti-gay discrimination by the European Court of Human Rights in 2013, after gay couples were explicitly excluded from a prior civil unions law in 2008.

"Instead of celebrating this, we should apologize to thousands of our fellow citizens," Tsipras said.

In addition to Tsipras' left-wing Syriza party, the bill was supported by another four parties.

However the nationalist Independent Greeks (ANEL), who are part of the governing coalition, voted against the motion.

"The Greek constitution protects motherhood. Is there motherhood in men?" asked ANEL lawmaker Vassilis Kokkalis.

Members of the Greek gay, lesbian and transsexual community had earlier staged protests outside parliament and the Athens cathedral.

"Love is not a sin," read a sign held by protesters as two young men dressed like priests kissed in front of the cathedral.

Greece was until now one of the last European countries where same-sex couples could not receive some kind of official recognition for their relationship.

The country's first two same-sex civil marriages held in 2008 were annulled by a court a year later under pressure from the Greek Orthodox Church, which officially frowns upon same-sex relations.

Lobbying by the church was also instrumental in excluding same-sex couples from benefitting from the 2008 civil union bill which modernized family law and aligned national law with EU rules.

A prominent Greek bishop this week described homosexuality as a "crime" and said "accursed" gays should be "spat upon."

source: interaksyon.com

China fears, global growth doubts grip markets

MADRID - Markets are watching for China's next move as signs of a slowdown in the world's second-largest economy stack up, raising expectations it will act to stoke growth.

A looming snap election in Greece and a closely watched conference hosted by the Federal Reserve in the United States are also likely to keep investors on their toes in the coming week, in particular as they look for hints on when the U.S. will raise interest rates.

Fears that Chinese growth is weakening, dragging down the global economy with it, are hammering commodities and stocks.

Alarm bells rang out across world markets on Monday as a 9 percent dive in Chinese shares and a sharp drop in the dollar and major commodities panicked investors.

On Friday, a survey showed Chinese manufacturing slowed the most since the global financial crisis in 2009 - adding to other worrying clues about the country's health, including its falling exports.

China devalued the yuan earlier in August by pushing its official guidance rate down 2 percent. The central bank has said there was no reason for the currency to fall further, but investors are also bracing for further interest rate cuts.

"It will be all eyes on the Chinese authorities for any further policy support steps, alongside the People's Bank of China yuan fixings and trading swings," analysts at Investec Economics said in a note to clients.

China is also widely expected to relax reserve requirements ratios for its banks again in the coming months, a measure intended to spur lending by reducing the cash they need to hold. It is trying to keep its economy on course to grow 7 percent in 2015 - its slowest pace in a quarter of a century.

"We continue to expect a total of 100 basis points of reserve requirement ratio cuts by end-2015, with the first cut likely to take place within the next two weeks," economists at Standard Chartered said.

The cash reserves ratio has already been cut three times this year.

Eyes on Fed, Greece

By the end of the coming week, attention may shift away to the Rocky Mountains, where policymakers are due to gather from Aug. 27-29 for the Fed's conference of central bankers, finance ministers, academics and financial market participants in Jackson Hole.

Fed chair Janet Yellen is not expected to attend, raising the prospect that other Fed officials may be more tight-lipped about the likelihood of the first rate increase in almost a decade, some analysts said.

The prospect of an increase as soon as September is receding, however.

Last week the Fed released minutes of its July meeting, giving no clear signals as to the timing of such a move - which would affect markets across the world and could cause more pain for emerging market assets, already being hit by China's woes.

Though they were more confident about U.S. growth prospects, the minutes showed, Fed policymakers are concerned about weakness in the global economy - fears likely to have been heightened by Monday's market rout in which the dollar also fell sharply.

Further clues on both matters should be gleaned from data releases in the coming week, including second-quarter U.S. gross domestic product figures due on Thursday.

Quarter-on-quarter growth in the period is expected to be revised upwards to 3.2 percent from 2.3 percent, according to a Reuters poll.

In the euro zone, investors will be looking at an German economic sentiment survey due on Tuesday for a better idea of the scope of the bloc's recovery.

Preliminary August consumer price readings for Germany and Spain on Friday will provide further insight into how effective the European Central Bank's bond-buying efforts have been at warding off deflation.

But the spotlight will mainly fall once again on Greece, where Prime Minister Alexis Tsipras has resigned. That opens the way for early elections after he secured much-needed funds in the country's third international bailout program.

The current Greek government aims to strengthen its position in the election after accepting a rescue deal it once opposed. But that creates more uncertainty for markets already on edge over whether Greece will deliver on promised reforms and get its economy and banks back on track.

source: interaksyon.com

Greece does about-face, pledges big privatization push

ATHENS — Work was supposed to begin next year on a 7 billion euros ($7.6 billion) waterfront urban renewal project almost twice the size of New York's Central Park that could have poured nearly a billion euros into Greece's depleted coffers. The plans stalled late last year after the far-left Syriza party took power and promised to halt attempts at putting the private sector in control of state assets, both on ideological grounds and because leaders believe rampant corruption must be addressed before any sell-off.

Now, in an attempt to get a third European bailout and prevent the Greek economy from collapsing, the ruling party has done an about-face. It has pledged to fast-track the waterfront project, plus sell government assets and allow for private development of state-owned property, all to generate cash that will help reduce Greece's 320-billion-euro national debt and pay back money lent by European nations to prop up ailing banks.

Experts say the goal set by Greece's European counterparts for the country to raise 50 billion euros in privatizations and private use of state property is probably impossible — but that Greece must make a better effort than it has in the past.

"There can be absolutely no backpedaling or unwinding with the privatization effort," said Mujtaba Rahman, European director for the Eurasia Group political and business risk consulting firm. "This is about testing the government's appetite to liberalize the economy and move forward with pro-market reforms."

Big money assets that Greece could sell include state-owned stakes in Athens' new airport, energy company Hellenic Petroleum and electrical utility Public Power Corp., plus offshore oil or natural gas drilling parcels. Greece also has stock in banks valued at 7.5 billion euros, but the true value of the stake is unknown because the Athens stock market stopped trading at the end of June as the country descended into financial chaos.

The Hellenic Republic Asset Development Fund, charged with matching state assets in deals with the private sector, also has parcels of land on beautiful islands available for long-term leases and a castle on the island of Corfu, plus buildings throughout Athens and across the country.


It was formed in 2011 following demands by Greece's creditors to embark on a privatization wave, but has collected only 3.5 billion euros so far. Efforts have been complicated by constantly changing laws for asset sales, court challenges, local opposition, financial upheaval that makes it difficult to value assets, and criticism that prices have dropped so much that assets aren't worth selling.

Proponents of privatization say it can help boost investment and the economy flourish by unleashing market forces. It was particularly popular in countries like the United Kingdom in the 1980s, when Margaret Thatcher sold state-owned assets including water and gas. Though privatizations have taken place elsewhere in Europe, they've been far less prevalent.

But over the past few years during Europe's debt crises, privatizing assets has been a key demand placed on countries being bailed out. Greece notably failed to meet initial targets.

The privatizations have met with varying degrees of resistance, with some arguing that stressed governments such as Greece's are selling assets at below-market prices. Opponents also say privatization reduces job security and transfers wealth to a rich elite.

Greece's development fund doesn't publicly disclose the estimated value of assets it has to offer, but the deal it negotiated for the waterfront renewal project would give Greece 950 million euros in return for a 99-year lease on the property.

A Greek company with backing from Chinese and Arab investors would then build a huge park, a shopping center, a marina, 1,000 hotel rooms and a skyscraper apartment building on what's billed as Europe's largest undeveloped waterfront tract. Multimillion-euro yachts dock at a marina within the parcel that was built for the 2004 Olympics, but a crumbling, two-block-long building with a leaky roof bakes in the sun. It was built for athletes but never used after the games.

The project has been held up by a delay in approval from Parliament, which angers Jiorgos Kourtelis, a boat captain who sees money lost every time he drives by the unused buildings where he'd like to open a coffee shop for marina workers and boat crews.

"Right now it's a waste," said Kourtelis, 45. "They've been trying to solve this and they haven't done very much."

Conflicts between local and state authorities frequently block privatization projects. The Hellenic fund has been unable to sell an 800-slip facility nearby, in part because local officials and a businessman raised objections.

The state-owned marina hadn't paid trash collection fees to the local government for decades, Kourtelis said, so the local government was allowed to build a public swimming pool on the marina's grounds. When the fund tried to sell the marina, local officials didn't want to give up the pool and a businessman with several nightclubs on the premises didn't want to leave either.

Even if Greece could resolve the conflicts that prevent assets from being privatized, the total amount revenue would probably be in the 15-20 billion euros range, said Manos Giakoumis, chief analyst at the Macropolis economic and political analysis website in Athens.

"You have to take into account that market conditions at the moment are very unfavorable," he said. "Even if you say the value of an asset was worth 300 million euros this does not mean this is the actual value of the asset. There are a lot of real estate properties that could be privatized but no one knows the amount that can be raised from this."

Giakoumis believes Greece's need for European financing is now so dire that it will be forced to step up privatizations and deals to allow the private sector use government land and assets.

"If you asked me the same question five months ago I said it would be difficult," he said. "Now I think there is no way for the current government to continue opposing these privatizations. They need to accelerate the final process of approval."

source: philstar.com

Greece faces D-Day after 'difficult' bailout talks halted

BRUSSELS, Belgium - Greece on Sunday faced a final EU summit to clinch a deal that would stop Athens crashing out of the euro after divided eurozone ministers halted "very difficult" talks on a new bailout overnight.

Saturday's meeting of the Eurogroup, comprising finance ministers from the 19-nation single currency area, was supposed to pave the way for all 28 European Union leaders to sign a final agreement at an emergency summit the following day, billed as the last chance to keep Greece in the euro.

But skeptical nations demanded more commitments from Athens, amid claims Berlin had drawn up an "internal paper" for Greece to leave the eurozone for five years, while Finland reportedly decided not to accept any new rescue plan for debt-laden Greece.

Eurogroup chief Jeroen Dijsselbloem said the "issue of credibility and trust was discussed" by ministers, who are wary of the Greek government's commitment to enacting the new reforms which closely resemble those rejected by voters in a surprise referendum.

"We haven't concluded our discussions. It is still very difficult but work is still in progress," said Dijsselbloem after nine hours of grueling talks, adding that they would resume Sunday morning at 0900 GMT.

Finnish Finance Minister Alexander Stubb was more upbeat, despite reports that Finland's parliament has decided it will not allow the government to accept any new bailout deal for Greece.

"We are making good progress," he said.

EU Commissioner for economic affairs Pierre Moscovici, who has been among the most sympathetic to Greece's plight, said: "I am always hopeful."

'Climate not easy'

Creditor institutions have called a new reform plan from leftist Greek Prime Minister Alexis Tsipras for a third bailout worth more than 80 billion euros ($89 billion) a positive step forward after months of wranglings.

The proposals, including pension cuts and tax hikes, were approved by the Greek parliament in the early hours of Saturday despite opposition within Tsipras's ruling radical Syriza party.

But Germany's hardline Finance Minister Wolfgang Schaeuble poured cold water on early optimism at the start of the talks, accusing Athens of repeatedly reneging on its commitments.

"Definitely we cannot trust promises," Schaeuble said. "In the last months hope has been destroyed in an incredible way, even up to just a few hours ago."

A European source said the German finance ministry had even drawn up an "internal paper" for Greece to leave the eurozone for five years if it fails to improve its bailout proposals, but added it was not distributed at Saturday's meeting.

Another source close to the negotiations said the "climate is not easy" and Greek Finance Minister Euclid Tsakalotos was in contact with Athens to see how to restore eurozone confidence in Greece.

The Athens News Agency, meanwhile, reported that Greek government sources believed "some countries, for reasons that have nothing to do with the reforms and the program, don't want an agreement." The sources did not name specific countries.

Even if an agreement is reached, at least eight parliaments will have to weigh in on a final accord, with Germany's Bundestag having to vote twice.

Debt mountain

Tsipras won the backing of 251 out of 300 deputies in the Greek parliament for his reform plans, even though they are similar to the ones that Greeks rejected in last week's referendum.

Athens's creditors fear it will not keep its promises after two previous bailouts worth 240 billion euros merely added to a debt mountain, now worth nearly 180 percent of the country's GDP.

Greece dived deeper into the mire when it became the first developed economy to default on a huge payment to the International Monetary Fund on June 30, the same day as its EU bailout expired.

In Greece, there is growing alarm at capital controls that have closed banks and rationed cash at ATMs for nearly two weeks, and Economy Minister Giorgos Stathakis warned the restrictions will likely stay in place for "months."

Queueing Saturday at a cash machine in Athens, Vassilis Papoutsoglou, 52, said: "We still don't know what will happen tomorrow. Can we expect something better, or is it Armageddon?"

The Greek government hoped the parliamentary vote would give it a mandate to continue the talks with creditors -- but it also revealed the depth of opposition to fresh austerity.

Three senior government figures were among 10 MPs who abstained or voted against, and several others from the ruling leftist Syriza party stayed away, prompting commentators to predict a government shake-up.

Tsipras told parliament the plan was "marginally better" than the proposals put forward by the creditors last month and that Greeks would "succeed not only in staying in Europe but in living as equal peers with dignity and pride."

source: interaksyon.com

Asia extends losses as China woes spread, yen shoots up

TOKYO - Asian equities extended losses on Thursday as concerns over China's market turmoil spread, while the safe-haven yen shot to a seven-week high as global risk appetite ebbed.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.2 percent, hovering near a 17-month low struck the previous day.

Japan's Nikkei dropped 1.8 percent, Australian shares lost 0.3 percent and South Korea's Kospi fell 0.9 percent.

The focus in Asia again turned towards how Chinese stocks would fare later in the session, with a series of increasingly aggressive attempts by authorities so far having failed to stem the massive exodus from a once booming market.

The country's stock markets have plunged nearly 30 percent over the last three weeks.

"Fundamentally, China is coming back to a point of attraction –the monstrous P/E ratios have come back to more realistic levels. However, the bursting bubble means value is unlikely to factor into thinking in the interim. The repercussions haven't completely played out yet," Evan Lucas, market strategist at IG in Melbourne, wrote.

China's securities regulator took the drastic step late on Wednesday of ordering shareholders with stakes of more than 5 percent from selling shares for the next six months in a bid to halt a plunge in stock prices.

U.S. shares slid sharply overnight on growing fears that nose-diving Chinese shares could destabilize the world's second- largest economy and have global implications.

The doom-and-gloom mood - already heightened earlier in the month by prospects of Greece leaving the euro - benefited the yen, often sought in times of economic uncertainty.

The dollar stood little changed at 120.815 yen, within reach of a seven-week low of 120.41 touched overnight when it suffered a bruising 1.5 percent fall.

The greenback was weighed down further as U.S. Treasury yields continued falling on flight-to-safety bids and new signs that the Federal Reserve may be hesitant about raising interest rates, as shown by their policy meeting minutes.

The dollar's tumble against the yen helped the euro, which climbed to $1.1075, pulling further away from a one-month trough of $1.0916 plumbed on Tuesday.

Commodities, far from immune to the slide in global equities, remained subdued. U.S. crude nudged up 0.4 percent to $51.86 early on Thursday but has shed nearly nine percent so far this week.

Copper received a reprieve overnight thanks to the dollar's plunge, but the metal still remained within reach of a six-year low. Copper on the London Metal Exchange was down 0.4 percent at $5,495 a tonne after hitting the six-year trough of $5,240 a tonne on Wednesday.

source: interaksyon.com

Greece submits fresh plan on eve of EU emergency summit

ATHENS, Greece - Greek Prime Minister Alexis Tsipras presented new proposals to European leaders Sunday aimed at ending his country's debt crisis, on the eve of a summit that could determine whether Greece crashes out of the eurozone.

In a telephone call with German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker, Tsipras detailed a "mutually beneficial deal", the Greek premier's office said in a statement.

Italian Prime Minister Matteo Renzi urged the two sides to seize a "window of opportunity", saying all conditions were in place for them to reach a "win-win accord".

Athens said its new proposals were aimed at reaching a "definitive solution" to the five-month standoff between Athens and its creditors -- the European Commission, International Monetary Fund and European Central Bank -- as fears deepened over a potential "Grexit" from the eurozone.

The heads of the 19 eurozone countries will hold an emergency summit on the crisis in Brussels on Monday under pressure to prevent Greece from defaulting on its debt with a June 30 payment deadline fast approaching.

Sanity will prevail

The head of Greece's biggest bank said she thought "sanity will prevail" on Monday.

"To enter into such uncharted waters and take up all the risk both for the eurozone and for Greece for two or three billion (euro) difference, I think it's insane," National Bank of Greece chief Louka Katseli told BBC radio.

Greece's anti-austerity government met Sunday to refine its proposals, while a European source said Tsipras and Juncker "held talks Saturday and will again speak Sunday", adding that there were many exchanges and "informal work under way to find a solution".

Failing a deal, Greece is likely to default on an IMF debt payment of around 1.5 billion euros ($1.7 billion) due on June 30, setting up a potentially chaotic exit from the eurozone.

Last Wednesday the Greek central bank put the risk in stark terms saying: "Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and -– most likely -– from the European Union."

The IMF was called in to help rescue Greece at the end of 2009 when the debt-plagued country could no longer borrow on international markets.

The EU's involvement in the huge bailout, which was to provide 240 billion euros ($270 billion) in loans in exchange for drastic austerity measures and reforms, runs out at the end of this month, but IMF support was supposed to continue to March 2016.

Talks between Greece's radical-left government and its lenders have been deadlocked for five months over the payment of the final 7.2 billion euro tranche of the bailout, with talk also turning to an extension of the European help.

For the Greek government any extension of the bailout should be about kickstarting the country's devastated economy and not further austerity.

They also want an easing of the country's crippling debt burden, which officially stood at 312.7 billion euros, or 174.7 percent of gross domestic product, in March.

The international lenders have rejected a series of proposals from Athens, insisting on their own mixture of cuts and reforms.

Minister of state Nikos Pappas, who is close to Tsipras, said the counter-proposals would be "unacceptable to whichever Greek political party" was in power.

Bridging the gap

Alekos Flambouraris, another Tsipras minister, said Saturday that Athens would propose reworked measures that "bridge the gap", while also predicting that Greece's creditors would not be satisfied with the gestures, Greek media reported.

"You'll see they won't accept loosening budget (restrictions), or our proposal on the debt," he said of two main sticking points in the talks.

But the country's Finance Minister Yanis Varoufakis, whose flamboyant style has irked many of his European counterparts, turned the tables by putting the onus on the leader of paymaster Germany to do a deal.

"The German chancellor has a clear decision to make on Monday," he wrote in an op-ed for the Frankfurter Allgemeine Zeitung.

"On our side, we will come with determination to Brussels to agree to further compromises as long as we are not asked to do what the previous (Greek) governments have done: accept new debt under conditions that offer little hope for Greece to repay its debts," he wrote, without specifying the compromises.

Demonstrators around Europe on Saturday took to the streets to protest against spending cuts and austerity measures taken by their governments, and expressing solidarity with Greece.

source: interaksyon.com

Wall St falls as Greek deadline looms; indexes up for week

NEW YORK - U.S. stocks fell on Friday ahead of a summit next week that could decide whether Greece will need to print its own currency and ditch the euro.

Euro zone leaders are scheduled to meet on Monday night in a last-ditch effort to reach a deal with Athens. As bank withdrawals across Greece ballooned to about 4.2 billion euros this week, the European Central Bank boosted its emergency funding for Greek banks.

Friday's decline in stocks "has to do with the meeting on Monday," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco. "It's sort of the last lifeline they are going to throw out to Greece and people are selling ahead of that because of the uncertainty."

Lip said, however, that any sharp selling because of developments on Monday could be yet another buying opportunity for investors in U.S. stocks.

"If Greece leaves the union, that removes an uncertainty and is actually good for the markets over the long run; if there is a resolution, that is also good," said Lip. "In some way, whatever happens on Monday is a win-win and (a market selloff) is a buyable dip."

The Dow Jones industrial average fell 101.56 points, or 0.56 percent, to 18,014.28, the S&P 500 lost 11.48 points, or 0.54 percent, to 2,109.76 and the Nasdaq Composite dropped 15.95 points, or 0.31 percent, to 5,117.00.

For the week, the Dow gained 0.6 percent, the S&P added 0.7 percent and the Nasdaq, which had closed at a record high on Thursday, rose 1.3 percent.

Utilities led the S&P 500 decline in percentage terms, down 1 percent as a group after gaining 2.7 percent over the previous three sessions.

A market debut fizzled, with shares of 8point3 Energy Partners down 2.4 percent at $20.49. It offered 20 million shares that priced at $21, the top-end of the filed range.

ConAgra Foods' shares jumped 10.9 percent to $43.37 after activist hedge fund Jana Partners took a stake in the company. ConAgra's peer Pinnacle Foods rallied 8.6 percent to $46.81 after earlier hitting a record high of $47.21.

Macerich slumped 6.8 percent to $76.87. Sources told Reuters Simon Property Group was selling its ownership stake in the No. 3 U.S. mall operator. Simon fell 1.3 percent to $179.48.

KB Home rose 9.4 percent to $16.37 after the homebuilder's quarterly results beat estimates.

Declining issues outnumbered advancing ones on the NYSE by 1,788 to 1,257, for a 1.42-to-1 ratio on the downside; on the Nasdaq, 1,557 issues fell and 1,254 advanced for a 1.24-to-1 ratio favoring decliners. The S&P 500 posted 29 new 52-week highs and 2 new lows; the Nasdaq recorded 161 new highs and 40 new lows.

About 7.9 billion shares changed hands on U.S. exchanges, above the 6.03 billion daily average so far this month, according to BATS Global Markets.

source: interaksyon.com

U.S. shares drop on Greece uncertainty, rate hike anticipation

NEW YORK - A setback in Greek debt talks pushed U.S. and European shares lower on Friday, along with investor views that positive U.S. data may accelerate the timing for a hike in interest rates.

Oil prices fell on concerns production may rise further.

The International Monetary Fund delegation left Greek debt negotiations on Friday because of "major differences" with Athens on the same day that EU officials held their first formal talks on the possibility of Greece defaulting.

"It's largely the Greek situation again, and that's been played out on a day-to-day basis where you had a huge rally followed by a decline predicated on whether they are coming closer or moving further from a resolution," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

However, the darkening Greek outlook failed to fluster Prime Minister Alexis Tsipras, who holed up with his negotiators after proclaiming optimism at an open air concert.

The euro inched higher against the dollar after Tsipras'comments even though equity and bond investors were skeptical.

"You have to question whether (the Greeks are) looking at reality," said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

U.S. Treasuries prices ended little changed, with longer-dated yields holding below seven-month highs as concerns about a Greek default supported safety demand for bonds ahead of a Federal Reserve policy meeting next week.

A U.S. consumer sentiment survey and production data, after strong retail sales data on Thursday, gave a rosy view of the U.S. economy ahead of the Federal Reserve's June 17 policy statement, which may provide clues on timing for the first U.S. rate hike in nearly a decade.

"Both of these led the market, coupled with yesterday's report, to think that the first hike from the Fed could be closer," said OakBrook's Sampson, adding that lift-off could be in the fall, ahead of her previous expectation.

The Dow Jones industrial average fell 140.53 points, or 0.78 percent, to 17,898.84, the S&P 500 lost 14.75 points, or 0.7 percent, to 2,094.11 and the Nasdaq Composite dropped 31.41 points, or 0.62 percent, to 5,051.10.

The S&P and the Dow showed slight gains for the week while the Nasdaq fell slightly.

Oil fell for a second straight day as investors took profits after Saudi Arabia said it was ready to raise production to record highs, adding to worries over global oversupply.

Brent crude settled down $1.24, or 2 percent, at $63.87. For the week, Brent ended up 0.7 percent. U.S. crude fell 81 cents, or 1.3 percent, to $59.96. It rose 1.5 percent on the week.

In the late afternoon, the dollar index was unchanged after a day of choppy trading against a basket of major currencies while the euro was essentially flat after rising earlier in the day.

MSCI's all-world country index fell 0.4 percent but was on track for its first weekly gain in four, while the pan-European FTSEurofirst 300 index fell 0.8 percent.

source: interaksyon.com

Euro, stocks fall as anti-austerity party wins Greek election

TOKYO - The euro skidded to near an 11-year low and U.S. stock futures fell on Monday as Greece's Syriza party promised to roll back austerity measures after sweeping to victory in a snap election, putting Athens on a collision course with international lenders.

The euro fell to as low as $1.1135 on the vote outcome, not far off an 11-year low of $1.1115 touched on Friday when the common currency took a battering after the European Central Bank unveiled a bond-buying stimulus program last week.

U.S. stock futures fell 0.6 percent while the Nikkei futures also dropped about 0.5 percent from the local close on Friday on heightened concerns the Greek election results could lead to renewed instability in Europe.

Syriza leader Alexis Tsipras was set to become prime minister of the first euro zone government openly opposed to bailout conditions imposed by European Union and International Monetary Fund during the economic crisis.

"The euro will be sold on any rally. But such an outcome was already expected to a certain extent and I expect the pace of its decline is likely to slow," said Osao Iizuka, the head of FX trading at Sumitomo Mitsui Trust Bank.

Indeed, the broad consensus in the markets is that any renewed tensions over Greece is unlikely to hurt broader investor sentiment much beyond an initial shock.

Unlike at the height of the debt crisis in 2011-12, European banks now have limited exposure to Greece and European policymakers have frameworks to deal with indebted countries, analysts say.

"At the moment, the market believes that if there is any (debt) restructuring it would only involve the official sector and for now, the possibility of Greece leaving the euro zone even with the incoming government is small," Sebastien Galy, senior foreign exchange analyst at Societe Generale in New York also said.

The ECB's plan to pump more than a trillion euro to the banking system in the coming year and a half is underpinning risk sentiment, which boosted European share prices to seven-year highs on Friday.

In addition, investors also expect the U.S. Federal Reserve to steer clear of stating any firm date for it plans to raise rates after its two-day policy meeting from Tuesday.

Elsewhere, oil prices also started the week weaker, with U.S. crude futures falling 1.6 percent to $44.87 per barrel, near 5 1-2/year low of $44.20 hit earlier this month.

The death of Saudi Arabia's King Abdullah added to uncertainty over the plans of the world's biggest crude exporter.

source: interaksyon.com

Low-birth Greece takes a further hit from crisis

ATHENS - In a nursery of a private maternity hospital in Athens, three mothers feed their newborns while another three babies nap nearby.

The room has only a few cots, and yet a number lie empty.

Sunk in recession for the past six years and struggling to steer its economy through painful austerity cuts, Greece now faces a fertility crisis as well.

"Benefits have been cut, the cost of living has risen, wages are down and there is great uncertainty," says Leonidas Papadopoulos, managing director of the Leto hospital and a veteran obstetrician.

"Couples think twice nowadays, not only for a second child but even for their first... It looks like there will be 10,000 fewer births next year," he adds, citing estimates drawn from state and private studies.

According to state statistics agency Elstat, the fertility rate in Greece has fallen from 2.33 children per woman in 1975 to 1.4 in 2011.

The replacement rate, the number of births at which the population remains stable, is 2.07 children.

Papadopoulos also cites a recent study by the University of Athens which found that the rate of miscarriages has doubled to four percent in the last two years.

And births have gone from 118,000 in 2008 to 101,000 last year, he notes.

"At this rate, Greece will be much smaller in a few years," Papadopoulos says.

The European Union fertility leader is Ireland with 2.05 births in 2012, followed by France with 2.01 children.

In one of its projected scenarios, Elstat sees the population of Greece dropping to 9.7 million in 2050 from 11.29 million in 2012.

A jobless rate of over 27 percent -- and over 30 percent among women -- compounds the difficulty facing couples today.

"Policies to protect maternity are easier to apply in good (economic) periods," says a high-ranking state welfare official who declined to be named.

"In the private sector, mothers very frequently do not make use of their rights because unemployment is very high," the official added.

In Greece's more easy-going civil service, staff can take up to 14 months in fully paid maternity leave -- and have been known to obtain extra time for difficult pregnancies.

In the private sector, mothers can on paper claim up to 15 months of non-consecutive maternity leave -- four of them unpaid -- not including holidays.

In reality, however, employees rarely push to obtain full maternity leave for fear of losing their job, officials note.

The Greek ombudsman's office highlights the problem in its latest report for 2012.

"Women who are pregnant or just back from maternity leave, run higher risks of...unemployment and precarious employment," the report said.

"In many cases they accept a violation of their labor rights to avoid losing their job," it noted, adding that having children was also likely to adversely affect a woman's pay and career prospects within a company.

"We even have extreme examples of couples who have been trying to have a child for years, undergo costly treatment and then want to have an abortion because the husband just lost his job," Papadopoulos said.

The 'money is so little that it cannot even cover bread and milk for the children'

Paradoxically, the axe has fallen the hardest on large families.

Until last year, mothers could claim a lump sum of 2,000 euros ($2,618) upon the birth of their third child, and the same amount for each child thereafter.

Then there were additional child support benefits of up to 4,700 euros a year, depending on income and the number of children, which were accessible to even moderately wealthy families.

These were eliminated in 2012 and replaced with a new, means-tested system.

From January 1, families are theoretically eligible for child support benefits of up to 5,880 euros -- but they would need to have six children and be on the verge of starvation to claim it.

Spain is a similar example of a once-generous welfare gone for good -- a 2,500-euro handout per baby was eliminated in 2011.

In Germany, parents receive 184 euros per month for their first two children. For the third child, the state pays 190 euros and for additional children 215 euros.

In Greece, even for couples who are not in dire straits, supporting a large family is tough.

"We cannot meet the needs of our three children and our parents are having to contribute from their pensions," says Georgia Kitsaki, an unemployed hotel worker from Thessaloniki.

Georgia and her husband Nikos, who is also unemployed after a labor accident, received a monthly jobless benefit of 470 euros until December, and child benefit of 276 euros. The latter has since been suspended.

"In any case, this money is so little that it cannot even cover bread and milk for the children," she adds.

source: interaksyon.com

World Bank will not provide loans to Greece - president

STOCKHOLM - The World Bank will limit its work in Greece to offering expertise, and will not provide loans, the bank's president, Jim Yong Kim, said on Tuesday.

"We will not lend money to Greece" because "this is not a country that qualifies, for example, for an IBRD loan," Kim told a press conference in Stockholm.

The International Bank for Reconstruction and Development (IBRD) is an arm of the World Bank which extends loans to governments, but Greece is classed as a "high income" country, rather than the "middle income" states to which it typically lends.

Hungary, another high income country, was made an exception to the US-based bank's rule in 2008 when it received a loan that was part of an aid plan coordinated by the European Union and the IMF.

The World Bank said in November that Greece had requested its expertise on the issues of how to improve its business climate, and how to boost growth.

On Tuesday, Kim suggested that Greece could benefit from the bank's experience in another area: "We have a lot of experience in assessing whether particular social sector expenditures are actually achieving the desired outcome," he said.

"For example we worked in Korea during the crisis in the 1990s, we worked in Indonesia. We worked in many countries that have had very similar experiences with the ones that countries in Southern Europe are going through," he added.

"We're hoping to be helpful whenever we can. But again, we're an organisation that works on request. People have to come to us."

source: interaksyon.com

World No. 2 Coke Bottler Profit Hit by Austerity, Costs

ATHENS (Reuters) - Coca-Cola Hellenic (CCH), the world's second-largest bottler of Coca-Cola Co. soft drinks, shed 25 percent of profit in the first half as expected, hurt by austerity in debt-laden Italy, Ireland and Greece and higher commodity costs.

The Athens-based company with operations in 27 countries including Russia and Nigeria said comparable net income was 109 million euros (85 million pounds), against the average of 110.1 million euros forecast in a Reuters poll of analysts.

EU-IMF austerity measures have caused sales volumes to drop in Greece and Ireland as well as Italy, where the government is also curbing spending to cope with higher borrowing costs.

But the firm stuck to its guidance for free cash flow generation and investments of 1.45 billion euros by the end of 2014.

Chief Executive Dimitris Lois is betting on potential growth in markets such as Russia. The company also sees Italy as a long-term growth market, Lois said, praising the government there for making all the right moves to deal with a debt crisis.

"We are very happy to see the initiatives from (Italian Prime Minister Mario) Monti," Lois told Reuters. "He has taken the right initiatives to balance austerity and growth," he added, referring specifically to his decision to postpone an increase in value-added-tax (VAT) rates.

CCH's total sales volumes dropped by 2 percent year-on-year to 1.01 billion cases. But sales rose for a fourth consecutive quarter by 1 percent to 3.43 billion euros.

The company took commercial and marketing initiatives, such as more creative packaging to squeeze more sales out of each case sold, Lois said. It has also been expanding for years into non-sparkling beverages such as tea and health drinks.

These moves helped the company maintain or increase its market volume share in sparkling beverages in most of its markets, including Italy, Switzerland, Austria, Russia, Ukraine, Romania and Bulgaria.

Some analysts, however, remain sceptical.

"The company will face adverse conditions in some basic markets under IMF programmes, such as Ukraine, Hungary and Greece," said Iakovos Kourtesis, an analyst with National Securities who earlier this month downgraded his recommendation on the stock to "neutral".

CCH's shares were up 0.3 percent at 1235 GMT in Athens, underperforming a 1.8 percent rise in the general index.

An expected rise of the U.S. dollar versus the euro and the currencies of other crisis-hit European countries will likely offset any benefits from an easing in raw material costs, the company said.

Input prices will rise in mid-single digits instead of high-single digits as previously forecast, according to Lois, driven by lower prices of PET, a key raw material for plastic bottles.

In an effort to improve profitability, the company will slash personnel and management costs, doubling its restructuring expenses to 100 million euros this year, up from the 50 million euros it stated earlier in 2012.

Greece's debt crisis has also fuelled speculation about the future of the company's base in Greece, particularly its listing on the Athens Stock Exchange.

But Lois dismissed the concerns, saying that any possible downgrade of the local stock market would not take place before the middle of next year and that he would try to make use of the company's other parallel listings in New York and London to make life easier for its investors.

source: nytimes.com

Greece to Present Debt Inspectors 'Alarming' Data

ATHENS, Greece (AP) — A spokesman for Greece's new government says it will present "alarming" data on its recession and unemployment to international debt inspectors this week, in a bid to renegotiate the terms of its bailout agreements.

Spokesman Simos Kedikoglou said in a television interview Tuesday that the data would demonstrate that the current austerity program was counterproductive. He did not elaborate.

Debt inspectors from the European Commission, the European Central Bank and the International Monetary Fund are due in Athens Wednesday.

Greece is relying on rescue loans from its partners in the eurozone and the IMF to avoid bankruptcy. It is in a fifth year of recession, with unemployment topping 22 percent, roughly double the eurozone average.

source: nytimes.com

Japan urges Europe to help banks after Greek election

TOKYO — Japan on Monday pressed Greece to swiftly form a new cabinet after pro-bailout parties won a weekend election, and called on European leaders to “urgently” strengthen the region’s financial sector.

Markets breathed a sigh on relief Monday after the conservative New Democracy party won most votes in Sunday’s poll, narrowly beating the anti-bailout Syriza group, easing fears Athens will exit the eurozone.

But Chief Cabinet Secretary Osamu Fujimura, the government’s top spokesman, said Japan wanted Athens and Europe’s leaders to build on the result.

“We will be paying close attention to upcoming negotiations to form a coalition” government, he told reporters in Tokyo.

“We hope that a stable government will be launched early and make progress towards stabilizing markets… We hope that European countries will urgently take measures to strengthen its financial sector,” he added.

Traders have grown increasingly worried about Europe’s lenders after Spain recently accepted a loan worth up to 100 billion euros ($125 billion) to rescue its troubled banking sector.

Speaking after a meeting of G7 finance chiefs in Los Cabos, Mexico, Japanese Finance Minister Jun Azumi said: “Greek political risks have yet to be wiped out, but I believe (Greece) has overcome one, big peak.”

Europe is a major market for Japanese products and Tokyo is a significant buyer of eurozone bonds, with officials saying Japan’s fragile economic recovery was heavily tied to the continent.

Sunday’s result helped alleviate fears of a victory by anti-austerity parties who had threatened to tear up an international bailout package, which was seen as a prelude to Greece exiting the eurozone.

“Countries should cooperate to stabilize market swings and we hope G20 leaders will issue a strong political message at the Los Cabos summit,” the government spokesman said.

source: japantoday.com

Global economy week ahead: US tiptoes around the euro crisis

WASHINGTON - The US employment report for May will measure America's economic resilience to the political turmoil in Europe that is weakening the global growth outlook.

Manufacturing slumped in both China and the euro zone in May, Britain is in recession, Brazil is stagnating and India's growth is faltering, leaving the United States as a relative bright spot in an uncertain world.

Home sales in the United States are perking up, consumer sentiment reached a four-year high in May, and the pace of job layoffs has slowed over the past month, all pointing to a gradual healing in the US economy.

Falling gasoline prices also are pumping up spending power into consumers' pockets. While there are some soft spots—capital goods orders are weak and manufacturing eased in May—it is not enough to derail a plodding US economic recovery.

The government's closely watched monthly jobs report due out on Friday could prove pivotal.

If employment gains accelerated in May to 150,000, the consensus in a Reuters poll and up from the 135,000 monthly average over the past two months, it would suggest the economy has regained internal momentum and has greater ability to withstand the headwinds from Europe.

"The global economy is struggling. There is recession in Europe, a slowdown in emerging markets that hasn't fully run its course and China decelerating. To offset this trend, you have modest growth in the United States and Canada," said Craig Alexander, chief economist at TD Economics.

"Political risks are high but if Europe muddles through, a risk that has not yet fully run its course, we should see moderate US growth continue," he said.

A weaker jobs number and a rise in the unemployment rate from the current 8.1 percent level, however, would suggest that businesses are growing increasingly wary as financial markets display unease over Europe and the rest of the world slows.

Narim Behravesh, chief economist at IHS Global Insight, said he sees little evidence yet that Europe's problems have spilled over to the United States. He said he is tempted to think that the slowdown in emerging markets is temporary, reflecting the lagged effects from their monetary tightening in the latter half of 2011. Additionally, a fresh round of stimulus measures promised by China should prevent a serious slump.

"We will probably see another couple of months of mixed data and then a firming, as long as Europe steers clear of crisis," he said.

European high-wire act

But Europe is casting a long shadow.

European Union leaders are playing a high-wire act in trying to convince the Greek public ahead of fresh elections on June 17 that they must stick to their austerity program if they wish to remain in the euro zone monetary union.

But as governments and banks draw up contingency plans to handle a possible Greek euro-zone exit, and polls show the leftist anti-austerity camp holding a lead in Greece, investors' hopes are diminishing for a happy ending in Europe.

Further complicating the picture is Spain, where the banking system needs recapitalizing and regional governments are running short of cash. This makes Spain highly vulnerable to market attack if Greece were to leave the euro. Italy, Portugal and Ireland could then be in the line of fire.

"The situation in Europe is becoming more uncertain," Michelle Meyer, a Bank of America economist, warned clients.

Lacking a clear road map for how EU leaders plan to stabilize the financial system and shore up monetary union, investors are fleeing the euro. It has lost more than 5 percent of its value in less than a month to reach a 22-month low against the dollar.

The weakening euro raises concern about spillover effects to the United States economy, even if Greece stays in the euro zone.

A costlier US dollar makes US exports more expensive in world markets, and if Europe sinks into recession, the United States will lose one of its primary export markets.

But the trade impact on the US economy would be quite small. Trade with Europe accounts for only a sliver of total US output, or 1.3 percent, and Bank of America said that recent research shows that exchange rates are far less of a factor today in determining import prices than they were in prior decades.

The International Monetary Fund, Bank of International Settlements and the US Federal Reserve have found that the pass-through effects of exchange rates to import prices have declined to about 20 percent from 50 percent in 1970s and 1980s. And the Organization for Economic Cooperation and Development found it would take a 10 percent depreciation of the euro against the dollar over one year to shave 0.1 percentage point from annual US growth in gross domestic product.

The primary impact on the United States from a worsening European crisis would be from financial markets turmoil.

If global stock markets plunged and the banking system in Europe seized up, Craig Alexander at TD Economics said, "It would be a mess. It would be welcome back to Lehman Brothers in 2008." –Reuters

source: gmanetwork.com

Tokyo shares close mixed

TOKYO — Tokyo stocks closed mixed on Monday with analysts saying worries over political uncertainty in Greece was weighing on investor sentiment.

The Nikkei 225 index at the Tokyo Stock Exchange ended up 20.53 points at 8,973.84. The broader Topix index of all first-section issues lost 0.22%, or 1.70 points, to 756.68.

The headline index turned lower during the Monday session as a bump in purchases of China-related shares ran its course, analysts said.

The buying was spurred by the Chinese central bank’s announcement Saturday that it would cut the reserve requirement ratio for banks to boost liquidity and help inject some energy into a slowing economy.

With Japanese earnings season all but done, Tokyo stocks are not likely to see sharp spikes in either direction, analysts said.

“Prices likely won’t see a catapult forward, but things are now set for a slow grind forward,” said CLSA equity strategist Nicholas Smith.

Investors are wary of turmoil in Greece, where efforts to form a coalition government have so far failed, raising the prospect of new elections that could scupper austerity reforms and possibly force the country out of the eurozone.

Greek voters earlier this month punished ruling parties in a backlash against severe austerity measures in return for multi-billion-euro international loans.

“The lack of transparency, particularly in Europe, with the possibility of Greek re-elections in mid-June, is a worry that looks to remain with us for the time being,” said Monex market analyst Toshiyuki Kanayama.

“And that will keep the investor bias to the downside,” he said.

On currency markets Monday, the euro stood at $1.2888 and 103.10 yen in Asian trade, slipping from $1.2921 and 103.26 yen in New York on Friday.

The dollar was at 79.99 yen from 79.93 in New York.

source: japantoday.com

A Perfect Family Holiday Destination

Traveling to Greece is an experience that one will surely treasure for a lifetime. Greece is located in south-eastern Europe and it's very popular for its diversified beauty perfect for family holiday destination. Greece has a good reputation for its warm hospitality, attractive landscape and large variety of beautiful beaches on the mainland as well as the islands. Each year, there are more than 16 million tourists who enter and visit Greece.




Athens is the capital and largest city in Greece and the most visited place of Greece. The city of Athens has something to offer for all tastes and ages. It offers many advantages for sight seeing, visiting the world's most famous museums.

Athens has historical and cultural significance which is symbolized by many ancient buildings constructed by sophisticated style of architecture. It shows richness of ancient culture and architecture. Visiting Athens grant and offers tourists to have the chance to learn more about the historical and cultural significance of the region, particularly the famous Acropolis. Acropolis -a Greek word which means higher city.



Athens is also known for the exclusive accommodation offered to meet the expectations and needs of travelers. There are many cheap budget luxury hotels in Greece, Athens. The Athens Plaza tops the list of the hotels that travelers should visit.


Shopping in Greece is almost as fun. There are many shops that deals with the sale of modern and elegant signature clothes, shoes etc...in the streets of Mitropoleos and Ermou.


Anyone who wants a perfect ideal travel holiday destination, Greece has something to offer for every person. Just contact your travel agent that you can really rely on.