WSJ: Greece not all is Beautiful, looking closer to Macro Data

"Not only have investors forgiven Greece for its sovereign debt default only two years ago, but they seem to have forgotten that many of the same economy’s problems persist.

Indeed, the scale of investors’ collective charitableness and amnesia towards what was until recently a market pariah is only made starker by the fact that Sweden couldn’t offload the whole of Wednesday’s bond issue.

Greece raised 3 billion euro in five-year bonds at a 4.95% yield, amid 20 billion euro of orders from 550 accounts. Sweden’s 3.5 billion krona 2025 government bond issued this week only received 3.31 billion krona in bids at an average yield of 2.25%".

Around the time of the default, Greek 10-year yields were hitting 30%. What a difference a couple of years makes.

The difference isn’t just Greece’s economic fundamentals, though they have changed somewhat for the better. The depression is expected to bottom this year, with the economy returning to modest growth of 0.6% after contracting 3.7% in 2013 and 6.4% in 2012.

Yet more than a quarter of the economically active population and half of youth are unemployed. Government debt is seen reaching an eye-watering 177% of GDP this year. And the process of restructuring government and the wider economy remains as fraught as ever.

But the real difference is European Central Bank President Mario Draghi’s promise in the summer of 2012 to do “whatever it takes” to ensure the single currency’s survival.

The effect has been to assure investors that they no longer face the risk of their bonds being converted into another currency if the country withdraws from the euro or of facing default because of such a move.

Press Briefing by IMF Managing Director Christine Lagarde on World Economic Outlook 2014-21015

"Welcome to the 2014 Spring Meetings. You will have seen our numbers in the WEO that was presented a couple of days ago. For those not in the room, we expect global growth at 3.6 percent this year and 3.9 percent in 2015.

The emerging markets and developing economies continue to be the main source of growth, even if a bit slower than in the past, at 5 percent in 2014 and 5.4 percent in 2015. The advanced economies are finally strengthening a bit, with growth projected at 2.3 percent this year, and next year as well. Our overall message, the global economy is turning the corner, but the recovery is still too weak and too slow. So, our bottom line is, fairly good, but not quite good enough, can do better. For some, despite the fact that growth is strengthening, they're not feeling it. We still have 200 million people unemployed.

So, bold actions are needed to generate more rapid, stronger, and sustainable growth, as is outlined in our global policy agenda, what we call our GPA, which I know you have received overnight and I hope has made good reading for you last night. We are sharing it with you for the first time in advance. So, you probably wonder what policymakers are going to discuss during these meetings. We believe that the overriding topic for discussion will be the topic of growth, quest for higher growth, better quality growth, more inclusive growth, and sustainable growth. Now, what does that mean in practice? It means in our view overriding a trio of hurdles.

First, an extended period of low inflation in the advanced economies. The topic has been discussed. We are concerned about this potential risk in advanced economies in general, in the euro area in particular, where we know that prolonged low inflation would hurt both growth and jobs. In this context, it is encouraging that the ECB has reiterated its commitment to use unconventional measures as needed.

Second, we need to act on growth because it is just too low, and we need to act now, and that requires policy actions across the board. In the advanced economies, they need to get the pace of fiscal adjustment right and the normalization of their monetary policy right in due course as well. It will be about timing. It will be about execution. It will be about communication.

In the emerging market economies, they need to strengthen macro and prudential policies to safeguard against market volatility.

In the low-income countries, where growth continues to be strong, they need to guard against the rapid debt buildup that needs to be watched. Short-term growth, but we need to also guard against the risk of low growth in the future. To deal with that we need ambitious and coherent policies to avoid years of subpar growth and to secure global financial stability. That means that all countries, advanced, emerging, and low income, need to step up structural reforms. That is certainly the case in product and service markets, but it is also the case in labor markets. Together with that well-targeted investments, whether private or publicly funded, are needed in quite a few countries, not all.

It also means renewing the momentum on global financial reform and containing financial vulnerabilities emerging in hot spots in various places. For instance, in the non-bank sector, both in the United States and in China, and high corporate debt in emerging economies. And all of that, obviously, is taking place against the rising risk of a geopolitical nature.

Now, how can we get to that destination and face those three hurdles? Clearly, the policies that I have briefly touched on are needed, but what is also needed is cooperation. At the recent G-20 meeting that took place in Sydney, it was noted that with the right policies undertaken by the various countries, and appropriate cooperation between them, growth could actually be higher by 2 percentage points over the next five years. And that is the kind of growth trajectory that would help create jobs and improve the situation of those economies".

WSJ: Greece's Parliament suspended, for one more year, most home repossessions. Approved Dec 22nd 2013

Greece's Parliament suspended, for one more year, most home repossessions. That will keep some 200,000 families off the streets, and their overdue property loans in a state of suspended animation.

The new legislation covers only primary residencies valued at up to €200,000 ($273,000) and households with an annual net income of under €35,000. The total worth of a household's real estate and liquid assets can't exceed €270,000, while bank deposits, shares and bonds can't be valued at more than €15,000. According to the Development Ministry, 90% of Greek homeowners are protected.

 Greece's Big Four banks,National Bank of Greece,Piraeus bank, Alpha Bank and Eurobank who control more than 90% of the market between them—had been pushing for the extension, in a reversal of the way banks normally function. Under normal circumstances, lenders generally want the freedom to seize the collateral of borrowers who have defaulted.

It is a measure of how deeply troubled Greece's banking system remains that the industry has lobbied, both in Athens and Brussels, to preserve the moratorium, which began in 2008.

  Some 24% of Greek mortgages, or €17.4 billion worth, are in default, according to Bank of Greece  data. Greek real-estate prices are already down a third from their peak. A wave of repossessions, followed by widespread sales of the homes at discounted prices, could push prices down another 10% to 15%, analysts say.

That would force the banks to mark down the collateral on their remaining property loans that haven't gone sour, potentially tearing a multibillion-euro hole in their balance sheets.

"The banks certainly agree with extending the ban and their efforts are aimed at making sure it's not eliminated," Paris Matzavras, an analyst at Pantelakis Securities, said prior to the vote. "Extending it is the best case for the banks, rather than a wave of foreclosures that will depress the real-estate market further and weigh on their loan books."

The Greek government, the banks and consumer groups all favor a go-slow approach. That would entail cracking down on the 10% to 20% of borrowers who have the means to repay their loans but are choosing not to because of the moratorium, while leaving genuinely troubled borrowers untouched.

"We have no interest or desire, or the administrative capacity, to turn our banks into real-estate agencies," said a senior banker at one of Greece's Big Four lenders.

In other wobbling euro-zone countries, banks have also been reluctant to recognize the full losses on their loan portfolios. The practice of "extend and pretend," in which banks repeatedly restructure loan terms to avoid having to recognize costly losses, has been widespread in countries such as Spain. But regulators in those countries have pushed the banks to end what they regard as unrealistic forbearance policies.

That probably won't happen in Greece until 2015 at the earliest. Regulators, the banks, the government and the country's international creditors are all grappling with how to begin restructuring the country's mountain of bad debt.

Greece's central bank has proposed taking on the role of an extrajudicial mediator to arbitrate between borrowers and banks. That approach, similar to that taken by Ireland, would allow banks and borrowers to avoid Greece's judicial system, where courts can take up to seven years to resolve a case.

Meanwhile, the country's two largest banks, National Bank of Greece and Piraeus Bank, are setting up in-house divisions to manage and potentially sell some of their bad loans to investors. "No other country has had to deal with such a flood of bad loans," a senior Piraeus executive said.

WSJ: Greek Banking System Needs Additional Capital, March 6th,2014

After a deep, six-year recession, a pricked property bubble, withdrawals by depositors and an unprecedented €200 billion sovereign-debt restructuring, Greece's banks are struggling. This year, they were recapitalized with the help of a European Union loan, but together they still hold some €70 billion in bad loans—a sum equal to a third of Greece's annual gross domestic product.

With bad loans still rising and not expected to peak until late this year, the Bank of Greece had commissioned outside consultant BlackRock Solutions to assess the banks' loan portfolios, something the firm also did in 2011.

The new report, based on the BlackRock stress test, comes almost two years after Greece first received that EU loan—of €50 billion—to recapitalize the Greek banking system. To date, Greece has used up most, but not all, of that loan with roughly another €8 billion still held in reserve. In a statement, Greece's bank rescue fund said it was ready to support the four big banks if they ask for help.

As such, the additional capital needs shouldn't present a major challenge, and are largely in line with market expectations. Just hours after the Bank of Greece released its report, No. 2 lender by assets Piraeus Bank said it planned to raise €1.74 billion through a sale of additional shares to cover capital needs and to retire special preference shares now held by the Greek government.

On Friday, Eurobank plans to follow suit and announce a €3 billion sale of stock, an official at the bank said.

However, in an unusual step, Thursday's long-awaited report was released by the central bank here without the endorsement of Greece's troika of international creditors—currently in Athens—who say the true sum may be €2 billion to €3 billion higher.

This week, talks between the Bank of Greece and representatives of the troika—the European Commission, the International Monetary Fund and the European Central Bank—hit a rare impasse over the issue. They agreed on the goal and some of the terms of the latest stress test: that the banks needed to meet a minimum capital ratio of 8% and that Greece's economy would record a modest 0.6% growth rate this year. But the central bank and the troika remained apart in their estimates of the final capital needs.

"We say it's around €6 billion the banks need, the troika says it's under €10 billion, around maybe eight or nine billion," says a Greek official familiar with the talks. "But they won't tell us how they arrived at their estimate."

That may become clear only later this year when the ECB, which is due to take on a fresh banking oversight role beginning in 2015, runs its own independent stress tests of Europe's banks. Those tests are tentatively scheduled to take place in July, with the final results likely to be released in October or November, analysts say.

WSJ: Articles providing information of NBG 2013 Financial Statements..........

     March 20, 2014 1:38 p.m. ET

  The National Bank of Greece, the largest Greek lender, swung to a robust fourth-quarter profit of more than half a billion euros on tax benefits carried over from earlier years that helped offset continuing large provisions for bad loans.

The bank said it earned 547 million euros ($754 million) in the three months to the end of December, compared with an EUR81 million loss in the third quarter, reflecting EUR531 million in income from deferred tax assets and exceptional items.

Excluding those tax assets and items, the bank had a net profit of EUR16 million in the final quarter of 2013, compared with EUR8 million in the third quarter. Provisions remained high at EUR388 million in the fourth quarter, little changed from the July-September period.

Due to mergers and material changes to Greece's banking system, NBG's latest earnings aren't directly comparable with year earlier data.

After a deep, six-year recession, the pricking of the Greek property bubble, withdrawals by depositors and a EUR200 billion sovereign-debt restructuring, Greece's banks are struggling. Last year, they were recapitalized with the help of a European Union loan, but together the banks still hold some EUR70 billion in bad loans among them, a sum equal to a third of Greece's annual gross domestic product.

After a deep, six-year recession, the pricking of the Greek property bubble, withdrawals by depositors and a EUR200 billion sovereign-debt restructuring, Greece's banks are struggling. Last year, they were recapitalized with the help of a European Union loan, but together the banks still hold some EUR70 billion in bad loans among them, a sum equal to a third of Greece's annual gross domestic product.

Earlier this month, Greece's central bank said the country's four big lenders—NBG,Piraeus Bank SA,  Alpha Bank AE  and Eurobank Ergasias—would need to raise another EUR5.8 billion in total to shore up their fragile balance sheets and cope with that mountain of bad loans.

Updated March 6, 2014 2:20 p.m. ET

"Eurobank, now under state control, faces the biggest shortfall—it needs another €2.9 billion in capital—followed by market leader National Bank of Greece, which must raise some €2.2 billion, the central bank said. Piraeus faces a €425 million shortfall, and Alpha Bank needs €262 million. Including two other, smaller lenders, the capital needs facing Greece's entire banking sector total €6.4 billion. The four big banks hold about 95% of the country's banking-sector assets".

• August 29, 2013, 11:59 a.m. ET

Leading Greek Lender Returns to Profit

ATHENS--National Bank of Greece SA (NBG), the country's leading lender, turned a profit in the first half of the year, boosted by gains from international operations and lower provisions for bad loans at home.

The bank reported a net profit of EUR344 million versus a loss of EUR1.9 billion in the same period a year earlier. For the second quarter of 2013, NBG postd an adjusted net profit of EUR126 million.

With the country in its sixth year of recession, NBG booked EUR853 million in losses on sour loans, down 29% year-on-year.

The bank, which had expanded into neighboring markets before the country's debt crisis erupted three years ago, said that operations in southeastern Europe were starting to turn profits. Its Turkish unit Finansbank added EUR180 million to the bank's core profitability.

"NBG has the comparative advantage of its significant presence both in Turkey and Southeast Europe, dynamic regions that enable it to diversify its sources of income, thus adding substantial value to the group," said CEO Alexandro Tourkolias in a statement.

"Our second quarter performance adds to the more optimistic climate. In particular, the group's core profitability was positive for a third consecutive quarter, pointing to a return to healthy results, a necessary condition for sustainable growth."

Net interest income, a measure of the bank's core revenue, fell 9% year-on-year to EUR1.6 billion.

Like other Greek lenders, NBG said that it has improved its funding mix and reduced its reliance on emergency loans from the Greek central bank, which fell below the one billion mark at the end of August.

Boao Forum: Premier Li highlights Asian integration, China's growth impetus

BOAO, Hainan, April 10 (Xinhua) -- Chinese Premier Li Keqiang on Thursday said China will forge ahead with other Asian countries, sharing weal and woe, to open up new vistas from Asia's development.

China's economy has got off to a stable and good start this year, Li said when delivering a keynote speech at the opening ceremony of the Boao Forum for Asia (BFA) Annual Conference 2014 held in Boao, a coastal town in south China's Hainan province.

Li's remarks came as China's stumbling trade figures weighed on the market confidence over the country's economic strength.

Exports slumped by 6.6 percent in March from a year ago and imports were down 11.3 percent, the General Administration of Customs said Thursday.

Li assured his audience of over 1,000 Asian political and business leaders that China's development has strong resilience, despite downward pressure and difficulties.

CHINA'S GROWTH IMPETUS

"We have the capabilities and confidence to keep the economy functioning within the proper range," Li said.

The world's second largest economy has set its target of economic growth for 2014 at about 7.5 percent.

"As long as there is sufficient employment and no major fluctuations, actual GDP growth will be within the proper range, be it slightly higher or lower than the target," he said.

China will generate impetuses for growth by deepening reform, adjusting the economic structure and improving people's livelihoods, the premier said.

Li also emphasized a new stage of quality and performance, after rapid growth over the past three decades and more.

The government will not resort to short-term stimuli because of temporary economic fluctuations and will pay more attention to sound development in the medium to long run, said Li.

Li is confident that the government has equipped itself with new weapons in the macro-control arsenal, and tried to disperse market jitters over future development, said Wang Jun of China Center for International Economic Exchanges, a government think tank.

During his speech, Li numerated conditions for the economy to achieve sustained and sound growth.

China has a big economy and large foreign exchange reserves. There is still great room and opportunity in the new type of industrialization, IT application, urbanization and agricultural modernization, the premier said.

Narrowing the gap between urban and rural areas and among different regions will also unleash huge potential for growth, he added.

Before elaborating on China's economy, Li gave time to calls for Asian countries to re-energize the region in face of new developments and new challenges.

Asian countries need to build a community of shared interests, common destiny and shared responsibilities, Li said.

"Economic integration is central to development in Asia," said the premier.

Asian countries need to work together in liberalizing trade and facilitating investment, as well as upgrading regional and sub-regional cooperation, he added.

China will work to advance negotiation on the Regional Comprehensive Economic Partnership (RCEP), and is taking an open position towards the Trans-Pacific Partnership (TPP), Li said.

Wang said RCEP will boost Asian integration by improving policy-making communication, infrastructure connectivity, trade, currency swaps and people-to-people exchanges in the region.

Li also highlighted the importance of a peaceful and stable regional environment, urging Asian countries to build consensus, make active efforts and jointly fulfill their due responsibilities.

Li underscored again China' s commitment to peaceful development and its resolution to defend its territorial sovereignty.

"We will give full support to initiatives that help strengthen maritime cooperation," Li said, "on the other hand, we will respond firmly to provocations that undermine peace and stability in the South China Sea."

The premier's speech made clear that China's development is based on cooperation with other Asian countries, which will in return benefit Asia' s overall development, said Zhao Qizheng, former minister of the State Council's information office

"The speech displays China's aspiration to realize Asia's common prosperity, and it also shows the country's willingness to shoulder its international responsibilities," Zhao said.

As an international non-governmental and non-profit organization founded in 2001, the BFA works to promote regional economic integration and bring Asian countries closer to their development goals.

The theme for this year's conference is "Asia's New Future: Identifying New Growth Drivers" .

Australian Prime Minister Tony Abbott said BFA now rivals Europe's Davos Forum held in Switzerland, and does so much to showcase the Asian-Pacific region.

"I'm pleased to be the fourth Australian Prime Minister to attend the forum, and will be a regular participant in the future," he said.

Source: Xinhua

Justin Yifu Lin said Tuesday,Emerging economies should help set world trade rules * former Chief Economist and Senior Vice President of the World Bank

Emerging economies, particularly China, should help draw up new world trade rules, former Chief Economist and Senior Vice President of the World Bank Justin Yifu Lin said Tuesday.

Lin made the remarks at a TV panel discussion at the ongoing Boao Forum for Asia in south China's Hainan Province.

As an important trading partner for all major economies around the Pacific rim, China should join in the discussion of the Trans-Pacific Partnership (TPP) that includes members like the United States, Australia and Japan.

The old world trade rules were set up by advanced industrial nations, Lin said, but with the rise of other economies, the world must accept a new scenario and allow emerging economies to draw up new rules for the world trade.

Zhiwu Chen, professor of finance at Yale University, who also joined the discussion, said Asian countries should build mutual trust to help ease geopolitical tensions in response to signs of slowdown in the economic integration process in Asia over the past several years.

Alwyn Didar Singh, secretary-general of the Federation of Indian Chambers of Commerce and Industry, said Asian countries should strive to promote the development of Asean+N free trade zone model in a bid to promote economic integration.

With deepening economic integration and global industrial division, the benefits of free trade can be demonstrated by places with comparative advantages churning out goods at competitive prices, said Singh.

Source: Xinhua

Nasdaq Tumbles, S&P 500 is on track to end below key support 50-day moving average

U.S. stocks sank on Thursday, with the Nasdaq Composite falling the most in a day since June 2012 as investors again sold high-flying names in the technology and biotech sectors.

The S&P 500 was on track to close below its 50-day moving average for the first time in more than two months. The broad index also broke below the 1,840 level that has served as technical support since late February.

The Dow Jones industrial average .DJI fell 259.19 points or 1.58 percent, to 16,177.99. TheS&P 500 .SPX lost 37.68 points or 2.01 percent, to 1,834.50. The Nasdaq Composite .IXIC dropped 130.017 points or 3.11 percent, to 4,053.884.

Source: Reuters

US TECH AND BIOTECH SLUMP

Putin warns gas Taps to Ukraine can be Turned OFF

  Source: Dow Jones Newswire

WSJ: U.S. Stock Indexes Data by Sectors

WSJ: Markets in Thrall to Central Banks,Dislike disappointing data

           The Wall Street Journal Reports,"'We’ve had more proof that financial markets are in thrall to central banks rather than caring about the health of the economy. Data out of Asia and Europe were disappointing, with China suffering a drop in both exports and imports and with industrial production in Italy softening as deflation worries persisted in France. Yet markets are stronger everywhere today. In Asia, that was partly explained by the largely expected but still significant news that China will allow Hong Kong shares to trade in Shanghai, marking a further easing in capital controls. But the real driver has been expectations of continued monetary accommodation from central banks. First, it was the minutes from the Federal Open Market Committee yesterday, which gave the impression that the Fed is eager to convey a message that it wants to keep providing long-term stimulus. Then it was the poor data in Europe, which, rather than unnerving investors, simply raised expectations that the European Central Bank will take aggressive steps to ward off deflation''.

''March trade data for China  surprised sharply to the downside, but analysts noted that it was largely due to the distorting effect on the comparative from a year ago, when overinvoicing artificially inflated the value of exports as companies tried to skirt limits on bringing cash into the country. Exports dropped 6.6% on-year vs. 4.2% growth expected, while imports fell 11.3%, leading to a trade surplus of $7.7 billion after an unusual monthly deficit in February.

The March trade data is important because it’s the first month not affected by the Lunar New Year distortion, and the headline figures raised questions about the strength of China’s economic growth. Still, most observers noted that overinvoicing was at its peak a year ago, so the apparent decline in exports especially should be taken with a big grain of salt (indeed, the decline compared to last year was most precipitous in exports to Hong Kong and Taiwan, the two key sources of false invoicing). Accounting for that discrepancy, analysts said exports likely grew 5%-7% on-year. More problematic is the decline in imports, which adds to the picture of China’s slowing growth. SpeakingThursday, Premier Li Keqiang reiterated that the leadership wouldn’t be troubled if growth comes in a bit below their 7.5% target for the year''.

A Contrarian Approach to Investment, Greece. Don't expect an hyperbolic Rise. Risk vs Reward have changed.

For most investors, Greece represents economic catastrophe and is seen as a good way to make money disappear. But the worst may be coming to an end in this mediterranean nation and investors could be ready to pour the money back into the Hellenic Republic.

Progress so farAlthough Greece still has unemployment figures north of 25%, meaningful progress is being made in other categories. In a recent article in The Guardian, Greece's finance minister, Yannis Stournaras, highlighted some of the examples.

• Current estimates predict positive economic growth for Greece in 2014
• 10 year Greek bond yields have dropped significantly to within 550 basis points of German debt
• Major Greek banks are successfully raising capital
• Unemployment appears to be stabilizing
• Government reforms are making Greece more competitive
• Net tourist receipts increased 18.1% for 2013 and exceeded targets
• Exports of goods and services rose 1.8% for 2013

Return of the money?For the past few years, raising money in Greece has been extremely difficult. In mid 2013, only three of the four major banks were able to raise even 10% of their capital needs from private investors and National Bank of Greece (NYSE: NBG  ) just squeaked over the minimum requirement for private capital sourcing. At the same time, the Greek government itself was reliant upon loans from the troika to meet its own obligations.

The situation is very different today for both Greek companies and their government. To meet capital requirements, Piraeus Bank and Alpha Bank raised a combined 2.95 billion euros from private investors. National Bank of Greece needs to come up with 2.2 billion euros in additional capital but has already said it will not need to issue new common shares while naming asset sales as a potential way to raise capital. Even virtually nationalized Eurobank is attracting private investor interest where interest from private investors currently exceeds the bank's minimum capital requirement.

The Greek government could also begin to tap the private sector again. Recent reports suggest that the government is looking to return to the private markets in the next three months through the sale of a five year bond.

Source: The Motley Fool

U.S. Jobless claims fall to nearly seven-year low

 The number of people who applied for U.S. unemployment benefits last week fell to a nearly seven-year low of 300,000, a sign the labor market might be experiencing a spring revival. Initial claims in the seven days ended April 5 sank by 32,000 from a revised 332,000 in the prior week, the Labor Department said Thursday. The last time claims were that low was in May 2007, six months before the Great Recession began. Economists polled by MarketWatch expected claims to total a seasonally adjusted 320,000. The average of new claims over the past month dropped by 4,750 to 316,250, marking the second lowest read since the end of the recession. The monthly figure smooths out the jumpiness in the weekly data and offers a better look at underlying labor-market trends. Also, the government said continuing claims decreased by 62,000 to a seasonally adjusted 2.78 million in the week ended March 29. Continuing claims reflect the number of people already receiving benefits. Initial claims from two weeks ago were revised up to 332,000 from 326,000.

Source:  Marketwatch

Greek Bond Sale Tops $4 Billion in Return to Markets Should we take a chance?

Greece ended a four-year exile from international markets with a bond sale of 3 billion euros ($4.2 billion), more than the government estimated.

The coupon on the bond, which will be settled next week, is 4.75 percent, with almost 90 percent of the issue going to long-term investors outside Greece, the Athens-based Finance Ministry said in an e-mailed statement announcing the sale. The order book for the issue exceeded 20 billion euros, according to a person familiar with the matter who asked not to be identified because he isn’t authorized to speak about it. A Greek government official told reporters in Athens yesterday that the country sought to raise 2.5 billion euros.

“Greece returns to the bond markets under the same or even better terms than Ireland andPortugal,” Greek Deputy Prime Minister Evangelos Venizelos told reporters in Athens earlier today after meeting with Prime Minister Antonis Samaras.

“We welcome this,” Poul Thomsen, the IMF’s mission chief to Greece, said yesterday. “It’s a fundamental objective of the program to bring Greece back to market and this is an important milestone in this regard, and that clearly speaks to the success of the program.”

The yield on Greek 10-year bonds climbed five basis points, or 0.05 percentage point, to 5.94 percent at 2:24 p.m. Athens time. The rate fell 27 basis points yesterday, and touched 5.80 percent, the least since February 2010.

Greek securities returned 33 percent in the year through yesterday, the most among sovereign-debt markets tracked by the Bloomberg World Bond Indexes.

Greece won approval this month from euro-area members for an 8.3 billion-euro aid payment, the first disbursement from its bailout program since December. The government and European Union predict that the Greek economy will expand 0.6 percent in 2014 after six consecutive years of contraction that has cost about a quarter of the nation’s economic output and sent theunemployment rate surging.

“The real economy is showing encouraging signs of recovery,” Greek Finance Minister Yannis Stournaras said at a conference in Athens today.

   Source: Bloomberg

   Not a bad idea to take a chance on Greece,now that the picture is much better.

National Bank Of Greece (ADR) (NYSE:NBG) The Program I Of Mortgage Covered Bonds

 There was a recent release of Program I by National Bank Of Greece (ADR) (NYSE:NBG) and has been rated as B+.  It has been given an updated outlook of ‘Stable’ from the earlier ‘Negative’ outlook. There has been overall positive news from the earnings side for National Bank Of Greece (ADR) (NYSE:NBG).

Raising money in Greece

For past two or three years to raise money in Greece has become very difficult. By the mid of year 2013, there were only four major banks that were able to raise 10% of their capital needs with the help of private investors. In all this National Bank Of Greece (ADR) (NYSE:NBG) just made their way marginally by touching the minimum private capital sourcing. There is a difference in the situation today as National Bank Of Greece has to come up with 2.2 billion Euros as an additional capital.

The limitations of U.S investors

There are a lot of limitations for the investors in U.S to put their investments in Greece. The major reason is the small number of Greek companies on major U.S exchanges. To get larger investment options, the investor can open an account with greater reach to international trading. There are few platforms that allow trading on the Frankfurt Stock Exchange. This exchange has a few more Greek companies added to it. To get even more options an account with a reach to Athens Stock Exchange can be a major benefit. If the investment needs to be done within U.S then investing in the National Bank Of Greece (ADR) (NYSE:NBG) is a better option. To get more exposure of the Greek stocks across the major industry segments, the Global X FTSE Greece 20 ETF has many of them.

Source: NYSEPOST

   

New York Times: European Finance Ministers Approve New Loans for Greece April 1, 2014

By NIKI KITSANTONISAPRIL 1, 2014

ATHENS — Euro zone finance ministers, meeting in Athens under tight security on Tuesday, approved the release of 8.3 billion euros in rescue loans to Greece, pointing to signs that the country is emerging from its economic crisis.

“It has been an arduous process, but now we have a positive outcome,” Jeroen Dijsselbloem, the Dutch finance minister and head of the Eurogroup of finance ministers, said at a news conference in Athens announcing loans worth $11.5 billion.

In light of recent street demonstrations by Greeks protesting the belt-tightening measures that have been necessary to keep the bailout money flowing, security in Athens was stepped up for the event. The police banned demonstrations in much of the city center, and helicopters circled the site where foreign dignitaries were gathered.

The talks focused on the progress of Greece’s economic overhaul and the enduring problem of unemployment that plagues much of the euro zone. The agenda also included the continued efforts to form a more unified banking system in Europe, a possible package of financial assistance to Ukraine and the political context in France after the ruling Socialists’ big losses in local elections over the weekend.

As for Greece, Mr. Dijsselbloem said a seven-month review by the country’s international lenders — the troika consisting of the European Commission, the European Central Bank and the International Monetary Fund — “can now be closed” after the Greek Parliament’s approval of economic overhauls on Monday.

The provisions included contentious measures lifting barriers to competition and a new framework for the recapitalization of Greek banks. The troika’s review was the longest — and Greek officials said it was the toughest — since Athens signed its first loan agreement with the lenders in the spring of 2010.

Greek officials and representatives of the lenders said efforts to overhaul the economy had yielded the first indications of a return to growth in Greece after six of years of grinding recession that has hammered living standards and pushed unemployment to a record level of nearly 28 percent. Officials in Athens are eager to begin talks on lightening the huge debt burden, considering that Greece is on track to post a budget surplus this year before debt repayments. It forecasts that this primary surplus will come in at €2.4 billion for 2013.

Asia Markets live blog: More trade-deficit disorder for China?

Hong Kong markets seem to have lost their steam after China published disappointing trade data for March, sending the Hang Seng Index off its early gains. The index — which had gained 0.4% in the opening minutes — is now down 0.3%.

Mainland Chinese banks and other financial stocks retreated, with Agricultural Bank of China leading the sector’s retreat with a 2.9% drop. Similarly, China Merchants Bank has declined 2.6%, China Minsheng Banking Corp. is down 2.2%, Bank of Communications has pulled back 1.7%, and both ICBC and China Construction Bank are moving 1.6% lower.

Among the brokers and other financial-service providers, Guotai junan International is down 2.5%, China Galaxy Securities is off 1.6%, and China Everbright is weaker by 1.3%.

Likewise, several leading property developers are also suffering heavy losses, as China Resources Land slides 4.3%, Country Garden Holdings falls 4%, China Overseas Land & Investment skids 2.6%, and Poly Property Group gives up 2.3%.

But tech stocks appear to be keeping up their recent momentum, with Tencent Holdings advancing 1.9%, and online firm China Binary Sale Technology is rising 1.1%.

Over on the mainland exchanges, the Shanghai Composite Index is edging lower by 0.2%, dragged by property stocks.

Source: MarketWatch

New China Central Bank Chief Economist Pushes Liberalization Plan

        The Wall Street Journal reports, "the Chinese central bank's new chief economist is pushing a plan to liberalize the country's financial system within three years, according to economists briefed on the plan, as the country looks for reforms to sustain growth".

Ma Jun, until recently Deutsche Bank AG  's top China economist, presented a proposal for remaking China's monetary policy at a closed-door economic-policy session held by the People's Bank of China and the International Monetary Fund on March 27 in Beijing. Mr. Ma was still at Deutsche Bank then, but his talk was followed closely because he was expected shortly to join the PBOC as its first chief economist.

Mr. Ma said China should liberalize in steps, according to participants at the IMF-PBOC meeting. First it needs to establish a central bank-blessed interest rate that would set a benchmark for lenders. China's interbank rate—the rate that banks lend to one another—could serve that purpose.

During a first stage of reform, Mr. Ma said, according to participants, the PBOC should keep its intentions about the interbank market quiet and target a broader measure of money supply, known as M3. If the interbank lending system stabilized, China could shift fully to a monetary policy based on interest rates within three years, he said, according to those present.

In the end, the PBOC would set the interbank market rate, and banks would be free to charge what they like for deposits and loans.

The IMF has urged the PBOC to act carefully as it liberalizes interest rates and to put in place a bank deposit insurance system and improved regulation, among other measures. In other countries where banks have been freed from government fiat to set bank deposit rates according to competition, some have gone on lending sprees that have ended badly.

Chinese Exports Fall 6.6% in March

   The WSJ reports,"China's exports fell 6.6% in March from a year earlier, data from the General Administration of Customs showed Thursday.

This was an improvement from February's 18.1% decline but still well below the median forecast for 4.2% growth from 16 economists surveyed by Dow Jones.

Imports also fell 11.3% from a year earlier, compared with a 10.1% increase in February, missing the economists' median forecast of a 2.8% increase.

China posted a trade surplus of $7.71 billion in March after reporting a $22.99 billion deficit in February. The economists' median forecast was for a $1.75 billion surplus".

Fed dropped jobless target in secret meeting

Federal Reserve officials had a secret video conference call in early March to discuss overhauling its communication to the market and reached a general consensus that the 6.5% unemployment rate threshold for the first rate hike was outdated, the central bank said Wednesday. A summary of the video conference was included in the minutes of the Fed's March 18-19 meeting released by the Fed. On the conference call, the central bankers were clearly worried that changing the forward guidance would impact markets. They noted that, going into the video conference, the Fed and the markets were on the same page about the outlook for short-term interest rates. The minutes of the March 18-19 meeting also reveal that there was concern that the markets would read too much into the "dot plot" which showed an upward shift in the Fed's expectations for short-term rates. Officials also spelled out headwinds that would keep rates low even after the first rate hike. These headwinds included higher precautionary savings by consumers.

Source: Marketwatch

Chile: State copper producer expects funding to top last year's

State copper producer Codelco should receive more government funds this year than Chile allocated for the world's No. 1 red metal miner in 2013, the country's mining minister told Reuters on Tuesday.

The previous, conservative government handed Codelco $1 billion in 2013. That was followed by a second distribution of $1 billion, but Codelco said that tranche was essentially an accounting change that did not amount to comprehensive funding for the ambitious and costly overhaul of its tired mines.

Williams added that the new center-left government was serious about reaching solutions soon for financing the cash-strapped miner.

Copper was nationalized in 1971 under socialist Chilean president Salvador Allende. Codelco has since become a crucial motor of economic development in Chile, the world's No. 1 copper producer.

The company hands all its profit over to the state, which then decides on an annual basis how much to return to the miner. This erratic financing mechanism exposes Codelco to the whims of the government at a time when Chileans are clamoring for improved social spending. This year will be a crucial test of whether the government of Michelle Bachelet has the political capital and will to reform the system.

Codelco, which produces around 10 percent of the world's copper supply, plans to invest roughly $30 billion to counter dwindling ore grades in its massive Chilean deposits.

Source: Reuters

WSJ : Copper Titans Gather as Glut Overshadows Quakes in Chile

       The Wall Street Journal reports,"the world’s strongest earthquake in a year and hundreds of aftershocks rattled the copper-rich Atacama Desert last week, forcing almost a million people to seek refuge from tsunamis. The copper market barely reacted".

The metal is down 0.7 percent in Londonsince Anglo American Plc to Antofagasta Plc temporarily halted some operations after an 8.2-magnitude temblor struck on the evening of April 1. Investors’ indifference is explained by surging global output at a time of waning Chinese demand growth.

As tremors continue to shake northern mines, it will be the prospect of the biggest global glut since the so-called super-cycle began -- and how miners are reacting by shelving expansions and shoring up balance sheets -- that dominate discussion at the industry’s annual get-together in Santiago this week. Chile, the top producer, is opening three mines in a year, more than it has started in the past decade.

“Demand is not going to grow by the same margin, which is going to generate a significant surplus,” Alvaro Merino, head of research at Chilean mining society Sonami, said in an April 4 interview. “You are really going to see this increase in the second half of this year.”

New mines will help increase global production by 4.7 percent in 2014 and 7.3 percent next year, according to the Lisbon-based International Copper Study Group. That compares with an estimated 3.2 percent demand growth and 3.6 percent in 2015. 

CRU estimates a surplus this year of 140,000 tons, Vanessa Davidson, copper group manager at the London-based metals researcher, said in a March 24 interview. That’s almost four times bigger than previously estimated. The excess will widen to about 250,000 tons in 2015 before exceeding 400,000 tons a year later, Davidson said at the time.

Copper for delivery in three months declined 10 percent this year to $6,612.50 a ton on the London Metal Exchange. Prices reached the lowest level since 2010 last month amid concern about slumping demand in China and a release of metal held as finance collateral.

Copper’s price slump has led to companies shelving projects that might bring the shortages of the past decade back as early as 2017, according to Sonami.

About 40 percent of the $110 billion of projects under consideration in Chile are being revised or have been postponed, Sonami’s Merino said. Also, much of the investment needed is to replace declining output from aging mines. Mining companies spent $54 billion between 2004 and 2012 without raising output, according to Sonami.

Greece to Issue First Long-Term Bond Since Bailout

     The WSJ reports: ''Greek bonds are rallying fast while bankers seek investors for the country's first long-term debt since its international bailout four years ago.

The country will finalize a deal Thursday to sell at least €500 million ($689.9 million) of five-year bonds, according to one of the banks running the deal. People familiar with the matter said the sale could run to a total of €2.5 billion, and that yields will be around 5.25% to 5.5%. Greece has no outstanding five-year debt to use as a yardstick, but the country's outstanding 10-year bond yields sank by a quarter of a percentage point Wednesday to 5.85%''. 

THE GUARDIAN: Russia to meet EU and US for talks over Ukraine crisis

The Ukrainian authorities have said they will end the occupation of administrative buildings by pro-Russian separatists in the east of the country, either by negotiations or force, within 48 hours, as four-way talks between Russia, Ukraine, the US and EU were announced for next week in an attempt to defuse the tense situation.

"A resolution to this crisis will be found within the next 48 hours," said the interior minister, Arsen Avakov, in Kiev, referring to the eastern cities of Luhansk and Donetsk where protesters remained in control of government buildings.

"For those who want dialogue, we propose talks and a political solution. For the minority who want conflict they will get a forceful answer from the Ukrainian authorities," he said.

In Luhansk, the protesters did not appear in the mood to compromise, and on Wednesday were reinforcing the barricades around the security services building they have seized, and preparing petrol bombs.

In Donetsk, protesters remain in control of the local administration building, from where on Monday they proclaimed Donetsk an independent republic and said they would hold a referendum within a month on the region's status and whether it should appeal to join Russia.

In Kharkiv, protesters also seized the local administration building, but were removed by security forces, who arrested 70 people.

Kiev has claimed the protesters are directed by Russian security services, and on Tuesday, the US secretary of state, John Kerry, accused Moscow of stirring up unrest, possibly as a pretext for Crimea-style military intervention.

Many locals in eastern Ukraine have concerns about the new government in Kiev, but support for actually joining Russia, unlike in Crimea, is not widespead.

In Moscow, President Vladimir Putin is due to meet with his cabinet on Wednesday and discuss possible economic responses to Ukraine. The Russian gas monopoly, Gazprom, says Russia has not received any money for March gas deliveries and still has a $2.2bn (£1.3bn) debt outstanding from Ukraine. Kiev has said it will pay the debt but has protested at an 80% rise in gas prices announced last week.

Diplomats will hope that four-way talks next week could help to defuse the situation.