Euro faces crisis as Greek anti-austerity wins

There is jubilation all over Greece after the anti-austerity party - Syriza won elections yesterday. But this jubilation puts the Euro under severe crisis and may usher in economic turmoil.

It is reported that Syriza leader Alexis Tsipras has pledged to renegotiate Greece's €240billion (£179billion) international bailout deal - and to reverse many of the reforms that EU creditors demanded in exchange for keeping Greece financially afloat since 2010.

It may be added that the single currency has crashed nearly 20 per cent against the greenback in less than a year – sinking from $1.39 in May to an 11-year low below $1.12 last night as Greece was set on a collision course with Angela Merkel's Germany.

Read more about it at: Daily Mail
Photo: Pixabay
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Spanish and Italian Bonds Ease

Spanish and Italian bond yields eased further Monday, extending last week’s rally as Spain’s prime minister indicated the country may ask for aid from the euro zone’s bailout fund.

Last week, Spanish Prime Minister Mariano Rajoy suggested that the debt-laden country may ask for European Financial Stability Facility aid. This followed comments from European Central Bank President Mario Draghi who said any future purchases by the central bank to tackle the euro zone’s sovereign-debt crisis would focus on short-dated debt, resulting in a sharp fall in shorter-dated Spanish and Italian bond yields and a rise in the euro against the dollar.

In addition, ECB officials have said the bank could intervene and buy the bonds of struggling euro-zone countries without unanimous approval, raising hopes that a bond-buying program is still a possibility.

Read more: The Wall Street Journal

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China's $20 billion loan offer to Africa may discomfort West

Chinese President Hu Jintao on Thursday offered $20 billion in loans to African countries over the next three years, boosting a relationship that has been criticized by the West and given Beijing growing access to the resource-rich continent. 

The pledge is likely to boost China's good relations with Africa, a supplier of oil and raw materials like copper and uranium to the world's most populous country and second-largest economy. 

But the loans could add to discomfort in the West, which criticises China for overlooking human rights abuses in its business dealings with Africa, especially in Beijing's desire to feed its booming resource-hungry economy. 

Read more: The Economic Times

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Greece euro exit threatens all Europe

GREEK poll front-runner Alexis Tsipras, buoyed by a groundswell of opposition to EU-IMF imposed austerity measures, says forcing his country out of the eurozone would sink the region as a whole.

The problems in Greece were those of Europe, Tsipras told Saturday's edition of the International Herald Tribune, and forcing his country out of the eurozone could easily bring down other countries, notably Spain and Italy which have come under increasing pressure as the crisis has spread.

"Our goal isn't to blackmail or terrorize, our goal is to shake (leaders up)," Tsipras told the newspaper.

"We want to convince them ... they need to change the policies in Greece and change the policies in Europe, otherwise Europe will be at very large risk."

Read more: Herald Sun

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Euro zone finance ministers dismiss Greek exit

Euro zone finance ministers dismissed talk of Greece leaving the euro zone as "propaganda and nonsense" on Monday, but said the country had to respect the terms of the bailout programme agreed with the EU and the International Monetary Fund.

Eurozone Crisis [Graph: Extranea ]

If Greece can form a government and that government signs up to the bailout agreement, then it's possible some of the targets in the programme could be softened, the chairman of the euro zone finance ministers, Jean-Claude Juncker, said.

"I don't envisage, not even for one second, Greece leaving the euro area. This is nonsense, this is propaganda," Juncker, who also serves as Luxembourg's prime minister, told reporters, dismissing those who threaten Greece with expulsion.

Read more: Money Control

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European shares dip as Spanish banks fall

The euro neared a three-month low and safe-haven German bonds and the Japanese yen rose on Wednesday as political disarray in Greece and the rising costs of fixing Spain's banks fueled fears the euro zone debt crisis would take a sharp turn for the worse.

The concerns over Europe added to worries about the impact of softer growth in the U.S. on the global economy to push down European shares. 

Spanish 10-year bond yields climbed back above 6 percent - a point away from levels deemed unsustainable - and investors kept a wary eye on Athens, where efforts to form a government were expected to fail, putting its bailout deal in doubt and raising the possibility of Greece being forced out of the euro.

Read more: Money Control

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US health expert chosen as the new president of the World Bank

US nominee Jim Yong Kim has been chosen as the new president of the World Bank. The Korean-American health expert is president of Dartmouth College in the US state of New Hampshire.

Aged 52, Jim Yong Kim is a doctor lauded for his pioneering role in treating HIV/Aids and reducing the impact of tuberculosis in the developing world.

He faced a strong challenge for the post, which has traditionally gone to an American, from Nigerian Finance Minister Ngozi Okonjo-Iweala.

Dr Kim will succeed Robert Zoellick, serving a five-year term beginning on 1 July, the World Bank said in a statement.

Read details: BBC News

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Wealthy Britons expected to leave Britain over fears of high crime and taxes

More than half a million wealthy Britons are expected to move abroad in the next two years amid concerns about crumbling road and rail networks, crime and high taxes, a survey reveals Sunday.

Some 19 per cent of people with savings and investments worth more than £250,000 are considering a new life overseas, which is up from 17 per cent six months ago and 14 per cent a year ago.

The figures suggest that at least 500,000 people with that level of personal wealth may leave the UK in the next two years.

Read more: Mail Online 

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What is going to be the fate of Greece

Luxembourg Finance Minister Luc Frieden said it out loud: "If the Greek people or the Greek political elite do not apply all of these conditions ... they exclude themselves from the Eurozone." All of these conditions. And there are a lot of them. Then he added the crucial words: "The impact on other countries now will be less important than a year ago."

Greece might want to decide that it would be better to exit the Eurozone, rather than actually implementing the budget cuts, Friedan said. Returning to the drachma and devaluing it might create a more competitive economy. "It might be something which would allow Greece to get a new start," he said.

Read more: Business Insider

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Moody's warns: AAA-rating for UK and France may be cut

Rating agency Moody's warned it may cut the triple-A ratings of France, Britain and Austria. And at the same time it downgraded six other European nations including Italy, Spain and Portugal, citing growing risks from Europe's debt crisis.

Moody's move was less aggressive than rival agency Standard & Poor's, but its action puts London's prized top credit rating in jeopardy for the first time.

Read details: Reuters

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Guess the size of the 'All the World's Gold Cube' and its prize

Gold has always fascinated man since earliest of the timeline and there has been a 'Gold Rush' since then to amass as much as possible. Now that much of the world's gold reserve has been in man's possession, can you make a guess how big would be a cube of gold if all the world's gold is collected to make one?

Business Insider has a possible answer. In its one of the latest post, Warren Buffett is of the opinion that the Gold Cube would be about 68-feet per side. This is four feet shorter (and considerably wider) than a tennis court. As Buffett observes, it would fit comfortably in the middle of a baseball infield.

And its price: Approximately $ 10 Trillion.

Read more: Business Insider

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Nelson Mandela: A journey from hearts to Currency Notes

Nelson Mandela, who changed the course for millions of South Africans, will now have his face featured on all South Africa’s bank notes to honour the former president’s role in fighting apartheid, President Jacob Zuma said on Saturday.      

He lived in the hearts - he will now be seen on currency notes

The announcement coincides with the 22nd anniversary of Mandela’s release from prison after serving 27 years in jail for his opposition to white-only rule.

“It is a befitting tribute to a man who became a symbol of this country’s struggle for freedom, human rights and democracy,” Zuma said.

Read more: The Express Tribune

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£45m rollover jackpot for a Briton - but no one has claimed the money

A British ticket-holder scooped more than £45million in the EuroMillions draw Tuesday night.

It is the latest big win for the UK, coming just two weeks after Mansfield couple Gareth and Catherine Bull picked up £41million.

No-one had last night come forward to claim the rollover jackpot, but the prize is seventh on the list of the largest jackpots ever to be won in the UK, totalling a life-changing £45,160,170.50p.

Read more: Mail Online

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China has no intention of 'Buying Europe'

China’s premier pledged to help Europe fight its debt crisis during a meeting Friday with German Chancellor Angela Merkel but a ruling party newspaper criticized sanctions on Iran and a human rights lawyer was blocked from meeting Merkel.

China is “willing to cooperate with Europe to fight the current crisis,” said Premier Wen Jiabao at a meeting with Merkel and German business people in the southern business center of Guangzhou. “Some people say this means China wants to buy Europe,” Wen said. “China doesn't have this intention and doesn't have this ability.”

Read more: France 24

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Facebook IPO Filing Reveals Its Stunning Financial Size

Do you know how big Facebook is? Well for sure we know by the size of its viewers and members, which run into countless millions. But a majority would not know its financial size.

The recent filing of papers for IPO (Initial Public Offering) by Facebook Monday has however let the secret open. What started from a ordinary home, the Facebook has turned into the world's leading and most liked social media network. Anyone using computer is least likely not to be member of Facebook.

And when Facebook seeks to raise $5 billion in an IPO, it should not surprise us for we know its size could have amassed fortunes. 

Facebook CEO and co-founder also enjoys the use of a private plane, and earned a base salary of $500,000 last year, more than triple the salary of Google co-founders Larry Page and Sergey Brin when Google filed for its IPO.

Read more details: Huffington Post

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England and the Czech Republic opt out of fiscal compact

While the EU members agreed to enforce budget rules - a treaty that will empower the European Court of Justice to monitor compliance and impose fines on rule-breakers, England and the Czech Republic have decided to opt out of the treaty as both governments consider it impact to threaten their interests.

The Czech Republic is not yet in the euro, but like the other new EU member states it is committed to joining.

Read more: BBC News Europe

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Iran oil halt 'would raise price 30 per cent' - warns IMF

The International Monetary Fund (IMF) has warned that global crude prices could rise as much as 30 per cent if Iran halted oil exports as a result of US and European Union sanctions.

If Iran halts exports to countries without offsets from other sources, it would likely trigger an "initial" oil price jump of 20 to 30 per cent, or about $20 to $30 per barrel, the IMF said in its first public comment on a possible Iranian oil supply disruption.

The price impact caused by a cut in Iranian exports could be exacerbated by below average oil stocks in many countries, the result of tight oil market conditions through much of last year, the IMF said.

Read more: Al Jazeera

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HSBC under scrutiny for money laundering

HSBC Holdings PLC is under investigation by a U.S. Senate panel in a money-laundering inquiry, the latest step in a long-running U.S. effort to halt shadowy money flows through global banks, according to people familiar with the situation and a company securities filing.

The inquiry being conducted by the Senate Permanent Subcommittee on Investigations could yield a report and congressional hearing later this spring, these people said. The subcommittee has a history of conducting high-profile hearings that have proved embarrassing for the world's biggest banks, reports Reuters.

Read more: Reuters

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France loses AAA rating

Standard & Poor's downgraded the credit ratings of nine euro zone countries, stripping France and Austria of their coveted triple-A status but not EU paymaster Germany, in a Black Friday 13th for the troubled single currency area.

"Today's rating actions are primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone," the U.S.-based ratings agency said in a statement.

Read more: Reuters

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China: New loans beat forecast

[ via BBC News Business ] 9 Jan

China's lending and money supply grew at a faster pace than expected as the country relaxed its credit restrictions.

New loans worth 640.5bn yuan ($101bn; £65.6bn) were issued in December, up from 562.2bn yuan in November.

Last month, the central bank cut the amount of money banks have to hold in reserve for the first time since 2008.

Read more: BBC News Business

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