According to Reuters, sources in
Russia have it that the government of Vlad Putin is prepared to provide loans
to Greece as well as a price cut on natural gas sent to the Hellenic Republic
by the Russian state gas company, Gazprom. The Russian leader and Alexis
Tsipras, Greek Prime Minister, are due to meet in Moscow today. Reuters has
also reported that Russia is interested in unspecified Greek assets. This could
be interpreted to mean a stake or outright ownership of the Greek gas company,
DEPA, which is currently 65% owned by the Greek government sponsored Hellenic
Republic Asset Development Fund (TAPED). Apparently Gazprom has run the rule
over the Greek gas operation already, but backed off after “…failing to receive
enough guarantees over DEPA’s financial position”. Hmmmm.
Greek
IMF loan repayment and bond auction
Separately, the Managing Director of
the IMF, Christine Lagarde, is satisfied that the loan repayment instalment
that was due by Greece by tomorrow (9th. March) will be paid. She
said as much in a press release that was posted on the IMF
website last Sunday (5th March).
Of immediate interest is an auction
of Greek government bonds scheduled for today. The secondary market is already
pricing Greek debt at a very high rate of interest. The success or otherwise of
today’s auction will be a significant straw in the wind.
All of this heightened activity
around the Greek situation has the potential to cause real volatility in the
Euro against its counterparts. The markets will be poised for any and all news
from Moscow today and tomorrow and, as usual, in the absence of solid
information, rumours may be called upon to fill the gap. There are, of course,
political forces in play because of the sanctions that have been imposed on
Russia over Ukraine, and it may be assumed that the Machiavelli brothers, Vlad and
Alex, will waste no opportunity to cause possible embarrassment to their respective
adversaries in the European Union, and even further afield.
FOMC
minutes will be published later today
Since the last Monetary Policy
statement by the US Federal Reserve, we have had a particularly poor Non-Farm
payrolls report, which brings into sharper focus the dovish tone of the
statement. The minutes of that monetary policy meeting, which are due to be
published later today during the US session, will be scrutinised carefully for possible
confirmation that core interest rate rises in the USA will not, after all, take
place this year.
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