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Tuesday July 7, 2015

// July 7th, 2015 // Comments Off on Tuesday July 7, 2015 // Daily News

Chances of Grexit 40%: Billionaire Wilbur Ross
CNBC.com
There’s a 60 percent chance Greece will stay in the euro zone because an exit and return to the drachma would be even worse, billionaire distressed asset investor Wilbur Ross said Tuesday—as European leaders were meeting in Brussels to discuss their next moves.
“The drachmaization would be terrible for the whole country, including for the banks,” because euros in accounts outside the country and “under mattresses” would not come back into circulation,” he said. “My guess is you would have the drachma trading somewhere between 25 cents to 50 cents on the euro. So it would be a pretty bad haircut for the people.”
Ross told CNBC he believes the new reforms-for-baillout aid offer expected from Greece Prime Minister Alexis Tsipras will be in the ballpark. At the end of the day, Germany wants Greece to stay in the zone, because an exit would set a precedent for other troubled nations in the union, he added.
“All the polls I’ve seen show a clear majority of the Greek people want to stay in the EU. Now, it’s also true that they don’t want austerity and those two are logically inconsistent. But certainly the impetus of the vote was not to get out of the EU, and Mr. Tsipras made clear that that was not his intention either,” said the chairman and CEO of WL Ross & Co., which is part of a group of investors that poured $1.8 billion into Greece’s Eurobank in 2014.
Tsipras promised voters a reforms-for-cash deal with creditors within 48 hours of Sunday’s pivotal referendum, which had asked citizens to vote on whether to accept the terms of an existing international bailout offer. A surprise 61 percent of Greeks voted against the proposals from creditors, which entailed austerity measures and many spending cuts.
“We’re about halfway there now and I hope he will be able to keep his promise,” said Ross.
While negotiations play out, the banks in Greece have as little a few days or maybe a week before they run out of money, Ross said.
He said the banks were already running out of 20 euro bills to dispense at ATMs—forcing branches to give out 50 euro bills instead of three 20s. Under capital controls, depositors can only withdrawal 60 euros ($65) at a time.
Greek banks—which have been closed for more than a week to prevent an exodus of cash that could risk their collapse—are expected to remain shut until Friday, according to Reuters.
Ross, however, is unconcerned about the risk of a bank run when they do re-open. “In the context of the deal there would be no reason for a big run on the banks. And I just don’t think that that’s in the cards.”
“Now if they don’t make a deal, and you do have a collapse in the economy, that could be a very different situation. But it doesn’t feel to us as though that’s what is going to happen,” he added.
When asked how long it would be before he considered selling his stake in Eurobank, Ross said it would be a while. He’s still hopeful that he can make money on his investment despite the increasingly precarious state of the country’s banking sector.
“The last quote on Eurobank stock was a tiny fraction of its book value just before they announced the moratorium and the suspension of trading. So certainly at any kind of price like that, one would be more sensible probably to be a buyer than to be a seller,” he said.
Before the interruption of the bailout talks, Greek banks were making fundamental progress, Ross noted.
“Assuming the talks go through, the ELA [emergency liquidity assistance] money will become available to the banks that will get back to business like usual, and there will be a restoration of liquidity to the economy,” he said
“You can’t have successful banks without a successful economy, and you can’t have a successful economy without successful banks. So their fates are inextricably entwined,” he stressed.

Today’s Inspiration

Acknowledge God

by Joyce Meyer – posted July 07, 2015

In all your ways know, recognize, and acknowledge Him, and He will direct and make straight and plain your paths.
– Proverbs 3:6

Acknowledging the Lord in all your ways means submitting all your plans to Him and allowing Him to work them out according to His will and desire for you. He wants you to come to know Him in the power of His resurrection (see Philippians 3:10).

It is a sign of maturity to seek God for who He is and not only for what He can do for you. So as you pause at the end of your day, seek God’s face (His presence) and get to know your wonderful, loving heavenly Father better. Acknowledge His power and experience the joy of walking in the paths He chooses for you.

Monday July 6, 2015

// July 6th, 2015 // Comments Off on Monday July 6, 2015 // Daily News

Oil falls on Greece vote, China stock market turmoil

Oil prices fell sharply on Monday after Greece rejected debt bailout terms and as China rolled out emergency measures to prevent a full-blown stock market crash, adding to worries about poor demand growth at a time of global oversupply.
The result of Greece’s referendum has put in doubt its membership in the euro, pulling down the single currency against the dollar.
A strong dollar tends to pressure commodities as it makes fuel more expensive for holders of other currencies.
Commodities were also sucked into market turmoil that has seen Chinese shares fall as much as 30 percent since June due in part to an economy that is growing at its slowest pace in a generation.
Benchmark Brent crude oil fell $1.35, or 2.2 percent, to $58.99 a barrel by 8:07 a.m. EDT (1207 GMT). U.S. light crude traded $2.50 lower at $54.43, down more than 4 percent and off a session low as $53.91.
The falls left both crude benchmarks at their lowest since mid-April.
Chinese brokerages and fund managers have agreed to buy massive amounts of stocks to support markets, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
“Uncertainty over Greece is bearish for oil. It adds an extra negative factor on top of the turmoil in Chinese financial markets, the recent rise in U.S. drilling rigs, and a potential increase in Iranian oil supply,” said Olivier Jakob, senior energy analyst at Petromatrix in Zug, Switzerland.
“The main implication is for euro/dollar and I think it will put additional pressure on the euro,” he added.
With markets already nervous due to the turmoil in Europe and China, fundamentals were also bearish.
U.S. drilling increased for the first time after 29 weeks of declines, the strongest sign yet that higher crude prices are coaxing producers back to the well pad.
Production in Russia and the Organization of the Petroleum Exporting Countries is also at or near records.
“Demand is good, but supply is better,” said Bjarne Schieldrop, chief commodities analyst at SEB in Oslo.
Putting further pressure on oil markets is a possible nuclear deal between global powers and Iran, which could add more oil to oversupplied markets if sanctions are eased.
“Reports increasingly suggest a deal is likely before July 9,” Morgan Stanley analysts said in a report.

Today’s Inspiration

Joy Unspeakable

by Joyce Meyer – posted July 06, 2015

Now to Him Who is able to keep you without stumbling or slipping or falling, and to present [you] unblemished (blameless and faultless) before the presence of His glory in triumphant joy and exultation [with unspeakable, ecstatic delight].
– Jude 1:24

I used to be so miserable when I went to bed that I wished it was time to get up. And when I got up, I was still so miserable I wanted to go back to bed. I was under the curse of not obeying the voice of the Lord or serving Him with joyfulness (see Deuteronomy 28:15–48).

Obedience to God fills our lives with so much joy that we don’t even know how to talk about it. The Bible calls it “joy unspeakable and full of glory” (1 Peter 1:8 KJV). Experience the joy of being in God’s awesome presence. Start your day by praising God for your blessings, and worshiping Him with a heart ready to serve Him.