Europe midday: Greece holds out for some concessions

Date: Thursday 09 Feb 2012

-Greek Prime Minister wants to revise budget targets for 2014 –FT
-Antonis Samaras continues to hold out over “letter of assurance” for EU –FT

FTSE-100: 0.16%

Dax-30: 0.59%

Cac-40: 0.38%

Euro Stoxx 50: 0.27%

Ibex 35: 0.56%

The main European equity benchmarks have come off slightly ahead of this afternoon´s press conference from the European Central Bank´s President, Mario Draghi. Investors are expected to pay careful attention in case he should provide any new details concerning next month´s long-term refinancing operations for banks.

Acting as a backdrop, markets will be watching this evening´s meeting of Eurozone finance ministers, known as the 'Euro-Group'. Contrary to expectations however, no agreement on Greece is expected to be forthcoming tonight. The reasons for this are two.

Firstly, Greece´s Primer Minister wants to revise the country´s budget targets for 2014, which means that the EU now needs (if they accept that proposal) to revise its debt sustainability estimates, the Financial Times says. That seems to come on top of the need to define further small measures which it is hoped will allow the country to meet its current deficit goals.

Secondly, Antonis Samaras, the leader of the centre-right New Democracy party, continues to hold out against European demands for a written letter stating his willingness to be bound by the commitments which the current government is taking. Mr. Samaras is widely tipped to become the new Prime Minister following elections in two months´ time. Furthermore, the leader of the other right-wing party, Laos, is thought to be unlikely to sign a letter.

EQUITIES

German car manufacturer Daimler Chrysler is an outstanding gainer today after reporting a 39% rise in fourth quarter profits.

The second-biggest Swiss lender, Credit Suisse, on the other hand, has reported sharply worse than forecast fourth quarter results due to “adverse markets” and the costs associated with reorganizing its investment bank. Its net loss amounted to 637m Swiss francs.

The best performing sectors now are: automobiles (2.81%), oil (1.27%) and banks (1.11%).

MACROECONOMY

The Dutch CPI for the month of January fell at a rate of 0.1% on the month (Consensus: 0.2%).

OTHER MARKETS

Front month crude futures are now rising by 0.31% to the $117.56/barrel mark in ICE trading.

The euro/dollar is down 0.05% to the $1.3250 mark.

AB

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