Financial investors are watching the political fallout in Athens after its third aid programme was agreed
Energy minister: Confidence vote unavoidable
Introduction: Merkel tries to calm dissent
Two Syriza MPs who rebelled last week have warned that the party cannot rally around the bailout deal.
Thanasis Petrakos told the Mega TV channel that:
We do not intend to overthrow the government, but rather get it off the bailout course.
“The bailout cannot be the programme of Syriza, it falls outside its values, these are incompatible notions.”
A glance at last Friday’s vote on the bailout deal shows that Alexis Tsipras is far from certain to win a confidence vote.
“The government has signed the third and most onerous bailout. All the negative consequences for the country and its citizens bear the signatures of Mr Tsipras and [ANEL leader] Mr Kammenos.
We have no confidence in the Tsipras-Kammenos government and of course will not give it if we are asked.”
Greece’s energy minister also hinted this morning that the country could “go to elections soon”, in as little as three or four weeks.
And if that happens, Alexis Tsipras would be pushing for an outright majority, Panos Skourletis told Skai TV:
“Based on my feeling of how things stand… I think such a goal is attainable,”
A Greek government minister has dropped a clear hint that prime minister Alexis Tsipras will call a confidence vote in the coming days.
I consider it self-evident after the deep wound in Syriza’s parliamentary group for there to be such a move [a confidence vote].
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
We’ll be fighting off the August lull today, I fear, as policymakers and traders take a summer breather after a fairly turbulent 2015.
Related: Greece bailout deal: Angela Merkel expects IMF involvement
#greece #germany must be bad when merkel takes to evening tv to make her case
The events in China were a timely reminder to investors that all may not be well with the world’s second largest economy, as the authorities attempt to reinvigorate a flagging economy, at a time when economic data in some of its key export markets are also showing signs of flagging.
Currency markets in particular will be looking for signs of further weakness in the Chinese currency given the comments by the Chinese central bank at the weekend, which warned markets to expect further two way volatility in the coming weeks. While Chinese authorities aren’t likely to openly admit they want a slightly weaker currency, last week’s actions saw the die cast and it seems improbable that the yuan won’t slowly weaken in the coming weeks, and in the process exercise further downward pressure on global inflation.