Blog
Wednesday Feb 15, 2012
MEMBERSHIP of Greece in the eurozone has been thrown dramatically centre stage with the Greek finance minister saying some countries wanted it out and Germany complaining of "a bottomless pit".
The two statements overnight amounted to the clearest evidence yet that Greece is fighting for its life in the eurozone after finance ministers issued another ultimatum yesterday on a debt rescue to avert imminent Greek default.
In Athens, Greek Finance Minister Evangelos Venizelos declared: "The country is on a knife's edge."
He said: "We have to tell the Greek people the truth. ... There are several (eurozone countries) who no longer want us."
He warned against those who "play with fire, both abroad and inside (the country), some with torches, others with matches. ... In any case, the danger is great."
But the Greek Government assured overnight that it would meet outstanding conditions for a debt rescue by the end of the day.
In Germany, Finance Minister Wolfgang Schaeuble told SWR radio: "We want to do everything we can to help Greece ... we can help but we are not going to pour money into a bottomless pit."
Expressing doubts that the Greek Government to emerge in coming elections would enact promised reforms, he said: "We have always said that all conditions must be fulfilled before we can take final decisions and that the time was pressing.
"I have doubts that all conditions have been fulfilled."
Eurozone finance ministers said they still had not received details on two conditions they have demanded for approving a second rescue of 130 billion euros ($160.27 billion) tied also to a debt write-off by private banks.
The hours are running out because the technical procedures to restructure debt under the banking write-down take time and Greece must redeem 14.5 billion euros of debt on March 20.
Eurozone finance ministers have set deadline after deadline for acceptance of conditions on the second rescue by the European Union and International Monetary Fund.
Having abandoned a meeting due yesterday, they were to confer today but their next meeting is set for Monday.
Meanwhile, with new economic data showing the eurozone edging closer to recession, the single currency bloc got a boost from Beijing as China's top central banker said his country would help Europe by continuing to buy its debt.
The eurozone put their approval of a new bailout on hold yesterday because Greece had still not come up with an extra 325 million euros in promised budget cuts.
Eurozone leaders are also demanding written pledges from Greek politicians, who face a snap vote in April, that all austerity measures promised to EU and IMF creditors will be implemented whatever the electoral outcome.
Greece needs the 230 billion euro rescue package - 130 billion euros in fresh loans and a 100 billion euro write down on privately-held bonds - to avoid defaulting on March 20.
Luxembourg Prime Minister Jean-Claude Juncker, head of the group of eurozone finance ministers, decided to switch the meeting to a conference call among finance ministers.
"I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the program," Mr Juncker said.
The Greek Parliament approved 3.2 billion euros in cuts on Monday despite riots in the streets of Athens, but the eurozone, exasperated by unfulfilled promises in the past two years of crisis, wants more proof of Greece's commitment to reform.
The scheduled talks in Brussels on Monday are now the new deadline although government sources said that Greece will give its assurances in a letter today.
Read more: news.com.au
The two statements overnight amounted to the clearest evidence yet that Greece is fighting for its life in the eurozone after finance ministers issued another ultimatum yesterday on a debt rescue to avert imminent Greek default.
In Athens, Greek Finance Minister Evangelos Venizelos declared: "The country is on a knife's edge."
He said: "We have to tell the Greek people the truth. ... There are several (eurozone countries) who no longer want us."
He warned against those who "play with fire, both abroad and inside (the country), some with torches, others with matches. ... In any case, the danger is great."
But the Greek Government assured overnight that it would meet outstanding conditions for a debt rescue by the end of the day.
In Germany, Finance Minister Wolfgang Schaeuble told SWR radio: "We want to do everything we can to help Greece ... we can help but we are not going to pour money into a bottomless pit."
Expressing doubts that the Greek Government to emerge in coming elections would enact promised reforms, he said: "We have always said that all conditions must be fulfilled before we can take final decisions and that the time was pressing.
"I have doubts that all conditions have been fulfilled."
Eurozone finance ministers said they still had not received details on two conditions they have demanded for approving a second rescue of 130 billion euros ($160.27 billion) tied also to a debt write-off by private banks.
The hours are running out because the technical procedures to restructure debt under the banking write-down take time and Greece must redeem 14.5 billion euros of debt on March 20.
Eurozone finance ministers have set deadline after deadline for acceptance of conditions on the second rescue by the European Union and International Monetary Fund.
Having abandoned a meeting due yesterday, they were to confer today but their next meeting is set for Monday.
Meanwhile, with new economic data showing the eurozone edging closer to recession, the single currency bloc got a boost from Beijing as China's top central banker said his country would help Europe by continuing to buy its debt.
The eurozone put their approval of a new bailout on hold yesterday because Greece had still not come up with an extra 325 million euros in promised budget cuts.
Eurozone leaders are also demanding written pledges from Greek politicians, who face a snap vote in April, that all austerity measures promised to EU and IMF creditors will be implemented whatever the electoral outcome.
Greece needs the 230 billion euro rescue package - 130 billion euros in fresh loans and a 100 billion euro write down on privately-held bonds - to avoid defaulting on March 20.
Luxembourg Prime Minister Jean-Claude Juncker, head of the group of eurozone finance ministers, decided to switch the meeting to a conference call among finance ministers.
"I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the program," Mr Juncker said.
The Greek Parliament approved 3.2 billion euros in cuts on Monday despite riots in the streets of Athens, but the eurozone, exasperated by unfulfilled promises in the past two years of crisis, wants more proof of Greece's commitment to reform.
The scheduled talks in Brussels on Monday are now the new deadline although government sources said that Greece will give its assurances in a letter today.
Read more: news.com.au
WEALTH manager and life insurer AMP has reported an 11 per cent fall in its full-year net profit to $688 million.
The company today said that while its net profit had dropped in the year to December 31, 2011, its underlying profit had risen.
AMP's underlying profit, its preferred measure of profitability as it smoothes out market volatility, rose to $909 million in 2011 from $760 million in 2010.
The underlying result included contributions from the AXA business AMP acquired in early 2011.
AMP said the difference between the two profit results was partly because the underlying profit excluded the impact of $42 million in merger and acquisition costs.
The $105 million integration costs associated with the AXA business were also excluded from the underlying result.
Also driving AMP's earnings result was a fall in external net cash outflows which dropped to $1.166 billion from $2.618 billion.
The total value of AMP's assets under management for the year rose by $44 million from $115 million at the end of 2010.
AMP said it had revised its dividend target payout ratio to between 70 and 80 per cent, instead of 75-85 per cent.
AMP shareholders will receive a final dividend of 14 cents a share, partly franked.
Read more: news.com.au
The company today said that while its net profit had dropped in the year to December 31, 2011, its underlying profit had risen.
AMP's underlying profit, its preferred measure of profitability as it smoothes out market volatility, rose to $909 million in 2011 from $760 million in 2010.
The underlying result included contributions from the AXA business AMP acquired in early 2011.
AMP said the difference between the two profit results was partly because the underlying profit excluded the impact of $42 million in merger and acquisition costs.
The $105 million integration costs associated with the AXA business were also excluded from the underlying result.
Also driving AMP's earnings result was a fall in external net cash outflows which dropped to $1.166 billion from $2.618 billion.
The total value of AMP's assets under management for the year rose by $44 million from $115 million at the end of 2010.
AMP said it had revised its dividend target payout ratio to between 70 and 80 per cent, instead of 75-85 per cent.
AMP shareholders will receive a final dividend of 14 cents a share, partly franked.
Read more: news.com.au
THE Australian dollar rose more than half a US cent after the release of stronger-than-expected employment data.
At 11.30am AEDT today, the Australian Bureau of Statistics (ABS) announced that 46,300 jobs were added to the economy in September, compared to the 15,000 rise that economists were expecting.
The unemployment rate fell to 5.1 per cent from an unrevised 5.2 per cent.
Economists had expected the jobless rate to rise to 5.3 per cent.
By 11.31am AEDT, the currency had risen to 107.39 US cents, compared with 106.86 cents just before the data was released.
The Australian dollar finished yesterday's local session at 107.52 US cents.
Read more: news.com.au
At 11.30am AEDT today, the Australian Bureau of Statistics (ABS) announced that 46,300 jobs were added to the economy in September, compared to the 15,000 rise that economists were expecting.
The unemployment rate fell to 5.1 per cent from an unrevised 5.2 per cent.
Economists had expected the jobless rate to rise to 5.3 per cent.
By 11.31am AEDT, the currency had risen to 107.39 US cents, compared with 106.86 cents just before the data was released.
The Australian dollar finished yesterday's local session at 107.52 US cents.
Read more: news.com.au
Advantages
Investing in a managed fund can deliver a number of advantages compared to direct, individual investment, including:
Potential returns - the opportunity to earn returns in excess of what you would expect from savings accounts.
Diversification – minimise risk of any single asset underperforming by spreading your portfolio across a range of investments.
Professional management – let the investment specialists take the stress out of managing your investments.
Choice – RaboDirect offers more than 60 funds that invest in different asset classes, with different investment strategies and with fund managers that offer different investment styles.
Buying power – combining the investments of many individual investors provides you with a larger investment pool, hence, the ability to invest in opportunities that require large investment outlays and are typically beyond your own personal reach.
Economies of scale - a larger investment pool means that you can also lower the costs of investment administration by spreading them across multiple investors.
How it works
A managed fund is a professionally managed portfolio of investments that pools the assets of multiple investors together and invests them towards a common objective.
When you invest in a managed fund you are issued with ‘units’ which represent your stake in the fund. If the value of the fund’s investments increases, so does the value of your units. Similarly, if the value of the investments falls – as they can also do – so does your unit price.
Unit prices are generally issued daily and will include both a ‘buy’ price and a ‘sell’ price. The buy price is the cost of each unit if you want to invest it a fund; while the sell price indicates how much you will receive for each unit if you fully or partially withdraw from the fund.
Investing in a managed fund can deliver a number of advantages compared to direct, individual investment, including:
Potential returns - the opportunity to earn returns in excess of what you would expect from savings accounts.
Diversification – minimise risk of any single asset underperforming by spreading your portfolio across a range of investments.
Professional management – let the investment specialists take the stress out of managing your investments.
Choice – RaboDirect offers more than 60 funds that invest in different asset classes, with different investment strategies and with fund managers that offer different investment styles.
Buying power – combining the investments of many individual investors provides you with a larger investment pool, hence, the ability to invest in opportunities that require large investment outlays and are typically beyond your own personal reach.
Economies of scale - a larger investment pool means that you can also lower the costs of investment administration by spreading them across multiple investors.
How it works
A managed fund is a professionally managed portfolio of investments that pools the assets of multiple investors together and invests them towards a common objective.
When you invest in a managed fund you are issued with ‘units’ which represent your stake in the fund. If the value of the fund’s investments increases, so does the value of your units. Similarly, if the value of the investments falls – as they can also do – so does your unit price.
Unit prices are generally issued daily and will include both a ‘buy’ price and a ‘sell’ price. The buy price is the cost of each unit if you want to invest it a fund; while the sell price indicates how much you will receive for each unit if you fully or partially withdraw from the fund.
THE Australian stockmarket opened one per cent lower in line with weakness on US markets amid continued uncertainty in Greece.
US stocks ended in the red today as concerns resurfaced that Greece was veering towards default after a debt bailout hit fresh turbulence.
At 10.15am AEDT the benchmark S&P/ASX200 index was down 45.8 points, or 1.08 per cent, at 4207.6, while the broader All Ordinaries index was down 44.1 points, or 1.02 per cent, at 4283.3.
On the ASX 24, the March share price index futures contract was down 53 points at 4167, with 10,363 contracts traded.
Australian Stock Report head of research Chris Conway said the postponing of a decision on the Greek aid package had weighed on the local market.
"It's created some weakness overnight," Mr Conway said.
"There's been a bit of a negative lead from international markets."
He said there had also been some technical selling.
But he predicts the Australian market will recover later in the day.
Financial stocks were lower, with the Commonwealth Bank down 19 cents, or 0.38 per cent, to $50.04.
NAB was 25 cents lower at $22.80, Westpac fell 56 cents to $20.40 and ANZ was down 19 cents at $21.51.
The miners were also weaker.
BHP opened 67 cents lower at $35.43, while Rio Tinto slipped $1.51 cents to $67.36.
In companies news Westpac Banking Corporation's first-quarter cash profit fell slightly due to a fall in income from its markets-related business.
Wealth manager and life insurer AMP reported an 11 per cent fall in its full-year net profit to $688 million.
Its shares opened 13 cents lower at $4.26. And Qantas said its first half net profit $42 million, which was down 83 per cent on the previous corresponding period.
Qantas shares were 2.5 cents lower at $1.53.
Wesfarmers and the ASX will release their first half results today.
Employment figures are also due out in Australia today.
National turnover was 3.4 million securities worth $35.2 million.
Read more: http://www.news.com.au/business/markets/markets-set-to-open-lower-on-wall-st-leads/story-e6frfm30-1226272362260#ixzz1mVMx5pMr
US stocks ended in the red today as concerns resurfaced that Greece was veering towards default after a debt bailout hit fresh turbulence.
At 10.15am AEDT the benchmark S&P/ASX200 index was down 45.8 points, or 1.08 per cent, at 4207.6, while the broader All Ordinaries index was down 44.1 points, or 1.02 per cent, at 4283.3.
On the ASX 24, the March share price index futures contract was down 53 points at 4167, with 10,363 contracts traded.
Australian Stock Report head of research Chris Conway said the postponing of a decision on the Greek aid package had weighed on the local market.
"It's created some weakness overnight," Mr Conway said.
"There's been a bit of a negative lead from international markets."
He said there had also been some technical selling.
But he predicts the Australian market will recover later in the day.
Financial stocks were lower, with the Commonwealth Bank down 19 cents, or 0.38 per cent, to $50.04.
NAB was 25 cents lower at $22.80, Westpac fell 56 cents to $20.40 and ANZ was down 19 cents at $21.51.
The miners were also weaker.
BHP opened 67 cents lower at $35.43, while Rio Tinto slipped $1.51 cents to $67.36.
In companies news Westpac Banking Corporation's first-quarter cash profit fell slightly due to a fall in income from its markets-related business.
Wealth manager and life insurer AMP reported an 11 per cent fall in its full-year net profit to $688 million.
Its shares opened 13 cents lower at $4.26. And Qantas said its first half net profit $42 million, which was down 83 per cent on the previous corresponding period.
Qantas shares were 2.5 cents lower at $1.53.
Wesfarmers and the ASX will release their first half results today.
Employment figures are also due out in Australia today.
National turnover was 3.4 million securities worth $35.2 million.
Read more: http://www.news.com.au/business/markets/markets-set-to-open-lower-on-wall-st-leads/story-e6frfm30-1226272362260#ixzz1mVMx5pMr
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