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Sun, 30th April 2017

Anirudh Sethi Report

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Archives of “110th United States Congress” Tag

Senator Hints That Trump May Resign: “I Think He Is Going To Get Himself Out”

It’s no secret that there is a concerted effort underway to do everything possible to remove President Donald Trump from office.

From Russian ties to business conflicts of interests, both Democrats and Republicans are actively working to find chinks in the President’s armor.

But for those with hope of change in their hearts, Democrat Senator Diane Feinstein says there is a possibility that Trump will eventually remove himself from office by filing his own resignation.

Speaking to a crowd during a town hall-style Questions and Answers session, Feinstein was asked how Congress is going to deal with Trump’s alleged illegal activities:

 Journalist: We don’t know what’s happening but we know that he is breaking laws every day, he’s making money at Mar-a-lago, he’s getting copyrights in China, he has obvious dealings with Russia, the Dakota pipeline… there’s some many things that he’s doing that are unconstitutional… how are we going to get him out?

 Feinstein: We have a lot of people looking at this… Technical people… I think he’s going to get himself out… I think sending sons to another country to make a financial deal for his company and then have that covered with government expenses… I think those government expenses should not be allowed.. we are working on a bill that will deal with conflict of interest… it’s difficult…

Videos of Feinstein speaking to what appears to be a local press pool of reporters and protesters appear below. You can jump to 1:30 in the first video to listen to Feinstein discuss Trump’s conflicts of interests, or watch from the beginning to hear Feinstein’s response to how her husband’s firm directly benefited from bills she voted into law, proving once again that the hypocrisy of socialist Congressional representatives from California has no bounds…

Part 1:

Part2:

Greek Q2 GDP growth revised up (yes, up) to 0.9%

Greece’s economy just keeps on surprising.

Despite all the country’s troubles, its second quarter GDP growth has been revised up to 0.9 per cent from an initial reading of 0.8 per cent.

There has to be a ‘but’, and here it is:

That is from the time immediately before capital controls came in, the impact of which will only be seen in the third quarter reading.

Even before capital controls, the situation looked hairy, with the government locked in intense negotiations with its creditors over a new bailout deal or an extension. Still, the economy managed to expand despite these far from ideal conditions.

On a year on year non seasonally adjusted basis, the economy grew 1.7 per cent in the third quarter, revised up from an initial reading of 1.5 per cent.

The country will go to the polls for the second time in nine months in September after Prime Minister Alexis Tsipras called new elections. After agreeing a new bailout deal with Greece’s creditors, Mr Tsipras saw his support base eroded as some Syriza members were disappointed that he had compromised.

German Lower House approves Greek bailout deal -No Great Surprise

No great surprise

  • Yes 454 No 113 
  • 18 abstained

Not sure as yet how many of Merkel’s coalition voted No

 Euro has a small uptick but still looks a little heavy around 1.1040 and 0.7040

                               

The result opens the door for the ESM, the EU’s rescue mechanism, to pay out the first money later on Wednesday, in time for Athens to make a crucial €3.2bn debt repayment to the European Central Bank on Thursday.

Tsipras considers postponing the no-confidence vote on him and his government

Tsipras had previously been considering holding a confidence vote in parliament once the bailout deal had been sorted/payment made on 20 Aug

Apparently not the case now. Perhaps cold feet fearing political suicide?

What do our Greek readers/others think?

Either way euro still stabilizing after another wobble with EURUSD 1.1074, EURGBP 0.711, EURJPY 137.70

Greece to get 6 bln euros in bridge loans if no agreement at Eurogroup – report

Embedded image permalinkGreece could get 6.04 billion euros in bridge financing if euro zone finance ministers cannot agree on the planned third bailout for Athens when they meet on Friday, according to German newspaper Bild, citing a European Commission proposal for the meeting.

That proposal says the bridge loans should run for a maximum of three months, Bild said in an advance copy of an article due to be published on Friday.

Euro zone finance ministers are due to meet in Brussels on Friday to discuss a third financial rescue that Greece has negotiated with its creditors.

Greek Finance Minister Euclid Tsakalotos expressed his opposition on Thursday to Greece taking another temporary loan to meet its immediate debt repayments, calling on lawmakers to approve a new, three-year bailout deal.

“I think whatever everyone’s stance on the euro and on whether this is a good or bad accord, there must be no one who is working towards a bridge loan,” he told a parliamentary committee.

Athens must make a 3.2 billion euro debt payment to the European Central Bank on Aug. 20. 

Third aid package for Greece could be €90B

Handelsblatt reports

German newspaper Handelsblatt says the bailout package will be above the €82-86 billion seen. It seems as though the number grows by about €1B per day as the economy stagnates and officials dither.

The Greek economy is expected to contract 2-3% per year.

Why Germany Would Prefer a “Grexit” to Debt Forgiveness

Stocks are soaring today because Greece agreed to another austerity program. However, all this really means is that negotiations can begin for another Greek bailout. The bailout itself is at least 4 weeks away assuming that everyone can agree on everything. 

The next steps are: 

1)   Germany’s parliament must issue a mandate giving Chancellor Angela Merkel the right to negotiate a new bailout deal with Greece. 

2)   Finland’s, the Netherland’s, Slovania’s, Estonia’s, and Austria’s Parliaments also must agree to let their Finance Ministers negotiate a new deal with Greece.

 3)   EU Finance Ministers must negotiate a new bailout deal with Greece. 

4)   Germany’s parliament must sign off on the new deal. 

5)   Greece must accept the deal. 

Overnight US Market.Dow Closed Up 217 Points ,S&P 500 zoomed by 23 points

Investors woke up Monday to word of Greece agreeing to a bailout deal with creditors, news that sent stocks sharply higher on Wall Street, which had feared a Greek exit from the euro.

The Dow Jones industrial average ended up 217.27 points, or 1.2%, as the blue-chip index moved back into positive territory for the year. The Standard & Poor’s 500 index gained 1.1% and the Nasdaq composite index added 1.5%.

Monday marked the Dow’s first back-to-back gains of 200 points or more since Jan. 7 and Jan. 8.

It was also the blue chips’ biggest point climb since June 10, when the index gained 236.26, a 1.3% jump.

After marathon negotiations, Greece and eurozone creditors shook hands on a tentative agreement early Monday that would unlock about $95 billion in new aid to debt-strapped Greece in exchange for a spate of new tough concessions by the Athens government, which included reforms to a costly pension system and higher taxes.

The 85 billion euro deal, however, is not official until the Greek parliament on Wednesday passes the deal, the third-bailout Greece has gotten.

Greek bond sell-off enters 5th day

No rest for the weary.

Investors sold off positions in both short- and long-dated Greek debt for the fifth consecutive trading day on Friday, increasing pressure on policymakers in Athens as a deadline looms to unlock bailout funds.

Yields on the country’s notes maturing in 2017, the most sensitive to the negotiations between Athens and its international creditors, climbed 78 basis points to 26.28 per cent, the highest level since the Greek restructuring. Since the week began, yields on the three-year notes have soared more than 600 basis points.

Investors also exited positions in longer dated paper, with the yield on the 10-year note, which moves inversely to its price, climbing 2 basis points to 12.45 per cent at publishing time. The yield on the five-year note rose 22 basis points to 18.03 per cent.

Prime minister Alexis Tsipras’ government has nearly €1bn due to the International Monetary Fund in May, along with pension and salary outlays to government employees. Without an agreement at a finance ministers’ meeting in Riga set for April 24, it may not be possible to unlock funds from an already agreed bailout package before the deadline to pay the fund.

The Greek state of play: key dates

Greek finance minister Yanis Varoufakis has a busy month ahead.

Negotiations between Athens and its international creditors are due to restart after the Easter holiday as a payment to the International Monetary Fund looms.

While Mr Varoufakis has promised that the payment will be made — reducing fears that Greece would be the first developed country in the fund’s history to default on its debts owed to the IMF — policymakers will have to navigate several emergency liquidity reviews and treasury bill maturities before funds from the country’s bailout package are released.

George Saravelos, a strategist with Deutsche Bank, says that “time is running out and decisions are needed” as negotiations continue, with progress so far being “exceptionally slow”.

Mr Saravelos notes that there are three likely scenarios, including a referendum on the agreement, a change in parliamentary coalition or minister support in Greece to pass the deal, or a breakdown in talks. He says he ascribes equal likelihood to each of the three possibilities.

As Athens traverses the talks, here are some of the key dates in the coming month, compiled by Deutsche Bank: