Sun, 28th May 2017

Anirudh Sethi Report


Archives of “labour minister” Tag

Pawan Bansal resigns as Railway Minister

BREAKING NEWS-FLASHPawan Kumar Bansal, under fire over his nephew’s alleged involvement in bribery for a top railway board posting, resigned today as Railway Minister.

According to sources and TV reports, Bansal sent his resignation to Prime Minister Manmohan Singh this afternoon.

The sources said Labour Minister Mallikarjun Kharge may be country’s new Railway Minister. Read More 

New Cypriot finance minister sworn in

Over to Cyprus, where the new finance minister Harris Georgiades was sworn in this morning. 

He takes over from Michael Sarris who resigned yesterday, after a probe was launched into how the island was pushed to the verge of bankruptcy.

Sarris said his previous role as chairman of Laiki, the country’s second largest bank which is being wound down, was likely to be subject to scrutiny, as part of the investigation.

President Nicos Anastasiades warned him this morning of the “difficult days ahead.” He said at the swearing in ceremony that they would require… Read More 

France ‘totally bankrupt’, says labour minister Michel Sapin

Michel Sapin made the gaffe in a radio interview, which left French President Francois Hollande battling to undo the potential reputational damage.

“There is a state but it is a totally bankrupt state,” Mr Sapin said. “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.”

The comments came as President Hollande attempts to improve the image of the French economy after pledging to reduce the country’s deficit by cutting spending by €60bn (£51.5bn) over the next five years and increasing taxes by €20bn.

Data from Banque de France showed earlier this month that a flight of capital has already left the country amid concerns that France’s Socialist leader intends to soak the rich and businesses. The actor Gérard Depardieu has renounced his French citizenship and decamped to Russia in protest, while David Cameron said Britain will “roll out the red carpet” to attract wealthy individuals. Read More 

Greece ‘close to deal’ with lenders

Greece has reached agreement with international lenders on most measures in a new €13.8bn ($18.1bn) package of spending cuts and tax increases, although earlier hopes of being able to present a deal to EU leaders at Thursday’s summit have been dashed.

Yannis Stournaras, the finance minister, told the Financial Times on Wednesday he expected remaining issues on labour market legislation and civil service staffing cuts to be resolved next week when talks are due to resume with the “troika” of lenders – representatives of the European Commission, the European Central Bank and the International Monetary Fund.

Reaching a deal next week would enable the troika to make a positive progress report, opening the way for Greece to receive a €31.2bn disbursement from its current bailout package by mid-November, Mr Stournaras said.

“We are in full agreement on almost all the issues . . . What remains is to reach a compromise on labour reforms and civil servants, then finalise measures to reform products and services markets in order to bring down prices,” he said. Read More 

Greek Troika Talks End Abruptly Following “Complete Disagreement”

What the Spanish rumor of a bailout lite (as a reminder, the full blown Spanish bailout has already been largely priced in, and today’s action is a very confused market pricing in a second,bailout-lite) giveth, Greece taketh away. 

From ANA via From Bloomberg:


A second meeting between the heads of the EU-IMF troika mission in Athens and Greek Labour Minister Yiannis Vroutsis on Tuesday afternoon ended abruptly a few minutes ago, after the two sides hit deadlock for the second time in the same day.


Sources in the labour ministry cited “complete disagreement” between the two sides on the issue of three-year wage maturation periods. They said that the labour ministry had been prepared to continue the talks but the representatives of Greece’s creditors had departed.

MSM spin on how this is bullish, and worth at least another 10 ES points (because the one thing that will force Congress to compromise on a Fiscal Cliff is the S&P at all time highs… /sarc) due imminently.

ECB should launch ‘unlimited’ bond buying, says OECD

Angel Gurria’s warning came as Spanish leader Mariano Rajoy said he would consider asking for extra aid on top of the country’s €100bn (£79bn) bank bail-out but would wait to see what conditions were attached to any rescue package. “If I believe it is good for Europe as a whole, for the euro, and for Spain, I will do it, and if not, not,” he told Spanish daily ABC.

The bond buying plan – which would see the ECB buy up the short-term debt of embattled countries such as Spain and Italy – has come under attack in parts of the ECB and from Bundesbank chief Jens Weidmann. Mr Weidmann reportedly considered resigning over the issue last week.

However, Mr Gurria was adamant that such a step should be taken. “If you have the ECB which can work in the markets in order to bring down maturities then why not?” he told a conference in Slovenia. “The system is at stake, the euro should not be put at risk … the EFSF and the ESM [bail-out funds] are not enough, fast enough, reactive enough.”

Asked if the ECB should start unlimited bond buying, he said: “Yes, I believe they should, the sooner, the better.” Read More 

Eurozone stalls Greek cash aid

Just hours after Greece gave in to painful new job and spending cuts, European ministers have declared Athens didn’t go far enough and demanded more within a week in exchange for a €130 billion ($A160.76 billion) bailout to stave off bankruptcy.

The ministers gave the debt-ridden country until the middle of next week to find an extra €325 million in savings, pass the cuts through a divided parliament, and get written guarantees that they will be implemented even after the elections of a new government in April, said Jean-Claude Juncker, the Luxembourg prime minister who chaired Thursday’s meeting of finance chiefs of the 17 euro countries.

The new austerity plan, which makes sharp cuts to the minimum wage and thousands of public-sector jobs, ignited fresh criticism from unions and the country’s deputy labour minister, who resigned in protest after Greece agreed to the deal. Even debt inspectors conceded that the new measures would keep the country in a recession for a fifth straight year.


But Greece’s finance minister warned that the alternative will likely be worse.

“Unfortunately, the choice we face is one of sacrifice or even greater sacrifice – on a scale that cannot be compared,” Evangelos Venizelos told reporters, after the meeting with ministers from the 16 other countries that use the euro.

Other European officials warned that more severe steps still might be necessary. Read More 

Gold At $1,950 Within The Month Reaffirm UBS; JP Morgan $2,500 Year End Call Remains

Gold at $1,950 Within the Month Reaffirm UBS; JP Morgan $2,500 Year End Call Remains

Gold is higher against most currencies and especially the euro. Gold is trading at USD 1,792.50, EUR 1,245.10, GBP 1,098.30, CHF 1,471.50 and JPY 137,624 per ounce.

Gold’s London AM fix this morning was USD 1,791.00, EUR 1,243.49, GBP 1,097.56 per ounce. Gold fixed marginally higher than last Friday’s AM Fix which was at USD 1,787.00, EUR 1237.10, GBP 1,094.17 per ounce which suggests physical demand is supportive at the $1,800 level.

Cross Currency Table

Asian equities rose again today but China’s stock markets were again lower on concerns about the Chinese and global economy. Initial gains in Europe have turned to weakness but the FTSE is higher as it plays catch up after being closed yesterday.

The mooted German proposal to use periphery nations’ gold reserves as collateral was back on the agenda in Germany yesterday. Read More