Greek banks open for business
The rumbles from investors touting an interest rate rise from the United States on the visible horizon continue to grow louder. While at odds with the buoyancy from the US currency is some weakness in the gold prices, which have caved to a low of around five years – this is likely given the lack of inflation from the major economies, meaning that gold is not particularly attractive as a hedge currently. The US has produced some positive and consistent data during the past few months and, coupled with strong indicators of resolution for the Greek scenario, finally there could be some easing of stresses to the global market.
The Greek banks are set to re-open today after being closed for three weeks. They were closed in order to stop a run on withdrawals which might place their deposits in jeopardy as people rush to take their money out – as has happened in other market crashed before – and a limit was applied to the amount of money that could be withdrawn from accounts on a daily basis. There are still some restrictions that apply, for example they may not deposit cash or pay international transfers but will be able to pay bills and access safety deposit boxes etc. There has been much relief from the Greek citizens in finally being able to restore some normality in the wake of bailout negotiations.
Barclays is undergoing a significant structural metamorphosis, after releasing Chief Executive, Antony Jenkins, earlier in July the banking giant is due to cut a quarter of its workforce by 2017. Really, the pace of cuts is important and an incoming leader is expected to make cuts faster than the recently ousted predecessor. The bank has had ‘chronic underperformance’ issues and is targeting double its existing share price.
There is not a great deal of top tier data to receive today. Yesterday the Rightmove house price index showed a significant move upwards year on year but a large move downwards month on month. Today we see some Net Borrowing detail for the UK and apart from this, not much else of note.