Sears Canada is looking for its fourth new CEO in as many years as Ronald Boire will leave the company at the end of the summer to pursue an opportunity in the U.S.
Source :CBC | Business News http://ift.tt/1Ucj0rg
jeudi 2 juillet 2015
Sears Canada seeks new CEO as Ronald Boire leaves to head up Barnes & Noble
Source :CBC | Business News http://ift.tt/1Ucj0rg
Greece debt crisis: Referendum vote campaign begins amid cash crunch
The battle for Greek votes was in full swing Thursday ahead of a crucial weekend referendum that could decide whether the country falls out of the euro. For Greeks, particularly the elderly, the daily struggle to get cash ground on in the face of massive uncertainty.
Source :CBC | Business News http://ift.tt/1elYqne
An Oxi-dent waiting to happen
WHAT happens if the Greeks vote Oxi, or No, on Sunday? Of course, what might happen is that the Greek government's wishes are fulfilled and that creditors come back with a new, better, offer. But thoughts are now turning to the more likely scenarios - that Greece leaves the euro (Grexit) or is stuck in the position of being formally within the euro zone, but without access to ECB credit (dubbed Grimbo).
Three reports have just been published, a short blog from the Peterson Institute and longer (but private) reports from Standard & Poor's and Citigroup. They don't agree on all the details but they do suggest that the widely-touted benefits of Grexit (the reduction in debt service costs, the boost to competitiveness from a lower currency) need to be heavily qualified. S&P suggests that Greek GDP may be 20% lower than it would otherwise have been if Grexit occurs. The effect on the rest of Europe would be much more limited; perhaps a cut of 0.3%-0.5% in GDP growth over the next 1-2 years, says Citigroup.
The immediate impact of a No vote would presumably be that Greek banks will still be cut off from additional liquidity funding from the ECB. This would make it impossible for Greece to repay the various debts due over the next weeks and months (including money owed to the ECB). This will exacerbate...Continue reading
Source :Business and finance http://ift.tt/1Hzc8jX
mercredi 1 juillet 2015
Capital punishment
ALTHOUGH Greece's banks are closed this week due to the country's brinkmanship with its creditors, there is at least some good news to be found in the European Union's other Greek-speaking member state. After a five-year recession, Cyprus's economy has finally started to recover. Earlier this month, the International Monetary Fund stated that Cyprus made "strong" progress towards achieving the objectives set its bail-out worth €10 billion ($11.1 billion) in March 2013. That was when Cyprus became the first euro-zone country to limit the movement of capital out of the country. Just as in Greece, which has imposed capital controls alongside its week-long bank holiday, the bailout discussion was kicked down the road for the best part of a year.
On March 19th 2013, the Cypriot Parliament rejected the bailout because of the unpopular condition that all depositors, not just big ones, would pay to rescue the banks. The next day, Cyprus closed its banks. The European Central Bank (ECB) threatened to cut off emergency lending to Cyprus's banks within the week. But after six days, the Cypriot government agreed to a renegotiated bailout,...Continue reading
Source :Business and finance http://ift.tt/1U9DIbg
U.S. Justice Department probes airlines for colluding on prices
The U.S. government is investigating possible collusion between major airlines to limit available seats, which keeps airfares high, according to a document obtained by The Associated Press.
Source :CBC | Business News http://ift.tt/1dyvAPL
2008 revisited
IN THE autumn of 2008, Alistair Darling, Britain's finance minister, was told that Royal Bank of Scotland was just two hours from folding, causing cashpoints to run out of money. The same fears motivated the massive rescue programme in America - the bank bailouts, fiscal stimulus and monetary easing by the Federal Reserve. But in Greece today, the banks are closed and the cashpoints are limited in how much they can dispense.
Today has seen another round of rumours and speculation. For the moment, we are heading for the promised referendum on Sunday, which the Greek government says is not about euro exit, although EU leaders say it is. To some, this is a complete failure of policy. Frances Coppola tweeted that
No currency-issuing national central bank would freeze the money supply in a depression. But that's what the ECB has done to Greece.
But this is the fundamental problem of the single currency. The ECB isn't a "national" central bank; it is an international one. When the Bank of England and the Federal Reserve stepped in during 2008,...Continue reading
Source :Business and finance http://ift.tt/1Jw54SW
Changing direction
WITH Greece teetering on brink of exit from the euro area, the timing of the Bank of England’s twice-yearly update on financial stability was not ideal. As of two weeks ago, the outlook in the report was broadly unchanged, said Mark Carney, the bank’s governor. But given the Greek crisis—and especially the events of this week—things are now looking worse.
Thankfully, British banks’ exposures to Greece are tiny. They are worth less than 1% of the value of their equity capital. For the financial system to be at risk, the crisis would need to spread to peripheral euro-area economies. British banks’ exposures to the likes of Italy, Spain and Portgual amount to 60% of their equity capital. But, unlike when Greece was last under threat in 2012, contagion seems improbable. Indeed, stronger growth in Europe has been contributing to an increase in financial stability, says the report. Without contagion, that should continue.
Beyond Greece, the Bank of England...Continue reading
Source :Business and finance http://ift.tt/1RSihr5
Inscription à :
Articles (Atom)
