Greece and its international creditors sought to put the final touches to a multi-billion euro bailout on Monday to keep the country afloat and meet an important debt repayment to the European Central Bank which is due within days.
Germany set out strict conditions for further aid and said it would be sensible to link the size of the first tranche of the bailout to Greece's progress in carrying out reforms. Greece is hoping to wrap up the deal for 86 billion euros in new loans by Tuesday so it can get approval for aid to flow by Aug. 20th when a debt repayment to the ECB is due.
Atlanta Fed President Dennis Lockhart said yesterday economic conditions in the United States have largely returned to normal and a Federal Reserve decision to raise interest rates should come soon. He said the U.S. economy had cleared several major hurdles that worried him earlier in the year stating that risks from abroad, whether a Greek exit from the euro zone or a meltdown in China have been reduced. Also job growth has left the U.S. economy just a shade from full employment.
Fed Vice Chairman Stanley Fischer echoed Lockhart's comments yesterday, also stating the U.S. economy had nearly reached full employment and added that rates would not stay this low forever. Four of the current 10 voting members of the Fed policy committee have publicly put September in play for a rate rise - Lockhart, Fed Governor Jerome Powell, San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker.
10:00 - EUR - ZEW German economic sentiment expected to rise to 32 from 29.7