Pressure is mounting on Greece at the start of the New Year as the country's government is aware that the time for reaching a bailout deal with its international lenders is running out. A government spokesman warned that unless an agreement with the EU, The International Monetary Fund (IMF) and the European Central Bank (ECB) is reached quickly, Athens will have to leave the Eurozone and then “the situation will be much worse.”
French government bond yields rose yesterday as dealers tried to make room for bond supply later this week and the remaining concerns that the country could lose its coveted triple-A rating also kept investors cautious. France are expected to sell a further €8billion in bonds this Thursday.
U.K. retailers are bracing for an austere January that will be littered with company failures, following a grim Christmas which was marked by early sales and discounts. Despite a Boxing Day boost, the hangover is likely to linger throughout 2012.
Over all it has been a good start to 2012, with factory orders and Manufacturing picking up in the US, which sparked risk appetite. Global indices rallied on the first day of the year.
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Institutions named in this article:
ECB: European Central Bank- The institution of the European Union (EU) which administers the monetary policy of the 17 EU Eurozone member states.
IMF: The International Monetary Fund - An organization of 187 countries, aimed at fostering global monetary cooperation, secure financial stability, to promote international economic cooperation, international trade, employment, and exchange rate stability.