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Greece, again. It can't be helped

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Eurogroup of finance ministers meet to discuss new proposals from the Greeks. The Euro area heads of government meet though Merkel and Hollande are signalling that this meeting will not do a deal to release funds, and that is for the finance ministers to agree.
  • There are reports that the ECB will meet again on Greek banks, having already doled out emergency funds last Friday in the face of significant deposit withdrawals. Monetary unions, when they die, die at the hand of bank runs. ECB support is probably necessary if politicians are to remain in control of this process.
  • Euro area consumer confidence is due. There are reasons for parts of the Euro area to be relatively upbeat (although that joie de vivre may not extend to Greece, or potentially some other peripheral economies). With domestic demand more significant in the Euro area, even weak signals like consumer confidence may have market relevance.
  • US housing data is on offer but is not really likely to shift opinions about either the timing or the pace of US monetary policy tightening.