Daily Archives: April 9, 2014

Gideon Rachman

The news that Greece is returning to the markets as an issuer of sovereign-debt is symbolic of the resurgence of interest in Europe among international – and particularly US – investors. As ever there is a circular logic in play here.

Because most investors no longer fear a collapse of the euro, Greece can come back to the markets. And the sight of Greece returning to the markets will confirm the prejudices of those who argue that the crisis in the eurozone is over.

But just as international investors were, in retrospect, too panic-stricken about Europe in 2012 – I suspect they are probably too relaxed now.

Greece’s return to the markets is one striking sign of this. Another is the fact that 5-year Spanish bonds now have a lower yield than their US equivalent – despite the fact that Spain is barely growing, that its budget-deficit continues to bust EU rules, while unemployment is more than 25 per cent. Read more

From the FT:

Russia’s militarism has caught Nato with its guard down after years of defence cuts Read more

While officials at the debt management agency prepare to trumpet Greece’s return to international capital markets, for long-suffering Athenians it is just another day marked by anti-austerity protests in the centre of the capital.

The five-year bond issue will be snapped up by investors eager for extra yield. But Greek risk, though diminishing, is unlikely to disappear soon. Here is a quick checklist of informal indicators tracked by local analysts. Read more

Could the UK go it alone in the cut-throat world of global trade?

Iain Mansfield, the 30-year-old British diplomat awarded a €100,000 prize by the eurosceptic Institute of Economic Affairs for his plan for a British exit from the EU, certainly thinks so. At the centre of his plan is the case for the UK to go it alone in negotiating trade agreements with big players like China and the US. Read more