As the news broke that the euro zone had agreed to lend Spain up to Euro100 billion (USD 125 billion) to shore up its ailing banking industry, I began to wonder if European Union leaders had finally begun to understand market expectations.
European finance ministers are set to decide this weekend - Monday night at the latest - on whether to extend a new batch of loans to Greece.
Philip Poole, global head of emerging markets at HSBC spoke to CNBC-0TV18 about the situation in Greece and the way ahead for global markets that are rallying on liquidity injection.
As negotiators arrive back in Athens today, Greece enters a pivotal period in which it must finish a crucial renegotiation of its more than $200 billion of debt.
Euro zone finance ministers are to agree on Tuesday the details of bolstering their bailout fund to help prevent contagion in bond markets, under pressure from the United States and ratings agencies to staunch a two-year-old debt crisis.
All the different voices on the euro summit this weekend have increased the volatility in global markets due to which CNBC-TV18’s managing editor Udayan Mukherjee thinks that we may have a flattish end to the week today.
The rupee posted its biggest single session rise in ten months on Wednesday, propelled by gains in domestic equities and the euro, with dollar inflows also helping.
The European Union on Tuesday agreed to spread a massive 700 billion euros permanent financial safety net to bailout euro zone nations facing liquidity crisis and thereby stave-off future sovereign debt crunch endangering their stability.
Howard Davies, Director of London School of Economics, in an exclusive interview with CNBC-TV18’s Menaka Doshi described in detail how he sees the eurozone panning out and what needs to be done, if the European countries are serious about sorting their problems.