Greece Seeks More Time to Repay Debts, Markets Fall

Arthi Gupta
22 Aug, 2012
New York City

The European indexes declined and Greek prime minister said he is looking for more time to repay debts but the nation is not seeking more money. Heineken first-half revenue rose 5% and Vestas plans to lay off 1,100 employees by September.

[R]1:45 PM Frankfurt – The European indexes declined and Greek prime minister said he is looking for more time to repay debts but the nation is not seeking more money. Heineken first-half revenue rose 5% and Vestas plans to lay off 1,100 employees by September.[/R]

European indexes edged lower ahead of a meeting between Greek Prime Minister Antonis Samaras and the head of the euro zone ministers group Jean-Claude Juncker later today.

Samaras told German daily Bild that the country is willing to implement the austerity measures laid out by the troika but said Greece needs some more time. He stressed that the country was not looking for additional bailout money.

Samaras told Bild, “Let me be very clear, we are not asking for any more money.” He added that, “What we want is a little breathing room to get the economy going to increase revenue. More time does not automatically mean more money.”

Greece may win some time after the meeting with leaders Germany and France this week but euro zone members expect Greece to take ownership of reforms and implement austerity measures.

German people and members of ruling governing coalition are loathe to dole out any more money to Greece and demand strict reforms in government and in tax collection. Greece has received €170 billion in two bailouts.

German Chancellor Angela Merkel and French President Francois Hollande are scheduled to meet in Berlin tomorrow.

In economic news, Norwegian jobless rate remained unchanged in June. Danish retail sales fell in July.

In Paris trading, the CAC-40 Index declined 22.55 or 0.6% to 3,490.73 and in Frankfurt the DAX Index edged lower 50.49 or 0.7% to 7,038.83.

The yields on Spain’s benchmark 10-year bonds fell five basis points to 6.16%. Italian 10-year yields declined seven basis points to 5.59%.

Norwegian Jobless Rate Stable

The Norwegian jobless rate remained unchanged at 3% in June, the latest data from Statistics Norway showed today.

The number of people registered as unemployed increased by 2,000 during June.

Danish Retail Sales Drop

Danish retail sales fell 0.2% on a monthly basis in July following a 0.2% decline in June, Statistics Denmark reported.

Food product sales rose 0.1% and sales of other consumer goods dropped 0.6% in July. On a yearly basis, retail sales dropped 2.6% in July, from 1% in June.

Hungarian Wage Growth Eases

Hungary''s monthly gross wages eased 4.1% on an annual basis in June compared to the 6.4% gain in May, data released by the Central Statistics Office showed.

In the January-June period, gross wages climbed 4.4% from the corresponding period a year earlier, the agency said.

Gainers & Losers

Addex Therapeutics plunged 7.9% to Sfr7.80 pence after the allosteric modulators developer said first-half net loss narrowed to Sfr14.76 million or Sfr1.91 per share compared to a loss of Sfr14.83 million or Sfr2.07 per share last year.

BHP Billiton Ltd. dipped 0.3% to A$33.16 after the miner reported full year revenues rose 0.7% to $72.23 billion. For the full year, profit plunged 34.8% to $15.42 billion from $23.65 billion last year.

Delhaize Group SA soared 5.6% to €34.99 after the Belgium-based food retailer reported second quarter revenue grew 11.5% to €5.70 billion from last year.Net profit group share plunged 26.1% to €87 million in the quarter.

Heineken N.V. slumped 3.6% to €42.89 after the Dutch brewer reported first-half revenue increased 5% to €8.778 billion from €8.358 billion. Profit surged 30% to €783 million or €1.36 per diluted share from €605 million or €1.02 per share last year.

Hochschild Mining Plc rose 0.6% to 438.50 pence after the precious metals company reported first-half net revenue fell 29% to $354.50 million compared to $496.77 million last year. Operating earnings excluding one-time charges plunged 65% to $52.75 million.

Vestas Wind Systems A/S fell 1.6% to DKK 33.39 after the Danish wind turbine maker reported second quarter revenues grew 15% to €1.61 billion. Loss before tax was €5 million compared to profit of €76 million in the previous year.

The wind turbines maker plans redundancies of about 1,100 salaried employees by September.