The Eurozone And Greece Are Playing A Game Of Double Lose.
Greece and the euro zone have yet to die. Greece needs to repay a sum of money in mid April, but Greece and the EU have yet to agree on reform. Aid fund It is still illusory. Soros, a financial predator, said the euro zone and Greece are playing a game of double lose.
George Soros, founder of the quantum fund and financial investment expert, told Bloomberg news that the possibility of Greece leaving the euro area is 50% now. If left the euro area, Greece may be in poverty.
Soros said Greece and Euro The district is playing a game of two wars. The best result is muddling along. The misconduct of the parties at the very beginning has now become a long-term problem.
Before Greece and Germany, there were times of hostility. In order to solve Greece Greek Prime Minister Tsipras said last week that he would accept talks with German Chancellor Merkel at the invitation of the German Chancellor.
On Monday, the talks were planned and the atmosphere was harmonious. Qi Plath urged the EU leaders to get rid of their prejudices against Greece. Merkel stressed that the "three carriages" had the responsibility to maintain communication with Greece on aid funds and reform. However, the two sides did not make a clear statement on the issue of aid.
Also on Monday, the European central bank governor Delagi was asked about a huge sum of money: has the ECB extorted Greece by cutting off the normal financing channels of Greek banking?
At present, Qi Plath promises to provide a series of explicit reform lists in the next few days to improve the balance sheet of Greece in order to obtain assistance funds. If it is not possible to get the 7 billion 200 million aid, Greece will have to face the risk of default again in mid April.
It is also reported. The ECB raised its upper limit of liquidity limit for Greece's banking sector (ELA) for the third time this month, but the rate of increase has not yet reached half of Greece's request.
Soros also expressed his views on other issues. Regarding the euro and the US dollar, Soros said that when the European Central Bank announced the implementation of the QE, the Federal Reserve was considering raising interest rates, which created a great fluctuation in the foreign exchange market. At the same time, on the issue of Ukraine, Soros said that this created some excellent profit opportunities for hedge funds.
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In fact, with a large influx of funds into emerging economies in Asia, it has already proved that more and more investors are speculating that the United States will not raise interest rates this year.
Last month, Jean-Louis Nakamura, chief investment officer of Lombard Odier, a Swiss private bank, said last month that the Federal Reserve's risk-taking rate hike is even more difficult. He said that once interest rates increase, the US financial market will become a black hole of global liquidity. The rise in US bond yields will attract funds from around the world, pushing up the US dollar and damaging US exports. In this context, funds will flow out of the US, and emerging markets in Asia will become one of the biggest beneficiaries.
Lombard Odier manages $238 billion in assets worldwide. The bank sold shares in the US and Japan and reinvested its funds in emerging Asian stock markets and dollar denominated corporate bonds issued by Asian companies.
For example, in Indonesia's recent Treasury auction, the demand for overseas investors surged, resulting in a 5 year treasury bond yield down nearly 1 percentage points from the beginning of the year. In addition, according to Societe Generale Securities, liquidity has begun to flow into the fundamentals of better economies such as Korea and Taiwan.
According to data from Institute of International Finance, investors invested $18 billion in emerging market equity and bond markets in January. According to Bloomberg statistics, India has become the most popular financial market in foreign capital, and has invested 7 billion 150 million US dollars into the stock market and bond market since the beginning of this year.
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