The good news for the International Monetary Fund, which has been saying for ages that Greece’s debts are unsustainable, is that European lenders now seem to agree.
The recent Greek capitulation under pressure from other euro member countries, led by Germany, demonstrates that euro members have de facto ceded sovereignty over fiscal policy to the EU.
“Make no mistake, this is the start of something big, something ugly.”
Fresh jobs and wages data for the UK will be closely scrutinised by the Bank of England and the City for evidence that the surprise jump in unemployment reported last month was a blip.
Technical talks over a third bailout between Greece and its lenders have concluded, a spokesperson for the European Commission said Tuesday.
The US economy added 215,000 jobs in July, while the unemployment rate remained steady at 5.3%, meeting expectations.
Just one member of the Bank of England’s rate-setting committee voted to raise interest rates from their record low of 0.5%, confounding City expectations that Threadneedle Street would use “Super Thursday” to send a strong signal that the era of ultra-low borrowing costs is coming to an end.
Global growth will slow this year as oil exporters in the developing world struggle to cope with lower energy prices, the World Bank has said in its half-yearly economic health check.
The pound swung wildly on currency markets on Monday, reaching extremes of volatility not seen since the financial crisis, as City traders reacted to polls suggesting voters were increasingly likely to send Britain out of the EU this month.
Hikes to US interest rates might be on hold again thanks to “considerable uncertainty about the economic outlook” Janet Yellen suggested in a speech on Monday.