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UK’s Services Sector Stagnation Pressurized the Sterling
At 11:15 a.m. London time, the sterling performed its longest losing run since 2014, having reached 72.81 pence per euro, a declination of 0.2%.
Alternatively, the sterling was the best performer over the past month versus a basket of counterparts, as per the Correlation-Weighted Indexes results.
Moreover, the benchmark 10-year government bonds yield after rising on Tuesday by 13 basis points, remained almost unchanged today at 1.98%.
More Jobs in the City of London the Next Decade
Based on a report published on Wednesday by the City of London Corp., approximately 145,000 new jobs could be created in Central London by 2025.
As per the Cambridge Econometrics and the Centre for Cities studies for the City of London Corp., in the London financial district the employment levels would appreciate to 436,000 through 2025, an increase of approximately 10%.
Furthermore, the economic output would appreciate from 45 billion pounds, in 2014, to 61 billion pounds in the capital’s financial district.
Moreover, chairman of resources and policy in the City of London Corp., Mark Boleat stated that policy makers have a serious of challenges coming up.
Will Greece Reach an Agreement and Avoid the Worst?
The International Monetary Fund (IMF), European creditors and Athens are in a constant race from preventing Greece leaving the euro zone and entering into a much greater debt.
Both, European Central Bank (ECB) and International Monetary Fund (IMF) heads, have participated in Berlin’s meeting in an attempt of reaching a deal with Athens. Jean-Claude Juncker, European Commission’s head, Francois Hollande, the French President, and Angela Merkel, the German Chancellor, joined the meeting.
Moreover, the overall aim was to come up with an agreement regarding the final proposal, as Greece has to, due this Friday, pay €300 million to the International Monetary Fund (IMF). The fears that the nation will be unable to repay its debt, causing a potential exit of Greece from the Eurozone, get more intense.
Intel Acquires Altera for $16.7 Billion
The shareholders of Altera will receive a premium of approximately 56% on the company’s price and $54 a share in cash, an agreement that was initially done prior to the acquisition in late March.
Based on Intel’s chief executive, Brian Krzanich, statement, Intel’s expansion strategy focuses mainly on the conversion of its core assets into complementary and profitable market segments.
Through the acquisition of Altera, the company will provide next generation solutions with a much wider and greater processing power.
During the first minutes of Monday’s trading session, Altera’s shares reached $51.80, an increase of 6%, having showed that investors reacted positively on such a deal.
Russian Companies Exert More Pressure on the Ruble
At 1:22 p.m. in Moscow, the exchange rate reached 53.4520, having declined by approximately 2.1%, resuming last month’s 1.2% drop.
Based on the central bank’s data, the Russian companies exert strong pressures on the ruble as they will have to settle a foreign debt in June of as much as $10.2 billion.
Moreover, the economy’s budget is greatly supported by a weaker ruble as the local revenues derived from exports increase the most.
Hollande and Merkel Meet in Berlin for Greece
The Greek nation cannot meet its deadlines, as it has to urgently by the end of this month resolve its bailout package issue as well as make four payments to the International Monetary Fund totaling approximately 1.6 billion euros.
Alexis Tsipras, the Greek Prime Minister, urgently seeks Francois Hollande's and Angela Merkel's drastic intervention on the matter.
Moreover, the three leaders, Hollande, Merkel and Tsipras, had a call meeting yesterday as to what will happen next, whereas the French President and German Chancellor will most probably meet in Berlin today for further discussions.
The big bet for Sweden is to ‘’Reverse’’ Stagnation
Furthermore, the nation's Finance Minister, Magdalena Andersson, stated that the economy can improve both its public and private investments, and can, therefore, shift away from stagnation.
In addition, Mrs. Andersson stated that the government targets to spend a lot on railways and roads, and to connect the biggest towns through high-speed networks.
Moreover, since last year's election of the Social Democratic minority government, Magdalena Andersson's bet is to meet her promise and to reduce the level of unemployment the most until 2020.