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90 seconds at 9 am: Europe fails again to agree fresh Greek debt reduction deal; EU ministers also feud over new European budget; US stocks up after Gaza ceasefire
Here's my summary of the key news overnight in 90 seconds at 9 am, including news European ministers failed again overnight to agree a debt reduction plan for Greece that might give it a chance of digging its way out of its debt mountain.
Germany refused to agree to formal debt writeoffs, suggesting instead the European Central Bank should buy short term Greek debt, and that the terms of existing debt should be extended while interest payments should be suspended.
The IMF, meanwhile, was pushing for a meaningful debt writeoff that would reduce Greece's debt to GDP ratio.
This latest dispute is emblematic of the problem facing policymakers and central bankers globally. The key question is: when do they acknowledge growth will not rebound for years, if not decades, which means debt has to be restructured and written off to account for it being unsustainable. That moment of reckoning will be painful, which is why the procrastination is so drawn out and the debate so intense.
Meanwhile, the divisions within Europe were also evident in the debate about the European Union's own budget for the next 7 years.
Bloomberg reported European ministers could not agree on a budget with France refusing to accept cuts to agricultural subsidies and Britain refusing to accept a budget that did not include austerity for European bureaucrats. See more here at Bloomberg.
Elsewhere, US stocks were up around 0.4% in late trade after a ceasefire in Gaza helped boost oil prices by around 0.6% and lifted appetites for risk.
This helped lift the New Zealand dollar off its overnight lows of around 81.20 USc to be around 81.4 USc in morning trade.