Greece

Submitted by Mike "Mish" Shedlock

More Greece “Uncertainty”: Default Looms in July, EU Rejects Greek Emergency Summit

Those who thought the situation in Greece was solved after prime minister Alexis Tsipras suddenly caved in to creditors’ demands need think again.

Greek tax revenues are running well under expectations. A default looms in July unless the creditors give more money to Greece so that Greece can pay back the creditors. As convoluted as that sounds, that’s precisely the way this madness works.

Greece was supposed to finalize a deal today with its lenders whereby in exchange for an "agreement" to implement already agreed upon budget cuts it would receive more funds from the Troika. However, as Reuters reports, "there will be no deal between Greece and its lenders on Friday that would unlock loans and enable vital debt relief talks, despite some progress on the reforms Athens must implement in exchange, euro zone and IMF officials said on Friday."

• World stocks gain along with oil, clock ticks down to ECB (Reuters)
• Draghi Expected to Defend ECB in Face of German Criticism (WSJ)
• Trump, Cruz, Kasich seek to win over Republican leaders at party meeting (Reuters)
• Donald Trump Plans to Adopt More-Traditional Campaign Tactics (WSJ)
• Japan, Not Germany, Leads World in Negative-Yield Bonds (BBG)
• Obama starts talks with Gulf leaders aimed at easing strains (Reuters)
• Soros: China Looks Like the US Before the Crisis (BBG)

A fire broke out at the Idomeni refugee camp in Diavata, northern Greece on Wednesday, burning tents and causing panic. Several refugees were treated for smoke inhalation before the fire was put out.  Sigma Live reports: Just over 2,300 refugees live at the camp, which is located near Thessaloinki. Local residents protested against the construction of the camp in February, which is housed on a former military site. “We are not racists, we are not fascists, we just want to keep our place safe,” the demonstrators chanted at the time.

Almost exactly two years ago, in April 2014, Greece issued €2.5 billion in 5 year bond yielding around 5%, which was met with huge investor interest and ended up being 8x oversubscribed. Fast forward to today when another former shutout from global bond markets, Argentina, is in the FT's words, "on the cusp of one of the most anticipated comebacks in recent history, as the Latin American country ends a 15-year exile from the international debt market with a multibillion-dollar sale."