60% "No" Vote In Greece

[Kathianne]

http://hosted.ap.org/dynamic/stories/E/EU_GREECE_BAILOUT?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-07-05-16-04-15


ul 5, 4:47 PM EDT

GREEKS REJECT DEMANDS FOR MORE AUSTERITY IN KEY REFERENDUM
BY MENELAOS HADJICOSTIS AND DEREK GATOPOULOS

ASSOCIATED PRESS

ATHENS, Greece (AP) -- Voters in Greece resoundingly rejected creditors' demands for more austerity in return for rescue loans Sunday, backing Prime Minister Alexis Tsipras, who insisted the vote would give him a stronger hand to reach a better deal.


The opposition accused Tsipras of jeopardizing the country's membership in the 19-nation club that uses the euro and said a "yes" vote was about keeping the common currency.


With 87 percent of the votes counted, the "no" side had more than 60 percent.

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[Noir]

Well its want the greek government, and people, apparently wanted... I expect to see them out of the Euro over the next 3 months.

[Kathianne]

Well its want the greek government, and people, apparently wanted... I expect to see them out of the Euro over the next 3 months.

It seems that many are just in denial at the repercussions. Another reaction, not much predictions, but plenty here to make some educated guesses from:

http://www.wsj.com/articles/polls-close-in-greek-referendum-1436113280


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The projected outcome would strengthen the domestic standing of Greek Prime MinisterAlexis Tsipras, who campaigned vehemently for Greeks to reject lenders’ terms for further bailout funding.

But Mr. Tsipras might soon find it difficult to deliver on his promise to secure a more lenient bailout deal from Europe, where other governments, led by Germany, are in no mood to offer Greece more generous terms.

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German Chancellor Angela Merkel (http://topics.wsj.com/person/M/Angela-Merkel/5351) will fly to Paris on Monday for talks on Greece with French President François Hollande, her spokesman said after polls closed in Greece.
The referendum appeared to have split Greece (http://www.wsj.com/articles/on-bailout-referendums-eve-greeks-are-deeply-divided-on-which-course-to-take-1436038620) along lines of age, affluence and ideology. The young, many pensioners, the poor and those with pronounced left-wing or nationalist right-wing views were leaning toward a “no.” Middle-class, middle-aged and politically centrist voters were more likely to have voted “yes” to protect Greece’s place in the eurozone.

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“The Greek people are sending the message that they are taking their lives into their own hands,” he said. “One can ignore a government’s will. Nobody can ignore a nation’s will. (It's true they may do as they like, they may however find themselves on their own, as a nation and government.)
The crisis is also rattling nerves outside the eurozone. U.S. Treasury chief Jacob Lew (http://topics.wsj.com/person/L/Jacob-Lew/6182) in a May visit to Europe urged policy makers to find a swift resolution. British Prime MinisterDavid Cameron (http://topics.wsj.com/person/C/David-Cameron/5940) plans to lead a meeting Monday with the governor of the Bank of England and other top officials to assess the fallout from the vote, U.K. Treasury chief George Osborne said on Sunday.

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[Kathianne]

http://www.bloomberg.com/news/articles/2015-07-05/euro-drops-as-greece-votes-no-to-austerity-demands-kiwi-falls

This doesn't sound good:


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The first shock waves from Greek voters’ rejection (http://www.bloomberg.com/news/articles/2015-07-05/greece-heads-for-no-vote-raising-risk-of-departure-from-euro) of austerity were felt in the currency markets, with the euro falling against major peers and Australia’s dollar sliding to a six-year low. Analysts are predicting a flight to safety, with Treasuries and German bunds to benefit.

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ECB Factor

The euro could drop toward $1.08 initially, before targeting a 12-year low of $1.0485 last reached March 16, said Robert Rennie, the global head of currency and commodity strategy at Westpac Banking Corp. in Sydney.


“The risks the Greek referendum pose to the very heart of the European Monetary Union have yet to be fully understood,” he said by phone. “Financial markets will be watching very closely for reactions from Hollande, Merkel, Draghi, as well as from the Greek government and the liquidity situation in Greek banks.”

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Aussie Losses

The Aussie’s retreat is significant because central bank chief Glenn Stevens said in December he preferred the currency trade at about 75 U.S. cents to assist the economy after the collapse of a mining investment boom. The kiwi declined a seventh day, slipping to 66.46 U.S. cents, its weakest intraday level since June 2010.

In China, 28 companies halted their IPOs, according to filings to the nation’s two exchanges Saturday. A group of 21 brokerages led by Citic Securities Co. will invest at least 120 billion yuan ($19.3 billion) in a stock-market fund, the Securities Association of China said the same day. Executives from 25 mutual funds vowed to buy shares and hold them for at least a year, according to an industry group association.

The weekend announcements come as the government battles to restore faith among the nation’s 90 million individual investors after a slew of measures by regulators, including a pledge to investigate market manipulation, failed to stem declines (http://www.bloomberg.com/news/articles/2015-07-05/china-blames-rout-on-short-sellers-who-bought-as-stocks-tumbled).


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