Morning MoneyBeat Europe: Caution Over Greek Deal Set to Rule

        By David Cottle

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        Good Morning Europe

        A mixed, cautious start is expected for local mainboards following relatively modest Wall Street gains on Senate testimony from Federal Reserve Chair Janet Yellen Tuesday.

        While markets still expect higher U.S. interest rates, possibly this year should economic recovery endure, Ms. Yellen's words don't seem to have made the prospect any more immediate than it had been before, and stocks took some comfort from this.

        Greece on the other hand has faced some uncomfortable commentary from the International Monetary Fund over its reform proposals, which, if nothing else, has reminded marekts that the deal hammered out last week is only a small step towards resolving the question of Greece's place in the eurozone.

        There has been brighter news from China, however, where a closely watched survey of the manufacturing sector managed to beat forecasts.

        Market Snapshot: U.S. markets (Tuesday close) DJIA up 0.5%, Nasdaq up 0.1%, S&P 500 up 0.3%. Nikkei (Wednesday close) down 0.1%. Brent crude up 75 cents at $49.27. Gold up $13 at $1210.30. EUR/USD at $1.1353, USD/JPY at Yen118.81. 10 year Treasury yield 1.99%, Bund 0.33%, Gilt 1.76%.

        Watch For: French consumer confidence numbers and U.S. weekly mortgage application data. Fed Chairwoman Janet Yellen is reporting to the House Financial Services Committee.

        What You May Have Missed on MoneyBeat:

        As FTSE Hits a Record, Scratch Beneath the Surface: Welcome to recovery, U.K.-style. After 15 years, the FTSE 100 has just closed above its all-time high, lifted not least by good news on Greece and better-than-expected earnings from mining giant BHP Billiton PLC. Time to crack open the warm beer? Well not quite.

        European Investors Call For U.S.-Style High-Yield Markets: European high-yield bond markets should be more American. At least, that's the view of 21 large asset managers expressed in a letter to the high-yield board of the Association for Financial Markets in Europe, the European industry group representing investment banks and other financial firms.

        TPG's Coulter Sees 'Titanic Shifts' in Private Equity Industry: The structure of the traditional private equity fund is under threat as investors seek new ways to buy and own companies without paying high fees to buyout firms, according to TPG co-founder Jim Coulter.

        Greek Mythology is Safe in the Eurozone: Greece is to stay in the eurozone. Or at least its mythology will. The European Central Bank Tuesday unveiled its new 20-euro note, the third in the series that shows the Greek mythological figure Europa on it.

        5 Things to Know About Greece's Proposed Reforms: Greece's new government has submitted a list of overhauls it will make in exchange for four more months of financing from its international creditors while it negotiates a new bailout program. The European Commission has backed the proposals, but have asked for more details. Here are five things to know.

        For Activists, the Good News and the Bad: Activist hedge funds haven't always had the best reputation. To some, they're corporate raiders in the mold of the fictional Gordon Gekko from the Wall Street films: traders seeking to break up firms and oust management.

        From The Wall Street Journal :

        Doubts Cloud Deal to Extend Greek Bailout : Eurozone finance ministers approved a four-month extension to Greece's bailout, but the IMF says Athens faces hurdles before getting new cash.

        Yellen Puts Fed on Path to Lift Rates : Federal Reserve Chairwoman Janet Yellen, sounding upbeat about the economy, started laying the groundwork for interest-rate increases later this year.

        J.P. Morgan Aims to Get Leaner : J.P. Morgan is aiming to reduce certain deposits by up to $100 billion by the end of the year and is preparing to charge large institutional customers for some deposits thanks to new rules that make holding money for the clients too costly.

        Safran Profit Rises on Strong Jet Demand : French aerospace supplier Safran said adjusted profit rose 4.6% last year and should grow further this year amid strong demand for commercial airliners.

        (END) Dow Jones Newswires

        February 25, 2015 01:55 ET (06:55 GMT)


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