Japanese Finance Minister Jun Azumi urged Europe on Tuesday to come up with a transparent scheme to resolve the Greek debt crisis, to help stabilize the world economy and keep the euro from weakening too much against the yen.
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U.S. gold futures rose 1 percent on Tuesday as safe haven buying picked up on growing fears that a Greek default could trigger another global recession.
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A split has opened in the eurozone over the terms of Greece’s second 109 billion euro bail-out with as many as seven of the bloc’s 17 members arguing for private creditors to swallow a bigger writedown on their Greek bond holdings.
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Greek lawmakers approved an unpopular property tax law that is crucial to a new austerity campaign the government has proposed so it can meet the terms of its international bailout and continue receiving aid funds.
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Japanese Finance Minister Jun Azumi said on Tuesday he would not rule out Japan sharing some of the burden related to a bailout scheme for Greece, provided that Europe mapped out a rational plan that could ease market jitters.
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"There seems to be a realisation that there needs to be much more firepower to the European response to ensure that whatever may happen to Greece, there is not a series of sovereign and bank defaults afterwards," Holger Schmieding, chief economist at Berenberg Bank, told CNBC.
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Bankers are bracing for a Greek default, and their best hope is that Europe can erect* firewalls around the banking system strong enough and soon enough to prevent it from spreading to other euro-zone countries.
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Viktor Hjort, executive director at Morgan Stanley, talks about the latest developments in Europe and U.S. rounding up with forecast on foreign exchange markets.
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Raghavan Seetharaman, CEO, Doha Bank, wears a tuxedo to work every day and is on Squawk to discuss concerns over the Greek crisis. He says the larger interests in the EU have to come together politically and deal with the problem. He adds there's real opportunity in the emerging markets.
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German Chancellor Angela Merkel and French President Nicolas Sarkozy have both said that Greece will not leave the euro, but the "unthinkable" is now being seriously considered at all levels.
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The euro held onto modest gains against the greenback in Asia on Wednesday, as bears trimmed short positions just in case EU leaders surprised by making progress on Greece in a conference call later in the day.*
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A look at Greek default fears, with CNBC's Carolin Schober, and discussing the next slice of the bailout plan, with Ned Riley, Riley Asset Management CEO; Uri Landesman, Platinum Partners, and Marc Chandler, Brown Brothers.
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Greece is back in strike mode due to the country's austerity measures and insight on how investor worries are impacting markets, with CNBC's Carolin Schober.
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Bank of France Governor Christian Noyer said on Monday that French banks have no liquidity or solvency problems and can withstand any crisis event in Greece.
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Greek Prime Minister George Papandreou said on Saturday he was determined to keep the country in the euro zone and will do whatever it takes to meet commitments agreed with international lenders.
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Worries about the Greek bailout roughed up the euro Friday, and these strategists sees more tough sledding ahead. Here's how to trade the mayhem.
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In Greece, "further economic weakness expected this year, partly driven by the global slowdown, can only make things worse also on the fiscal front," according to economists at Credit Suisse in London.
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Some European financial institutions should have taken bigger losses on their Greek government bond holdings in recent results announcements, according to the body that sets their accounting rules in a letter seen by the FT.
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