Homepage / Investment / Trump may open US wallet for debt-ridden NATO ally Greece at urgent time
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Investment

Trump may open US wallet for debt-ridden NATO ally Greece at urgent time

The flow of U.S. investment to Greece is taking on a new urgency as the Trump administration looks to shore up economic and defense cooperation with a key NATO ally.

On Tuesday, Oct. 17, President Donald Trump will meet with Greek Prime Minister Alexis Tsipras to discuss these issues. Foreign Minister Nikos Kotzias, Defense Minister Panos Kammenos, Minister for Economy and Development Dimitri Papadimitriou and Minister for Digital Policy Nikos Pappas will accompany the Greek prime minister.

According to diplomatic sources, the leaders will focus on investments and collaboration in the field of energy. “Greece’s contingent oil reserves are estimated at 950 million barrels,” said Costis Stambolis, executive director of the Institute for Energy for South East Europe (IENE). “To date, however, 50 million of proven reserves have been discovered.” Major energy companies are lining up to tap the country’s hydrocarbon potential in the waters surrounding southern Crete and the Grevena region in northern Greece, close to the route of the Trans Adriatic Pipeline.

In June, Greece approved applications submitted by a consortium of Total, ExxonMobil and Hellenic Petroleum for oil and gas drilling off the island of Crete.

At the same time, “Greece is a potential customer for U.S. LNG exports. Greece has plans to increase LNG imports next year,” Stambolis says. “It expanded its port facilities near Pireaus, and it’s planning to build a floating storage terminal for LNG in Alexandroupoli, northern Greece.”

Another top issue of the agenda will be the extension of the agreement for the use of the U.S. naval base in Souda Bay, Crete, and the upgrading of the Greek fleet of F-16 military jets. The base plays a crucial strategic role in the Trump administration’s plan to combat ISIS and terrorism and protect energy routes in the Middle East and the Gulf. In addition, sources have reported there may be plans to build a second military base in southern Crete.

New French President Emmanuel Macron also recently spoke on increasing ties between France and Greece during a visit to Athens.

More from Global Investing Hot Spots:
Where investors have reaped nearly 50% stock gains this year
The biggest stock market trade of the year may be at a tipping point
Against all odds, this Greek ETF is up more than 25% year-to-date

With Turkey’s political landscape becoming more volatile after the failed coup attempt in July 2016 against President Recep Tayyip Erdogan and Germany’s call for Turkey’s EU hopes ending, Greece could play a more strategic military role for the United States in the Mediterranean and Middle East, as well as North Africa. The meeting comes at a time when U.S.-Turkish relations are at a boiling point. Tensions are rising over a host of issues, including Ankara’s warming ties to Russia as it pivots away from the EU and NATO alliance. Recently, the United States and Turkey suspended visa services to each other’s countries following the arrest of a U.S. consulate employee.

It is expected that Trump and Tsipras will examine ways to open the spigot on U.S. capital flows to Greece. Right now the United States is the sixth-largest foreign investor in Greece, an indebted nation trying to pull itself out of a severe depression for a decade. Despite falling back into recession in the first quarter, the economy is projected to expand by 1.8 percent this year and 2.6 percent in 2018, the IMF reports. And the IMF and other Greek creditors are drawing closer to a deal over the country’s €86 billion program (US$101 billion), following parliament’s approval of additional tax and pension reforms for the recently completed second evaluation of the Greek program.

During last week’s annual World Bank and IMF meeting, the Greek premier worked to secure a more flexible stance by the IMF to ensure that a third bailout review is completed by the end of this year and that Greece remains on track to exit the bailout next summer.

The Greek prime minister’s objective is to regain full market access to international bond markets and to leave institutional help behind. In July, Greece dipped into bond markets after a three-year hiatus, issuing five-year debt at an average yield of 4.66 percent. Greece is expected to return to the bond market again in the next 12 months.

Already there have been signs that U.S. investors are more willing to take on Greek risk. Calamos Investments’ recent acquisition of Ethniki Insurance, Greece’s largest insurance company, was a vote of confidence in the economic turnaround. The deal for a 75 percent stake in the insurer — a subsidiary of the National Bank of Greece — was made in June through a consortium of Calamos and Exin Partners. Calamos Investments is a global investment firm with more than $20 billion of assets under management. Exin is a Dutch investor focused on insurance, reinsurance and asset management.

Star hedge fund manager Kyle Bass, founder of Hayman Capital Management, is also optimistic about the outlook for Greek stocks and bonds. He believes some sectors, such as bank stocks, are grossly undervalued — trading at a quarter of book value — and will rally next year if there is a political change of the guard.

Diego Ferro, co-chief investment officer of Greylock Capital Management, a $1 billion hedge fund involved in Greece’s bond restructuring, says he’s made good returns on bond investments in Greece. But not many investors are comfortable investing in undervalued, distressed and high-yield assets. “People are still worried about the volatility, although the Greek economy is much better,” Ferro said.

The Global X MSCI Greece ETF (GREK) is up 32 percent in the past year, but the fund’s five-year return is still negative 9 percent, according to Morningstar data through Oct. 13. The ETF has taken in $30 million from investors this year, according to XTF.com.

That may change soon, as many investors believe a market bottom has been hit and the Greek economy is poised for an upswing. On Monday the Hellenic American Leadership Council and the Chicago Council on Global Affairs jointly hosted Tsipras for a program on the state of economic and security cooperation between Greece and the United States. In addition, the prime minister visited 1871, a hub for more than 400 digital start-ups that houses accelerators, incubators, tech talent schools and the Illinois Science and Technology Coalition.

According to Endy Zemenides, executive director of HALC, a number of potential investors lined up to meet Tsipras over the weekend. They included John Calamos, founder of Calamos Investments; Richard Driehaus, founder of Driehaus Capital Management, the boutique investment adviser that invests in frontier markets and manages $9 billion in assets; Alexi Giannoulias, senior director, BNY Mellon Wealth Management; and members of the Mirkopoulos family, owners of Toronto-based Cinespace Film Studios.

Source: Investment Cnbc
Trump may open US wallet for debt-ridden NATO ally Greece at urgent time

Comments are closed.