Greek debt talks, monsoon session among things to look out for this week

Greek banks open today

Three weeks after they were shut to prevent their collapse, banks in Greece will reopen for basic services on Monday. Though cash withdrawal limits will remain, the daily limit of €60 will be replaced by a cumulative maximum of €420 a week.

People are expected to queue up across the country as Greeks regain banking services including the ability to deposit cheques and access safe deposit boxes. The banks will reopen just as prime minister Alexis Tsipras prepares for a second parliamentary vote, crucial to securing a bailout later this week. Read more

Greek debt talks

German chancellor Angela Merkel called for swift start of negotiations on the Greece bailout package, suggesting there will be no reduction in Greek debt but opening up the possibility to discuss other relief measures. “There are 11 million people in Greece,” Merkel told the ARD public service broadcaster in an interview, and, while banks are set to reopen Monday, “there is no normal life”, she said. That is why, she said, “we should start negotiating quickly.” Read more

Central banks shift focus to monetary policy

Central bankers around the world reaffirmed that monetary policy divergence is still the biggest single theme for later this year. The Wall Street Journal reports that US Federal Reserve chairwoman Janet Yellen and Bank of England governor Mark Carneyboth signalled that their institutions were heading towards raising rates after more than six years of ultra-loose policy. The European Central Bank maintained its program of quantitative easing when it met 16 July. Cross-country differences in monetary policy will likely now regain prominence. Read more

Monsoon session of Parliament to begin on 21 July

Faced with the opposition’s threat of a washed out monsoon session in Parliament over corruption issues, the government is expected to introduce eight new bills and take up 11 pending bills including the controversial land Bill and GST Bill for consideration and passage.

Meanwhile, the BJP met over the weekend to work out an aggressive plan to counter the opposition’s allegations against foreign minister Sushma Swaraj and Rajasthan chief minister Vasundhara Raje. Read more

SC to hear CBI’s plea on Vyapam scam

The Supreme Court will hear on Monday Central Bureau of Investigation’s (CBI) plea that the Special Investigation Team (SIT) that has been probing the Vyapam scam so far be allowed to file chargesheets in which the investigation is over. Meanwhile, Madhya Pradesh chief minister Shivarj Singh Chouhan met BJP party chief Amit Shah late on Sunday night where he briefed the latter on various matters related to the scam. Read more

Indian labour conference on Monday

The 46th Indian Labour Congress will be held on 20-21 July amid efforts by the government to push much-needed labour reforms. Among the changes proposed by the government were changes in existing labour laws to empower industry and to toughen terms to form trade unions. The congress, to be inaugurated by Prime Minister Narendra Modi, is likely to see the unions opposing some of the proposed reforms. Read more

Several domestic and global companies declare results

Markets this week will pay attention to the corporate quarterly results of key companies such as Reliance Industries, Infosys Technologies, Hindustan Unilever, HDFC Bank and so on. While Infosys will announce its numbers on Tuesday, Reliance Industries results will be on Friday. HDFC Bank, Wipro and Lupin are the other major companies whose results will be on investors’ radar. Reuters reports that stocks slipped worldwide on Friday last week after disappointing corporate results from companies such as Boeing and Volvo and expectations for a Greek debt deal faded.

This will also be a big week for US earnings, with more than 100 S&P 500 companies reporting results. Among the companies reporting their results today are Morgan Stanley, Halliburton, Hasbro and IBM. Look out for Apple, Microsoft and Harley Davidson on Tuesday.

US, Cuba to re-establish diplomatic relations

For the first time since severing ties in 1961, the US and Cuba will reopen embassies in each other’s capitals as the two countries re-establish diplomatic relations. CNN reports that Cuban foreign minister Bruno Rodriquez Parrilla will travel to the Cuban Embassy in Washington to raise his country’s flag, even as US diplomats in Havana have readied everything from new business cards to the embassy sign.

State-run banks in India wait for clarity on Iran

After the Iran nuclear deal, top state-run banks including State Bank of India, Punjab National Bank and IDBI are waiting for clarity on when and how sanctions will be lifted on India’s long-time trading partner in West Asia to reactivate old business links and ensure banking services to support bilateral trade. Mint reports that the Iranian economy holds potential for these banks to support that country’s oil exports to India and potential for Indian exports of food grains and IT-led services. Read more

US Congress to consider Iran deal

Starting Monday, the lawmakers in the Republican-controlled Congress, will have 60 days to review the document that calls for lifting of international sanctions on Tehran in exchange for Iran reigning in its nuclear program. While legislators cannot change conditions of the deal, they can vote to reject it entirely. Read more