Wednesday preview: Greece in focus as Eurozone finance ministers meet

10th Feb 2015 15:13

All eyes will be on the emergency meeting of Eurogroup finance ministers on Wednesday, where Greece's Yanis Varoufakis will make his debut appearance as he attempts to persuade his peers of the benefits of his bridging programme.The EU is thought likely to propose a six-month extension of the existing bailout programme.Hopes that a deal to alleviate cash-strapped Greece's debt issues saw the Athens stock market close 8% higher on Tuesday as prime minister Alexis Tsipras arranged a phone call with European Commission president Jean-Claude Juncker.Reports emerged later in the day that, despite apparent EC anger at Greek posturing, the call had taken place "in a very good climate" and "positive spirit", which added to indications that Athens' proposed bridging loan was a serious subject of discussion."Whether it is called that or described as an extension so that it is endorsed by other European parliaments, what is important is that the Greek positions are being taken into account," EC officials said.The offer of an extension shows some sense of concession on the part of the EU, said market analyst Jasper Lawler at CMC Markets, and the extension could pave the way to a bridge programme more favourable to the demands of the new Greek government.Economists said even if the bridging loan was agreed, it was only a temporary solution with limitations and likely to require concessions from both sides."Perhaps the most likely outcome is that the EU accepts some variation of Greece's reported proposal for a bridging loan (or soft bail-out extension), coupled with the re-distribution of European Central Bank profits and higher tax bill issuance," said Jonathan Loynes of Capital Economics."It could take some wrangling to finalise such a deal and even this would simply kick the can down the road a bit.""A lasting solution to Greece's debt burden which will ensure its future in the currency union still appears as remote as ever."What else to watch out forUS oil inventories for February will also be updated on Wednesday, after last month crude oil inventories hit 6.333m.On Tuesday the International Energy Agency (IEA) warned that more sell-offs are likely in the near term.Companies: Thomas Cook and Reckitt Benckiser reportReckitt Benckiser is due to issue final results, which will be the first chance for management to present after successfully demerging non-core Indivior (former Reckitt Benckiser Pharma or RBP) on 23 December.Management expressed caution on the top line back in October after missing analysts' estimates slightly on the back of continuing currency headwinds, while like-for-like sales growth was held back by "tougher markets".Broker Numis has assumed 24.0% for the full year and said points to check will include: the scope for individual Powerbrands and NPD measures in 2015; thoughts on emerging markets after Unilever's caution here; the potential for M&A; and the scope for more cash generation long a RB virtue.Thomas Cook will publish its first quarterly statement after chief executive officer (CEO) Harriet Green's decision to leave the company in November.New CEO Peter Fankhauser will make his debut, with the company traditionally trading at a loss through the winter."We believe that TCG will report a mixed trading outlook and, in our opinion, the outlook statement is more important than the Q1 results themselves." Wednesday 11 FebruaryFINALSNew Europe Property Investments, Norsk Hydro ASA, Reckitt Benckiser, Sampo OYJ, Telecity Group, Tullow OilINTERIMSCity of London Investment Group, RedrowIMSSElectrocomponents, Norsk Hydro ASA, QinetiQ Group, Thomas Cook Group, WS AtkinsQUARTERLY EX-DIVIDEND DATEBoeing CoINTERNATIONAL ECONOMIC ANNOUNCEMENTSCrude Oil Inventories (US) (15:30)MBA Mortgage Applications (US) (12:00)Treasury Budget Statement (US) (19:00)ANNUAL REPORTElephant CapitalAGMSBlackrock Frontiers Investment Trust, F&C Capital & Income Inv TrustFINAL DIVIDEND PAYMENT DATEConygar Investment Company