I posted Daiwa's thoughts on the Greek proposals & the path from here earlier .... expressing (very) cautious optimism

ANZ have provided a research note for clients also.

Its detailed and comprehensive, as, as you'd expect from ANZ, but in brief:

  • The bailout proposal includes the acceptance of austerity measures worth roughly EUR13bn and asks for EUR50bn in additional funding. As a comparison, the proposal rejected by the Greek referendum last Sunday was worth EUR8bn in austerity reforms.
  • Meanwhile, some EU officials are said to be open to debt relief (eg greater flexibility in repayment and/or lower interest rates).
  • The clear aim is to try and keep Greece in the euro

ANZ express cautious optimism, but say plans are in place for a Grexit if no agreement can be reached ... they expect those plans to be published Sunday, if that's what it comes to.

If it is a Grexit, ANZ warn of:

  • There will probably be heightened demand for traditional safe havens, US treasuries, bunds, CHF, JPY, etc.
  • Central banks will make whatever liquidity available necessary, and will focus on the impact such a development may have on global financial markets and their own economies
  • Peripheral euro area spreads should widen and stock markets weaken
  • The euro may weaken