Last chance?

Once again, all eyes were on Greece as the "game of chicken" between the country and its creditors continued to be played out. Those were the words of Donald Tusk, president of the European Council, after a meeting of eurozone finance ministers on Thursday failed to cut a deal to unlock €7.2 billion needed by Greece to avoid default on its loans and potential ejection from the single currency.

On Friday the European Central Bank gave Greek banks a cash lifeline by raising the amount of emergency liquidity assistance available by €1.75 billion to allow lenders to pay back depositors, as an estimated €3 billion was pulled out of the country's banks over the week by anxious savers.

This week's bulletin also includes:

  • European leaders meet in Brussels later today in a last-ditch attempt to resolve the Greek debt impasse.
  • The Federal Reserve opens the door for a September interest rate rise while waiting for "decisive evidence" that the US economy is on the mend.
  • May's consumer prices figures confirm that the UK moved out of deflation after just one month, but inflation expectations remain muted.
  • As the Chancellor confirms that £1 billion has been withdrawn from pension funds since April, there are concerns that the taxation and long-term consequences are not sufficiently understood.

View this week's Market Bulletin, which contains thoughts and opinions of St. James's Place and our range of investment managers on the key issues affecting investors.

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