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London pre-open: All eyes on the ECB and Berlin

Thu, 16th Jul 2015 08:30

(ShareCast News) - Greek lawmakers overwhelmingly voted last night to approve the package of reforms asked of by Brussels in exchange for further aid, so all eyes will now turn to the European Central Bank and the Berlin.Following last night's vote in Athens the ECB will decide later today whether to increase or not crisis funding for Greek lenders and whether or not to lower the 'haircut' it applies on the collateral those banks provide in exchange."The European Central Bank will announce its latest monetary policy decision today, with no change likely in interest rates or asset purchases. Instead, the focus during the following press conference is likely to be Greece and whether the ECB will increase its emergency liquidity assistance to Greek banks, which have been closed for a week and a half and capital controls put in place," Craig Erlam, Senior Market Analyst at Oanda said in a research note sent to clients.Against the above backdrop, the top flight index was being called to being the session higher by between 28 to 29 points.ECB president Mario Draghi will likely also be grilled as to the prospects for the Greek economy and the potential implications for monetary policy in the currency area.That comes amid an increased focus among Eurozone officials regarding just how much aid or debt forgiveness Greece is likely to require to be able to remain inside the euro area.German parliamentarians will meet on Friday in Berlin on whether to approve the disbursement of further aid to Athens.Speaking on German radio on Thursday the country's finance minister reportedly said Greece cannot aspire to a 'haircut' on the nominal value of its debt if it remains within the Eurozone.Regulator mulls BT Group break-upUK communications regulator Ofcom has cited a break-up of BT as one of a range of possible measures to improve competitiveness in the digital communications market. The regulator said separating Openreach, BT's infrastructure division, from the main group "could deliver competition or wider benefits for end users" and "would remove BT's underlying incentive to discriminate against competitors".Dixons Carphone posted a 21% rise in pre-tax profit in its final results and said its integration was progressing well. For the 13 months to 2 May 2015, pre-tax profit came in at £381m from £316m last year, on revenue of £9.9bn, up 6% from 2014 on a like-for-like basis. The numbers were better than analysts had expected.Imperial Tobacco is setting out plans to sell a further stake in its Spanish logistics unit Cia. de Distribution Integral Logista Holdings SA, Bloomberg reported.Credit services company Experian said full year expectations were unchanged, but warned of currency headwinds in an update. The FTSE 100 firm said in a first quarter update group organic revenue growth was 3% at constant exchange rates, but at actual exchange rates total revenue was down 6%. Experian said the difference related to foreign exchange movements against the US dollar.

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