Greece not 'out of woods' yet says top EU official

LONDON/BRUSSELS — The need for a new rescue program for Greece promises a drawn-out drama of late-night negotiations but is unlikely to trigger the sort of crisis that has threatened the breakup of the euro in the recent past. That the collapse of the single currency is no longer an immediate danger reflects the solidity of the political bargain that saved Greece a year ago.

In the past week, as I expected, the ECB, Troika, German officials and others have all warned Greeks to not vote for Alexis Tsipras and his radical-left party Syriza. The question is will it backfire. I suggest it already has. The pertinent question is whether it backfire enough to matter. Please consider Greeks rail against 'crude' German editorial.

Gold Prices/Fixes/Rates/Vols - (Bloomberg) Gold is lower in all major currencies today but remains well bid near the $1,300/oz level. Physical demand, particularly from China, remains very robust and premiums high at over $30 per ounce overnight.

Cyprus agreed to the outlines of an international bailout, paving the way for 10-billion euros (US$13-billion) of emergency loans and eliminating the threat of default. The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area. “It’s in best interest of the Cyprus people and the European Union,” Cyprus President Nicos Anastasiades told reporters.

If you are seeking an amusing yet disconcerting diversion from QE talk, please consider Lawmaker fined about $4,000 for insulting EU chief. How much does it cost to tell the one of the EU's top officials he has "the charisma of a damp rag?" About €3,000, or close to $4,000, as a European member of Parliament has discovered.

A small dose of reality has set in for a group of European central bankers: Euro Officials Begin to Weigh Greek Exit as Euro Weakens. Greece’s possible exit from the euro moved to the center of Europe’s financial-crisis debate, rattling markets as authorities in Athens struggled to form a government.