Greece is facing a snap general election after prime minister Alexis Tsipras and his ruling Syriza party suffered a heavy defeat in voting for the European Parliament last month.

The vote will be held on July 7, almost four months before the leftwing Syriza government’s term was due to expire. Mr Tsipras tendered his resignation to President Prokopis Pavlopoulos on Monday, saying the country had “entered a prolonged pre-electoral period from the day after the European elections.”

“I believe this could presage risks for the smooth course of the economy . . . endangering the virtuous circle we have entered and the sacrifices the Greek people have made,” he said.

Mr Pavlopoulos approved the premier’s request immediately.

The European Commission warned last week that handouts legislated by the Syriza government ahead of the European vote could derail Greece’s target for a primary budget surplus — before debt servicing costs — of 3.5 per cent of gross domestic product for this year.

The centre-right New Democracy party topped the polls on May 27, finishing 9.5 percentage points ahead of Syriza. (more…)

Actual responses from the two leaders:

• said that if Xi blows off the event and doesn’t have a meeting with Trump, then he will immediately put on tariffs.

US corporations’ cash pile has receded from a record high, according to a report from Moody’s Investors Service, as companies put more of their dollars to use in the wake of tax cuts championed by President Donald Trump.

Moody’s said Monday the 928 non-financial companies that it rates held $1.69tn in cash and liquid investments as of December 2018, a 15.2 per cent drop from an all-time high of $1.99tn a year earlier.

Spending on capital investments, dividends, share buybacks and acquisitions each set record highs in the year following the passage of the Tax Cuts and Jobs Act, which included measures that lowered the corporate tax rate and reduced the tax hit on earnings repatriated from foreign subsidiaries.

Moody’s said it expects cash balances will continue to shrink, saying improved access to global cash following the tax overhaul will encourage cash-rich companies to repay maturing debt and return more cash to shareholders.

In 2018, capital expenditures consumed the largest portion of cash flow, rising 12 per cent to hit a record $851bn. Dividends were up 6.7 per cent to $412bn, net share buybacks nearly doubled to $467bn and acquisition spending grew 14 per cent to $405bn — all new highs. (more…)