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Greece hopes to secure vital reform deal next week - live updates Greece hopes to secure vital reform deal next week - live updates
(35 minutes later)
10.41am GMT10:41
Greek opposition claims money will run out by Easter
Over in Greece, opposition New Democracy parliamentary spokesman Kyriakos Mitsotakis has issued a warning that the country could go bankrupt by Easter.
Helena Smith reports from Athens:
Calling on the leftist-led government to meet the euro group’s demand for a list of reforms as soon as possible, Mitsotakis told Mega TV liquidity problems were such that Greece could hit the rocks of bankruptcy by [Orthodox] Easter.
“Money will run out by Easter,” he said insisting that the debt-stricken nation was now at risk of defaulting because of lost time.
Mitsotakis also criticised the ruling coalition for still not bringing the bailout extension accord, reached with creditors on February 20, to parliament.
The government is fearful of “the truth” being told in parliament, he claimed, and worried that many of its own MPs would not vote the agreement through.
“We, however, would back it,” Mitsotakis said.
Nikos Filis, parliamentary spokesman for the governing Syriza party, also appeared on the show and insisted that pensions and salaries – due to be paid next week – and worth a reputed €1.7bn were - “not in danger.”
“There is not going to be a credit event,” said Filis, a former chief editor of Avgi, the left-wing party’s paper.
Opposition MPs have accused the government of leading the country to an “Internal default” where it is unable to meet certain payments, most notably pensions and public sector salaries.
But anecdotal evidence suggests that growing numbers of Greek civil servants are taking precautionary measures.
“I have ensured that I have paid all my bills, including doctors’ visits, because frankly there is very little assurance that we will be paid in full in the coming months,” said one high ranking public sector employee in her sixties.
“We are bankrupt and it is clear the state is running out of money.”
10.24am GMT10:2410.24am GMT10:24
It’s not a full-blown run, yet, but Greece’s banking sector continues to suffer from a slow shuffle to the exits.It’s not a full-blown run, yet, but Greece’s banking sector continues to suffer from a slow shuffle to the exits.
Deposits fell by €7.8bn in February, according to new ECB data today, as some savers pulled out cash.Deposits fell by €7.8bn in February, according to new ECB data today, as some savers pulled out cash.
Greek bank deposits fell by €7.8bn in Feb (following a record €12.2bn drop in Jan). Here's the broader picture. pic.twitter.com/IOSveKUFzmGreek bank deposits fell by €7.8bn in Feb (following a record €12.2bn drop in Jan). Here's the broader picture. pic.twitter.com/IOSveKUFzm
10.21am GMT10:2110.21am GMT10:21
Stock markets fall deeper into the redStock markets fall deeper into the red
The selloff in the European stock markets has accelerated, with all the main indices shedding at least 1% so far this morning.The selloff in the European stock markets has accelerated, with all the main indices shedding at least 1% so far this morning.
London’s FTSE 100 has shed 85 points, in a broad-based selloff.London’s FTSE 100 has shed 85 points, in a broad-based selloff.
Mike van Dulken at Accendo Markets says confidence has been hit by the conflict in Yemen, Greece’s debt problems, and signs that the US economy is slowing.Mike van Dulken at Accendo Markets says confidence has been hit by the conflict in Yemen, Greece’s debt problems, and signs that the US economy is slowing.
Over in Frankfurt, shares in German exporters are suffering as the euro rallies against the US dollar, back over the $1.10 mark.Over in Frankfurt, shares in German exporters are suffering as the euro rallies against the US dollar, back over the $1.10 mark.
Wall Street is on track for further falls today.Wall Street is on track for further falls today.
US futures are tumbling again today. pic.twitter.com/kWO84JC0R7US futures are tumbling again today. pic.twitter.com/kWO84JC0R7
The biggest faller in the City today is the London Stock Exchange itself, after its biggest shareholder sold a 10% stake.The biggest faller in the City today is the London Stock Exchange itself, after its biggest shareholder sold a 10% stake.
Travel stocks are also suffering, with British Airways owner IAG down 4.5%.Travel stocks are also suffering, with British Airways owner IAG down 4.5%.
Related: London Stock Exchange drops as Dubai sells stakeRelated: London Stock Exchange drops as Dubai sells stake
10.17am GMT10:1710.17am GMT10:17
Rob Wood of Berenberg Bank isn’t surprised to see UK retail sales rising so strongly last month.Rob Wood of Berenberg Bank isn’t surprised to see UK retail sales rising so strongly last month.
Explaining this is not rocket science. Cheaper petrol, food and import prices are cutting shop prices fast, leaving consumers with a little more money to spare after buying essentials.Explaining this is not rocket science. Cheaper petrol, food and import prices are cutting shop prices fast, leaving consumers with a little more money to spare after buying essentials.
And UK consumers being the shoppers they are tend to spend that extra disposable income.And UK consumers being the shoppers they are tend to spend that extra disposable income.
9.57am GMT09:579.57am GMT09:57
UK retail sales jumped last month, indicating that British consumers are upbeat about economic prospects ahead of May’s general election.UK retail sales jumped last month, indicating that British consumers are upbeat about economic prospects ahead of May’s general election.
The Office for National Statistics reported that sales were up by 0.7% month-on-month in February, and were 5.7% higher than a year ago.The Office for National Statistics reported that sales were up by 0.7% month-on-month in February, and were 5.7% higher than a year ago.
Demand for non-food goods such as furniture was particularly high.Demand for non-food goods such as furniture was particularly high.
The ONS also reported that prices fell by 3.6% in February 2015, the largest year-on-year fall since consistent records began in 1997.The ONS also reported that prices fell by 3.6% in February 2015, the largest year-on-year fall since consistent records began in 1997.
We learned on Tuesday that inflation across the economy was zero in February; this jump in retail sales suggests people aren’t worried that deflation is setting in [if they were, they’d be deferring purchases until they’re cheaper].We learned on Tuesday that inflation across the economy was zero in February; this jump in retail sales suggests people aren’t worried that deflation is setting in [if they were, they’d be deferring purchases until they’re cheaper].
Volume of sales at household goods stores up 9.1% in last year. That's a strong sign of consumer confidence.Volume of sales at household goods stores up 9.1% in last year. That's a strong sign of consumer confidence.
Updated at 10.08am GMTUpdated at 10.08am GMT
9.40am GMT09:409.40am GMT09:40
Another encouraging sign for the eurozone: Money supply across the single currency region jumped by 4% last month, the fastest rise in almost six years.Another encouraging sign for the eurozone: Money supply across the single currency region jumped by 4% last month, the fastest rise in almost six years.
4% M3 growth for the eurozone - strongest since April '09. pic.twitter.com/xh6DGcgwt04% M3 growth for the eurozone - strongest since April '09. pic.twitter.com/xh6DGcgwt0
However, total lending to eurozone households and firms dipped by 0.1%, the 34th consecutive monthly fall. That suggests the ECB’s stimulus measures aren’t, yet, spurring on lending (although loans to non-financial corporations did rise by €8bn). Here’s the ECB’s data.However, total lending to eurozone households and firms dipped by 0.1%, the 34th consecutive monthly fall. That suggests the ECB’s stimulus measures aren’t, yet, spurring on lending (although loans to non-financial corporations did rise by €8bn). Here’s the ECB’s data.
9.23am GMT09:239.23am GMT09:23
Spain’s economic recovery appears to be gathering pace.Spain’s economic recovery appears to be gathering pace.
The Bank of Spain has raised its growth forecast for 2015 to a punchy 2.8%, and predicted that the economy expanded by 0.8% in the first three months of this year.The Bank of Spain has raised its growth forecast for 2015 to a punchy 2.8%, and predicted that the economy expanded by 0.8% in the first three months of this year.
That would make it one of the best-performing areas of the eurozone.That would make it one of the best-performing areas of the eurozone.
More good economic news for #Spain RT @ForexNews87 Bank of Spain says sees Q1 Gdp up 0.8 Pct from Previous Quarter http://t.co/xlq340xRrBMore good economic news for #Spain RT @ForexNews87 Bank of Spain says sees Q1 Gdp up 0.8 Pct from Previous Quarter http://t.co/xlq340xRrB
Updated at 9.24am GMTUpdated at 9.24am GMT
9.13am GMT09:139.13am GMT09:13
Anxiety over Greece’s bailout is hitting its stock market this morning, despite economy minister George Stathakis predicting a deal early next week.Anxiety over Greece’s bailout is hitting its stock market this morning, despite economy minister George Stathakis predicting a deal early next week.
The ATG index of leading shares has dropped by 2.5% in early trading, led by financial stocks:The ATG index of leading shares has dropped by 2.5% in early trading, led by financial stocks:
Greek government bonds are coming under pressure too, pushing up the yield (or interest rate) on its shorter-term debt.Greek government bonds are coming under pressure too, pushing up the yield (or interest rate) on its shorter-term debt.
#Greece yields 3y 19.83%; +19 bps 5y 15.62%; +16 bps 10y 10.94%; +1 bps 15y 10.82%; -1 bps#Greece yields 3y 19.83%; +19 bps 5y 15.62%; +16 bps 10y 10.94%; +1 bps 15y 10.82%; -1 bps
8.35am GMT08:358.35am GMT08:35
The Russian ruble has jumped by 1.5% against the US dollar , on the back of the oil price spike.The Russian ruble has jumped by 1.5% against the US dollar , on the back of the oil price spike.
#Russia Ruble rallies on higher #oil price. pic.twitter.com/7cAs0Ocmug#Russia Ruble rallies on higher #oil price. pic.twitter.com/7cAs0Ocmug
8.30am GMT08:308.30am GMT08:30
Oil price leaps after Yemen air strikesOil price leaps after Yemen air strikes
The oil prices has surged this morning, after Saudi Arabia launched military action against rebels in Yemen, raising the prospect of wider conflict in the Middle East.The oil prices has surged this morning, after Saudi Arabia launched military action against rebels in Yemen, raising the prospect of wider conflict in the Middle East.
The price of a barrel of Brent crude has jumped by 6%, or over three dollars per barrel, to $59.50.The price of a barrel of Brent crude has jumped by 6%, or over three dollars per barrel, to $59.50.
US Crude oil also jumped, by a similar amount, to $51.26US Crude oil also jumped, by a similar amount, to $51.26
#Oil extends gains on Yemen escalation. Brent crude up >6%.http://t.co/Jb7MihRpcI pic.twitter.com/mEODpwV7wj#Oil extends gains on Yemen escalation. Brent crude up >6%.http://t.co/Jb7MihRpcI pic.twitter.com/mEODpwV7wj
Having bombed Houthi rebels in Yemen yesterday, Saudi authorities said that several other countries in the region including Egypt, Pakistan, Jordan and Sudan were ready to commit troops to a ground offensive.Having bombed Houthi rebels in Yemen yesterday, Saudi authorities said that several other countries in the region including Egypt, Pakistan, Jordan and Sudan were ready to commit troops to a ground offensive.
The US is also supporting the Saudis, who acted after Houthi rebels - backed by Iran -seized al-Anad airbase and the seaport city of Aden.The US is also supporting the Saudis, who acted after Houthi rebels - backed by Iran -seized al-Anad airbase and the seaport city of Aden.
As Dan Roberts and Kareem Shaheen explain:As Dan Roberts and Kareem Shaheen explain:
The advance set the stage for a confrontation between Iran, which backs the rebels also known as Ansar Allah, and regional powers eager to halt the broadening of the Islamic Republic’s regional influenceThe advance set the stage for a confrontation between Iran, which backs the rebels also known as Ansar Allah, and regional powers eager to halt the broadening of the Islamic Republic’s regional influence
Related: Saudi Arabia launches Yemen air strikes as alliance builds against Houthi rebelsRelated: Saudi Arabia launches Yemen air strikes as alliance builds against Houthi rebels
Geo-political risk back in #oil traders minds...oil price spikes as Saudi & allies start targeted bombing in Yemen. WTI +18% last 5daysGeo-political risk back in #oil traders minds...oil price spikes as Saudi & allies start targeted bombing in Yemen. WTI +18% last 5days
8.11am GMT08:118.11am GMT08:11
European stock markets have opened in the red, tracking losses on Wall Street following yesterday’s weak US data (see opening post for details).European stock markets have opened in the red, tracking losses on Wall Street following yesterday’s weak US data (see opening post for details).
Germany is the biggest faller, with the DAC shedding 1.4%.Germany is the biggest faller, with the DAC shedding 1.4%.
The FTSE is down 38 points, or 0.6%, at 6951 points - further away from last week’s record highs.The FTSE is down 38 points, or 0.6%, at 6951 points - further away from last week’s record highs.
DAX down 200 points at 8.06am - FTSE -40 points at 6950DAX down 200 points at 8.06am - FTSE -40 points at 6950
8.03am GMT08:038.03am GMT08:03
German consumer confidence hits 13 year highGerman consumer confidence hits 13 year high
While Greeks fret about potential bankruptcy, Germans are their most confidence in over 13 years.While Greeks fret about potential bankruptcy, Germans are their most confidence in over 13 years.
GfK’s monthly survey of German consumer confidence has hit 10.0, up from 9.7% a month ago, which is the highest since October 2001.GfK’s monthly survey of German consumer confidence has hit 10.0, up from 9.7% a month ago, which is the highest since October 2001.
GfK analyst Rolf Buerkl said German consumers are becoming “ever more optimistic”; but that would change if the Greek crisis deepened.GfK analyst Rolf Buerkl said German consumers are becoming “ever more optimistic”; but that would change if the Greek crisis deepened.
“If a Grexit, where Greece renounces the euro and subsequently leaves the euro zone, were in fact to materialise, the German economy could suffer a severe setback as a result.”“If a Grexit, where Greece renounces the euro and subsequently leaves the euro zone, were in fact to materialise, the German economy could suffer a severe setback as a result.”
Germans on a shopping binge: GfK consumer confidence increased to 10.0, highest level since Oct2001. (via ING) pic.twitter.com/SNMuH08kOrGermans on a shopping binge: GfK consumer confidence increased to 10.0, highest level since Oct2001. (via ING) pic.twitter.com/SNMuH08kOr
7.59am GMT07:597.59am GMT07:59
George Stathaskis’s comments suggest that eurozone finance ministers may gather in Brussels early next week to discuss the Greek crisis again, and potentially release some aid.George Stathaskis’s comments suggest that eurozone finance ministers may gather in Brussels early next week to discuss the Greek crisis again, and potentially release some aid.
7.53am GMT07:537.53am GMT07:53
Greece optimistic of deal next weekGreece optimistic of deal next week
The Greek government has declared it is confident that it can reach a deal on its economic reforms with the rest of the eurozone early next week.The Greek government has declared it is confident that it can reach a deal on its economic reforms with the rest of the eurozone early next week.
Economy minister George Stathakis told Antenna TV this morning that a breakthrough - which would stave off the risk of bankruptcy - could be just days away.Economy minister George Stathakis told Antenna TV this morning that a breakthrough - which would stave off the risk of bankruptcy - could be just days away.
Stathakis said:Stathakis said:
“I believe that at the beginning of next week we will have an agreement on the package of reforms the Greek government is proposing, and on the funding of the country.”“I believe that at the beginning of next week we will have an agreement on the package of reforms the Greek government is proposing, and on the funding of the country.”
However, he didn’t indicate what kinds of reform are being worked on; Greece’s government must tread a fine line between the demands of its creditors and the expectations of its own MPs.However, he didn’t indicate what kinds of reform are being worked on; Greece’s government must tread a fine line between the demands of its creditors and the expectations of its own MPs.
Economists believe Greece could run out of funds as early as April 9th, when an IMF repayment is due.Economists believe Greece could run out of funds as early as April 9th, when an IMF repayment is due.
Eurozone officials yesterday refused to hand back €1.2bn of bailout funds which Greece believed it was entitled too, a move which forces Greece to produce the ‘concrete’ reforms demanded by lenders.Eurozone officials yesterday refused to hand back €1.2bn of bailout funds which Greece believed it was entitled too, a move which forces Greece to produce the ‘concrete’ reforms demanded by lenders.
Updated at 7.54am GMTUpdated at 7.54am GMT
7.42am GMT07:427.42am GMT07:42
The Agenda: Time ticking for Greece....The Agenda: Time ticking for Greece....
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
It looks like another day dominated by Greece debt worries. Athens has until Monday to present a convincing set of economic reforms to its lenders, and its cash reserves are looking increasingly stretched.It looks like another day dominated by Greece debt worries. Athens has until Monday to present a convincing set of economic reforms to its lenders, and its cash reserves are looking increasingly stretched.
As our Helena Smith reported last night, Greece is now scrabbling down the back of the fiscal sofa in a bid to meet looming repayments:As our Helena Smith reported last night, Greece is now scrabbling down the back of the fiscal sofa in a bid to meet looming repayments:
In a balancing act not seen by any European administration in recent times, the cash-strapped coalition has sequestered the reserves of public bodies, seized EU subsidies destined for farmers and postponed all payments for state supplies in the scramble to continue servicing its debt and paying salaries and pensions.In a balancing act not seen by any European administration in recent times, the cash-strapped coalition has sequestered the reserves of public bodies, seized EU subsidies destined for farmers and postponed all payments for state supplies in the scramble to continue servicing its debt and paying salaries and pensions.
Pension funds have been raided to raise money for Treasury bill auctions.Pension funds have been raided to raise money for Treasury bill auctions.
“It is clear we are reaching the end and very soon won’t be able to pay,” former finance minister, Stefanos Manos, told the Guardian. “They are scraping the bottom of the barrel for everything they can find.”“It is clear we are reaching the end and very soon won’t be able to pay,” former finance minister, Stefanos Manos, told the Guardian. “They are scraping the bottom of the barrel for everything they can find.”
Related: Greek government takes desperate measures in battle to stay afloatRelated: Greek government takes desperate measures in battle to stay afloat
Greek officials insist that they will devise a plan by Monday, which would give investors the confidence to hand over some bailout funds:Greek officials insist that they will devise a plan by Monday, which would give investors the confidence to hand over some bailout funds:
#Greece Gov't officials say detailed reform list to be delivered Monday, hope for #Eurogroup meeting Tuesday + unfreeze of subtranche.#Greece Gov't officials say detailed reform list to be delivered Monday, hope for #Eurogroup meeting Tuesday + unfreeze of subtranche.
Also coming up today....Also coming up today....
And Europe’s stock markets are expected to fall, tracking a big selloff on Wall Street last night.And Europe’s stock markets are expected to fall, tracking a big selloff on Wall Street last night.
US shares were hit by weaker-than-expected economic data on Wednesday, including a 1.4% slide in durable goods orders.US shares were hit by weaker-than-expected economic data on Wednesday, including a 1.4% slide in durable goods orders.
Investors are worried that the American economy might not be prepared for a rise in borrowing costs, as Michael Hewson of CMC Markets explains:Investors are worried that the American economy might not be prepared for a rise in borrowing costs, as Michael Hewson of CMC Markets explains:
Investors appear to be caught in two minds as to the health of the US economy, with the Federal Reserve on the one hand apparently gearing up for a rate rise, at the same time as revising down their growth and inflation expectations.Investors appear to be caught in two minds as to the health of the US economy, with the Federal Reserve on the one hand apparently gearing up for a rate rise, at the same time as revising down their growth and inflation expectations.
This uncertainty has not been helped by further disappointing US economic data, which has served to undermine investor confidence further.This uncertainty has not been helped by further disappointing US economic data, which has served to undermine investor confidence further.
I’ll be tracking all the main events through the day...I’ll be tracking all the main events through the day...