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Euro and Greek bonds hit by bailout fears -- live updates Euro and Greek bonds hit by bailout fears -- live updates
(35 minutes later)
1.29pm BST13:29
The trial of Tom Hayes, the former UBS and Citigroup trader accused of manipulating the Libor rate, has begun at Southwark Crown Court in London.
Here’s our early take:
A trader was motivated by greed as he acted as “ringmaster” in a “thoroughly dishonest and manipulative manner” to rig interbank lending rates, a court has heard.
Tom Hayes, 35, whose trial began on Tuesday, is alleged to have done “everything in his power” to manipulate the rates, known as Libor.
The former UBS and Citigroup trader, of Fleet, Hampshire, denies eight counts of conspiracy to defraud, covering a period from 2006 to 2010.
Mukul Chawla QC, prosecuting, said: “This case is about the dishonest rigging of bank rates for profit.” Chawla said of Hayes: “He behaved in a thoroughly dishonest and manipulative manner by repeatedly cheating those with whom he had entered into huge financial transactions. The motive was a simple one: it was greed.”
He added: “He was the ringmaster at the very centre, telling others around him what to do and in a number of cases rewarding them for their dishonest assistance.”
More here:
Related: Libor trial: trader driven by greed was 'ringmaster' in rate-rigging conspiracy, court hears
Updated at 1.29pm BST
1.15pm BST13:15
Mujtaba Rahman, analyst at Eurasia Group, reckons that Greece will probably reach a deal with the eurozone in time.
Despite the inflammatory talk of defying Greece’s creditors, Rahman believes that a compromise will be hammered out; and that Alexis Tsipras will only suffer a handful of defections.
He writes:
We continue to believe Tsipras will lose around 5-10 lawmakers from his coalition when the package is presented to parliament (potentially attached to a vote of confidence). But we suspect he will lose less than 12 MP’s allowing him to keep his parliamentary majority.
The key factor is energy minister Panagiotis Lafazanis, a leading light in Syriza who controls around 30 MPs through his Left Platform.
Rahman explains:
Albeit ideological, Lafazanis is a team player who understands the government and party’s needs need to come before those of the Left Platform, and importantly, believes Syriza can make a difference in government. He will therefore want to avoid creating the circumstances that could result in a National Unity government in which Syriza’s influence would be heavily diluted.
While Lafazanis will not support any deal, concessions over the fiscal primary surplus, labour and pensions should be enough to keep him and his MP’s in line. Moreover, Lafazanis has a lot of meddling power outside of parliament with the capacity to delay and water down implementation of reforms once they are legislated, as well as to challenge them in court. This affords him another less destructive avenue to express his disagreement with the deal rather than overthrowing the government.
However, it’s not clear how Tsipras’s junior coalition partner, the Independent Greeks, will react.
Rahman also flags up House Speaker Zoe Konstantopoulou, who could look to “claim the anti-austerity mantle” from Tsipras.
12.38pm BST12:3812.38pm BST12:38
#Varoufakis tells journos govt mulls imposing a small tax on cash withdrawals from ATMs to give incentive to use credit cards #Greece#Varoufakis tells journos govt mulls imposing a small tax on cash withdrawals from ATMs to give incentive to use credit cards #Greece
12.32pm BST12:3212.32pm BST12:32
Yanis Varoufakis has apparently also indicated today that Greek savers might incur a ‘small’ fee when they use a machine [he’s been speaking to reporters in Athens].Yanis Varoufakis has apparently also indicated today that Greek savers might incur a ‘small’ fee when they use a machine [he’s been speaking to reporters in Athens].
#Greece FinMin Varoufakis says there may be 'a small' levy on bank withdrawals via ATMs.#Greece FinMin Varoufakis says there may be 'a small' levy on bank withdrawals via ATMs.
This idea has been floating around for some time; one report suggested a €1 fee for withdrawals up to €1,000 (which wouldn’t raise much money or deter a bank run)This idea has been floating around for some time; one report suggested a €1 fee for withdrawals up to €1,000 (which wouldn’t raise much money or deter a bank run)
12.19pm BST12:1912.19pm BST12:19
Greek opposition criticise prime minister TsiprasGreek opposition criticise prime minister Tsipras
Over in Athens the main opposition party has issued a withering attack on the government, saying that Greece is being ruled by a party where 40 percent want to take the country out of the euro.Over in Athens the main opposition party has issued a withering attack on the government, saying that Greece is being ruled by a party where 40 percent want to take the country out of the euro.
Our correspondent Helena Smith reports:Our correspondent Helena Smith reports:
As the clock ticks, the rhetoric gets ever higher with Kyriakos Mitsotakis, the parliamentary spokesman of the main opposition New Democracy party, this morning accusing the prime minister of being unable to control his party.As the clock ticks, the rhetoric gets ever higher with Kyriakos Mitsotakis, the parliamentary spokesman of the main opposition New Democracy party, this morning accusing the prime minister of being unable to control his party.
Greece’s financial situation had got so bad, said Mitsotakis, that it had now reached a point where any deal with creditors at the EU and IMF “was better no deal.”Greece’s financial situation had got so bad, said Mitsotakis, that it had now reached a point where any deal with creditors at the EU and IMF “was better no deal.”
“That doesn’t mean that New Democracy won’t hesitate to look at the agreement and to exercise strong criticism if it is excessively heavy on taxes because Syriza does not want to pursue any other form of reform,” he told the radio station Parapolitika this morning.“That doesn’t mean that New Democracy won’t hesitate to look at the agreement and to exercise strong criticism if it is excessively heavy on taxes because Syriza does not want to pursue any other form of reform,” he told the radio station Parapolitika this morning.
“It has become clear that we are being governed by a party where 40% want us to leave the euro zone and to return to the drachma.“It has become clear that we are being governed by a party where 40% want us to leave the euro zone and to return to the drachma.
In the event that this is adopted we will live a huge national catastrophe and we will speak of the great national tragedy of the 21st century.”In the event that this is adopted we will live a huge national catastrophe and we will speak of the great national tragedy of the 21st century.”
11.55am BST11:5511.55am BST11:55
Heads-up: Greek finance minister Yanis Varoufakis has apparently pledged that Greece will meet its €305m repayment to the International Monetary Fund:Heads-up: Greek finance minister Yanis Varoufakis has apparently pledged that Greece will meet its €305m repayment to the International Monetary Fund:
11.27am BST11:2711.27am BST11:27
Optimism across Britain’s retail industry has hit its highest level since 1988, according to the Confederation of British Industry this morning.Optimism across Britain’s retail industry has hit its highest level since 1988, according to the Confederation of British Industry this morning.
The CBI’s latest survey showed that growth in retail sales volumes picked up strongly in the year to May -- perhaps suggesting that falling prices are encouraging shoppers to spend more.The CBI’s latest survey showed that growth in retail sales volumes picked up strongly in the year to May -- perhaps suggesting that falling prices are encouraging shoppers to spend more.
Expectations for next month are at their highest for 27 years. There’s only one black spot; DIY spending is down year-on-year.Expectations for next month are at their highest for 27 years. There’s only one black spot; DIY spending is down year-on-year.
Here’s some key points:Here’s some key points:
10.50am BST10:5010.50am BST10:50
European commissioner Pierre Moscovici hasn’t changed his tune this morning.European commissioner Pierre Moscovici hasn’t changed his tune this morning.
Moscovici has just warned that there is no Plan B for Greece, and that more effort is needed to agree a reform plan.Moscovici has just warned that there is no Plan B for Greece, and that more effort is needed to agree a reform plan.
10.43am BST10:4310.43am BST10:43
The crisis continues to bring out the best in Greece’s street artists.The crisis continues to bring out the best in Greece’s street artists.
10.27am BST10:2710.27am BST10:27
An (unnamed) German government official has told Reuters that Berlin still hopes Greece will meet its IMF repayment next week:An (unnamed) German government official has told Reuters that Berlin still hopes Greece will meet its IMF repayment next week:
10.09am BST10:0910.09am BST10:09
Another Greek government minister has floated the prospect of failing to repay the International Monetary Fund next month.Another Greek government minister has floated the prospect of failing to repay the International Monetary Fund next month.
Deputy Minister of Social Insurance Dimitris Stratoulis told Mega TV this morning that pensions and wages must come first:Deputy Minister of Social Insurance Dimitris Stratoulis told Mega TV this morning that pensions and wages must come first:
“If we decide that there is no money left for the IMF, we have repeatedly said that our priority is to pay salaries, pensions, health, education”.“If we decide that there is no money left for the IMF, we have repeatedly said that our priority is to pay salaries, pensions, health, education”.
Stratoulis also argued that missing an IMF repayment isn’t a ‘credit event’ - ie, a formal default. That’s via Enikos:Stratoulis also argued that missing an IMF repayment isn’t a ‘credit event’ - ie, a formal default. That’s via Enikos:
Failure to pay IMF is NOT a credit event, says Greek minister - http://t.co/wAhEvtIbM5Failure to pay IMF is NOT a credit event, says Greek minister - http://t.co/wAhEvtIbM5
Stratoulis is correct that failing to repay €305m to the IMF on 5 June probably would not count as an official default. And Greece would still have a month’s grace before the Fund gets really serious.Stratoulis is correct that failing to repay €305m to the IMF on 5 June probably would not count as an official default. And Greece would still have a month’s grace before the Fund gets really serious.
Bloomberg has pulled together a Q&A on this issue. Here’s a flavour:Bloomberg has pulled together a Q&A on this issue. Here’s a flavour:
Q: What will the IMF do?Q: What will the IMF do?
A: A missed payment date starts the clock ticking. Two weeks after the initial due date and a cable from Washington urging immediate payment, the fund sends another cable stressing the “seriousness of the failure to meet obligations” and again urges prompt settlement.A: A missed payment date starts the clock ticking. Two weeks after the initial due date and a cable from Washington urging immediate payment, the fund sends another cable stressing the “seriousness of the failure to meet obligations” and again urges prompt settlement.
Two weeks after that, the managing director informs the Executive Board that an obligation is overdue. For Greece, that’s when the serious consequences kick in. These are known as cross-default and cross-acceleration.Two weeks after that, the managing director informs the Executive Board that an obligation is overdue. For Greece, that’s when the serious consequences kick in. These are known as cross-default and cross-acceleration.
Important read from @nchrysoloras and @johneglover: FAQ on what happens if Greece doesn't pay the IMF http://t.co/bnyH4kqRF6Important read from @nchrysoloras and @johneglover: FAQ on what happens if Greece doesn't pay the IMF http://t.co/bnyH4kqRF6
9.49am BST09:499.49am BST09:49
Arnaud Masset, Market Analyst at online Swiss bank Swissquote also blamed Greece for the euro’s weakness today:Arnaud Masset, Market Analyst at online Swiss bank Swissquote also blamed Greece for the euro’s weakness today:
In Europe, mounting uncertainty about Greece’s next payment to the IMF on June 5 adds pressure on the single currency as Alexis Tsipras, Greece’s PM, declared that his government would accept a sustainable deal “but not a humiliating” agreement, threatening to default on €1.6bn loan repayment due to the IMF in June.In Europe, mounting uncertainty about Greece’s next payment to the IMF on June 5 adds pressure on the single currency as Alexis Tsipras, Greece’s PM, declared that his government would accept a sustainable deal “but not a humiliating” agreement, threatening to default on €1.6bn loan repayment due to the IMF in June.
As a result, the fall of the euro against the dollar accelerates.As a result, the fall of the euro against the dollar accelerates.
9.39am BST09:399.39am BST09:39
Kit Juckes, chief currency strategist at French bank Société Générale, sums up the situation this morning:Kit Juckes, chief currency strategist at French bank Société Générale, sums up the situation this morning:
The Greek government will need some form of deal in order to release further funds if it is to avoid missing payments to the IMF in June. Whether Greek PM Tsipras can negotiate a deal that is acceptable to enough MPs of his party isn’t clear and markets are once again, very edgy.The Greek government will need some form of deal in order to release further funds if it is to avoid missing payments to the IMF in June. Whether Greek PM Tsipras can negotiate a deal that is acceptable to enough MPs of his party isn’t clear and markets are once again, very edgy.
Across the Mediterranean, there have been heavy losses by Spain’s ruling Popular Party to anti-austerity parties in regional and local elections. Peripheral European government bond spreads are wider though not drastically, but the euro is much weaker.Across the Mediterranean, there have been heavy losses by Spain’s ruling Popular Party to anti-austerity parties in regional and local elections. Peripheral European government bond spreads are wider though not drastically, but the euro is much weaker.
And indeed, the euro is still bobbing below the $1.09 mark, a one-month low.And indeed, the euro is still bobbing below the $1.09 mark, a one-month low.
9.33am BST09:339.33am BST09:33
European stock markets are being buffeted by the Greek crisis, and the Spanish regional election results.European stock markets are being buffeted by the Greek crisis, and the Spanish regional election results.
The main indices are all in the red this morning, led by Madrid.The main indices are all in the red this morning, led by Madrid.
Spanish bank shares are still down, after anti-austerity candidates recorded strong gains at the expense of the governing PP party.Spanish bank shares are still down, after anti-austerity candidates recorded strong gains at the expense of the governing PP party.
Updated at 9.35am BSTUpdated at 9.35am BST
9.22am BST09:229.22am BST09:22
Greece’s two-year bonds are now at their weakest level in a month:Greece’s two-year bonds are now at their weakest level in a month:
Greek 2yr yields jump to almost 25% on more Greek noise. #ECB’s Hansson says agreement on #Greece ‘not in sight’ yet. pic.twitter.com/83UPNUBC3QGreek 2yr yields jump to almost 25% on more Greek noise. #ECB’s Hansson says agreement on #Greece ‘not in sight’ yet. pic.twitter.com/83UPNUBC3Q
(that’s Estonian central bank governor Ardo Hansson)(that’s Estonian central bank governor Ardo Hansson)
9.07am BST09:079.07am BST09:07
Greek bond weaken after Varoufakis blames creditorsGreek bond weaken after Varoufakis blames creditors
Greek bonds are falling this morning, pushing yields (the rate of return on the debt) higher into the danger zone.Greek bonds are falling this morning, pushing yields (the rate of return on the debt) higher into the danger zone.
Some in the City are blaming Greek finance minister Yanis Varoufakis, who yesterday pointed the finger at Greece’s creditors for the lack of progress.Some in the City are blaming Greek finance minister Yanis Varoufakis, who yesterday pointed the finger at Greece’s creditors for the lack of progress.
In a new blog post, Varoufakis chided lenders for insisting on even deeper cuts, on top of the last five years:In a new blog post, Varoufakis chided lenders for insisting on even deeper cuts, on top of the last five years:
The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs.The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs.
Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease.Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease.
He also produced this chart, showing how much damage has been caused to the Greek economy since its first austerity programme triggered a long recessionary, deflationary spiral.He also produced this chart, showing how much damage has been caused to the Greek economy since its first austerity programme triggered a long recessionary, deflationary spiral.
Varoufakis’s conclusion is basically that it’s their fault not our fault:Varoufakis’s conclusion is basically that it’s their fault not our fault:
Fair-minded observers of the four-month-long negotiations between Greece and its creditors cannot avoid a simple conclusion: The major sticking point, the only deal-breaker, is the creditors’ insistence on even more austerity, even at the expense of the reform agenda that our government is eager to pursue.Fair-minded observers of the four-month-long negotiations between Greece and its creditors cannot avoid a simple conclusion: The major sticking point, the only deal-breaker, is the creditors’ insistence on even more austerity, even at the expense of the reform agenda that our government is eager to pursue.
More here: Austerity Is the Only Deal-BreakerMore here: Austerity Is the Only Deal-Breaker
In response, Greek two-year bond yields have jumped by 196 basis points, or almost 2%, to 24.94%, showing a high risk of default.In response, Greek two-year bond yields have jumped by 196 basis points, or almost 2%, to 24.94%, showing a high risk of default.
Ten-year bonds are weakening too:Ten-year bonds are weakening too:
Greece 10 years up 46bp this morning to 11.83% - the mkt hated Varoufakis's article and the big split in SYRIZA adding to concerns.Greece 10 years up 46bp this morning to 11.83% - the mkt hated Varoufakis's article and the big split in SYRIZA adding to concerns.
8.42am BST08:428.42am BST08:42
Traders are also blaming Klaus Regling, the head of the European Stability Mechanism, for today’s euro selloff.Traders are also blaming Klaus Regling, the head of the European Stability Mechanism, for today’s euro selloff.
Regling has told Germany’s Bild newspaper that Greece risks insolvency if it doesn’t reach a deal as a matter of urgency.Regling has told Germany’s Bild newspaper that Greece risks insolvency if it doesn’t reach a deal as a matter of urgency.
He said:He said:
“There is little time left... That’s why we’re working day and night for an agreement.“There is little time left... That’s why we’re working day and night for an agreement.
Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that,”Without an agreement with the creditors, Greece will not get any new loans. Then there’s a threat of insolvency. There are a lot of risks contained in that,”
Those “ominous comments” have sent a shiver through trading floors, says Ilya Spivak, currency strategist at DailyFX.Those “ominous comments” have sent a shiver through trading floors, says Ilya Spivak, currency strategist at DailyFX.
Updated at 9.30am BSTUpdated at 9.30am BST
8.36am BST08:368.36am BST08:36
Newsflash from Madrid; Spanish bank shares are falling, as last weekend’s regional election results ripple through the markets.Newsflash from Madrid; Spanish bank shares are falling, as last weekend’s regional election results ripple through the markets.
That mirrors the fall in Spanish bonds this morning.That mirrors the fall in Spanish bonds this morning.
Analysts say that the success of the anti-austerity Podemos party have thrown prime minister Rajoy’s re-election strategy into doubt.Analysts say that the success of the anti-austerity Podemos party have thrown prime minister Rajoy’s re-election strategy into doubt.
Reuters explains:Reuters explains:
At a local level, the PP faces a new era of coalition and compromise for which it is ill-prepared.At a local level, the PP faces a new era of coalition and compromise for which it is ill-prepared.
Rajoy - whose party must form pacts with some of the new groups if it is to retain power in a number of regions, including Madrid - has campaigned hard against them. Earlier this month he said they were “gangs” and a threat to Spain’s political and economic stability.Rajoy - whose party must form pacts with some of the new groups if it is to retain power in a number of regions, including Madrid - has campaigned hard against them. Earlier this month he said they were “gangs” and a threat to Spain’s political and economic stability.
More here: Rajoy’s Spanish re-election plan in doubt after local batteringMore here: Rajoy’s Spanish re-election plan in doubt after local battering
8.30am BST08:308.30am BST08:30
The euro is continuing to lose ground, and is now down 0.85 of a cent against the US dollar at $1.089.The euro is continuing to lose ground, and is now down 0.85 of a cent against the US dollar at $1.089.
It’s not just about Greece, though. The dollar is romping ahead against most currencies this morning, on speculation that US interest rates will rise soon.It’s not just about Greece, though. The dollar is romping ahead against most currencies this morning, on speculation that US interest rates will rise soon.
Federal Reserve chair Janet Yellen indicated last Friday that the Fed would act, if the US economy kept improving.Federal Reserve chair Janet Yellen indicated last Friday that the Fed would act, if the US economy kept improving.
8.21am BST08:218.21am BST08:21
Spanish bond yields rise after electionSpanish bond yields rise after election
Spanish government debt is falling in value too, after anti-austerity activists secured a stunning victory in last weekend’s regional elections.Spanish government debt is falling in value too, after anti-austerity activists secured a stunning victory in last weekend’s regional elections.
A backlash against Spain’s established parties saw an anti-poverty campaigner elected as mayor of Barcelona. In Madrid, left-leaning candidates came second, close behind the ruling PP party.A backlash against Spain’s established parties saw an anti-poverty campaigner elected as mayor of Barcelona. In Madrid, left-leaning candidates came second, close behind the ruling PP party.
While the PP still came first in nine regions, it didn’t win a single majority -- meaning it could lose power if rivals form local alliances.While the PP still came first in nine regions, it didn’t win a single majority -- meaning it could lose power if rivals form local alliances.
Related: Spain's indignados could rule Barcelona and Madrid after local election successRelated: Spain's indignados could rule Barcelona and Madrid after local election success
The results suggest Spain’s traditional two-party system is being blown apart, as citizens rebel against the policies that drove unemployment to record highs.The results suggest Spain’s traditional two-party system is being blown apart, as citizens rebel against the policies that drove unemployment to record highs.
Spain will hold a general election later this year; the success of the anti-austerity Podemos and centre-right Ciudadanos parties suggest there might not be a clear winner.Spain will hold a general election later this year; the success of the anti-austerity Podemos and centre-right Ciudadanos parties suggest there might not be a clear winner.
That has driven the yield, or interest rate, on Spanish 10-year bonds up by almost 9 basis points today to 1.862%, from 1.77% last night.That has driven the yield, or interest rate, on Spanish 10-year bonds up by almost 9 basis points today to 1.862%, from 1.77% last night.
7.58am BST07:587.58am BST07:58
The euro is losing ground against almost every major currency today:The euro is losing ground against almost every major currency today:
EURUSD 1.0909. pic.twitter.com/cOTbJ5PYChEURUSD 1.0909. pic.twitter.com/cOTbJ5PYCh
7.57am BST07:577.57am BST07:57
Euro hits one-month lowEuro hits one-month low
Fears over the Greek bailout have pushed the euro down to a one-month low this morning.Fears over the Greek bailout have pushed the euro down to a one-month low this morning.
The single currency has fallen by over half a cent against the US dollar to $1.0909, its lowest point since late April.The single currency has fallen by over half a cent against the US dollar to $1.0909, its lowest point since late April.
Traders are responding to warnings that Greece may fail to meet the €1.6bn it owes the International Monetary Fund in June.Traders are responding to warnings that Greece may fail to meet the €1.6bn it owes the International Monetary Fund in June.
As Barclays warns this morning:As Barclays warns this morning:
“The Greek political saga will remain in the spotlight as the deadline for payments to the IMF approaches”,“The Greek political saga will remain in the spotlight as the deadline for payments to the IMF approaches”,
“A light data calendar and continued political uncertainty in Greece should continue to weigh on the euro.”“A light data calendar and continued political uncertainty in Greece should continue to weigh on the euro.”
Over the weekend, two Greek ministers have warned that the IMF’s repayments are in doubt.Over the weekend, two Greek ministers have warned that the IMF’s repayments are in doubt.
On Sunday, interior minister Nikos Voutsis declared that “This money will not be given and is not there to be given”, arguing that pensions and wages must come first.On Sunday, interior minister Nikos Voutsis declared that “This money will not be given and is not there to be given”, arguing that pensions and wages must come first.
Related: Greece warns it is set to default on debt repayment loansRelated: Greece warns it is set to default on debt repayment loans
And energy minister Panagiotis Lafazanis also hit out at “austerity fanatics”, saying Greece will not be blackmailed.And energy minister Panagiotis Lafazanis also hit out at “austerity fanatics”, saying Greece will not be blackmailed.
Lafazanis declared:Lafazanis declared:
“It would not be a catastrophe to exit the euro, (nor) a terrorist act not to pay the next instalment to the IMF.”“It would not be a catastrophe to exit the euro, (nor) a terrorist act not to pay the next instalment to the IMF.”
That sort of talk will certainly spook the City....That sort of talk will certainly spook the City....
Updated at 8.00am BSTUpdated at 8.00am BST
7.46am BST07:467.46am BST07:46
Introduction: Greece returns to talks with its creditorsIntroduction: Greece returns to talks with its creditors
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.
After a bank holiday break, Greece’s tortuous bailout negotiations return to centre stage today.After a bank holiday break, Greece’s tortuous bailout negotiations return to centre stage today.
Greece’s officials will sit down with their creditors in Brussels, for another crack at closing the gaps between the two sides before the bailout extension expires in just five weeks time.Greece’s officials will sit down with their creditors in Brussels, for another crack at closing the gaps between the two sides before the bailout extension expires in just five weeks time.
The talks are expected to focus on the now-familiar red lines – VAT rates, pension reform, labour deregulation and Greece’s primary surplus targets.The talks are expected to focus on the now-familiar red lines – VAT rates, pension reform, labour deregulation and Greece’s primary surplus targets.
The steadfast lack of progress is fuelling concerns that Greece will fail to meet its looming debt repayments. Last night, prime minister Alexis Tsipras called an emergency cabinet meeting to discuss the crisis/The steadfast lack of progress is fuelling concerns that Greece will fail to meet its looming debt repayments. Last night, prime minister Alexis Tsipras called an emergency cabinet meeting to discuss the crisis/
As Athens correspondent Helena Smith reports:As Athens correspondent Helena Smith reports:
Amid mounting fears of financial collapse, Tsipras instructed officials to act speedily as his government sought to defuse tensions saying it would do its best to honour its debts – even if it failed to reveal how, exactly, it would find the money to pay €1.6bn in loans to the International Monetary Fund next month.Amid mounting fears of financial collapse, Tsipras instructed officials to act speedily as his government sought to defuse tensions saying it would do its best to honour its debts – even if it failed to reveal how, exactly, it would find the money to pay €1.6bn in loans to the International Monetary Fund next month.
“We are very close to a deal,” the finance minister Yanis Varoufakis told reporters. “There are many different Germans, just as there are many different Greeks,” he said responding to reports that Berlin would not be prepared to retreat in what has become an all-out tug of war between the two governments.“We are very close to a deal,” the finance minister Yanis Varoufakis told reporters. “There are many different Germans, just as there are many different Greeks,” he said responding to reports that Berlin would not be prepared to retreat in what has become an all-out tug of war between the two governments.
Related: Greek PM convenes emergency meeting of his bailout negotiation teamRelated: Greek PM convenes emergency meeting of his bailout negotiation team
The ongoing crisis is expected to weigh on Europe’s stock markets; yesterday the Athens exchange fell by 3%.The ongoing crisis is expected to weigh on Europe’s stock markets; yesterday the Athens exchange fell by 3%.
Our European opening calls: $FTSE 7037 up 5 $DAX 11782 down 33 $CAC 5101 down 16 $IBEX 11259 down 64 $MIB 23269 down 17Our European opening calls: $FTSE 7037 up 5 $DAX 11782 down 33 $CAC 5101 down 16 $IBEX 11259 down 64 $MIB 23269 down 17
The agenda....The agenda....
There’s no European economic data to look forward to, alas, but we do get four surveys from America:There’s no European economic data to look forward to, alas, but we do get four surveys from America:
And in London, former UBS and Citigroup trader Tom Hayes will appear at Southwark crown court, accused of conspiring to rig the Libor benchmark interest rate. Hayes will be the first individual to face charges of alleged Libor rigging.And in London, former UBS and Citigroup trader Tom Hayes will appear at Southwark crown court, accused of conspiring to rig the Libor benchmark interest rate. Hayes will be the first individual to face charges of alleged Libor rigging.
Related: First Libor defendant faces trial in LondonRelated: First Libor defendant faces trial in London
I’ll be tracking all the main events through the day...I’ll be tracking all the main events through the day...
Updated at 8.15am BSTUpdated at 8.15am BST