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Greek bank deposits hit lowest in a decade, as recession confirmed - live updates Greek bank deposits hit lowest in a decade, as recession confirmed - live updates
(35 minutes later)
11.27am BST11:27
The selloff in Europe’s stock markets is accelerating, as investors fret about Greece.
The German DAX is the worst performer, down over 1%.
Daniel Sugarman of ETX Capital says traders are worrying about next month’s IMF repayments (despite Yanis Varoufakis insisting he has it under control):
European markets continued to feel the ongoing effects of the situation in Greece, with fresh fears that the country will be unable to make yet another repayment due to the IMF. The Greek government has still not made it clear how it intends to make the €1.6 billion repayment, the first tranche of which falls due next Friday.
Updated at 11.27am BST
11.04am BST11:0411.04am BST11:04
Heads-up: Germany’s finance minister and central bank chief will be giving a press conference at the G7 meeting in Dresden, in around 40 minutes time.Heads-up: Germany’s finance minister and central bank chief will be giving a press conference at the G7 meeting in Dresden, in around 40 minutes time.
Live at 12:45 press conference on #g7finance in Dresden with Wolfgang Schäuble and Jens Weidmann http://t.co/QJSroxaDYcLive at 12:45 press conference on #g7finance in Dresden with Wolfgang Schäuble and Jens Weidmann http://t.co/QJSroxaDYc
10.55am BST10:5510.55am BST10:55
Greece’s long slump is even worse than the Great Depression of the 1930s....Greece’s long slump is even worse than the Great Depression of the 1930s....
ELSTAT confirms another recession in Greece. And it was already doing worse than the US Great Depression. pic.twitter.com/cx6jLuARocELSTAT confirms another recession in Greece. And it was already doing worse than the US Great Depression. pic.twitter.com/cx6jLuARoc
The Great Depression ended after president Roosevelt took a range of drastic measures, including suspending the gold standard in 1933. Greece, though, wasn’t able to weaken its own currency so had to undergo such a painful ‘internal devaluation’.The Great Depression ended after president Roosevelt took a range of drastic measures, including suspending the gold standard in 1933. Greece, though, wasn’t able to weaken its own currency so had to undergo such a painful ‘internal devaluation’.
Updated at 10.56am BSTUpdated at 10.56am BST
10.19am BST10:1910.19am BST10:19
Greek recession confirmedGreek recession confirmed
More gloom for Greece -- statistics body ELSAT has just confirmed that the country is back in recession.More gloom for Greece -- statistics body ELSAT has just confirmed that the country is back in recession.
Updated GDP data showed that the Greek economy shrank by 0.2% in the first three months of 2015, in line with the initial estimate earlier this month.Updated GDP data showed that the Greek economy shrank by 0.2% in the first three months of 2015, in line with the initial estimate earlier this month.
The detail of ELSTAT’s report (online here) paints a pretty weak picture.The detail of ELSTAT’s report (online here) paints a pretty weak picture.
Investment by companies and the government, or “gross fixed capital formation” tumbled by 7.5% compared with the 4th quarter of 2014.Investment by companies and the government, or “gross fixed capital formation” tumbled by 7.5% compared with the 4th quarter of 2014.
That suggests firms basically stopped spending amid the political uncertainty, as the government tightened its own belt too.That suggests firms basically stopped spending amid the political uncertainty, as the government tightened its own belt too.
Exports fell by 0.6% quarter-on-quarter, while imports decreased by 0.7%.Exports fell by 0.6% quarter-on-quarter, while imports decreased by 0.7%.
Greece’s economy had returned to growth last year, after plunging into a deep slump after accepting harsh austerity measures in return for two bailouts.Greece’s economy had returned to growth last year, after plunging into a deep slump after accepting harsh austerity measures in return for two bailouts.
But the “recovery” quickly stumbled. Greek GDP shrank by 0.4% in the final three months of last year; two consecutive quarters of contraction equals a recession.But the “recovery” quickly stumbled. Greek GDP shrank by 0.4% in the final three months of last year; two consecutive quarters of contraction equals a recession.
Updated at 10.24am BSTUpdated at 10.24am BST
9.53am BST09:539.53am BST09:53
Last month’s hefty withdrawals are part of a wider pattern.Last month’s hefty withdrawals are part of a wider pattern.
Greek banks have been suffering deposit outflows since December 2014, when the previous government called a general election after failing to elect a new president.Greek banks have been suffering deposit outflows since December 2014, when the previous government called a general election after failing to elect a new president.
This chart from Credit Suisse’s Neville Hill shows how it slowed down after Greece won a four-month bailout extension in late February:This chart from Credit Suisse’s Neville Hill shows how it slowed down after Greece won a four-month bailout extension in late February:
Greek bank deposits fell another 4% in April. The problem is the euro leaving Greece, not Greece leaving the euro. pic.twitter.com/ynZz4UdzHTGreek bank deposits fell another 4% in April. The problem is the euro leaving Greece, not Greece leaving the euro. pic.twitter.com/ynZz4UdzHT
9.43am BST09:439.43am BST09:43
In a sign of the times, Greek bank deposits have fallen to an 11 year low as the IMF repayment looms next Friday #Greece #bank #GrexitIn a sign of the times, Greek bank deposits have fallen to an 11 year low as the IMF repayment looms next Friday #Greece #bank #Grexit
9.37am BST09:379.37am BST09:37
Greek bank deposits fall to lowest since 2004Greek bank deposits fall to lowest since 2004
Worried Greeks pulled €5.6bn out of their accounts last month, as the country’s banks continue to bleed.Worried Greeks pulled €5.6bn out of their accounts last month, as the country’s banks continue to bleed.
Official data just released shows that Greek bank deposits fell to €139.4bn in April, down from €145bn in March.Official data just released shows that Greek bank deposits fell to €139.4bn in April, down from €145bn in March.
That’s the lowest level since 2004, as fears of a default, capital controls or even a full-blown Grexit continue to alarm depositors.That’s the lowest level since 2004, as fears of a default, capital controls or even a full-blown Grexit continue to alarm depositors.
CHART: #Greece bleeding continues. New OFFICIAL data show bank deposits down (again!) by 6 bn€ in April. 11-year low. pic.twitter.com/zmqoiQpKV5CHART: #Greece bleeding continues. New OFFICIAL data show bank deposits down (again!) by 6 bn€ in April. 11-year low. pic.twitter.com/zmqoiQpKV5
This could just send a shiver through the G7 meeting in Dresden and the negotiations in Brussels. Not to mention households across Greece.This could just send a shiver through the G7 meeting in Dresden and the negotiations in Brussels. Not to mention households across Greece.
Bank deposits had been fairly stable last year, but have been steadily falling since the start of 2015, forcing the ECB to provide more and more help (€80.2bn of emergency liquidity at the last count)Bank deposits had been fairly stable last year, but have been steadily falling since the start of 2015, forcing the ECB to provide more and more help (€80.2bn of emergency liquidity at the last count)
Won't be much left in #Greece's banks by the time #ECB gets the keys. Deposits down another €5.6 billion in April. pic.twitter.com/bN0qk0PesmWon't be much left in #Greece's banks by the time #ECB gets the keys. Deposits down another €5.6 billion in April. pic.twitter.com/bN0qk0Pesm
Updated at 9.43am BSTUpdated at 9.43am BST
9.15am BST09:159.15am BST09:15
The picture is brighter in Italy this morning. The Italian stats office has just confirmed that the economy grew by 0.3% in the last quarter.The picture is brighter in Italy this morning. The Italian stats office has just confirmed that the economy grew by 0.3% in the last quarter.
That’s in line with the initial estimate two weeks ago, and means Italy’s economy expanded for the first time since autumn 2013.That’s in line with the initial estimate two weeks ago, and means Italy’s economy expanded for the first time since autumn 2013.
#Italy GDP grows for 1st time in 6 quarters by 0.3% - been in/out of recession/negative quarters since 2009/10 crisis http://t.co/fko7vCezC2#Italy GDP grows for 1st time in 6 quarters by 0.3% - been in/out of recession/negative quarters since 2009/10 crisis http://t.co/fko7vCezC2
9.11am BST09:119.11am BST09:11
Greek finance minister: We want a comprehensive deal with debt reliefGreek finance minister: We want a comprehensive deal with debt relief
Yanis Varoufakis made some interesting points in his interview with Vima FM radio station, and a couple of perplexing ones.Yanis Varoufakis made some interesting points in his interview with Vima FM radio station, and a couple of perplexing ones.
He said:He said:
#Greece MinFin Varoufakis: "Our side on BrusselsGroup opposed with vigor the proposal re: a transaction tax." @vimafm#Greece MinFin Varoufakis: "Our side on BrusselsGroup opposed with vigor the proposal re: a transaction tax." @vimafm
Varoufakis claims that if new taxes introduced, they are not recessionary if they involve redistribution. Oh well...Varoufakis claims that if new taxes introduced, they are not recessionary if they involve redistribution. Oh well...
#Greece MinFin Varoufakis, when asked whether we got the money to pay the IMF, he says "let ME the MinFin worry about this, not the people!"#Greece MinFin Varoufakis, when asked whether we got the money to pay the IMF, he says "let ME the MinFin worry about this, not the people!"
Updated at 9.26am BSTUpdated at 9.26am BST
8.58am BST08:588.58am BST08:58
You can hear Yanis Varoufakis’s radio interview here (it’s in Greek.....)You can hear Yanis Varoufakis’s radio interview here (it’s in Greek.....)
Thanks, Greek Analyst!Thanks, Greek Analyst!
Link on #Varoufakis's live interview at @vimafm here: http://t.co/jiNaoOOMz2 cc @graemewearden HT @YanniKoutsLink on #Varoufakis's live interview at @vimafm here: http://t.co/jiNaoOOMz2 cc @graemewearden HT @YanniKouts
8.49am BST08:498.49am BST08:49
Greek finance minister Yanis Varoufakis is speaking on Greek radio now.Greek finance minister Yanis Varoufakis is speaking on Greek radio now.
I’m afraid I’ve not got the link, but the key points are being tweeted:I’m afraid I’ve not got the link, but the key points are being tweeted:
#Greece FinMin says very close to completing Greek program review; Greek talks have new developments every day ~@vimafm#Greece FinMin says very close to completing Greek program review; Greek talks have new developments every day ~@vimafm
#Greece FinMin Varoufakis says there is agreement with the 'Institutions' on VAT model; no agreement yet on rates ~@vimafm#Greece FinMin Varoufakis says there is agreement with the 'Institutions' on VAT model; no agreement yet on rates ~@vimafm
8.46am BST08:468.46am BST08:46
Swiss economy contractsSwiss economy contracts
As if the Fifa scandal wasn’t bad enough, Switzerland has been hit with the news that its economy is shrinking.As if the Fifa scandal wasn’t bad enough, Switzerland has been hit with the news that its economy is shrinking.
Swiss GDP fell by 0.2% in the first three months of the year, worse than the stagnation which economists expected.Swiss GDP fell by 0.2% in the first three months of the year, worse than the stagnation which economists expected.
The strong Swiss franc is being blamed. It soared in January after its central bank gave up trying to keep it artificially weak; that made Swiss exports less competitive.The strong Swiss franc is being blamed. It soared in January after its central bank gave up trying to keep it artificially weak; that made Swiss exports less competitive.
As the State Secretariat for Economic Affairs put it:As the State Secretariat for Economic Affairs put it:
“The trade balance in goods and services in particular delivered negative growth contributions.”“The trade balance in goods and services in particular delivered negative growth contributions.”
8.40am BST08:408.40am BST08:40
More news from the G7 meeting in Dresden, from French finance minister Michael Sapin.More news from the G7 meeting in Dresden, from French finance minister Michael Sapin.
*SAPIN SAYS EUROPE NEEDS GREECE DEAL WITHIN 'DAYS OR WEEKS'*SAPIN SAYS EUROPE NEEDS GREECE DEAL WITHIN 'DAYS OR WEEKS'
I think we knew that already.....I think we knew that already.....
Updated at 8.40am BSTUpdated at 8.40am BST
8.32am BST08:328.32am BST08:32
Worries about Greece are weighing on Europe’s stock markets again. They’re mostly down in early trading:Worries about Greece are weighing on Europe’s stock markets again. They’re mostly down in early trading:
Stan Shamu of IG believes markets will remain edgy until a deal is reached:Stan Shamu of IG believes markets will remain edgy until a deal is reached:
I suspect there will be plenty of headlines about Greece driving volatility in coming weeks as €1.6 billion is due over four tranches.I suspect there will be plenty of headlines about Greece driving volatility in coming weeks as €1.6 billion is due over four tranches.
8.17am BST08:178.17am BST08:17
Moscovici: We are dedicated to keeping Greece in the euroMoscovici: We are dedicated to keeping Greece in the euro
What about Christine Lagarde’s comment that Greece could leave the euro, Commissioner Moscovici?What about Christine Lagarde’s comment that Greece could leave the euro, Commissioner Moscovici?
He replies that this is “not the scenario of the Commission”.He replies that this is “not the scenario of the Commission”.
We are dedicated to have Greece staying in the eurozone, a solid Greece, a reformed Greece.We are dedicated to have Greece staying in the eurozone, a solid Greece, a reformed Greece.
And there is “true solidarity” between the Institutions (Greece’s lenders) Moscovici tells CNBC’s Steve Sedgwick.And there is “true solidarity” between the Institutions (Greece’s lenders) Moscovici tells CNBC’s Steve Sedgwick.
But being prepared and responsible, have you worked on a plan B for Grexit, in case a deal isn’t reached?But being prepared and responsible, have you worked on a plan B for Grexit, in case a deal isn’t reached?
No, I don’t consider that, Moscovici insists. We have one plan, one action, one will, to keep Greece in the eurozone.No, I don’t consider that, Moscovici insists. We have one plan, one action, one will, to keep Greece in the eurozone.
Updated at 8.21am BSTUpdated at 8.21am BST
8.05am BST08:058.05am BST08:05
European commissioner Pierre Moscovici is the first policymaker to break cover from the G7 this morning.European commissioner Pierre Moscovici is the first policymaker to break cover from the G7 this morning.
He told CNBC thatthere’s been “good progress” between Greece and lenders.....He told CNBC thatthere’s been “good progress” between Greece and lenders.....
....but more work needs to be done, including on Greece’s pensions.....but more work needs to be done, including on Greece’s pensions.
*MOSCOVICI SAYS IT'S CLEAR TIME IS RUNNING SHORT ON GREECE*MOSCOVICI SAYS IT'S CLEAR TIME IS RUNNING SHORT ON GREECE
*MOSCOVICI SAYS 'WE'RE NOT YET THERE' ON GREEK PENSION REFORMS*MOSCOVICI SAYS 'WE'RE NOT YET THERE' ON GREEK PENSION REFORMS
Updated at 8.27am BSTUpdated at 8.27am BST
7.49am BST07:497.49am BST07:49
Greece’s deputy prime minister, Yannis Dragasakis, has claimed that ‘political will’ is the missing ingredient needed for a deal (explaining why his boss phoned the leaders of Germany and France last night)Greece’s deputy prime minister, Yannis Dragasakis, has claimed that ‘political will’ is the missing ingredient needed for a deal (explaining why his boss phoned the leaders of Germany and France last night)
Greek Dep PM Dragasakis: Political will is missing on Greece deal --Corriere della Sera via BBGGreek Dep PM Dragasakis: Political will is missing on Greece deal --Corriere della Sera via BBG
Dragasakis: Greece is willing to pay its debts, but is against new austerityDragasakis: Greece is willing to pay its debts, but is against new austerity
Updated at 7.50am BSTUpdated at 7.50am BST
7.44am BST07:447.44am BST07:44
Introduction: Greek talks, and US growth figuresIntroduction: Greek talks, and US growth figures
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.
We’re coming to the end of another week that started with hopes of a breakthrough between Greece and its creditors, but has seen little evidence of progress since.We’re coming to the end of another week that started with hopes of a breakthrough between Greece and its creditors, but has seen little evidence of progress since.
Talks between the two sides will continue in Brussels today, and over the weekend, to close the gap on labour market reform, pensions, VAT rates and Greece’s budget targets. The same issues they’ve been split over for weeks.Talks between the two sides will continue in Brussels today, and over the weekend, to close the gap on labour market reform, pensions, VAT rates and Greece’s budget targets. The same issues they’ve been split over for weeks.
Greece hopes for a deal by Sunday, but its lenders remain quite sceptical. Last night’s warning from Christine Lagarde that Greece could potentially leave the euro shows that policymakers still believe the crisis could spiral.Greece hopes for a deal by Sunday, but its lenders remain quite sceptical. Last night’s warning from Christine Lagarde that Greece could potentially leave the euro shows that policymakers still believe the crisis could spiral.
As Lagarde argues, Grexit wouldn’t be “a walk in the park”, but would “probably not” mean the end of the euro.As Lagarde argues, Grexit wouldn’t be “a walk in the park”, but would “probably not” mean the end of the euro.
Related: Grexit is a possibility, warns head of IMFRelated: Grexit is a possibility, warns head of IMF
Greek PM Alexis Tsipras spoke with German Chancellor Angela Merkel and French President Francois Hollande in a teleconference call last night, in an attempt to drum up a ‘political’ deal to break the deadlock.Greek PM Alexis Tsipras spoke with German Chancellor Angela Merkel and French President Francois Hollande in a teleconference call last night, in an attempt to drum up a ‘political’ deal to break the deadlock.
The Kathimerini newspaper explains:The Kathimerini newspaper explains:
The three leaders spoke for about an hour and government sources referred to “a positive climate.”The three leaders spoke for about an hour and government sources referred to “a positive climate.”
The exact content of the conversation remained unclear but it is thought Tsipras asked Merkel and Hollande to make good on a pledge they made at an EU leaders’ summit in Riga last week to help overcome potential obstacles in the negotiations.The exact content of the conversation remained unclear but it is thought Tsipras asked Merkel and Hollande to make good on a pledge they made at an EU leaders’ summit in Riga last week to help overcome potential obstacles in the negotiations.
As we covered yesterday, the Greek crisis was occupying the minds of the G7 finance ministers and central bankers yesterday. Not officially on the agenda, but ‘on the sidelines. For example:As we covered yesterday, the Greek crisis was occupying the minds of the G7 finance ministers and central bankers yesterday. Not officially on the agenda, but ‘on the sidelines. For example:
Those G7 ministers will continue to discuss the global economy in Dresden today, so let’s hope they didn’t overdo the champagne.Those G7 ministers will continue to discuss the global economy in Dresden today, so let’s hope they didn’t overdo the champagne.
Also coming up today....Also coming up today....
We get the second estimate of US growth in the first quarter of this year, at 1.30pm BST.We get the second estimate of US growth in the first quarter of this year, at 1.30pm BST.
The first estimate, of annualised growth of just 0.2%, could actually be revised even lower.The first estimate, of annualised growth of just 0.2%, could actually be revised even lower.
We’ll be tracking all the main events through the day:We’ll be tracking all the main events through the day: