Spain insists Greece will need a third bailout - as it happened

• Spain's economy minister: further Greek rescue inevitable
• Eurozone PMI surveys signal 0.3% growth in Q1
• Greece pushes through T-bills sale
• Eurozone retail sales surge in January
• UK services sector growth slows

4.55pm GMT

Before closing up for the day, here is a summary of the main events.

4.36pm GMT

George Osborne has secured a major victory over the European Central Bank after a court ruled that clearing houses should not be forced to move from London to the eurozone.

Major win for UK & single market that #ECJ struck down @ecb location policy - unfair & had absolutely no place in our modern EU economy

The chancellor took action against the ECB in 2011 and this decision is the first time a European court has ruled in his favour on a significant case. The general court of the EU ruled that the ECB did not have the power to demand such a move.

"This is a major win for Britain and a major win for all those who want to see a European economy that is both open and successful," said Osborne.

4.14pm GMT

Andrew Bailey, a deputy governor at the Bank of England responsible for prudential regulation has been giving evidence to House of Commons Treasury Select Committee.

I am going to hold their feet to the fire, noses to the grindstone.

The Bank of England remained on collision course with Europe over the bonus cap as a consultation was launched that would rule out the use of top-up payments to side step the clampdown on City pay.

The European Banking Authority ruled in Ocotober that these extra payments should be regarded as variable components of pay, like a bonus, and that banks using them are breaching the ratio set out by the EU to limit bonuses to one times salary or twice if shareholders if approve.

3.48pm GMT

European markets are mainly up this afternoon.

3.21pm GMT

More US data.

In contrast to the earlier ADP jobs numbers, the ISM non-manufacturing PMI survey came in stronger than expected, at 56.9 in February.

Non-mfg #ISM survey registers a solid 56.9 reading in Feb vs 56.7 previously & employment subcomponent rebounds sharply (56.4 vs. 51.6)

3.05pm GMT

Over in Athens, Guardian correspondent Helena Smith reports that EU commission chief Jean-Claude Juncker has caused a stir with comments made to Spanish newspaper El Pais.

Helena writes:

There are some long faces among officials in Syriza after EU commission chief Jean-Claude Juncker warned that Greece's new prime minister should tell voters he will never be able to fulfil the promises he has made to them.

Juncker appears increasingly to be taking the carrot and stick approach to Greece. When he met the young Alexis Tsipras in Brussels last month, he took the new leader by the hand welcoming him profusively to the European family. But in an interview with the Spanish daily El Pais today he took an altogether new line, speaking bluntly about the need for Tsipras to come clean with Greeks over his inability to stick with the anti-austerity programme he had pledged to them.

2.53pm GMT

Wall Street has opened down following those disappointing ADP jobs numbers.

2.29pm GMT

Spain's economy minister Luis de Guindos has set the cat among the pigeons with his comment that Greece will need a third bailout.

I think we now have all our hands full to make this [second Greek bailout] succeed.

We are going to focus on implementing what was agreed in the eurogroup. It is premature to talk about a third programme. That is speculation that is best avoided.

#Merkel at press conference with #Juncker at EU Commission: We are doing all we can to ensure second bailout for #Greece is a success

#Merkel: This is not the time to talk about a third bailout program for #Greece

2.04pm GMT

Over in the US, the ADP jobs report has disappointed expectations.

ADP monthly gain is lowest since May 2014

The 212,000 rise in US ADP private employment in February, down from 250,000 in January, suggests that the risk to our forecast that official payrolls rose by 230,000 are tilted towards the downside. This survey isn't reliable enough, however, to lead us to revise our forecast.

In recent months ADP's initial estimate has underestimated the increase in official payrolls. Admittedly, in months when the weather has been worse than normal, the ADP survey usually overestimates payrolls. This is because while workers only make it into the official payroll count if they were paid in the working week containing the 12th of the month, they are still recorded as employed by the ADP if weren't paid.

1.40pm GMT

Eurozone finance ministers will not be discussing a third rescue package for Greece when then meet on Monday, a spokesman for the German finance ministry has said.

A discussion about a third bailout package for Greece is not on the agenda for the eurogroup meeting on Monday.

1.20pm GMT

Greek PM Alexis Tsipras is drumming up some publicity ahead of next week's eurogroup meeting:

This Saturday, read my interview in @SPIEGELONLINE #Greece pic.twitter.com/nIVDPZ3Dqk

1.11pm GMT

Back in the UK, the outgoing chief executive of Standard Chartered has described a 30% slide in profits as "clearly disappointing".

Peter Sands is waiving his bonus for 2014 and the bank has announced plans to further cut costs. Shares in the bank are up 3.7% this afternoon, on the news that Standard Bank did not cut the dividend.

Profits fell to $4.2bn (2.7bn) - due in part to a 32% rise in bad debt charges, extra compliance costs, a $300m (196m) fine from the US authorities for breaches of money-laundering rules and continuing problems with its Korean arm.

The emerging markets-focused bank issued its results after last week's dramatic boardroom clearout which will also see the chairman, Sir John Peace, and four other directors leave.

12.18pm GMT

Greece could learn a thing or two from Ireland, according to Irish Prime Minister Enda Kenny.

Ireland left its bailout package behind in 2013 and has been hailed as a poster-child for reform and economic recovery.

For Greece, there's a lesson from Ireland.

Obviously, we respect and understand the difficulties that apply in Greece from a humanitarian point of view. Greece needs time and space and Europe is giving Greece that time and space.

11.37am GMT

Spain's economy minister is happily wading in on the Greek debate again today after getting in to a bit of hot water earlier in the week.

We have given ourselves these four months to one, see what the real situation is, to see how Greece has met conditions and to try and establish what happens next ... which is fundamentally a third rescue.

11.05am GMT

Athens has managed to sell a1.138bn (825m) of six-month Treasury bills, allowing it to refinance a maturing issue.

It was a test of the county's ability to raise funds as at critical time for Greece.

#Greece successfully sells 1.14bn euro worth of 26-week T-bills at yield of 2.97% - up from 2.75% last month

#Greece sold 26-Week T-bills Uniform Yield at a pricey 2.97% vs 2.75% on Feb 4.

10.44am GMT

Consumers in the eurozone did their bit to boost the flagging economy in January.

EU retail sales figures up by much more than expected at 1.1% (expected to be up by only 0.1%).

10.15am GMT

More reaction to the UK services PMI now, which revealed a slight slowdown in growth in February.

The detail of the survey was more positive than the headline number suggested, with employment, new business and optimism among firms all up at a stronger rate than January.

The slight deterioration in February's CIPS/Markit report on services is a bit of a disappointment, but hardly a disaster. Contrary to expectations of a rise, the headline business activity index dipped from 57.2 in January to 56.7.

But this reversed only part of the previous month's rise and left the index still consistent with decent quarterly growth of services output of just below 1%. And the drop looks likely to be temporary, given that the new business, business expectations and employment indices all rose.

Despite a small dip, the UK services PMI points to strong growth. The services PMI fell to 56.7 in February from 57.2, below consensus expectations for a rise. Some correction had been on the cards given the large jump in the index last month, so it is hardly anything to start worrying about or pinning 'UK slowing' statements on.

At 56.7, the survey continues to point to strong, probably above trend growth. That reading is above the pre-crisis average, pointing to a rapid pace of expansion.

Data from the UK services sector remained solid in February and continues the belief that any dip in fortunes seen towards the end of last year was merely a blip.

The services sector continues to add jobs, with February's additions coming at the second highest rate on record. Higher wages are also being seen for sector participants which is a necessary and welcome reaction to tightness in the labour market and competition between companies.

9.56am GMT

Continued growth in the UK services sector - accounting for three quarters of the economy - suggests the chancellor is not in store for a nasty shock in the run-up to the election.

According to Markit, it puts the economy on course for solid growth of 0.6% in the first quarter, following 0.5% growth in the fourth quarter of 2014.

UK all-sector PMI edged higher to 57.0 in Feb. On course for +0.6% GDP rise in Q1. Near-record job growth also seen. pic.twitter.com/t6zJ7MWNqn

9.41am GMT

The Markit/CIPS PMI survey for the UK has disappointed City forecasts.

The headline index came in at 56.7 in February, down from 57.2 in January. But with anything above 50 signalling growth, it is still a pretty decent result.

9.32am GMT

The detail of the February composite services PMI for the eurozone shows that bailout countries Spain and Ireland continue to enjoy the fastest expansion.

The much more competitive euro, sharply reduced oil prices and ECB stimulus seems to be increasingly fostering a more favourable growth environment, and it is notable that overall business and consumer confidence across the eurozone rose for a second successive month in February to be at seven-month high.

The marked retreat in the euro to recently hit an 11-year low of US$1.1098 is very helpful for eurozone competitiveness and growth prospects while much reduced oil prices are helping companies' margins as well as consumers' purchasing power.

9.08am GMT

Markit's composite PMI for the eurozone - measuring services and manufacturing activity across the region - indicates the fastest economic growth in seven months in February.

The composite headline index increased to 53.7 in February from 52.7 in January.

#Eurozone PMI at 7-month high in Feb. Signals +0.3% GDP in Q1. Job creation at 3-year high http://t.co/1o3JkWKxlH pic.twitter.com/rjc5GOF2Xd

8.59am GMT

The remaining eurozone services PMI's are starting to roll in and reveal mixed fortunes.

Headline indices:

8.53am GMT

Investors across Europe have a spring in their step this morning, with all major indices up slightly.

8.42am GMT

Bosses at Standard Chartered have revealed they will not take a bonus following a sharp fall in profits at the Bank last year.

Standard Chartered board directors waive bonuses as profits slump by more than a quarter for 2014

8.28am GMT

The detail of Markit's Spanish services PMI survey shows that despite the drop in the headline number, there were some positives.

New orders rose at the fastest pace in seven months, while jobs in the sector were created at the fastest rate since November 2007, before the eurozone's meltdown.

The Spanish service sector maintained its recent run of growth in February, and there were several causes for optimism within the underlying data.

Companies took on extra staff at a solid pace, and one that was the strongest since November 2007. Moreover, business sentiment improved to the highest in 11 years, signalling that companies expect recent growth to be sustained in the near- term at least.

Still-elevated all-sector PMI of 56.0 in Feb means #Spain looks set for 0.7% GDP growth in Q1 pic.twitter.com/lbbB2ATDJM

8.19am GMT

The headline index measuring acticvity in Spain's services sector fell to 56.2 in February from 56.7 in January.

It's not a big fall, and still indicates the sector is growing (anything above 50), but the number is lower than economists were forecasting.

8.10am GMT

Meanwhile overnight in China, the HSBC/Markit services PMI suggested activity grew modestly in February. New orders rose at the fastest pace in three months.

The headline index picked up to 52 from 51.8, where anything above 50 indicates expansion, so no horror stories there.

China February HSBC services PMI edges up to 52.0 as orders improve http://t.co/pxgz5I13rF

7.52am GMT

Good morning, and welcome to our rolling coverage of the world economy, the financial market, the eurozone, and business.

The main data out this morning are the February services PMI surveys from around Europe.

We have seen some silver linings in this week's European economic data so far and today's services data could well add to those with improvements expected in the latest Spain, Italy, France and Germany services PMI's for February.

In the wake of yesterday's blow out German retail sales numbers, we are expecting a similarly positive improvement from the broader eurozone January retail sales numbers as well, with a rise of 2.5% expected.