Greek PM: Greece will decide what is right for Greece - as it happened
- Athens: Germany's Schiuble 'insulted' Varoufakis
- Schiuble dismisses Greece's claim as 'nonsense'
- Greece signs agreement on reforms with OECD
- Eurozone industrial production falls
- Euro rises against dollar
- BoE's Carney warns on deflation
- UK trade deficit shrinks
4.50pm GMT
Just one more thing...
The Guardian's Philip Oltermann brings us this update on the Wolfgang Schiuble/Yanis Varoufakis insult-gate.
Wolfgang Schiuble speaks with a strong Swabian dialect and does seem to enjoy veering off script at press briefings. Only last May, the German finance minister caused some raised eyebrows at a speech in Berlin, when he called France's Front National a "fascist and extremist party".
But the latest diplomatic row between Germany and Greece seems to stem from a mistranslation. Here is what Schiuble says in the clip, in which he describes a meeting with his Greek counterpart Varoufakis:
4.42pm GMT
Before closing up for the day, here is a summary of the main events.
4.42pm GMT
There is confusion over exactly what Wolfgang Schiuble said about Yanis Varoufakis at a press conference following Monday's eurogroup meeting.
Here is Reuters' take on the matter:
Athens has accused German Finance Minister Wolfgang Schaeuble of insulting his Greek counterpart, further eroding a diplomatic relationship already badly strained by Berlin's tough stance on Greece's debt woes.
Schaeuble, who has become a lightning rod for Greek frustrations about Germany, dismissed the complaint as "nonsense".
3.18pm GMT
Tsipras says he is optimistic about Greece's future.
I don't feel as if I have a noose around my neck. I feel Greece has the will to move forward.
Out partners need to understand they need to help and assist us, and leave the past as a bad memory.
We need to construc t trust and confidence bridges.
[I am hoping] that signature will be a passport to more confidence. I am optimistic.
Everybody has a role to play but at the same time everybody has constraints and limitations.
What we are trying to achieve today is to prepare for a very broad portfolio of reforms based on what the Greeks have signalled to the international community that they have as priority.
Today, w/support of @OECD we begin a new chapter on reforms that will increase social justice #Greece #ChangeEurope pic.twitter.com/QoVPRS34Aw
3.06pm GMT
The Greek Prime Minister says the reforms he has been discussing with the OECD today are those Greece would like to introduce - not those dictated by anyone else.
The re forms we are discussing with the OECD are not reforms that have been imposed upon us. No. They are reforms we would like to introduce.
This is not the right time to criticise the failed programme has followed over the past four years.
But on the side of the troika, what we saw was something like blackmail. "If you don't cut pensions, if you don't fire people, we will not give you this bit of funding."
So the main difference between the previous pro gramme based on the internal devaluation is that our reforms are focused on social justice.
We've had enough of austerity. Enough. We need to bring back social justice and growth.
2.48pm GMT
#Greece PM #Tsipras: #OECD will help Greece move ahead w/ reforms that will not lead to dismantling of society
#OECD has signed agreement with #Greece for reform measures, says #Gurria
2.45pm GMT
The OECD press conference has kicked off.
We won't allow Greece to become something that it is not. At the moment Greece is at the bottom of the pile of social indicators in the EU.
We are now making a break with the chronic weakness of Greece.
2.28pm GMT
More now on the news that the ECB has raised the threshold on emergency liquidity to Greek banks, which has been confirmed by Guardian reporter Helena Smith.
Helena brings this report:
"I can confirm that it has happened," one banker in Athens said. "It will give us breathing space and removes part of the immediate and strong pressure but not for long."
He added that the country's financial community was expecting the ECB to keep up its policy of disbursing "small injections of cash" until the summer when Greece has to meet debt repayment of approximately a7.2bn.
2.21pm GMT
Greece has signed a co-operation deal with the OECD, aimed at helping the country implement reforms.
The Greek PM Alexis Tsipras - along with his finance minister Yanis Varoufakis - travelled to Paris today to meet the head of the OECD, Angel Gurria, and other OECD officials.
The OECD will provide Greece with the know-how regarding the design and the implementation of reforms which are the priorities of the Greek government.
In the long term, [the OECD] will help the Greek side implement and evaluate not only the progress of the reforms but also their effectiveness.
1.49pm GMT
German finance minister Wolfgang Schiuble has dismissed the accusation that he insulted his Greek counterpart Yanis Varoufakis as "nonsense".
No, I haven't insulted my Greek counterpart, that is nonsense.
1.33pm GMT
That's it from Carney. He stuck by the Bank's central case that deflation is a not a major risk in the UK.
He acknowledged however that inflation could stay lower for longer than the Bank of England currently expects (implying therefore that rates could stay lower for longer too).
While the MPC can be expected to look through one-off shocks, it may be appropriate to take into account persistent external deflationary forces arising from the combination of continued foreign low inflation and the protracted effects of sterling's strength on the prices facing UK consumers if those forces were to intensify.
Guv Carney hints if sterling continues to strengthen, & UK risks importing deflation, then Bank of Eng might have to delay rate rise
1.22pm GMT
Carney is now taking questions from the floor in Sheffield.
He is asked what are the dangers of ultra low interest rates over a long period of time.
wooh - check out this chart in Carney speech - no idea what it means pic.twitter.com/SMUN7hmNX0
1.11pm GMT
Carney says that with concerns over low inflation (driven by the global oil price slump and falling food prices), generating domestic inflation is necessary to return inflation to the Bank's 2% target.
He says he expects exactly that, with inflation likely to rise to the 2% over the next two years, in a "sustainable manner".
We are on track to do that.
The UK economy is performing well. UK growth is solid, unemployment is coming down, and jobs have risen by 600,000 in the past year. Wage growth is showing signs of picking up, rising to 3% for the economy as a whole at the end of last year, and to 3.3% in the private sector.
Writing the path back to target - speech by Mark Carney http://t.co/4AkrIIJLy4
12.58pm GMT
The Bank of England's governor Mark Carney, is speaking at the Manufacturing Research Centre in Sheffield.
Over the past two decades, Inflation Targeting central banks have established good track records of keeping inflation from being too high.
But now those central banks, including the Bank of England, are being tested by inflation that is too low.
12.38pm GMT
From Reuters:
12-Mar-2015 12:27 - ECB GOVERNING COUNCIL RAISES EMERGENCY LIQUIDITY CAP FOR GREEK BANKS VIA THE GREEK CENTRAL BANK BY ABOUT 600 MLN EUROS- BANKING SOURCE
12.20pm GMT
Mark Carney, Bank of England governor, is scheduled to speak at the Advanced Manufacturing Research Centre in Sheffield from about 12.45.
We'll be reporting any interesting snippets.
12.17pm GMT
The UK's trade deficit with the rest of the world narrowed in January thanks to the global oil price slump which lowered the cost of oil imports.
In a boost to the chancellor George Osborne, the goods deficit was 8.4bn, beating expectations of a bigger 9.7bn deficit. It was the smallest since March 2014.
Oil price fall helps bring down UK #trade deficit, but #export weakness persists. Full note available here: http://t.co/ReHsM0EKmy
11.39am GMT
Sticking with the UK, there has been a flurry of news from the retail sector this morning.
11.19am GMT
Lloyds Banking Group has published a brief statement on the news this morning that Spanish lender Banco de Sabadell has made an offer for TSB.
Lloyds has a 50% stake in TSB that it needs to sell by the end of the year under the terms of its 2008 taxpayer bailout.
Lloyds Banking Group plc (the Group) notes the announcement by TSB Banking Group plc and Banco de Sabadell, S.A. in relation to a possible cash offer by Banco de Sabadell, S.A. for the TSB Banking Group plc at 340p per share.
The Group also notes that the Board of TSB Banking Group plc would be willing to recommend an offer at this price, subject to reaching agreement on the other terms and conditions of any offer.
11.11am GMT
The Greek unemployment rate increased to 26.1% in the fourth quarter of 2014, from 25.5% in the third quarter.
About 73% of Greece's jobless have been out of work for at least 12 months, the country's statistics agency revealed, classing them as long-term unemployed.
10.55am GMT
Jens Weidmann, policymaker at the European Central Bank and head of Germany's Bundesbank, says Greece has lost a lot of trust, and eurozone governments must decide whether to increase their risk exposure to Athens.
ECB WEIDMANN: GREEK GOVERNMENT HAS SQUANDERED TRUST - MNI
Bundesbank's Weidmann: German economy should grow beyond its normal capacity utilization level this year, even more strongly in 2016
10.42am GMT
Further evidence of an increasingly hostile relationship between Greece and Germany has emerged.
Greece has lodged an official complaint with the German foreign ministry after Wolfgang Schiuble reportedly described Yanis Varoufakis as "foolishly naive" in his dealings with the media.
There was an official complaint from our ambassador in Berlin to the German Foreign Ministry on Tuesday night.
It was a complaint after what he [Schiuble] said about Mr Varoufakis. As a minister of a country that is our friend and our ally, he cannot personally insult a colleague.
Greece lodges complaint with Germany for insult against Varoufakis - http://t.co/wKi9n8eYcG
10.28am GMT
Industrial production fell by 0.1% in the eurozone in January, following a 0.3% increase in December.
No sign of a boost from the weak euro.
January's eurozone industrial production data suggest that industry had a poor start to 2015, with little evidence of any boost from the weaker euro or the lower oil price.
The 0.1% fall in production was weaker than the consensus expectation of a 0.2% rise but broadly in line with our own forecast of stagnation. But, on a more positive note, December's stagnation was revised to show a 0.3% monthly rise.
10.00am GMT
In 2013, Sabadell bought Lloyds Spanish business. Lloyds still has 50% stake in TSB, needs to sell by end of year
Looks like deal done. Sources tell me that Lloyds - 50% owner of TSB - will back Banco Sabadell 1.7bn offer for TSB
Bco Sabadell shares suspended after bid for TSB - were down 7%
9.36am GMT
The UK's TSB has received a takeover approach from Spain's Banco de Sabadell.
Based on preliminary discussions, the board of TSB believes that Sabadell could support and accelerate TSB's retail growth strategy and accelerate the expansion of TSB's presence in the SME (small and medium-sized enterprise) sector.
Sabadell recognises the achievement of TSB's management and employees and would continue to operate TSB as a robust competitor in the UK banking market, building on the TSB brand name.
9.16am GMT
Greece's Prime Minister Alexis Tsipras is in Paris today to meet the head of the Organisation for Economic Co-operation and Development, Angel Gurria.
In Paris today to present the Greek government's reform program in cooperation with the @OECD. #Greece #ChangeEurope http://t.co/iu42FutREZ
8.54am GMT
The FTSE 100 opened higher this morning and is now up 0.7% at 6,769.61, led by the miners.
8.36am GMT
The euro is up against the dollar this morning, following its sharp fall on Wednesday.
The Euro is surging higher this morning. Back to $1.064 pic.twitter.com/6snIiIgfXk
8.14am GMT
Yanis Varouafakis - reportedly accused by Germany's Wolfgang Schiuble earlier in the week of being "foolishly naive" in his dealings with the media - also acknowledged that he is ruffling a few feathers at eurogroup meetings.
He told his Greek audience his fellow eurozone finance ministers were accustomed to dealing with a Greek government that ruled with e-mailed and faxed directives. The new government, he said, was different.
Suddenly they realised that the Greek finance minister will be a problem for them, to the extent that he demands the right to have the Greek people's view heard.
The depoliticisation if economic policy at the eurogroup has led Europe to deflation, with its people stating in Eurobarometer polls that they do not trust the European Union's institutions."
7.54am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
It promises to be another lively day, kickstarted by comments from the Greek finance minister Yanis Varoufakis.
The ECB in my opinion is pursuing a policy that can be considered asphyxiating toward our government.
Mr Schiuble has told me I have lost the trust of the German government, I have told him that I never had it. I have the trust of the Greek people.
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