Greece holds Independence Day parade as cash crisis deepens - as it happened

Rolling economic and financial news, including the latest developments around Greece's bailout and the annual Independence Day parade

• Closing Summary
• Greece hopes of a1.2bn repayment dashed
• Greek Independence Day march
• Will Greek MPs agree to reforms?

5.53pm GMT

Time to recap.

"There was agreement that, legally, there was no overpayment from the [Greek bank recapitalisation fund] to the EFSF."

Thousands of Greeks braved heavy rainfall 25/3 to watch the Independence Day parade in Athens. Yannis Behrakis pic.twitter.com/CIXaQlBrhs

"I have to recognise that I was very pessimistic during the last weeks because there was no progress whatsoever".

"But now we are back in a normal process and I do think that we can come to a conclusion that will be both in favour of Greece, we love Greece, and the European Union".

Capital flight seems to accelerate: #ECB ups ceiling on Greek Emergency Loans (ELA) to a71bn from a68.9bn, DJ reports citing Greek Bank Offl

5.09pm GMT

Shares in UK technology firm ARM slid 6% today, helping to push the Footse 100 index into the red.

My colleague Nick Fletcher explains:

Leading shares fell back below 7000 as worries about the US economy dragged down markets.

Technology shares came under pressure, with chip designer Arm down 73p at 11.27. Traders said growth stocks were being sold on both sides of the Atlantic, while a downgrade of Advanced Micro Devices from neutral to sell by UBS helped unsettle the semiconductor sector.

Related: FTSE slips below 7000 with Arm hit by technology sector weakness

4.54pm GMT

Weak US data also hit shares in Europe, points out Tony Cross, market analyst at Trustnet Direct:

Once again it's been some worse than expected readings out of the US that have gripped the attention of traders during the session, leaving the FTSE-100 to close below the 7,000 level and the concern is whether this is the start of another rout.

US durable goods data came in significantly worse than forecast, but with the Federal Reserve continuing to advocate the line that there's still room for a rate hike in the summer, some investors appear to be taking fright at the prospect.

4.53pm GMT

Europe's stock markets finished the day in the red.

A resurgence of Greek woes has caught markets off guard, as the country finds its cash reserves slipping through its fingers.

An attempt by the Athens government to recover a1.2 billion that it believes was incorrectly handed over has been slapped down by the rest of the eurozone, and while the ceiling on emergency liquidity has been raised, this is perhaps the most temporary of temporary measures. It seems the eurozone is now determined to push Greece to the wall and ensure that Athens cooperates.

4.32pm GMT

Shares are sliding on Wall Street, following today's decline in US durable goods sales and data showing that business investment spending plans fell for a sixth straight month in February.

Stocks plunge with Dow off 200 points, Nasdaq off 1.5%: http://t.co/e0onXnX86h

3.35pm GMT

The head of the European Council, Donald Tusk, continues to resist holding a special summit to tackle the Greek bailout...

At @Europarl_EN, @DonaldTusk says #eurozone summit on #Greece not needed "at this stage."

On #Greece, @JunckerEU said he had been "very pessimistic in past weeks" because of lack of progress. Thinks thing back on track now, though

2.45pm GMT

Bank of England policymaker Kristin Forbes has told the Evening Standard that UK inflation will probably keep falling after hitting zero last month.

With a UK establishment insider like @Peston of the BBC discussing possible #BoE Base Rate cuts are we being warmed up for them? #BoE #GBP

2.13pm GMT

ECB said to be planning to increase the Greek bank ELA ceiling to a71B (a69.8B last week) #FT71 #ES_F

2.10pm GMT

Newsflash from Bloomberg: The European Central Bank has reportedly agreed to raise the emergency liquidity on offer to Greek banks, to a71bn.

That's good news, as it means they shouldn't run out of funds tomorrow. But also bad news, as it suggests they continue to leak deposits as anxious savers withdraw funds.

Greece gets until Monday to come up with a plan http://t.co/XkOgtflwWl pic.twitter.com/avMsiJQGGG

2.00pm GMT

British unions fear that the mega-merger announced between Heinz and Kraft today will lead to job losses.

Unite is urgently seeking a meeting with Heinz management, to find out what the deal means for their UK operations.

"We and our trade union colleagues in the food industry around the world know from experience that deals like this often involve job losses and ruthless cost-cutting, as global capital wants a quick return on its investment.

News of this merger is a bolt from the blue for our members at Heinz. They deserve better, and we will be fighting for a better deal for them.

"The fact that shareholders have been hosed down with cash, while workers seem to have been kept in the dark is concerning."We sincerely hope that this is not the shape of things to come. These companies have worked with unions to build their prosperity in the past and need to do so in this new entity too."

1.44pm GMT

The US dollar has lost ground in the currency markets after weaker than expected durable goods data hit the wires.

Orders for US durable goods (such as long-lasting consumer products and machinery), fell by 1.4% in Febuary, extending the worst run since the depths of the financial crisis.

At 6 consecutive months of flat/negative growth, this is the worst run for Core Durable Goods since the 6 months ending February 2009.

12.55pm GMT

The German finance ministry has now confirmed, to Reuters, that Greece's claim that a1.2bn of its money was wrongly taken by Brussels last month has been rebuffed.

* German finance ministry spokesman says sees no reason for 1.2 bln Euros of EFSF funds to be released to Greek gov't - RTRS

12.38pm GMT

Bad news for Athens. Brussels journalists are reporting that Greece will not be receiving a1.2bn back from the European Union's bailout fund.

#Greece hopes of getting a1.2bn back from #ESM scrapped on morning call w/eurogroup deputies. Decision was Athens has no legal claim on cash

#EFSF spokesperson says that there w agreement with EWG in February that legally there was no overpayment from the HFSF to the EFSF.#Greece

12.00pm GMT

And here's a better picture of the tanks which rolled past the Athens parliament this morning:

11.51am GMT

11.49am GMT

There was a different feel about today's Independence Day parade in Athens, as Greece's PM and president both mingled with attendees afterwards.

The new government's decision to take away the security gates ouside parliament also helped, as Keep Talking Greece explains:

The new Greek government decision to remove barriers and allow people to attend the parades at close range has a strong symbolism aiming to demonstrate that neither the government is afraid of protests nor the people feel the need to protest austerity.

Crowds of people joined the school students' parade yesterday and the military parade in downtown Athens today. No stiff lip, no riot police around, no metro stations closed to public.

11.23am GMT

Greek thoughts, from Bank of America-Merrill Lynch's analysts:

Bank of America-Merrill Lynch: Three scenarios for Greece pic.twitter.com/j0MT7LMp5F

11.19am GMT

Greece's finance minister, Yanis Varoufakis, has been marking Independence Day on Crete:

Varoufakis in Crete to attend Independence Day parade - PHOTOS - http://t.co/VKNORoS1a5 pic.twitter.com/uOjtpVyNQq

11.04am GMT

Across the eurozone to Ireland, there are signs that the recent property boom is cooling.

Prices fell by 0.4% last month, but are still almost 15% higher than a year ago -- or over 20% higher in the capital.

10.50am GMT

Back in the corporate world, a major deal has just been announced.

Consumer giants Heinz and Kraft are being merged, to create the world's fifth largest food and drinks company.

It's official: Meet Kraft Heinz. http://t.co/CdJ1hk3YCZ pic.twitter.com/4BJ33udx5Y

10.44am GMT

#Greece fly-past marking Independence Day defo shorter than in previous years - did the defense min has fuel costs in mind?

10.42am GMT

More peaceful scenes now in Athens - dancers in traditional dress are performing to the crowds:

10.33am GMT

The parade is wrapping up, after scores more soldiers have marched past the parliament as Chinook helicopters and jets flashed by above them.

Crowds of spectators line March 25 parade route from starting point. Helicopters, warplanes fly overhead. #Greece pic.twitter.com/leyN5d1bcn

10.20am GMT

Back in 2012, Helena wrote about the thorny issue of Greece's military budget. Worth a reread:

Related: German 'hypocrisy' over Greek military spending has critics up in arms

10.15am GMT

This parade reminds me that Greece spends more on defence, as a percentage of national output, than any other EU member.

And around a quarter of that bill is spent in Germany.

10.13am GMT

10.08am GMT

Scores of marching soldiers continue to stream past the Greek president.

10.07am GMT

I just spotted Alexis Tsipras watching the parade.

10.03am GMT

#Greece and here they come! The fly-past begins - F16s roaring overhead in central #Athens all in the name of national celebration

#Greece national independence day chinook choppers flying very low right over buildings in central #Athens as fly-past begins

10.02am GMT

Helicopters can also be spied in the distance, though the Athens rain.

10.00am GMT

Fighter jets just whizzed overhead in Athens, as the military parade continues....

9.56am GMT

There's a live webfeed of the Athens parade here, showing soldiers marching past president Prokopis Pavlopoulos.

9.43am GMT

Greek motorcycle police are also taking part in the Independence Day march; reigniting memories of clashes with anti-austerity protesters.

Delta/Dias bike cops just paraded in front of the President. Often blamed for public show of police brutality #Greece pic.twitter.com/j92xgE81l0

6 Dec 2009, bike cop rammed protesters, gravely injuring activist Angeliki Koutsoumbou. Ruled a traffic accident http://t.co/IHZnBYGasT

9.41am GMT

The bad weather in Athens has not deterred people from attending the military parade.

Thousands at Athens military parade despite rain, open to public along entire route for 1st time in years. #Greece pic.twitter.com/SnJ2ijCziz

9.35am GMT

Tanks on the streets of Athens:

This is how radical left Syriza plus nationalist Independent Greeks celebrate Independence Day pic.twitter.com/M5cRB6yghi

9.35am GMT

Back in the UK, mortgage approvals have hit their highest level in five months.

#UK | FEB BBA LOANS FOR HOUSE PURCHASE: 37.3K V 36.7KE pic.twitter.com/8WBxEUsJAA

9.18am GMT

Over in Athens our correspondent Helena Smith reports that the military parade is beginning.

First, the newly-installed president of the Greek republic Pavlos Pavlopoulos is laying a wreath before the tomb of the unknown soldier, in front of the Athens parliament.

"A Greece that hurts her children, who take the road of immigration and joblessness. A Greece that hides its reality under the rug of a mouldy nationalism."

#Greece 194 years of independence. Military parade about 2 begin but not without controversy. Many calling celebrations kitsch.

Military parade marking the Greek Independence Day takes place in Athens - LIVE VIDEO - http://t.co/S7I9BFc7Io

9.17am GMT

The jump in German business confidence also suggests Mario Draghi's QE programme is helping to stimulate the euro economy.

Optimism in core Europe is clearly improving with +ve German Manufacturing PMI yesterday, +ve IFO data ... pic.twitter.com/pC2ebKiNpZ

9.09am GMT

German companies are more upbeat, the latest survey from the IFO Institute shows, suggesting Europe's largest economy continues to expand at a fair rate.

IFO's business climate index has beaten forecasts by rising to 107.9, up from February's 106.8. Economists expected a reading of 107.3.

8.51am GMT

Geopolitical dangers remain the biggest extreme risk nagging at fund managers, according to the latest survey from Bank of America/Merrill Lynch.

Hard to argue with, really....

BAML Fund Manager Survey - tail risk. Clue: if it's called a 'crisis' it's usually a bit risky. pic.twitter.com/Ag2YB3I402

8.47am GMT

The latest twists in the eurozone debt crisis haven't dented the popularity of Angela Merkel's Christian Democrats, according to the latest opinion polling:

#Germany poll [@sternde/ RTL]: CDU/CSU 41%, SPD 24%, Gri1/4ne 10% (+1), Die Linke 8% (-1), FDP 5%, AfD 5% (-1)

8.46am GMT

France's economy may be turning the corner, according to statistics body INSEE this morning.

INSEE's business climate index has risen this month, suggesting that firms are more confident about prospects.

In March 2015, the business climate indicator is improving.

The indicator, compiled from the answers of business managers in the main sectors, has moved upward, from 94 to 96, after being stable during three months. It still lies below its long-term average (100). The business climate indicator has improved by one point in services and by three points in trade.

The business climate in #France has improved in March but at 96 is still below the average of 100 http://t.co/AreK8P5lGK #ECB #QE

8.36am GMT

Greece's prime minister has returned to Athens following a two-day trip to Berlin which appears to have improved the tense relations with Germany.

But now, Alexis Tsipras must address concerns within his own party over the reforms which Greece's creditors are seeking.

This could include the retention of the contentious ENFIA property tax for another year, albeit adjusted so that the less well-off pay less, as well as labor and pension reforms.

The coalition has already sought to defuse any tension over privatizations by saying that it will only seek strategic partnerships that allow the state to retain a controlling majority.

8.06am GMT

Europe's stock markets have opened calmly, as investors await the IFO survey of German business climate in an hour's time.

The Eurofirst 300 index of leading shares dipped by 0.2%. In London, the FTSE 100 has risen by just 3 points to 7023.

Europe has been particularly interesting as Germany tries to pull the region out of a slump but some analysts remain concerned that the two-speed economy will not be easily rectified.

7.53am GMT

Japanese investors are alarmed by the risk of Greece leaving the euro, and Britain leaving the European Union, reports Stephen King, HSBC's chief economist.

Uppermost in the minds of Tokyo-based investors are Grexit and Brexit. It's political economy that increasingly matters.

Oh, and there's no surprise about the deflationary tendencies seen elsewhere in the world. In Tokyo, it's a case of "been there, done that"

7.50am GMT

Last night, economists at Deutsche Bank predicted that Greece will run out of funds on April 9th, when it must repay a460m to the IMF, without fresh funds.

They warned that tax revenues so far this year are below target (by around a1bn), and the steady withdrawal of savings is leaving Greek banks worryingly short of liquidity.

"Deposit flight has risen to about a400 million on March 18, the highest since the Feb. 20 agreement. The risk of capital controls continues to rise."

7.41am GMT

While Greece proudly marks Independence Day, officials in Brussels will be discussing the state of the reform plan demanded by creditors, and the health of its banking sector.

The European Central Bank Governing Council will hold a weekly call to assess the Emergency Liquidity Assistance keeping Greece's banking system afloat while euro-area finance ministry officials will have a separate discussion on the progress of the country's economic policy program.

Without access to capital markets, or the ECB's normal financing operations, Greek banks rely on almost 70 billion euros ($76 billion) of ELA to cover a financing shortfall exacerbated by steep deposit withdrawals.

7.33am GMT

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

And happy Independence Day to our Greek readers, at home and abroad. Ceremonies are taking place in Greece today to commemorate the events of 1821, when revolutionaries began the battle to overthrow the Ottoman Empire and claim freedom.

Greek Independence Day!!! #25Martiou #25thMarch #GreekIndependenceDay #Greece pic.twitter.com/8g4JWenXCK

Congratulations to Greeks everywhere for today's celebration of National Independence. #25March