Greece debt crisis: Alexis Tsipras insists Sunday referendum still on – live
Greek PM is pressing on with weekend vote, as eurozone finance ministers refuse to discuss third bailout before Monday
- Latest: Eurogroup won't be rushed
- Tsipras: No doesn't mean Grexit
- Tsipras speech: highlights start here
- Referendum fails international standards
- Merkel says no negotiations before referendum
7.15pm BST
Dijsselbloem was wearing his grey 'bad news' suit pic.twitter.com/tKMtRVQR7D
7.09pm BST
The European Council has now uploaded the interview with Eurogroup president Jeroen Dijsselbloem, after today's conference call with eurozone finance ministers.
And it confirms that the eurozone has slammed the door in Greece's face, at least until Monday.
The main decision was that given the political situation, the rejection of the previous proposals, the referendum which will take place on Sunday, and the "no advice" of the Greek government, we see no ground for further talks at this point.
There will be no further talks in the coming days, neither at eurogroup level not between the Greek authorities and the institutions, on proposals or financial arrangements.
Dijsselbloem confirms there will be no further talks at either Eurogroup level or technical level until after Greek referendum. #Greece
NOW ONLINE: remarks by @J_Dijsselbloem following today's #Eurogroup conference call on #Greece: http://t.co/HxcCSAar9h.
6.50pm BST
Europe's stock markets finished the day on a roll - with the FTSE 100 ending 87 points higher at 6608, up 1.34%.
There was stifling heat in the City of London on Wednesday but stock markets weren't losing their cool over the crises in Greece.
Greek prime minister Tsipras offered enough hope to spring a relief rally by suggesting Greece would meet most of the demands of its creditors in the most recent proposal. However, Greek banks remained closed while the European Central bank deliberated providing more emergency funding.
6.43pm BST
6.38pm BST
Greece's finance minister, Yanis Varoufakis, has published a short'n'snappy bullet point list of reasons to vote no on Sunday.
It includes the fact that Greece's debt is unsustainable and should be restructured, and a promise that a No vote won't lead to Greece leaving the euro.
6.36pm BST
Greece's highest court in the land, the council of state, may have the last say in whether a referendum is held on Sunday after receiving an appeal from citizens for the vote to cancelled for being illegitimate on constitutional grounds.
The tribunal has said it will consider the appeal - apparently made by two individuals - on Friday with a judgement expected later that day!
6.30pm BST
An interview with Eurogroup president Jeroen Dijsselbloem should be online soon.
#Eurogroup conference call on #Greece just ended; video with my remarks will be online shortly on http://t.co/9b0ZXi2aT4
@fabian_fellmann too many journalists hitting F5 as far as we can tell.
6.24pm BST
The US government continues to put pressure on all sides to reach a deal.
White House spokesman Josh Earnest told reporters on Air Force One the United States encouraged all parties to recognize the mutual interest they have in resolving the situation.
6.23pm BST
In Athens this afternoon, pensioners have been queuing patiently at Greek banks to cash their retirement cheques:
6.17pm BST
<kicks server>
Excellent, we are up and running. So let's catch up with events in Brussels.
Eurogroup to wait for #Greferendum before any more talks, Slovakia's @KazimirPeter says, adding 'Let's not put the cart before the horse'
Eu sources have been shocked and angry after @atsipras statement- didnt know if they should laugh or cry. Atmosphere very heavy in Brussels
5.54pm BST
And we're back...( maybe ).
Sorry for the unplanned downtime. It appears that Euro finance chiefs have decided that they will not consider Greece's request for a new loan before Sunday's vote has been held:
#Eurogroup united in decision to wait for the outcome of the #Greece referendum before any further talks
I'm told #eurogroup will put conclusions in a letter to @atsipras: No further action until after the referendum #Greece
4.10pm BST
And while I'm away, you can read the highlights of Alexis Tsipras's speech from the man himself:
Sunday's #referendum is not about whether or not #Greece remains in the Eurozone. #dimopsifisma
After the #referendum was announced, better proposals were received- especially in regards to restructuring the debt. #Greferendum #Greece
Come Monday, the Greek government will be at the negotiating table after the #referendum, w/better terms for the Greek people. #dimopsifisma
A popular verdict is much stronger that the will of a Government. #Greece #Greferendum #OXI #dimopsifisma
Its unacceptable that in Europe of solidarity bank closure would be forced, as a response to Gov't letting Greek ppl decide #Greferendum
And lead to inconvenience of thousands of elderly--that despite financial asphyxiation, government ensured their pensions. #Greece
We've been strenuously negotiating past months to protect your pensions, protect your right to a decent pension. #Greferendum #Greece
You're being blackmailed & urged to vote Yes to all of institutions' measures without any solution to exiting the crisis. #dimopsifisma #OXI
#IIITM (NO) is not just a slogan. NO is a decisive step toward a better deal. #Greece #dimopsifisma #Greferendum
#IIITM / NO does not mean breaking w/Europe, but returning to the Europe of values. #IIITM / NO means: strong pressure. #Greece #dimopsifisma
A socially just agreement that puts burden on those who can shoulder it, & not on pensioners & workers once again. #Greece #Greferendum #OXI
There are those who say that I have hidden agenda, that w/an #OXI / NO vote, I'll take #Greece out of EU. They are flat out lying to you.
The same people making these statements now, were doing so in the past, too. They are not serving the people of Europe. #Greferendum #OXI
4.05pm BST
We're about to take a short break here, for technical reasons.
Related: Greek debt: Merkel dismisses Tsipras's last-ditch compromise plan
3.59pm BST
Reminder, we do already know the framework of the deal Tsipras is now looking for, from the letter to creditors which emerged this morning.
3.49pm BST
Alexis Tsipras also tried to calm fears over the financial crisis in Greece, with banks shuttered for the third day.
Here's some instant reaction to the speech:
Tsipras says people won't lost salaries, pensions or their money in the banks #Greece #GreeceCrisis He talks about a transitory situation
tsipras's address seems aimed at assuaging any fears or doubts capital controls may have spurred in 'No' voters. #GreeceCrisis
#Greece, does #Tsipras really think he can negotiate a better package with creditors? There won't be a better program with him. #grexit
#Greece KTG's conclusion <Tsipras speech: 1. Referendum stands 2 calls Greeks to NO 3. implies if tonight #Eurogroup positive he may cancel
3.48pm BST
The Greek PM didn't appear to speak about the concessions he's now prepared to make to creditors.
Tsipras did not outline the deal he's put on the table
3.41pm BST
The Greek PM is showing no signs of backing down on holding a referendum on Sunday, reports Helena Smith from Athens.
She is watching his address to the nation on live TV, and reports.
"I never expected a democratic Europe not to give space and time [to hold the referendum. It is a disgrace that we have these scenes of shame because they closed the banks precisely because we wanted to give the people the vote."
"No means strong pressure for an agreement of social justice, that will punish [those who promote] corruption."
"They say I have a supposed plan that if you vote No I will take you out of Europe, they are wrong."
tsipras cites his candidacy a year ago for eu president as proof of his commitment to europe
Tsipras: I ran as a candidate for president of European Commission - Europe has to stop being undemocratic
3.37pm BST
It's official - Tsipras is pressing on with Sunday's referendum, and is calling again for people to vote no.
Tsipras confirms Greece referendum going ahead
3.35pm BST
Tsipras appears to be insisting that the referendum is ON - he's explaining a popular mandate gives him more strength in negotiations.
tsipras: the popular mandate is stronger than the will of a government.
3.33pm BST
We are still at the negotiating table, says Tsipras -- and if the Eurogroup meeting today delivers a positive message then we will move forward immediately.
3.32pm BST
Tsipras parle a la tele grecque pic.twitter.com/3EPB3fHzhn
3.32pm BST
Tsipras is speaking about Sunday's referendum - the vote isn't about whether to stay in the euro or not, he insists.
Tsipras: Sunday's referendum not about euro membership
3.29pm BST
Finally, Greece's prime minister is speaking to the nation -- there's a live feed here (no translation though)
3.28pm BST
Greece may be losing the support of some eurozone leaders, and the faith of the rating agencies, but it still has one ally -- Pope Francis.
He has called on people to pray for the country, during its ""keenly felt human and social crisis."
"the Holy Father wishes to convey his closeness to all the Greek people, with a special thought for the many families gravely beset by such a complex and keenly felt human and social crisis."
3.16pm BST
While the UK swelters, Greeks are suffering a dose of traditional British weather:
It is POURING in Kallithea. I think Zeus is trying to drown the #Greferendum
And now there's a hailstorm. #eleos
Dear England, you stole our weather. Love, Athens pic.twitter.com/UwyypIbJYQ
3.13pm BST
Greece's finance minister insists he has nothing to do with the 'vote no' banner hanging on his office today:
@tjibbe_hoekstra Not in my name. The said banner was the initiative of trades unionists - who did not seek the Ministry's permission.
3.09pm BST
After hours of anticipation, Alexis Tsipras may begin giving his address shortly.
And Channel 4's Paul Mason is hearing that he won't abandon Sunday's referendum....
Government source. Not blinking. Will continue with referendum. #Greece - Tsipras to speak in a few minutes
Storms in Athens have knocked out our attempt to watch Tsipras live (4 hours after it was "about to happen") pic.twitter.com/jhrUGc3BDM
3.06pm BST
The news of Alexis Tsipras's climbdown has sparked a rally on Wall Street, where the Dow Jones industrial average and the Nasdaq are both up 1%
The Dow is up 170 points on Greece's U-turn decision. It will accept bailout conditions. http://t.co/or17p9P1cZ pic.twitter.com/uhd2Ljplew
2.45pm BST
Slovakia's finance minister Peter KaA3/4imir has dropped a heavy hint that Greece should ditch Sunday's referendum if it wants to make progress on a third bailout:
I don't expect any breakthrough decisions on #Greece by the #Eurogroup today
A breakthrough could be: Greek government advocating for clear Yes in the referendum, change of questions, or scrap the whole thing #Greece
I'm afraid that #Greece banks might not reopen with the euro as the currency in case the referendum on Sunday ends with a NO
2.44pm BST
Berlin and Paris don't seem to be on the same page regarding Greece:
#greece #hollande: agreement 'must happen now'. #merkel: shop closed till monday #gettingmessier
Hollande wants deal immediately. Merkel wants to wait until after referendum. Tsipras seems to have triggered a Franco-German split. #Greece
2.41pm BST
We're now waiting for three events....
Alexis Tsipras's speech to the nation (time unknown), The European Central Bank's decision on emergency support for Greek banks (time unknown), and the Eurogroup teleconference (eurozone finance ministers) to discuss Greece's request for a third bailout (from 4.30pm BST/6.30pm Athens).
2.37pm BST
Over in Athens, a banner reading "No to blackmail and austerity" has been hung on the outside of the Finance Ministry:
Banner in front of #Greece's finance ministry- "No to blackmail No to austerity" #GreeceCrisis pic.twitter.com/vyh0ZKU2V4
2.35pm BST
From Brussels, Jennifer Rankin sums up the situation:
Germany has dismissed a last-ditch compromise plan from Greece that bowed to some key demands of its creditors.
In an address to the Bundestag, the German chancellor, Angela Merkel, reiterated her stance that there was no point in having talks with the government of Alexis Tsipras before a referendum in Greece on an EU bailout plan.
Related: Greek debt: Merkel dismisses Tsipras's last-ditch compromise plan
2.07pm BST
Meanwhile French president Francois Hollande is making rather more conciliatory noises. Reuters again:
[Hollande] said it was the duty of other euro zone countries as well as Greece to keep the country in the single currency area, adding that now was not the time for vetoes or "intransigent statements" but for dialogue.
"It is our duty to keep Greece in the euro zone. That depends on Greece ... But it also depends on us. As a European I don't want the dislocation of the euro zone, I am not into intransigent comments, into brutal rifts," Hollande said.
2.05pm BST
Here's Reuters' report on the attack on the Greek government by German finance minister Wolfgang Schiuble:
[Schiuble] criticised the Greek government on Wednesday for doing nothing but renege on previous commitments since coming to power, saying the situation had "worsened dramatically" under Prime Minister Alexis Tsipras.
"This government has done nothing since it came into office," Schaeuble said in a speech in the lower house of parliament.
1.51pm BST
Here's a couple of contributions from our GuardianWitness shout-out:
Our cafe's response to the proposed referendum - needless to say, the "No Burger" is winning.
Sent via GuardianWitness
1 July 2015, 10:49
I went out an hour ago to buy some things of a super market and eyewitnessed that goods that aren't expiring soon (pasta,rice,longlife milk,flour, etc) missing from selves.
I saw a guy carrying about 20kg flour and 10kg salt and when asked him what is he going to do all this stuff, he answered that he needs them to bake bread. I asked him again "do you know how to bake bread?" and he said "no but i will learn"
Sent via GuardianWitness
1 July 2015, 10:51
1.41pm BST
ECB president Mario Draghi has said the overarching objective of the Greek bailout reforms was "social fairness", in a letter dated 30 June. Reuters snaps:
1.31pm BST
Here's the full Associated Press story on the Council of Europe's comments on the Greek referendum:
The head of the Council of Europe, Europe's top human rights institution, says Greece's referendum would fall short of international standards if held as planned on Sunday.
Council of Europe Secretary General Thorbjorn Jagland told The Associated Press that international standards recommend that a referendum be held with at least two weeks' notice to allow sufficient time for discussion, with a clear question put to the people and with international observers monitoring the vote.
1.28pm BST
Meanwhile German finance minister Wolfgang Schauble is continuing his defence in parliament of Germany's position on Greece:
#Schiuble: We agreed to have a #Greece referendum with then PM Papandreu in 2012 but he cancelled it himself. Everything else is untrue.
Schiuble: I'll say for the historical record that we did not stop the Papandreou Ref. We agreed. He was ousted by his own govt. #Greece
#Schiuble: #Greece programme was negotiated between govt & #Troika. It's pure demagogy to say that anything was imposed
Schiuble: It's completely false to term this as us 'forcing the #Greeks' - they signed up to the programme, its about enforcement of rules.
A very intense speech by Schiuble in the Bundestag - giving in to Syriza would mean "we destroy the credibility of the European project."
1.10pm BST
Ah...
BREAKING: Council of Europe: Conditions of Greek referendum fall short of international standards.
12.58pm BST
News that the Greek prime minister has finally accepted its creditors' terms (albeit with a few conditions) has been met with fury on the left in Greece, reports Helena Smith:
Before Alexis Tsipras has even made his much anticipated address to the nation - explaining the details of the proposal - the country's communist party has described the deal as "the worst bailout" ever.
"They are shamefully fooling the Greek people. This proves that their "no" is in fact a "yes" to new loan accords that go against the people," the party's leader Dimitris Koutsoumbas railed in a statement. "We will cancel all of this," he said referring to Sunday's referendum. We will say no to the memoranda [bailout accords] , yes to resistance."
12.49pm BST
Meanwhile bookmaker Paddy Power has paid out early - a five figure sum no less - to those who bet Greece would vote yes in Sunday's referendum. It said:
At the time of paying out, the bookie was offering odds of 2/7 that the Greeks would pass the referendum.
Since the market opened on Monday the bookie has seen one way traffic in the betting with over 85% of all money staked in favour that the result would pass.
12.42pm BST
Gysi to Schiuble: I get it - you don't want to do a deal w/ lefties in #Greece bc then you'd also have to do a deal w/Spain & Portugal.
12.28pm BST
Germany's Angela Merkel is not having it all her own way in parliament:
Merkel, Gabriel & Steinmeier as Gregor Gysi of Die Linke delivers attack on Germany's Eurozone policy. #Greece pic.twitter.com/B1wVbvyqsw
12.25pm BST
So what will Alexis Tsipras say in his television address?
There is growing speculation he might actually cancel the referendum (as Helena Smith suggested earlier). According to the Wall Street Journal:
Eurogroup source says believes Tsipras will cancel referendum today before EG meeting. Varoufakis raised possibility in call yesterday.
Berlin wants GR referendum to go ahead; Commission wants Tsipras to campaign for yes. Cancelling might preserve Tsipras political skin.
Eurogroup source: no deal poss today since negotiating new program could take weeks. But talks can't start until referendum won/cancelled.
12.20pm BST
Merkel makes strong case for keeping to the rules in Europe in order for EU to survive - compromise at any cost not worthwhile.
12.20pm BST
Merkel is also saying the International Monetary Fund - which did not receive the a1.5bn owed by Greece by last night's deadline - would have to be part of any further talks.
12.18pm BST
German chancellor Angela Merkel has said there will be no negotiations on a new bailout for Greece before Sunday's referendum.
She said that, just as the Greeks have a right to hold a referendum, the other 18 euro countries have a right to react and have an opinion.
Merkel: Third bailout for Greece cannot be discussed without Bundestag approval. #Greece
Merkel: We are strong now. Today other EZ18 don't have to worry abt contagation due to Greek turbulence. #Greece Europe is robuster.
Merkel: The situation now is a massive challenge - but EZ is not endangered. Thus hardest suffering on the Greek ppl. #Greece
Merkel: Europe is capable of compromise - but all need to move. Compromise can be reached when advantages outweight disadvantages. #Greece
Merkel: this is not about several billion Euros - this is fundamentally about how EU can stay competitive in the world. #Greece
12.08pm BST
EU commissioner Valdis Dombrovskis has said it will present an analysis of the Greece's ESM loan request to the Eurogroup (via Reuters:)
12.02pm BST
The Greek government has issued a statement on the Tsipras letter. Helena Smith reports from Athens:
"The Greek yesterday delivered a new proposal to the institutions accompanied by a letter of prime minister Alexis Tsipras. Reports that say the Greek government has fully accepted the institutions' proposal do not stand," said the statement, adding that the government's proposal had included "a series of amendments to the institutions' text."
The new proposal was an attempt to find a mutually beneficial agreement that not only gave emphasis to growth but making the country's monumental debt load viable, the government insisted.
11.57am BST
And another word or two from Germany's Wolfgang Schauble, who is really not very happy:
German FinMin Schiuble: Present Greek Govt Not Very Trust-Worthy Party for New Bailout Talks.
Schaueble rejects talks before Greek referendum
Schaeuble shows his contempt by saying he's not even read the latest proposal from Tsipras http://t.co/19PQZ9tG7y
11.47am BST
Greece's non-payment of a1.5bn to the International Monetary Fund will not affect the ability of the eurozone bailout fund (the EFSF) to pay its bondholders.
But it added that the non-payment could be a default for certain EFSF loans, and it was still analysing the situation.
EFSF board could, acc to rules, now call back their loans immediately. In practice, would be mindless. https://t.co/rCvkv5hppH
The European Financial Stability Facility (EFSF) takes note of a public statement of the International Monetary Fund (IMF) that a Greek non-payment has occurred. It is the EFSF's understanding that the IMF Managing Director has informed the IMF Executive Board. This will be confirmed by a meeting of the Executive Board, expected later today. For the EFSF, this would constitute an event of default for certain EFSF loans.
The EFSF also takes note of the fact that the IMF received a request yesterday from the Greek authorities for an extension of Greece's repayment obligation that fell due yesterday. The IMF's Executive Board intends to examine this request in due course.
The EFSF will coordinate its next steps very closely with the Eurogroup Working Group, where its shareholders are represented, and with the European Commission and the IMF.
The Greek non-payment has no influence on the EFSF's capacity to repay its bondholders. Investors know that EFSF bonds benefit from a very strong guarantee structure.
11.40am BST
And back at EC president Juncker's press conference, an enterprising soul tackles Greece again, asking for a comment on the day's events. Juncker just says:
I am in permanent contact with Greece and the other authorities.
11.36am BST
More from German finance minister Wolfgang Schiuble, from the Reuters terminal:
11.35am BST
Meanwhile at a European press conference on its High Level Group on Own Resources, EC president Jean-Claude Juncker swats away a question on Greece:
"If I intended to hold a press conference on Greece I would have called a press conference on Greece."
11.32am BST
Alexis Tspiras is apparently going on television shortly:
Greek PM #Tsipras to address the nation shortly #Greece
11.28am BST
Meanwhile there appears to be a problem with Sunday's referendum: a mistranslation in one of the debt documents being voted on. Bloomberg reports:
There are three scenarios, and it concludes that under the first two there are "no sustainability issues" when the country's financing needs are taken into account. The translation, though, provided by the Foreign Ministry and sent to reporters on Monday, missed out the word "no."
11.25am BST
From our Europe editor:
#greece new @atsipras letter dated yday not today, makes clear concessions tied to agreement on new 2-year ESM deal + EFSF bridging
Yes he's still negotiating rather than conceding.- and making an offer on an offer that no longer exists #Greece https://t.co/0UPTDS5UqY
11.09am BST
This may perhaps be easier to read:
11.04am BST
And the letter, courtesy Bloomberg:
Here's the full Tsipras letter. http://t.co/3CMYTO6nmc pic.twitter.com/jwiKPhxDpr
11.02am BST
A Greek official has told Reuters that Alexis Tsipras asked to keep tax breaks for islands and wanted some changes to the contentious credit proposals. The FT earlier reported that Tsipras asked for a 30% discount on VAT for Greek islands, and requested that a plan to raise the retirement age to 67 by 2022 begin in October rather than at once.
10.56am BST
10.51am BST
RTRS - EURO ZONE SOURCE SAYS TSIPRAS LETTER CONTAINS ELEMENTS MINISTERS WILL FIND HARD TO ACCEPT
10.48am BST
Whether Alexis Tsipras' new proposals are enough to satisfy Greece's creditors, however, is still in question:
Getting sig pushback from creditors on new @atsipras letter. #Greece still holding out on items amounting to "hundreds of millions" at least
EURO ZONE SOURCE SAYS TSIPRAS LETTER CONTAINS ELEMENTS MINISTERS WILL FIND HARD TO ACCEPT.
10.41am BST
The precarious position of Greece could pose a risk to the financial system, the Bank of England said on Wednesday as it pledged to step in to insulate the UK from any shock waves caused by any worsening of the crisis in the eurozone.
Setting out its half-yearly assessment of the risks to the UK financial system, the Bank of England said that the outlook for the risks in financial system had remained unchanged over the last six months until the dramatic events of the last few days when Greece closed its banks and then failed to repay a loan to the International Monetary Fund.
10.36am BST
Call out: if you're affected by what's going on in Greece we'd like to hear from you. Share your experiences with GuardianWitness by clicking on the blue button at the top of the blog.
10.30am BST
The report about Greek concessions has sent markets climbing:
10.10am BST
Here's a taster of the FT story:
Alexis Tsipras will accept all his bailout creditors' conditions that were on the table this weekend with only a handful of minor changes, according to a letter the Greek prime minister sent late Tuesday night and obtained by the Financial Times.
The two-page letter, sent to the heads of the European Commission, International Monetary Fund and European Central Bank, elaborates on Tuesday's surprise request for an extension of Greece's now-expired bailout and for a new, third a29.1bn rescue, writes Peter Spiegel.
10.06am BST
BREAKING:
The Financial Times is reporting that Greek prime minister Alexis Tsipras now appears to be conceding ground in an attempt to get a deal done:
Got my hands on new @atsipras letter conceding on almost all points. QUick story here: http://t.co/VsdKLnWw8M pic.twitter.com/kHIVrvpOBi
9.59am BST
Eurogroup delayed because Greece sent a new proposal that is now under scrutiny
9.51am BST
Over in Athens this morning there are growing murmurings among members of the governing Syriza party that following its latest bailout proposal to creditors the government should now change tack on Sunday's referendum. Our correspondent Helena Smith reports:
Is prime minister Alexis Tsipras' leftist-led government having a change of heart about the referendum? Although the Greek parliament closed today - in line with the constitution ahead of the plebiscite - there is mounting speculation that the radical left Syriza party may indeed be having second thoughts. Last night, the deputy prime minister Yannis Dragasakis, in an interview with state-run TV, appeared to suggest that the referendum could be revoked, saying it was ultimately a "political issue."
This morning the prominent Syriza party euro MP Dimitris Papadimoulis has pushed thoughts of change a little further, saying the government's proposal of a third bailout with debt restructuring "changes the landscape" to the point that Greeks should now be urged to vote yes.
"The government proposal for an agreement, without the IMF and with a solution for debt, changes the landscape," Papadimoulis wrote in a tweet. "Now a Yes is urgently required to the proposal 'in' and 'out'."
Athens' anti-austerity coalition government has urged Greeks to vote "no" to the terms under which the debt-choked country would be given aid (terms that following the expiry of its bailout programme last night and the failure of a new accord, do not paradoxically formally exist, hence the widely held belief that the real dilemma posed by the referendum is whether Greeks want to remain in the euro or not).
9.35am BST
The UK manufacturing PMI for June has come in below expectations, and is the weakest for more than two years:
UK #Manufacturing PMI misses, coming in at 51.4 versus 52.6 expected. But #GBPUSD only down 20 pips from its pre-PMI level so far ^FR #FX
UK manufacturing PMI weakest for over 2 years, down to just 51.4, as #sterling hits exports. #BoE will be in no rush. pic.twitter.com/wrjn096lu0
9.33am BST
China has called for talks between Greece and its creditors to continue.
Chinese foreign ministry spokeswoman Hua Chunying told a regular press briefing that China wanted to see a united European Union and a strong euro:
"So we hope that the relevant creditors can keep talking with Greece to try and reach agreement as soon as possible and appropriately resolve the crisis now faced.
"From China's point of view we hope to see that the EU and eurozone can appropriately resolve this issue and Greece can continue to remain in the eurozone. This accords with the interests or all sides. China will continue to play a constructive role in this regard."
9.28am BST
There has been a fairly muted response to the latest Greek developments in the bond markets, with Italian and Spanish bond yield dipping slightly as investors continued to hope for a deal to keep Greece inside the eurozone.
Greek two year and ten year bond yields have edged up slightly but five year yields are currently unchanged.
9.26am BST
German chancellor Angela Merkel and her colleagues are set to debate Greece later in parliament:
The Greek morning will be a German one: Bundestag to debate Greece. Merkel, Gabriel, Schauble... the works.
9.19am BST
Here's a round-up of the other purchasing managers indices for June.
First Spain:
Spanish manufacturing PMI lower than forecast at 54.5 vs 55.6 exp. #Spain #manufacturing
Markit France Manufacturing PMI Jun F: 50.7 (est 50.5; prev 50.5) $EURUSD
France recovery strengthening. June car sales +15.0%; June manufacturing PMI 50.7
#Manufacturing PMI for #France signals improved business conditions for 1st time in 14 months http://t.co/CMMTeytipJ pic.twitter.com/dexvwzHXvl
GERMANY FINAL JUNE MANUFACTURING; 51.9; FLASH 51.9; MAY 51.1
#Manufacturing #PMI for #Germany rises from 51.1 to 51.9, but signals only modest growth http://t.co/NqIzLWHcYz pic.twitter.com/jUs4KgBLYy
Markit Eurozone Manufacturing PMI Jun F: 52.5 (est 52.5; prev 52.5) $EURUSD
9.16am BST
Here's a link to the full Markit report on Greece's June PMI:i
9.10am BST
Greek manufacturing activity shrank for the 10th month in a row, according to the latest purchasing managers index.
The Markit index fell to 46.9, with a sharp decline in export orders and production (a reminder than anything below 50 indicates contraction).
Markit Greece Manufacturing PMI Jun: 46.9 (prev 48) $EURUSD
"The accelerated contraction in goods production in June ended the worst quarter for the Greek manufacturing sector for two years.
"With negotiations over a debt deal ongoing in June, demand was subdued, leading new orders - both from domestic and international clients - to fall even faster than in May."
8.55am BST
Here's the latest update from my colleague Jennifer Rankin in Brussels:
Greece is waiting to hear whether it will be granted emergency aid from the European Central Bank, as it scrambles to pay wages and pensions without the financial lifeline of an EU bailout.
The country is insolvent and almost bankrupt after five years of a240bn (170bn) in European bailouts dried up at the stroke of midnight and it became the first EU member to default on its creditors.
Related: Greece awaits ECB decision on emergency aid
8.46am BST
Italy's finance minister Pier Carlo Padoan said the eurozone was still open to reaching a debt deal with Greece, and the country's debt profile was less worrying than it was often portrayed. Reuters reports:
Irrespective of whether a deal was reached, policymakers needed to speed up plans for a closer integration of the currency bloc, starting with its banks, he told BBC radio.
Last-minute overtures on Tuesday from Greece to its international creditors for financial aid were not enough to save it from becoming the first developed economy to default on an International Monetary Fund loan.
8.39am BST
UK chancellor George Osborne has said it is vital to resolve the current uncertainty over Greece and to ensure economic and financial stability across Europe, whatever the result of Sunday's referendum (which may European leaders are calling a choice between Greece staying in the eurozone or leaving).
In a statement Osborne said:
Britain's attitude to this developing crisis is clear: we hope for the best; but we prepare for the worst, and we stand ready to do whatever is necessary to protect our economic security at this uncertain time.
8.28am BST
Here's more on the Eurogroup change from Reuters:
Eurozone finance ministers will hold a Eurogroup conference call on Greece at 1530 GMT on Wednesday, pushing it back by six hours at the request of several ministers, the group's spokesman said.
Some ministers had scheduling clashes with the meeting, called on Tuesday evening following a similar call after Greece requested a new loan. Ministers are expected to review in more detail a letter from Prime Minister Alexis Tsipras.
8.21am BST
Change of plan. The Eurogroup teleconference will now start six hours later than originally proposed, now at 15.30 GMT. The Eurogroup spokesman has tweeted:
At the request of several ministers today's #eurogroup teleconference will start at 5.30pm #Greece
8.16am BST
Here's an updated version of Greece's debt deadlines:
8.10am BST
As expected, European markets have opened higher:
8.03am BST
Speaking of Greece's banks, around 1000 of them have reopened to allow pensioners without ATM cards to cash up to a120 from their retirement cheques. They are being given numbered tickets in an attempt to make the process easier.
7.53am BST
Greece's referendum on Sunday to vote on whether to accept or reject the creditors' bailout terms (even though they are not now on the table after yesterday) is getting closer, according to the latest poll. Reuters reports:
A majority of Greeks would vote No to the terms of a proposed bailout deal by foreign lenders but the lead narrowed significantly after banks were closed this week, according to an opinion poll published on Wednesday.
The poll, by the ProRata institute published in the Efimerida ton Syntatkton newspaper, showed 54% of those planning to vote would oppose the bailout against 33% in favour.
7.50am BST
It being the first day of the month, it is the usual round of manufacturing PMI data from around the world. China has already reported sluggish factory activity and in Europe, Italy and Spain are expected to remain strong, with France and Germany a little softer.
In the UK, the PMI survey is expected to show a pickup in June to 52.6 from 52 the previous month, and in the US, the ISM manufacturing survey is forecast to improve from 52.8 to 53.2.
7.40am BST
Asian markets have edged higher awaiting the next developments now Greece's bailout has run out:
Related: Asian share markets cautious after Greece misses IMF loan payment
Our European opening calls: $FTSE 6553 up 32 $DAX 11025 up 80 $CAC 4822 up 32 $IBEX 10797 up 27 $MIB 22507 up 46
7.36am BST
It's the morning after the historic night before, and Greece and its creditors are considering their next steps after the country failed to make a a1.5bn payment due to the International Monetary Fund, pushing it closer to default, and its bailout ran out without agreement.
The Eurogroup is holding at teleconference at 10.30am BST to discuss Greece's request for a third bailout, after the country asked for a new two year programme under the European Stability Mechanism (Europe's bailout fund).
Eurogroup teleconference Wednesday 11:30am, to discuss state of play #Greece
The European Central Bank will meet to assess the latest ELA arrangements which could well be tightened in light of yesterday's non-payment to the IMF. While it is not expected that the ECB will end the program, they could well raise the collateral haircuts, in exchange for emergency funding.
There is a risk that this might place more strain on the weaker members of the Greek banking system and tip some of the weaker banks over the edge, leaving the ECB open to the accusation of further asphyxiating liquidity as well as political interference, which leaves it in a tricky position, and suggests that they will probably err on the side of caution and do nothing.
Related: Greek failure to make IMF payment deals historic blow to eurozone
Greece would face an unsustainable level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors.
Continue reading...