EU crushes any hopes of Greek deal this week - business live
All the latest economic and financial news, including developments around Greece's debt talks
- Summary: Crisis grumbles on
- Brussels officials say Friday's meeting won't achieve much
- Bloomberg: ECB losing patience with Greece
- Greek stock market hits lowest level of 2015
6.00pm BST
With the impasse between Greece and its creditors showing no signs of ending, ahead of yet more European meetings, investors were reluctant to take too many changes, writes Nick Fletcher, despite some positive company results which gave some support. The final scores showed:
5.08pm BST
Here's more the talks between Greek premier Alexis Tsipras and the head of Gazprom Alexei Miller from our correspondent Helena Smith in Athens:
Although the Russian's visit has been decidedly silent on the news front - with neither Miller nor any of his interlocutors today making statements - well-placed aides are saying both sides are confident some sort of agreement will be signed imminently.
A working group is to be established with the aim of setting up a "road map" of benchmarks that Moscow and Athens will commit to in the coming months. Investment in the Greek part of the pipeline - that will run from Russia's Black Sea coast through Turkey to Greece and into Europe via the Republic of Macedonia - is estimated at a2bn with Greece reaping the rewards of thousands of jobs and enhanced geopolitical stature, insiders said.
4.50pm BST
Greece may have bought six week's grace if it succeeds in annexing local government funds, Bloomberg says:
Greek officials expect an order that local governments transfer funds to the central bank will keep the country afloat until the end of May as European policy makers turn up the heat on Prime Minister Alexis Tsipras.
Municipalities' reserves are estimated at about a1.5bn, according to a person familiar with the matter, who spoke on condition of anonymity. Officials in Athens ruled out also seizing pension funds and the cash reserves of state companies because there wasn't a need and the move would unnecessarily fuel anxiety, the person said.
4.44pm BST
Some snaps coming out from Reuters on the talks between Athens and Russia's Gazprom:
4.27pm BST
With deadlines for Greece coming and going, it's perhaps no surprise that even eurozone officials are tired of setting a timeframe for the country to sort out its finances.
Of course, the money is going to run out at some point but as has become pretty clear today, any idea of a deal at Friday's meeting seems fanciful. And Reuters is now reporting:
Eurozone finance ministers will not set any deadline for Greece to come up with reforms to get more funding because such time limits lead to brinkmanship in negotiations, a senior euro zone official said on Tuesday.
Greece, which is quickly running out of cash, pledged to its eurozone partners in February that by the end of April it would agree with creditors on a comprehensive list of reforms to get a7.2bn remaining from its bailout.
3.46pm BST
A quick recap.
"There is a clear pick up in activity, there is a clear pick up in engagement, but we are a significant way away from a signal that a result is in sight."
#grexit eurozone and greece have lost 2 months, riga 'will not be a huge discussion, not such a lot will be happening' - eu official
Greece sweep 10-yr 13.54 +25 5-yr 20.15 +57 3-yr 29.76 +107
3.35pm BST
Photos of the meeting between Greece's PM, Alexis Tsipras, and Gazprom chief Alexei Miller just arrived; it looks pretty cordial.
3.21pm BST
The chairman of the White House Council of Economic Advisers has warned that the world economy would be badly hit if Greece crashed out of the single currency.
In an interview with Reuters in Berlin, Jason Furman swept aside the notion that a Grexit could be contained easily.
"A Greek exit would not just be bad for the Greek economy, it would be taking a very large and unnecessary risk with the global economy just when a lot of things are starting to go right."
2.43pm BST
Here's a snap of the irate Greek mayors' meeting:
Local government leaders anger at govt emergency fund. Meeting live: http://t.co/oT5DbthiEM #Greece pic.twitter.com/0MHdjPLOEg
2.34pm BST
Jeroen Dijsselbloem, the head of the eurogroup of finance ministers, has just warned that Greece is running short of time and money.
2.17pm BST
Over in Athens scenes of pandemonium have erupted as local municipalities gather to discuss what is being described as the government's "outrageous decision" yesterday to sequester spare funds from local authorities.
Helena Smith reports that mayors attending an emergency meeting of the Central Union of Greek Municipalities (KEDE) hurled abuse at the deputy finance minister Dimitris Mardas when he announced that the "internal loan" would be enforced "for at least two months."
"the money is ours and we will do with it what we want."
On #Greece govt move to seize municipal funds: "institutions" have urged such a move for "many, many weeks" to centrally manage cash.
Greek fiscal situation well manageable with decree on centralising municipal cash, euro source
2.02pm BST
EU officials have told reporters in Brussels that Friday's eurogroup meeting of finance ministers is extremely unlikely to deliver a deal over Greece.
"We are now where we really should have found ourselves 2 months ago," says #EU official of current #Greece talks.
"It would be extremely diff to keep to this deadline on the 30th of April," #EU off says of deadline for #Greece to submit final reform list
'A significant way away from a signal that the end is in sight,' source, hinting at eurogroup next week, difficult to meet deadline
EU Official Says June 30 Is Most Important Deadline For Greece
1.51pm BST
Just in: a photo of Greece's energy minister Panagiotis Lafazanis (left) meeting Gazprom chief Alexei Miller today.
1.43pm BST
Only a "brief presentation on state of play in #Greece" at Friday's #Eurogroup in Riga, says #EU official.
1.43pm BST
Eurozone officials are downplaying the chances of a big breakthrough on Greece at Friday's meeting of eurozone finance ministers:
Not a lot will happen in Riga, says senior euro source #Grexit
"Not such a lot will be happening in Riga," says #EU official. #Eurogroup meeting likely 3-3.5 hrs. #Greece
1.30pm BST
Heads up. EU officials are about to brief the Brussels press pack about Friday's eurogroup meeting, where Greece will be top of the agenda.
Almost time for everyone's favourite live tweeting event: the pre-#eurogroup background briefing pic.twitter.com/ik5ofbE3M6
1.08pm BST
The National Bank of Hungary just became the latest central bank to ease monetary policy; cutting rates by 0.15% to a new record low of 1.8%.
Hungary cuts interest rates for second time this year. A total of 27 central banks around the world have eased policy so far this year.
1.04pm BST
Greece's energy minister Panagiotis Lafazanis is starting talks with Gazprom's CEO Alexey Miller in Athens. On the agenda, a possible gas pipeline deal that could bring cheaper energy to Greece.
"It's not only about the pipeline and any prepayment that Moscow might make. If an agreement benefits Greece we will sign it and we may just be days away from doing that."
"Every other European country does it, so why can't Greece?...Angela Merkel has been to Moscow three times, but as soon as [Alexis] Tsipras goes, a huge fuss is made."
"But there are certain red lines, such as reducing wages and pensions and doing away with collective work agreements, which exist all over Europe, which we cannot accept. Certain mistakes may have been made on our part as this is a government that lacks experience but on the other hand Europe is also making some absurd demands that no one could accept. This government will not take decisions that are critical for the country if they do not have the endorsement of the people."
Deflating the Russia-Greece #energy connection http://t.co/foBszInAAo
12.50pm BST
Greece's mayors are up in arms about the government's order to hand over cash reserves.
Associated Press reports:
Authorities from municipalities across Greece will hold an emergency meeting Tuesday after the government ordered reserves from state enterprises to be placed in a common account to help the country meet its financial obligations and avoid default.
Following an emergency decree, funds from anything from hospitals to local government will be made available for short-term loans to the state.
#Greece AltFinMin Mardas reportedly told Municipalities Union leaders that mandatory transfer of assets will last for 'two months'.
12.34pm BST
Greece's scramble for cash comes as the rest of the eurozone wallows in an ocean of liquidity.
This morning, the 3 month Euribor rate - which measures the cost of lending between eurozone banks - fell below zero for the first time ever. That means banks have so much cash that they're actually paying (a little bit) to lend to each other:
#EUR003M #Euribor 3 month first time negative -0.001 It's getting cold down there... pic.twitter.com/bmLPRgXIVT
There is a flood of liquidity in the Euro area as evidenced by another interest-rate benchmark plunging through the ice into below zero territory.
Yet the place that most needs it,Greece, finds itself in a desert lacking liquidity and after last night's move by its government there must be fears of another deposit outflow. This is a cycle which sucks ever more breath out of the Greek monetary system.
Greece faces a cash crunch just as the Euro area is awash with liquidity http://t.co/cXZhf2O9nC via @notayesmansecon #Grexit #Bonds #ELA
12.28pm BST
The leaders of Greece and Germany will hold talks in Brussels on Thursday, on the sidelines of the emergency EU Summit on migration (that's via Reuters).
12.09pm BST
Royal Bank of Scotland's analysts believe the crisis could lead to a third bailout, an exit from the Eurozone or a new government.
RBS: "Do not confuse a missed payment (or even default) with Grexit risk, which we think is still very unlikely" pic.twitter.com/vzeNTqTBGQ
12.04pm BST
Even if Greece can meet its IMF repayment in May, it faces larger bills in June - and then hefty repayments to the European Central bank over the summer.
Greece's existing bailout expires at the end of June, so further funding will be needed by then.
11.55am BST
Greece's finance minister told reporters this morning that talks with creditors are going 'very well', according to Greek newspaper Enikos.
Enikos says:
Greece's negotiations with its creditors are going "very well," Finance Minister Yanis Varoufakis told waiting reporters outside the Ministry of Finance Tuesday.
Ased how the talks in Paris are going. "Very well, we continue."
#Varoufakis asked: how long can #Greece continue to cover its financial needs? -http://t.co/4BmjURGKPL pic.twitter.com/8EgVa8GVKe
11.35am BST
Eirini Tsekeridou, fixed income analyst at Julius Baer, reckons Greece will eventually cave in to its creditors' demands on taxes, pensions, and privatisations.
But given the "high political instability", Julius Baer isn't prepared to hold Greek debt right now.
"We would like to remind that Greece has to pay a200m to the International Monetary Fund (IMF) on 1 May as well as a1.4bn in maturing Treasury bills on 8 May, while pensions and public sector salaries amount to around a1.7bn.
The risk of missed payment is pushed down the road towards month-end or possibly beginning of May, but the solution found signals desperation and is not viable; the issue will arise sooner rather than later."
11.10am BST
This is a notably gloomy tweet from Francesco Papadia, the former director general for Market Operations at the European Central Bank.
#Greek economic, fiscal, liquidity situation is progressively deteriorating, mutual trust disappeared and no visible progress on negotiation
11.03am BST
One of the world's most powerful investors has predicted that Greece will be 'kicked out' of the eurozone unless it agrees to its creditors demands:
"If Greece does not capitulate, Europe has no choice but to kick Greece out...
The Europeans have no choice but to be firm. The outcome of Greece unwilling to meet its obligation is very negative for Greek citizens."
BlackRock's Fink: "If #Greece does not capitulate, Europe has no choice but to kick Greece out" http://t.co/Gs03B7MRDL via @business
10.45am BST
Despite today's rumours, analysts at Citi suggest that the ECB probably won't pull the plug on Greece's emergency liquidity support this month:
Citi thinks that #ECB would review ELA on May6 or May20. In meantime, a 2/3 majority of votes cast by ECB GovCouncil required to stop #ELA.
10.42am BST
Greece's stock market has hit its lowest level since Syriza won January's general election.
The reports that the ECB might pull the plug on Greece's banks are sparking a hefty selloff in Greek bank shares, as these charts show:
#Greece stocks poised for lowest close since Sept. 2012 pic.twitter.com/wV582dnC4M
10.11am BST
Some reaction to the ZEW survey:
CHART: #Grexit risk NOT derailing euro-area recovery. #ZEW current situation component rises to 4-year high in April. pic.twitter.com/WtFGLPF9Lo
10.08am BST
Just in: German economic optimism has dropped for the first time since last October, but current conditions remain extremely bright.
That's according to the ZEW Institute latest survey. Its economic sentiment index dipped to 53.3 from 54.8 last month, showing more caution
Germans feeling great! pic.twitter.com/usgtPP5Bh1
German ZEW Current Conditions Index at 45-month high of 70.2, but Econ Sentiment slips slightly to 53.3 (54.8 in Mar) http://t.co/YLVY5cb5lL
10.01am BST
Here's the Bloomberg story that has rattled the Greek stock market, pushed down the euro, and raised new fears that Greece could default:
The European Central Bank is studying measures to rein in Emergency Liquidity Assistance to Greek banks, as resistance to further aiding the country's stricken lenders grows in the Governing Council, people with knowledge of the discussions said.
ECB staff have produced a proposal to increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece, the people said, asking not to be named as the matter is private. While the measure hasn't been formally discussed by the Governing Council, it may be considered if Greece's leaders fail to quickly convince euro-area finance ministers they can reform their economy and secure bailout funds, one of the people said.
Outbreak of frenzied threats to Greece by ECB, briefed via BBG, usually means political talks with Eurogroup making progress.
9.24am BST
Default fears are hitting Greek bonds too, pushing prices down to even more worrying levels:
The two-year Greek bond yield (or interest rate) hit 29.4% this morning.
Greek Bond yields move higher as worries Grow. #Greece's 2yr and 3yr yields heading towards 30%, highest since 2012. pic.twitter.com/iF1qrW2o0i
9.23am BST
The Athens stock market is dropping in early trading as fears over Greece's finances rise.
The ATG index has shed 2%, led by Piraeus Bank, which has tumbled by 12.5%.
Greek banking stocks fall to record low, -4% today and -50% since late Feb as #Grexit fears mount: pic.twitter.com/KSGxowuwfq
8.56am BST
More leaks from the European Central Bank, suggesting it may impose tighter rules on Greek banks in return for emergency liquidity.
BREAKING: ECB staff plan to raise haircuts on Greek bank collateral; sees haircut of 75% in orderly default - sources pic.twitter.com/R44P7MkWRe
8.54am BST
Gazprom chief Alexie Miller is visiting Athens today to discuss "current energy issues of interest" with prime minister Alexis Tsipras, according to the energy ministry.
The ministry declined to comment on rumours that Gazprom could pay up to a5bn to Greece in return for deal to extend its planned Turkish Stream gas pipeline.
If the deal is indeed sealed, any advance payment would be a welcome source of revenues for Greece, which is struggling to unlock 7.2 billion euros in desperately needed international bailout funds.
Analysts are however sceptical, as the Turkish Stream pipeline is not expected to come into service until 2019 and Ankara and Moscow are struggling to come to a final deal.
8.37am BST
European stock markets are still shrugging the Greek crisis off, though:
8.35am BST
The euro has lost ground in the currency markets this morning, dropping almost 0.7% against the US dollar to $1.066.
Augustin Eden at Accendo Markets says Greece continues to weigh on investors' minds today.
Could Putin afford to extend his hand to the troubled nation? Some think not, which is seen as a good thing while others are genuinely worried that he can and will According to reports, The Kremlin is willing to offer up to a4.5B to Athens as an advance for a planned natural gas pipeline through the country.
8.25am BST
Just in: Wonga has posted a 37m loss for 2014, even bigger than expected, as the clampdown on Britain's payday loan industry hits home.
"We know it will take time to repair our reputation and gain an accepted place in the financial services industry, but we're determined to deliver on our plans and serve our customers in the right way."
8.13am BST
The European Central Bank is considering reining in its support for Greek banks, as concern grows in Frankfurt over Greece's bailout talks.
The European Central Bank is studying measures to rein in Emergency Liquidity Assistance to Greek banks, as resistance to further aiding the country's stricken lenders grows in the Governing Council, people with knowledge of the discussions said.
ECB staff have produced a proposal to increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece, the people said, asking not to be named as the matter is private. While the measure hasn't been formally discussed by the Governing Council, it may be considered if Greece's leaders fail to quickly convince euro-area finance ministers they can reform their economy and secure bailout funds, one of the people said.
ECB said to study curbs on Greek Bank support as unease grows, great scoop ECB/Athens team, @Jeffrey_Black, @Stefan_Riecher , @nchrysoloras
8.06am BST
The Greek people may be losing faith in their government's strategy, according to a new opinion poll.
TV station Skai found that 45% of people agree with the stance, down from over 70% two months ago:
@YanniKouts that is more falling apart...
7.57am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Fears over Greece continue to build, after Athens issued a decree yesterday ordering local authorities to move their cash reserves to the central bank.
Related: Athens demands cash reserves from public sector funds
The Greece situation is starting to escalate yet again and given the dire situation the country is in, some analysts are already speculating on a third bailout. Greece is in a tough cash position and latest reports suggest Prime Minister Alexis Tsipras has ordered local governments to deposit reserves with the central bank.
The situation is very time sensitive at the moment and it seems unlikely we'll see a solution by the key dates. The issue of a Grexit will also remain on investors' minds and many will ponder exactly what sort of an impact this would have on the region.
Times Business front page: Greek banks 'close to collapse' as debt soars. http://t.co/rXmgGK5cdW by @BrunoBrussels) pic.twitter.com/7zOiQ7PPfv
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