Greek PM to meet eurozone finance boss Jeroen Dijsselbloem Eurozone inflation drops to -0.6% in JanuaryGreek finance minister angered over Russian sanctions debateEurozone unemployment falls unexpectedlySpanish recovery accelerates 1.26pm GMT Dijsselbloem has also been posing for the cameras in Athens with the Greek finance minister Yanis Varoufakis. Still looking cheery.The press conference is scheduled to begin at 14.30 UK time. 1.16pm GMT The first pictures of the meeting between the eurogroup President Jeroen Dijsselbloem and Greek PM Alexis Tsipras have emerged on Greek television. They’re looking fairly cheerful in front of the cameras. 1.10pm GMT Russia has taken markets by surprise, cutting interest rates a month after raising them.The central bank cut the main rate by two points to 15% as fears of a deep recession mount following the oil price slump and western sanctions over Ukraine. 12.49pm GMT Back in Greece...Eurogroup president @J_Dijsselbloem arrives at Finance Ministry to meet @yanisvaroufakis. In car, not on back of FinMin's motorbike #Greece 12.47pm GMT Meanwhile, the German finance minister Wolfgang Schäuble said Germany is open for talks with the new Greek government – but won’t be blackmailed.He also said the Greek government knows it has to take action quickly. Noting that Europe had already pushed its generosity to Greece to the absolute limit, Schäuble told representatives of the insurance industry in a speech in Berlin:We need solidarity in Europe, and besides we cannot be blackmailed. 12.32pm GMT And we’re off. Jeroen Dijsselbloem, the eurozone finance chief, has arrived in Athens for talks with the new Greek government. From Athens, the Guardian’s Helena Smith says the eurogroup president is expected to be with prime minister Alexis Tsipras for no more than 30 minutes. After that he moves onto talks with the new finance minister Yanis Varoufakis.Eurogroup chief @J_Dijsselbloem arrives at Prime Minister's office in Athens to meet with @atsipras #Greece 12.21pm GMT Read our full story on eurozone deflation here.The eurozone descended further into deflation in January, with prices falling 0.6%, the fastest pace for more than five years amid tumbling global oil prices. 11.50am GMT The French prime minister, Manuel Valls, is in China and trying to ease concerns there about a potential Greek exit from the eurozone.Greece will remain, must remain in the eurozone. The new Greek prime minister has said, it cannot be any other way.We must help Greece out of the crisis she faces. But at the same time Greece must respect its commitments, that is how the European Union works.I know there are some concerns that relate to the situation of the eurozone or Europe , which remains a major trading partner.Discussions are constantly taking place between China and the European Union, so come and invest in Europe, and in France in particular. 11.40am GMT The poker game approach over the Greek debt deal continues between Germany and Greece.The reality is simple - at the end of February an aid programme expires which in order to have an orderly ending, needs extra efforts by Greece.If some of the new measures announced by the new Greek government are put into practice, then we need to ask if the programme is being substantially put into question. 11.10am GMT Now back to Greece, where finance minister Yanis Varoufakis has arrived on a 1300 CC Yamaha bike for a meeting with his boss, PM Alexis Tsipras.No picture sadly, but Helena Smith, the Guardian’s correspondent in Athens, brings us this report:Finance minister Yanis Varoufakis has again turned heads arriving for talks with the Greek prime minister Alexis Tsipras on a giant 1300 CC Yamaha bike. The two men are conferring ahead of their meeting with Euro group president Jeroen Dijsselbloem. If any proof were needed that Greece has entered a new era, this was it.#Greece New fin min Yanis Varoufakis turns up 4 talks w new pm Alexis Tsipras on giant 1300 CC motorbike - a new era has indeed begun! 10.52am GMT Some good news from Spain, where economic recovery accelerated in the fourth quarter of 2014.The economy grew by 0.7% between October and December, following growth of 0.5% in the third quarter. Economists polled by Reuters were forecasting a smaller rise, at 0.6%.#Spain Q4 GDP +0.7% qq tops expectations and the top end of @ReutersPolls f'cast range http://t.co/oy2xOPRupf pic.twitter.com/mdvJ6CiJnC 10.45am GMT Reaction to this morning’s eurozone data on inflation is coming in. The region sank deeper into deflation in January with an annual inflation at -0.6%.Christian Schulz, senior economist at German bank Berenberg: Eurozone prices made the expected deep dive into deflationary territory in January. The sharp fall in inflation poses a risk to inflation expectations, which had already been under pressure due to the huge amount of slack in the economy and the slow pace of the recovery. Today’s inflation report provides strong justification for the ECB’s recent decision to embrace QE. Lower oil prices pushed headline Eurozone inflation further into negative territory. At the same time, core inflation fell to an all-time low.Today’s inflation numbers fully vindicate the ECB’s decision to embark on QE. That said, QE will not raise inflation in the coming months. Unless oil prices stage a quick recovery, the energy component will keep headline inflation well below zero in the months ahead. January’s eurozone consumer prices figures have brought further evidence that deflationary pressures in the currency union go well beyond the effect of falling energy prices.The key news here is that core inflation – which excludes both energy and food prices – fell from +0.7% to +0.5%, a new record low. 10.33am GMT The eurozone unemployment rate fell unexpectedly to 11.4% in December from 11.5% in November. It was the lowest in more than two years, since August 2012.Economists were expecting no change to the rate as the region continues to struggle with a sluggish economy and high levels of debt in some countries. 10.16am GMT Eurozone inflation of -0.6% in January was lower than economists were predicting (-0.5%) and throws further weight behind the European Central Bank’s decision last week to announce a €1.1tn programme of quantitative easing.The big drag on prices was energy, down 8.9%, but food, alcohol and tobacco prices were also down by 0.1%. #Japanification of #Eurozone continues. Euro area CPI falls 0.6% on year vs 0.5% drop expected. pic.twitter.com/ZMZkjNDAJL 10.00am GMT Breaking: Eurozone inflation falls to -0.6 in January, from -0.2% in December. 9.52am GMT The US will co-operate closely with the Greece, according to a White House spokesman quoted by Reuters.Josh Earnest, assistant to the President and White House Press Secretary:We will continue to work closely with the Greek leaders and the Greek people to implement policies that are in the interest of the country and the interests of the wider European and global economy.The President made clear that we will continue to co-operate closely with the Greek leaders and the Greek people aiming at implementing policies that are in the interest of the country, and the interest of the wider European and global economy. 9.38am GMT Away from Greece, the flash estimate for eurozone inflation for January will be published at 10am UK time. Economists are forecasting prices fell at a faster pace in January, with annual inflation of -0.5% compared with -0.2% in December. 9.26am GMT Greek finance minister Yanis Varoufakis has waded into the debate over whether Greece is delaying agreement on imposing further EU sanctions on Russia over Ukraine.On the first day in our ministries, the power of the media to distort hit me again. The world’s press was full of reports on how the Syriza government’s first foreign policy ‘move’ was to veto fresh sanctions on Russia. Now, I am not qualified to speak on foreign affairs but, nonetheless, I must share this with you at a personal level. Our Foreign Minister, Nikos Kotzias, briefed us that on his first day at the job he heard in the news bulletins that the EU had approved new sanctions on Russia unanimously. 9.10am GMT The Greek government should be readying itself for some tense discussions with Jeroen Dijsselbloem, eurozone finance chief, this afternoon. Speaking in Amsterdam before he left for Athens, Dijsselbloem suggested it would be impossible for Tsipras and Syriza - his radical left party - to stick to all their pre-election promises.In all honesty, if you add up all the promises, then the Greek budget will very quickly run totally off course. 8.55am GMT Greek shares are also up slightly, with the ATG index up 1.1% at 741.58.Banking shares are up sharply, adding to the 12.9% rebound on Thursday following heavy losses earlier this week. 8.42am GMT European shares have opened slightly higher this morning, following a late rally on Wall Street last night. 8.26am GMT Just as Greece is trying to win friends and influence people, it appears to be ruffling a few feathers in Europe over Russian sanctions.Reports last night suggested the Greek government was picking its first fight with the EU by delaying agreement on further sanctions against Russia.I was surprised by the statements that were made and the fact that the Greek government looked ready to abandon the common EU line on Russia .It is difficult on the one hand to expect a revised common approach to one’s country, and on the other to be differentiating from the others, particularly as the first move after taking office.CNN posited the view that Greece could be Vladimir Putin’s new ally in Europe: http://t.co/WShRLACtBG #bbcqt pic.twitter.com/yYSJR57AUP 7.59am GMT Good morning, and welcome to our rolling coverage of the Greek election, and other key developments across the financial markets, the world economy, the rest of the eurozone, and business.The main event of the day in Athens should be the meeting between the Greek PM Alexis Tsipras, his finance minister Yanis Varoufakis, and Jeroen Dijsselbloem, the head of the eurozone group of finance ministers.Friday in the afternoon in Athens meeting PM Tsipras, vPM Dragasakis, Mins Varoufakis and Stathakis, co-Min Tsakalotos. (1/2)+/- 4.30 (Greek time) short press statement Dijsselbloem and Varoufakis at Greek FinMin. Accreditation through Greek FinMin. (2/2) Continue reading...
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