All the latest economic and financial news, including reaction to the deadlock over Greece’s bailout programme.Introduction: After the Eurogroup meeting... FT: Athens vetoed the statementAnalyst: Neither side gave ground 9.53am GMT The delays to the start of the EU Summit gives Greek PM Alexis Tsipras more time to meet other world leaders (although not Merkel or Hollande, of course).He’s due to see Belgian premier Charles Michel, Latvia’s PM Laimdota Straujuma and the British premier David Cameron on the sidelines of the summit meeting.Puting announced Ukraine ceasefire to begin Sunday http://t.co/DI0yTu4nHp 9.36am GMT Finland’s prime minister remains confident that Greece and its creditors will reach a deal in time:“I understand the suffering, I understand the pain, but equally we have shown a lot of solidarity throughout this process and now we expect Greece to keep its bargain regardless of the election result,” “I was given and we were given a promise, that for the loan of one billion euros certain conditions shall be met. It is like any kind of international agreement or contract.“I would not be so sure that we are not going to find a solution on this. The euro group of financial ministers are meeting and I think we are all expecting Greece to give a proposal by Monday next week. We will see what they come up with. “There are basically two options here. Number one is that Greece continues the programme and we give an extension to that programme. The other option, which I don’t like personally, would be a so-called ‘dirty exit’, where Greece would be on its own trying to claw its way back to the markets. “I think Greek banks would have great troubles, I think a lot of the deposits would flee the country and it would cause general financial mayhem, especially in Greece, with a slight ripple effect.@EfiEfthimiou Stubb is always optimistic 9.15am GMT The euro is flat this morning, at $1.1334 against the US dollar.David Papier, market analyst at ETX Capital, says:Markets are erring on the side of caution over the ongoing Greek debt negotiations amid conflicting headlines on progress in the talks. 9.11am GMT Even world leaders can’t be in two places at once. And with Angela Merkel and Francois Hollande stuck at the Ukraine peace talks, the European Council summit will probably be delayed:Start of informal #EUCO today likely to be delayed due to Minsk talks 8.58am GMT Make that 4%:#Greece Athens market up 4.0%, banks +10.4% 8.54am GMT The Athens stock market is calm in early trading, despite last night’s deadlock.The main stock index has risen by 2.5%, with bank shares leading the way: 8.40am GMT Greek bond yields remain at alarmingly high levels this morning, but at least they haven’t deteriorated much further:Greek Bond yields open mixed amid debt standoff. 2yr Yield 15bps higher at 21.4%, 5yr Yield at 16.7%, 10yr at 10.4%. pic.twitter.com/ayW0xVapQm 8.36am GMT Sweden’s central bank just surprised the markets by cutting interest rates into negative territory, from 0% to -0.1%.The Riksbank also announced it will buy 10bn krona of government bonds, to further ease monetary policy.Swedish QE! 8.32am GMT Back in Brussels, Christine Lagarde has just announced a new bailout facility for Ukraine, and a four-year reform programme.Lagarde is telling reporters that the International Monetary Fund has provisionally agreed a $17.5bn extended fund facility, three weeks after president Petro Poroshenko made the request at Davos.The European summit in Brussels is due to start in three hours but the leaders of France and Germany are still in Minsk. 8.23am GMT Greek journalist Katerina Paraschou of euro2day confirms that Alexis Tsipras’s government blocked last night’s eurogroup draft statement because it referred to an “extension”.Lost in translation... Varoufakis and Dragasakis signed the draft and the Government vetoed. It mentioned the hated word "extension"After last night's uproarious Eurogroup, it's obious that Tsipras needs to deal with all the components of his party..Last week President Holllande urged Tsipras to meet Merkel asap. Yet Tsipras won't even have formal meeting at Brussels summit. #gametheoryIrreconcilable breakdown? Greece and eurogroup need a mediator and shrink http://t.co/Kxjwi8mNKG 8.14am GMT Last night’s talks failed because neither side would give ground, says Gary Jenkins of LNG Capital. That’s why the prepared statement was seemingly torpedoed by Athens: ‘Extending and successfully concluding the present programme...’ Is not the deal that Mr Tsipras has been telling the people of Greece he would achieve.The real agreement would appear to be that the EU will reduce the level of the primary surplus required and allow Greece to spend the money saved as they wish. There might well be some kind of side agreement that if the Greek government does exactly what it says it will do regarding tax collection etc. and sticks to the terms of the deal then maybe the EU will revisit the idea of linking all or some of the debt to growth. 8.08am GMT Finland’s prime minister, Alex Stubb, is maintaining a hard line on Greece, according to quotes hitting the news wires.Stubb has warned that Greece faces a “dirty exit’ unless it continues its bailout programme, which expires in under three weeks:*STUBB: GREEK `DIRTY EXIT' WOULD CAUSE MAYHEM, RIPPLE EFFECTSHe has elections in April RT @lemasabachthani: *FINNISH PM: GREECE CONTINUES PROGRAM OR FACES `DIRTY EXIT' 8.05am GMT 8.00am GMT Now this is fascinating. The eurogroup ministers did apparently agree a statement last night... only for the Athens government to reject it at the last minute.Today the Eurogroup took stock of the current situation in Greece and the state of the current adjustment programme. In this context, the Eurogroup has engaged in an intensive dialogue with the new Greek authorities.The Greek authorities have expressed their commitment to a broader and stronger reform process aimed at durably improving growth prospects. At the same time, the Greek authorities reiterated their unequivocal commitment to the financial obligations to all their creditors.@SpiegelPeter @ftbrussels Might I suggest that you refrain from dubious claims based on even more dubious leaks? It's rather unseemly 7.45am GMT Nervous investors have driven the price of Germany’s two-year bonds to a record high. That means they are paying even more for the privilege of holding German debt; the yields (or interest rates) on its two, three and five-year bonds are already negative, and have hit new record lows this morning.#German two-year yield drops to record-low (to -0.225%) after Greek Talks, CPI pic.twitter.com/Xuck70KVEz 7.40am GMT Last night’s debacle is a reminder that Greece could be forced to implement capital controls if a deal isn’t reached, warns Robin Bew of the Economist Intelligence Unit:#EU and #Greece can’t even agree talks about talks. Real risk of bank runs forcing capital controls. We rate exit chances at 40% 7.34am GMT Good morning, and welcome to our rolling coverage of the Greek bailout crisis, and other key events across the world economy, the financial markets, the eurozone and business.The Greek crisis has taken a disappointing turn overnight, after yesterday’s eurogroup meeting in Brussels failed to agree a blueprint for future talks.Will people be starting work in Athens or elsewhere? Not between now and Monday, because we need to have common ground on the process forward.”I was given a wonderful opportunity and a very warm welcome to present our views, our analysis, our proposals both regarding the substance and regarding the road map.”#Greece spokesperson: No Scheduled Meeting Between Greek PM Tsipras & German Chancellor Merkel Scheduled Today, Informal Meet Possible ~RTRSToday's economic news: Bank of England publishes Inflation Report - its outlook for UK economy - at 10.30am Continue reading...
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