Rolling coverage as Yanis Varoufakis visits London to argue for Greece’s debts to be renegotiated.Osborne: All sides must act responsiblyPhotos: Varoufakis arrives at Downing StreetJubilee Debt Campaign: Greek debt should be cancelledGreek shares surge after Obama calls for compromise 1.16pm GMT UK chancellor George Osborne has warned that the Greek debt row is “fast becoming the biggest threat to the global economy.”“I urge the Greek finance minister to act responsibly but it’s also important that the euro zone has a better plan for jobs and growth,” .“It is a rising threat to the British economy. And we have got to make sure that in Europe as in Britain, we choose competence over chaos.”Interestingly, @George_Osborne's opening gambit to @yanisvaroufakis was: "We stand ready to help as you have your discussions with Europe"“You cannot keep on squeezing countries that are in the midst of depression”“At some point, there has to be a growth strategy in order to pay off their debts and eliminate some of their deficits.”@George_Osborne chats to random clubber on the street after a night out. Oh no wait, it's the Greek finance minister pic.twitter.com/SWNqz8kc7RVaroufakis looked so unprofessional arriving at Downing St. Unironed untucked shirt and scruffy coat. How can he be taken seriously? #Greeceoh my god yanis varoufakis just gets better and better and better International Klein Blue shirt, check schwartz leather boots, check 12.40pm GMT Reuters now have the full quotes from George Osborne, on today’s ‘constructive’ meeting with his Greek counterpart.“We had a constructive discussion, and it is clear that the stand-off between Greece and the euro zone is the greatest risk to the global economy,” “I urge the Greek finance minister to act responsibly but it’s also important that the euro zone has a better plan for jobs and growth,” . 12.28pm GMT George Osborne has also warned that the stand-off between the eurozone and Greece is fast becoming the biggest risk to the global economy, Reuters reports. 12.26pm GMT Message from British Chancellor to new Greek Fin Min Varoufakis 'all sides need to act responsibly.'# Greece 12.25pm GMT Hat-tip to Sky’s Emily Purser, who’s been stationed on a rather chilly Downing Street taking video and photos of the meeting:Osborne and Varoufakis talking inside No 11. Captions welcome. #greece pic.twitter.com/fWD7CYu3Xf 12.24pm GMT Newsflash from Downing Street; George Osborne apparently told Varoufakis that all sides must act “responsibly” over the issue of Greece’s debts. 12.20pm GMT Greek finance minister Yanis Varoufakis will tell major investors and bankers in the City today that Greece will be able to service its debt with no detrimental impact on private investors, Reuters reports:The source said Varoufakis planned to meet about 100 banks and financial institutions at an event later on Monday.“We will be able to service the Greek debt on terms that will have no detrimental impact on, especially private, bond holders,” said the source who spoke on condition of anonymity due to the sensitivity of the matter. 12.06pm GMT A group from the Left Unity party gave the Greek delegation a friendly reception at the gates of Downing Street -- as flagged up earlier, they are calling for the ‘burden of austerity’ must be lifted off Greece. 'Greece, we support you': British leftists raise banner in Downing Street - PHOTO - http://t.co/2txHjm1iLG pic.twitter.com/UBnYjT6piW 12.03pm GMT The meeting at Number 11 Downing Street has just finished after around 50 minutes.Disappointingly, Yanis Varoufakis only gave a quick wave to the assembled media outside, before jumping into a waiting limo:Yanis Varoufakis studiously avoids questions as he leaves No 11 #greece https://t.co/9JEg33nv2G 11.41am GMT Yanis Varoufakis is due in the City after his meeting with George Osborne. Reuters just snapped up that he’ll meet around 100 institutions, and reassure them that Athens doesn’t plan to default on their loans. 11.30am GMT The Jubilee Debt Campaign hopes that George Osborne will support their call for debt relief for Greece: The director, Sarah-Jayne Clifton, argues:“Greece’s debt comes from loans to bail out banks and vulture funds across Europe, including in Britain. In 2012 the UK government refused to stop vulture funds that were using UK law to pillage Greece’s finances. George Osborne should now show leadership and support the cancellation of Greece’s debts that is urgently needed.”“The costs of any cancellation should be borne by recovering money from the irresponsible lenders who really benefitted from the bailout, the banks and financial speculators.” 11.26am GMT Yanis Varoufakis is my new hero for rocking up in a barbour and boots and making Osborne look more like a stuffed shirt that ever beforeAwkward,Osborne's done that "turning up in suit to drinks thing that's just casual after all" thing RT @graemewearden pic.twitter.com/nHZiBxGqSL 11.17am GMT This could be a testy meeting, suggests Ed Conway of Sky News. After all, prime minister David Cameron’s first reaction to Syriza’s win was to tweet that it would increase economic uncertainty across Europe. 11.16am GMT And here’s that handshake: (via Sky News) 11.10am GMT Yanis Varoufakis does cut a certain dash in the fashion stakes....Osborne meets the new greek finance min Yanis Varoufakis - gotta be the brightest shirt on this street in a while pic.twitter.com/2nPwQ47eKi 11.07am GMT The new Greek finance minister @yanisvaroufakis arrives in Downing St to meet @George_osborne pic.twitter.com/DfNxYJKBlr 11.06am GMT Greece’s finance minister has arrived at Downing Street for talks with the UK government.Yanis Varoufakis and George Osborne had a friendly handshake, posed briefly for the cameras, exchanged a few words, and then vanished inside Number 11 Downing Street. 10.59am GMT Next stop Berlin?.....#Germany Chancellor spokesman says #Greece PM #Tsipras would be 'welcome visitor' to #Berlin 10.52am GMT Members of Britain’s “Left Unity” party were planning to take a banner to the gates of Downing Street this morning, reading “Greece, we support you” .Left Unity, a “sister party” of Greece’s Syriza, is encouraged by its success in last Sunday’s election:“We’ve come to welcome Yanis Varoufakis to London – and to see him wipe that smile off George Osborne’s face. “The burden of austerity must be lifted from the Greek people. We stand with them: they are fighting for us all.“After so many years of Osborne’s austerity Britain and across Europe, finally a government has taken power who will tell him ‘no more’.” 10.44am GMT 11am - Austerity showdown: Greek Finance Minister Yanis #Varoufakis meets George Osborne... and then tonight on @Channel4News 10.32am GMT Yanis Varoufakis is due at 11 Downing Street in 30 minutes time.... 10.28am GMT Worked well for #Ukraine RT @FGoria: Greek PM tsipras says Greece and Cyprus can become a bridge of peace between Europe and Russia - RTRS 10.17am GMT Greece’s prime minister is speaking in Cyprus now. Alexis Tsipras says that his government will use its mandate to push for “strong negotiations” with its European partners. He hopes to get a result that is beneficial for all Europeans.#Tsipras says #troika abolishment necessary, timely for Europe; EU must take bold decisions to return to growth 10.02am GMT Not for the faint hearted: #Greek banks jump 21% in 3 days after slumping 44% in the prior 3 days... pic.twitter.com/TPW0NIK1jx 10.01am GMT Greek Finance Minister Yanis Varoufakis meets his British counterpart on Monday as he seeks to build support for a renegotiation of his country’s 240-billion-euro ($270-billion) bailout in the face of German opposition. “At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits.” “It’s very hard to initiate those changes if peoples’ standards of living are dropping by 25 percent. Over time, eventually, the political system - the society - can’t sustain it,” the US leader said. “What this government is all about is ending this addiction.” 9.32am GMT No sign of the Greek finance minister in London yet. But his boss, prime minister Alexis Tsipras, has now inspected a presidential honour guard in Cyprus, as his first official visit gets underway: 9.20am GMT Oh dear, Greece’s factory sector shrank at its fastest rate in 15 months in January, data firm Markit just reported. New orders from overseas and domestic customers both fell, showing that the economy was weakening during the run-up to the general election. “January saw a further fall in new orders lead manufacturers to reduce their output for the first time in three months. The heightened uncertainty brought about by elections was reportedly a factor behind the sector’s worsening performance, though new business from abroad also fell again and this was the fifth time in a row that the PMI has posted below 50, suggesting that the causes of the sector’s malaise are more deep-rooted.” 9.03am GMT This chart confirms that Greek bank stocks are surging again today, driving the main Athens market up over 5%.“You cannot keep on squeezing countries that are in the midst of depression”“At some point, there has to be a growth strategy in order to pay off their debts and eliminate some of their deficits.”When the financial crisis in Greece flared up a few years ago, we were very active in trying to arrive at some sort of accommodation. I think there’s recognition on the part of Germany and others that it would be better for Greece to stay in the eurozone than be outside of it and the markets will obviously be skittish about this.”These Obama comments on greece "You need a growth strategy" aimed squarely at Berlin. Big moment for EU coming: http://t.co/qDS6NqsAjP#Obama calls on #Europe to end #austerity in #Greece - VIDEO - http://t.co/QDL6JS8f2p pic.twitter.com/6JAHofV8jH 8.57am GMT More encouraging economic news, this time from Italy.The slump in its factory sector almost ended last month, with its PMI index (based on interviews with purchasing managers) rising to a four-month high of 49.9 in January from 48.4. 8.48am GMT Just checked with the Treasury, and I’m afraid that Osborne and Varoufakis won’t be holding a press conference. Hopefully we’ll hear details of their meeting afterwards.... 8.44am GMT The Greek stock market has surged by over 5% in early trading, and banking stocks are leading the way.#Greece Athens stock exchange +5.58, banks +14.5% (Eurobank +26%, NBG +13%, Piraeus +13%) 8.38am GMT We’re expecting Yanis Varoufakis to arrive at Number 11 Downing Street late this morning, for talks with chancellor George Osborne.“I welcome this opportunity, so soon after the Greek election, to discuss face to face with Yanis Varoufakis the stability of the European economy and how to boost its growth.” 8.24am GMT Encouraging news from Spain just hit the wires - its factories grew at a faster rate in January. The Spanish manufacturing PMI, which measures activity in the sector, rose to 54.7 last month from 53.8 in December. 8.17am GMT Greece’s new prime minister, Alexis Tsipras, is making his first trip overseas today. On first official trip as Greek PM, Alexis Tsipras arrives for talks with Cypriot President Nicos Anastasiades in Nicosia #Greece #Cyprus 8.06am GMT Greece’s new government has apparently achieved one early goal, persuading Europe to abandon the dreaded Troika.Germany’s Handelsblatt newspaper reports this morning that Commission president Jean-Claude Juncker has agreed to stop the regular, highly unpopular, visits by Greece’s lenders to assess its progress:“We have to find an alternative quickly.”If #troika dissolved to placate Tsipras but #Greece still has to pay back its debts (with a rescheduling), I'd say that's a decent outcome 7.56am GMT That awkward press conference on Friday may have scuppered Jeroen Dijsselbloem’s chances of a second term leading Europe’s finance chiefs: Dijsselbloem's chances for reappointment as Eurogroup head "close to zero" following Athens debacle ~EU official /via @SZ 7.47am GMT Some newsflashes from Paris; finance minister Michel Sapin is reiterating that European taxpayers cannot take on Greek liabilities, and urging structural reforms. *SAPIN: GREEK LIABILITIES CAN'T BE TAKEN ON BY EU TAXPAYERS*SAPIN: GREECE MUST ENTER INTO DIALOGUE WITH GERMANY - if they can't agree on a meeting it makes you wonder what they can agree on 7.42am GMT Varoufakis set the scene for today’s London visit in Paris yesterday, where he told reporters that Greece must end its “addiction” to bailout payments.Varoufakis – who offered to produce proposals for a reworked debt deal within a month – said Greece had no intention of asking for new loans and it was time to go “cold turkey”.“For the last five years, Greece has been living for the next loan tranche. We have resembled drug addicts craving the next dose. What this government is all about is ending the addiction.”Overnight the Greek fin min said “we have resembled drug addicts craving the next dose".... FT writes that Greece want to go cold turkey“Unless negotiations are completed in the next few days there is a real risk that banks will be unable to respond to the growing uncertainty … The government really doesn’t have the time it thinks it has to reach an agreement that would basically save the economy.” 7.34am GMT Good morning, and welcome to our rolling coverage of the eurozone, the world economy, finance and business.Greece’s far-left finance minister Yanis Varoufakis to meet @George_Osborne in London today to discuss renegotiating £180bn bailout Continue reading...
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