Rolling coverage as Greek finance chief Yanis Varoufakis meets Mario Draghi in Frankfurt, and PM Alexis Tsipras meets Jean-Claude Juncker in BrusselsLatest: Varoufakis says talks were “fruitful”Intro: Game theory expert vs poker-faced euro saviourGreece “opens negotiations with the IMF”Tsipras meeting Juncker this morningECB also deciding whether to give Greek banks emergency liquidity 10.43am GMT In other news...China has just eased monetary policy, in the face of its slowing economy.It has cut the reserve requirements on its banks, meaning they have to carry less capital on their books.China cuts Reserve Requirement ratio for banks by 0.5% in face of ongoing capital outflows, econ slowdown. Next up rate cut again . 10.28am GMT Sounds like Varoufakis got a warmer reception inside the ECB than the media pack experienced outside:Greek Fin told freezing journalists in Frankfurt that it can't be "business as usual", said he had a "fruitful" talk with Draghi. 10.24am GMT @yanisvaroufakis said "I had a constructive meeting with #Draghi ". In my job "constructive" means we need at least 3 more mtgs #Greece 10.21am GMT Political scientist Ian Bremmer predicts a long haul....Greek Finance Minister 'encouraged' by talks with ECB. This is going to be a very long road. 10.20am GMT Greece has just been forced to pay a higher rate of interest, at an auction of short-term debt.The Athens debt office just sold €812m of 26-week Treasury bills (debt that matures in six months), at a yield (interest rate) of 2.75%, up from 2.3% before. #Greek bill auction bid to cover ration lowest since July 2006 10.07am GMT The Wall Street Journal has confirmed that Greece has started talks with the International Monetary Fund over an extension to its bailout programme:Greece starts debt repayment talks with the IMF http://t.co/WJ0rm3vNQM pic.twitter.com/Dsrmcv0SeD 10.02am GMT Yanis has left the building.... 9.57am GMT Yanis Varoufakis also told Draghi that the Greek austerity programme has been driving the country into “a deflationary crisis”. 9.55am GMT 9.51am GMT Newsflashes from Frankfurt -- Yanis Varoufakis is telling reporters that he had a ‘fruitful’ meeting with ECB Mario Draghi. He also said he is “eager” to meet with Germany’s finance minister, Wolfgang Schäuble, tomorrow.#Greece FinMin Varoufakis says he had 'fruitful exchange with Draghi; says Draghi outlined how #ECB supports #euro area. /via @advdesk*VAROUFAKIS: IT WON'T BE BUSINESS AS USUAL IN GREECE 9.43am GMT Britain’s companies have also made a decent start to 2015. Markit’s all-sector PMI, which tracks thousands of UK companies, rose to 56.9 in January, showing faster growth than in December. 9.35am GMT Eurozone PMIs - more and more good news means France's underperformance becomes even more striking. 9.30am GMT Good news for eurozone policymakers to ponder -- the region’s service private sector is growing at its fastest rate in six months.Markit’s monthly PMI survey shows that activity in the eurozone picked up pace in January, making a “positive start” to 2015. But France was the big disappointment; the only member of the Big Four economies not to post growth. 9.18am GMT Apparently there was laughter in Brussels a few minutes ago as Commission president Juncker led the new Greek PM off by the hand to their meeting. Photo of Juncker and Tsipras walking hand-in-hand ahead of talks at the European Commission [Reuters] #Greece pic.twitter.com/YUVJ0AvStp 9.14am GMT Frankfurt reporters are poised for a sighting of Yanis Varouvakis inside the ECB....Waiting for Varoufakis in the @ecb lobby. To set the mood, the name of the cafe means "a bit sour" pic.twitter.com/3KUZqvyEmn 9.13am GMT Jim O’Neill, the UK economist who invented the idea of the BRICs economies, is optimistic that the worst of the Greek crisis is over.Some time in the last week a decision has been taken that Greece is going to stay in the eurozone -- so there’s going to be a deal. 9.03am GMT Back to Greece....and Yanis Varoufakis has revealed that Athens has opened talks with the IMF over his debt swap proposal.Reuters has the details:Greece has started negotiations with the International Monetary Fund over its plan to swap existing government debt for growth-linked bonds, finance minister Yanis Varoufakis told Italian newspaper La Repubblica in an interview published on Wednesday.Varoufakis also said he was optimistic that the Greek debt problem would be solved and had received good feedback during meetings with financiers in London on Monday.The investor presentation, organised jointly by Deutsche Bank and Bank of America Merrill Lynch, was followed by a series of more informal conversations with small groups of investors.“He made a real effort,” said one banker. “He stayed back to talk to investors. That went down well.” 8.58am GMT More data....and Germany’s service sector has posted pretty decent growth in January, according to Markit:#Germany Services Business Activity Index at 54.0 in Jan (52.1 in Dec), Composite Output Index at 53.5 (52.0 in Dec) http://t.co/ChsrJPCejA 8.54am GMT The latest eurozone data paints a mixed picture. Italy’s service sector posted faster growth than expected in January, but France was a little weaker than expectedItaly Services PMI (Jan) jumps to 51.2, above expectations of 50.France Services PMI (Jan) comes in at 49.4, below expectations of 49.5 8.46am GMT Just in: a photo of Yanis Varoufakis arriving in his (“slightly rusty”) Mercedes for talks with Mario Draghi, a few minutes ago. 8.41am GMT It’s all go this morning. Greek prime minister Alexis Tsipras has just shaken hands with Commission chief Jean-Claude Juncker in Brussels.The pair smiled for the cameras, but they look pretty tense...Not very happy guys... #Tsipras #Juncker pic.twitter.com/aDFOw5GD8MRT @yanpal7: @JunckerEU, after official snaps, takes @atsipras by the hand and they walk off. Greek media commentators go berserk. 8.37am GMT Yanis Varoufakis has just arrived at the ECB’s headquarters for today’s meeting with Mario Draghi.Bloomberg’s Jeff Black reports that the finance minister has plucked a black shirt from his suitcase today:#Varoufakis arrives at #ECB in a slightly rusty Mercedes. Black shirt today. #importantdetail 8.35am GMT The Greek stock market has just fallen 1% at the start of trading in Athens, mirroring the decline in bond prices.Not really a surprise – yesterday the ATG index surged by a remarkable 11%, on optimism over Greece’s debt swap plan. Even though it’s not been agreed by the main powerbrokers in Europe, or even discussed with them... 8.31am GMT After a storming day yesterday, Greek bonds are weakening a little this morning. That follows the FT’s report overnight that the ECB will play hardball with Athens’ new government.#Greece yields after European markets opening 3y 16.85%; +56 bps 5y 13.26%; +27 bps 10y 9.96%; +48 bps 15y 10.22%; +24 bps 8.16am GMT Syriza government's biggest test as #Varoufakis meets #ECB president #Draghi in Frankfurt today. #eurocrisis #greece 8.15am GMT The European Central Bank is also deciding today whether to allow Greek banks to tap its ELA liquidity facility for another fortnight.They’ll probably give the green light. But the meeting underlines how precarious Greece’s banks have become, especially as the ECB could block Greece from the ELA if its bailout deal expires on 28 February. 3 Greek meetings today: ECB decide whether to extend ELA, Juncker vs. Tsipras, Draghi vs. Varoufakis. http://t.co/LcTnYNTYCr 8.08am GMT The ECB press office won’t say when the Varoufakis-Draghi meeting is taking place, beyond sometime this morning.They’re not holding a press conference afterwards (alas), so we’ll have to rely on leaks from the two sides afterwards. 8.01am GMT Greece’s prime minister is also holding an important meeting today. Alexis Tsipras is due to see European Commission chief Jean-Claude Juncker in Brussels this morning. Perhaps he could wear that nice tie which Italian PM Mattei Renzi handed over yesterday, to his fellow left-wing leader.Italian PM Renzi told new Greek PM Tsipras that he was a 'blessing' because it meant Renzi was no longer Europe's number 1 'dangerous lefty' 7.45am GMT Good morning. “This is not the time for financial-engineering lectures”.“The Greek plan relies fully on the ECB,” said another eurozone official briefed on the talks. “The ECB will play hardball.”FT UK: ECB's 'hardball' stance threatens to leave Greece without funding #tomorrowspaperstoday #BBCPapers pic.twitter.com/IfGI6JcM49#ECB scuppers #Greece rescue plans by refusing to supply short-term credit line while deal reached. More hawkish than #EU Govs. Want reform. Continue reading...
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