Rolling business and financial news, as Greece’s prime minister seeks talks with Angela Merkel, and announces he’ll visit Moscow a month earlyLunchtime summary: Tsipras pushes for meetingsGreek PM to visit MoscowTsipras wants 5-way talks at EU summitEurozone inflation confirmed at -0.3% 1.50pm GMT Time for a quick recap:“It will be a meeting of substance, not a meeting for communication purposes or a ‘photo opportunity’ in Berlin.”“The prime minister will visit the Kremlin following an invitation from Russian President Vladimir Putin.”Unable to access bailout funding and locked out of capital markets, the government will outline emergency plans to parliament later Tuesday that includes incentives for tax delinquents to pay up before March 27, when the government needs money for monthly salaries and pensions. 1.33pm GMT Heads-up. Euro-area finance ministry officials are expected to hold a conference call this afternoon to discuss Greece’s finances, from 3.30pm GMT (5.30pm local time).That’s a Working Group meeting, points out Efi Efthimiou of financial website CapitalGR. @MxSba here in Athens we know abt a EWG, at 17:30 local time @eschizas 12.46pm GMT Back in parliament, Bank of England official Alex Brazier has predicted that Greek’s debt problems could spark a selloff in the financial markets.“A bad outcome in these negotiations could trigger a broader reassessment of risk in financial markets.....“We start from a position where market pricing looks potentially subject to correction. I don’t view Greece as a big direct risk but it could potentially be a trigger for a market reappraisal”Although the economic issue is in some ways very simple -- there’s a debt overhang that needs to be dealt with -- the way that is dealt with is a political issue and I don’t presume to be able to forecast [that] in any way. 12.29pm GMT Although today’s data showed eurozone inflation fell by 0.3% in February, ‘core inflation’ was actually up by 0.7%. “A closer look at the data shows that the cost of la dolce vita is actually increasing across the eurozone, with restaurants, cafes, tobacco and rent prices leading the rise. Once food, fuel and other volatile items are excluded, core inflation was a much healthier 0.7 per cent year-on-year. 12.14pm GMT Bookmaker Paddy Power has hiked the odds on Greece leaving the eurozone this year from 5/1 to 10/1, concluding that Grexit looks less likely.Here’s the latest odds: 11.42am GMT The filmmaker who shot Yanis Varoufakis’s Zagreb lecture in 2013 has criticised the media for their coverage of the now-notorious ‘middle finger’ gesture.Martin Beros says the clip was taken ‘out of context’; German TV, he says, fudged the fact Varoufakis was talking about events back in 2010. 11.24am GMT There’s no word from Berlin on how the Merkel-Draghi talks are progressing. But we have heard from Reuters that Greek PM Alexis Tsipras wants to meet them both at the next EU summit on Thursday. #Tsipras requests 5-way meet w/ Merkel, Hollande, Draghi & Juncker to find political solution to #Greece crisis on Thursday (@dpa). 11.17am GMT It’s unrealistic to expect Greece to repay all its debts, according to a senior Bank of England policymaker. Alex Brazier, the BoE’s executive director for financial stability strategy and risk, also told MPs on the Treasury Committee this morning that the Greek debt crisis could be a threat to UK companies.BANK OF ENGLAND'S BRAZIER SAYS GREECE WILL NOT IN ANY REALISTIC SCENARIO REPAY ITS CURRENT LEVEL OF DEBTBOE Brazier : “ market liquidity has probably become more fragile” "Global risk to UK firms due to geopolitival risks from Greece & Russia 11.01am GMT Europe’s jobs crisis eased last year, but there’s still a long way to go.Eurostat reported that employment across the eurozone rose by 0.9% over the last year, and by 0.1% in the final three months of 2014.Spain and Latvia (both +0.7%), Ireland and Slovakia (both +0.6%) recorded the highest increases in the fourth quarter of 2014 compared with the previous quarter.Portugal (-1.4%), Cyprus (-0.6%), Poland (-0.3%), Italy (-0.2%) and Malta (-0.1%) recorded decreases. 10.49am GMT Readers in Athens may be reaching for the ear plugs today; F16 fighter jets are roaring overhead in preparation for National Independence Day on March 25.Helena reminds me that the air show was stopped a few years ago; perhaps the new Greek government is keen to celebrate the country’s sovereignty. At least the fuel costs will be lower this year -- given the tumble on the oil price.Helicopters, jets buzzing over central Athens, in preparation for March 25 parade #Greece pic.twitter.com/Gd5u8LOOI5 10.20am GMT German economic confidence has hit its highest level in over a year, despite the Ukraine crisis and Greece’s debt woes.The ZEW think tank’s monthly survey of sentiment rose to 54.8, up from 53.0 last month. That’s the highest since February 2014.CHART: #ZEW survey improves (again!) in March = strong German performance in Q1 + accelerating euro-area recovery. pic.twitter.com/gyfJrgZQKQZEW Current Conditions Index for #Germany at 55.1 (8-month high), Economic Sentiment at 54.8 (13-month high) http://t.co/W8vsrSJvzr 10.13am GMT It’s official: Alexis Tsipras is off to Moscow next month:#Greece gov confirms that #AlexisTsipras will visit #Kremlin for talks with Putin April 8th. Announced as top US dip visits Athens 10.11am GMT Prices across the eurozone fell by 0.3% year-on-year in February, Eurostat has confirmed, in line with its preliminary estimate.The data also shows that Greece lurched deeper into deflation, with prices down 1.9% annually.Euro area annual inflation confirmed at -0.3% in February 2015 #Eurostat http://t.co/8IkEfbwy4j pic.twitter.com/zZ5F4Z2r67 10.07am GMT Britons are spending more on electric cigarettes and craft beer, and less on sat navs and foreign exchange commissions, according to the Office for National Statistics’s annual shake-up of its inflation basket.The ONS has also added online music streaming, swanky headphones and sweet potatoes to the basket, and kicked out yoghurt drinks, in an attempt to better mirror what we actually spend money on.Aha the @ONS's annual attempt to make inflation seem interesting. E-cigs/craft beer/Spotify added to CPI basket: http://t.co/6W9AuIhGcY 9.57am GMT Greece’s authoritative Ta Nea is reporting that prime minister Alexis Tsipras has accepted an invitation from Russian president Vladimir Putin to visit Moscow on April 8th. It comes as the US top diplomat Victoria Nuland holds talks in Athens today amid mounting concerns that a financial collapse of Greece could push the country into Russia’s orbit. Nuland is expected to meet Tsipras at 6pm local time (4pm GMT)Tsipras is going to Russia - if that's the insurance policy then Greece is in real trouble #Grexit 9.39am GMT And an update on “fingergate” - the latest scandal to ruffle Greek-German relations. The plot has thickened says Helena Smith, following the Greek finance minister Yanis Varoufakis’ decision to upload the offending video in its entirety on his Twitter account overnight.And here is the 'undoctored' by the unscrupulous media's video: https://t.co/WZ3ixfKHC5 9.12am GMT Relations between Germany and Greece continue to deteriorate.Last night, German finance chief Wolfgang Schäuble said Athens’s new government had destroyed the trust the country had regained with its European partners in recent years.“The new Greek government has totally destroyed the trust of its European partners … this is a serious setback,” the veteran politician, widely seen as the architect of austerity, told a panel in Berlin. “Until November, Athens was on a road that could have lead it to exit the crisis. This has gone. I don’t know what to do now with Greece.” Related: German finance minister accuses Athens of destroying trust #Varoufakis in @BILD frontpage: "#Jauch has framed me" http://t.co/tLbNewFH5y pic.twitter.com/spziSiN3xF #Stinkefinger 9.01am GMT European stock markets have hit new post-crisis highs this morning.The FTSEurofirst 300 index, which contains the biggest companies across Europe, rose by 0.1% in early trading to its highest level since late 2007. 8.54am GMT The Merkel-Draghi meeting starts in an hour or so:Merkel meets Draghi today at 11CET #Greece 8.51am GMT There’s a one in four chance that Greece will quit the eurozone by the autumn, sending the euro sliding, says investment bank Morgan Stanley this morning.25% chance of "Grexit" over next 6 months (and rising); chance of "misstep" requiring capital controls up to 33% from 20% -Morgan StanleyEuro heading for $0.90, and probably below, if bearish Greece scenarios play out -Morgan Stanley"We take Greek Government Bonds off our top 15 trades for 2015" -Morgan Stanley 8.45am GMT UK consumers can look forward to falling prices.Food deflation is likely to persist for the rest of this calendar year, and competitive pressures on price will continue.” Related: Sainsbury’s sales fall again amid price pressures and tough competition 8.30am GMT Mario Draghi isn’t the only central bank chief with problems. Over in Japan, governor Haruhiko Kuroda has admitted that the Japanese inflation rate could soon turn negative.I really wonder if destroying the currency is the best course of action if the reward is only a bit higher inflation. #Japan 8.20am GMT Car sales across the European Union have risen for the 18th month running, as the region’s bruised auto industry continues to recover.New car registrations jumped by 7.3% year-on-year in February, with growth across the region, industry body ACEA reported. 8.00am GMT Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.“Most indicators suggest a sustained recovery is taking hold...”“A nascent recovery provides us with a window of opportunity, with the conditions to press ahead with reforms that will make the euro area less fragile and vulnerable to shocks.” Continue reading...
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