All the latest economic and financial news, including developments around Greece’s debt talksBloomberg: ECB losing patience with GreeceGreek shares fall, bond yields hit new highsGazprom chief heading to Athens 10.11am BST Some reaction to the ZEW survey:CHART: #Grexit risk NOT derailing euro-area recovery. #ZEW current situation component rises to 4-year high in April. pic.twitter.com/WtFGLPF9Lo 10.08am BST Just in: German economic optimism has dropped for the first time since last October, but current conditions remain extremely bright.That’s according to the ZEW Institute latest survey. Its economic sentiment index dipped to 53.3 from 54.8 last month, showing more cautionGermans feeling great! pic.twitter.com/usgtPP5Bh1German ZEW Current Conditions Index at 45-month high of 70.2, but Econ Sentiment slips slightly to 53.3 (54.8 in Mar) http://t.co/YLVY5cb5lL 10.01am BST Here’s the Bloomberg story that has rattled the Greek stock market, pushed down the euro, and raised new fears that Greece could default: The European Central Bank is studying measures to rein in Emergency Liquidity Assistance to Greek banks, as resistance to further aiding the country’s stricken lenders grows in the Governing Council, people with knowledge of the discussions said.ECB staff have produced a proposal to increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece, the people said, asking not to be named as the matter is private. While the measure hasn’t been formally discussed by the Governing Council, it may be considered if Greece’s leaders fail to quickly convince euro-area finance ministers they can reform their economy and secure bailout funds, one of the people said.Outbreak of frenzied threats to Greece by ECB, briefed via BBG, usually means political talks with Eurogroup making progress. 9.24am BST Default fears are hitting Greek bonds too, pushing prices down to even more worrying levels:The two-year Greek bond yield (or interest rate) hit 29.4% this morning.Greek Bond yields move higher as worries Grow. #Greece's 2yr and 3yr yields heading towards 30%, highest since 2012. pic.twitter.com/iF1qrW2o0i 9.23am BST The Athens stock market is dropping in early trading as fears over Greece’s finances rise.The ATG index has shed 2%, led by Piraeus Bank, which has tumbled by 12.5%.Greek banking stocks fall to record low, -4% today and -50% since late Feb as #Grexit fears mount: pic.twitter.com/KSGxowuwfq 8.56am BST More leaks from the European Central Bank, suggesting it may impose tighter rules on Greek banks in return for emergency liquidity.BREAKING: ECB staff plan to raise haircuts on Greek bank collateral; sees haircut of 75% in orderly default - sources pic.twitter.com/R44P7MkWRe 8.54am BST Gazprom chief Alexie Miller is visiting Athens today to discuss “current energy issues of interest” with prime minister Alexis Tsipras, according to the energy ministry.The ministry declined to comment on rumours that Gazprom could pay up to €5bn to Greece in return for deal to extend its planned Turkish Stream gas pipeline.If the deal is indeed sealed, any advance payment would be a welcome source of revenues for Greece, which is struggling to unlock 7.2 billion euros in desperately needed international bailout funds.Analysts are however sceptical, as the Turkish Stream pipeline is not expected to come into service until 2019 and Ankara and Moscow are struggling to come to a final deal. 8.37am BST European stock markets are still shrugging the Greek crisis off, though: 8.35am BST The euro has lost ground in the currency markets this morning, dropping almost 0.7% against the US dollar to $1.066.Augustin Eden at Accendo Markets says Greece continues to weigh on investors’ minds today. Could Putin afford to extend his hand to the troubled nation? Some think not, which is seen as a good thing while others are genuinely worried that he can and will According to reports, The Kremlin is willing to offer up to €4.5B to Athens as an advance for a planned natural gas pipeline through the country. 8.25am BST Just in: Wonga has posted a £37m loss for 2014, even bigger than expected, as the clampdown on Britain’s payday loan industry hits home.“We know it will take time to repair our reputation and gain an accepted place in the financial services industry, but we’re determined to deliver on our plans and serve our customers in the right way.” 8.13am BST The European Central Bank is considering reining in its support for Greek banks, as concern grows in Frankfurt over Greece’s bailout talks.The European Central Bank is studying measures to rein in Emergency Liquidity Assistance to Greek banks, as resistance to further aiding the country’s stricken lenders grows in the Governing Council, people with knowledge of the discussions said.ECB staff have produced a proposal to increase the haircuts banks take on the collateral they post when borrowing from the Bank of Greece, the people said, asking not to be named as the matter is private. While the measure hasn’t been formally discussed by the Governing Council, it may be considered if Greece’s leaders fail to quickly convince euro-area finance ministers they can reform their economy and secure bailout funds, one of the people said.ECB said to study curbs on Greek Bank support as unease grows, great scoop ECB/Athens team, @Jeffrey_Black, @Stefan_Riecher , @nchrysoloras 8.06am BST The Greek people may be losing faith in their government’s strategy, according to a new opinion poll.TV station Skai found that 45% of people agree with the stance, down from over 70% two months ago:@YanniKouts that is more falling apart... 7.57am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Fears over Greece continue to build, after Athens issued a decree yesterday ordering local authorities to move their cash reserves to the central bank. Related: Athens demands cash reserves from public sector funds The Greece situation is starting to escalate yet again and given the dire situation the country is in, some analysts are already speculating on a third bailout. Greece is in a tough cash position and latest reports suggest Prime Minister Alexis Tsipras has ordered local governments to deposit reserves with the central bank.The situation is very time sensitive at the moment and it seems unlikely we’ll see a solution by the key dates. The issue of a Grexit will also remain on investors’ minds and many will ponder exactly what sort of an impact this would have on the region.Times Business front page: Greek banks 'close to collapse' as debt soars. http://t.co/rXmgGK5cdW by @BrunoBrussels) pic.twitter.com/7zOiQ7PPfv Continue reading...
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