All the latest economic and financial news, including the latest developments around Greece’s debt negotiationsIntroduction: No deal in sight (still) 8.39am BST Greece’s Kathimerini newspaper is also gloomy, suggesting that a deal might not come before mid-May. If so, we can scrap hopes of a breakthrough at the April 24th eurogroup meeting With negotiations between Greece and its creditors effectively deadlocked, a potential deal that could unlock crucially needed funding appeared more distant than ever on Thursday with doubts appearing about whether an agreement can be reached in time for a Eurogroup planned for May 11, well after the next scheduled eurozone finance ministers’ summit in Riga next Friday, which had been the original deadline. 8.29am BST Darren Courtney-Cook, head of trading at Central Markets Investment Management, confirms that the Greek crisis is lingering over the City:“I think the Greece situation will be resolved but we’ve had a massive up-turn on the stock markets so far this year, and the underlying concerns are causing some people to take a bit of money off the table.” 8.27am BST European markets have opened mixed, with Germany’s DAX extending yesterday’s falls but the FTSE 100 rising a little: 8.14am BST Investors are underplaying the risk posed by Greece, according to Chris Weston of financial spread betting firm IG this morning: The Greek government have a mandate to stay in the European Monetary Union and they simply can’t leave. However a view from certain parts of the market is [Greece’s plans] to distance themselves from the rest of Europe and to actually be forced out.Markets still believe Greece will stay within the union in some form, but the risks are growing and a full ‘Grexit’ won’t be pleasant. The market is not prepared at all for this.Citi: "investors continue to bank on last minute Greek solution. This complacency likely understates tail risk for EUR" 8.07am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.It looks like another day dominated by the Greek debt crisis, which ratcheted up another notch yesterday when the IMF effectively sunk the idea that Athens could be granted a payment delay. Related: Greece pushed a step closer to Grexit after IMF snub “We will compromise, we will compromise and we will compromise in order to come to a speedy agreement, but we are not going to be compromised.” Toying with Grexit, or amputating Greece, is profoundly anti-European. Anybody who says they know what will happen if Greece is pushed out of the euro is deluded.....Our only rational pro-European response is to spend every waking hour... trying to reach an honourable agreement.”#UK daybook: Euro Area Inflation, U.K. Unemployment Continue reading...
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