All the latest economic and financial news, as European leaders head to Riga tonight for a summit meetingIntroduction: Merkel and Tsipras to meet tonightFrancois Hollande also expected to discuss GreeceSüddeutsche Zeitung: Eurozone could extend Greek bailoutPMI Day: Eurozone periphery beats the core 10.04am BST US investment management giant BlackRock remains pretty confident that Greece and her creditors will reach a deal in time:*BLACKROCK SEES 20-25% CHANCE OF GREECE LEAVING EURO AREA 9.58am BST The jump in UK retail sales suggests Britain’s drop into negative inflation last month is not the start of a deflationary spiral:Retail sales up 4.7% year on year - well ahead of consensus. #NotWhatADeflationarySlideLooksLike 9.39am BST UK retail sales have just smashed forecasts, sending the pound jumping.Sales were up by 4.7% year-on-year in April, jumping by 1.2% month-on-month.Go the UK! retail sales in April 2015 are estimated to have increased by 4.7% compared with April 2014. #GBP #GDP*U.K. APRIL CLOTHES SALES RISE 5.2%, MOST IN FOUR YEARS - t-shirts, shorts and flippie-floppies 9.30am BST Dr Nick Spiro, managing director at Spiro Sovereign Strategy, is concerned by today’s PMI surveys from the Big Two European nations:It’s bad enough that France is struggling to recover, but even more concerning that Germany’s economy continues to slow - and fairly significantly at that, with the composite PMI falling from 54.1 to 52.8.Although still expanding, growth in the services and manufacturing sectors has lost considerable momentum. This suggests that economic weakness in the first quarter of this year has extended deep into the second. 9.23am BST Back in the UK, Tesco has suggested that it could potentially claw back the seven-figure payment handed to its former CEO, Phil Clarke.Tesco’s annual report, released this morning, contained this snippet: On termination of employment, in accordance with the terms of his contract, Philip Clarke was entitled to receive a termination payment of £1,217,000... Should it be determined in the future that there was gross misconduct the Company will seek recovery of the termination payment.Tesco says may recover £1.2m payoff for ex-CEO http://t.co/NqQmRhSTE0 9.13am BST Europe’s jobs crisis may finally be easing. Firms are hiring staff at the fastest pace since 2011, the early days of the eurocrisis, according to Markit’s PMI survey. #Eurozone hiring picks up: PMIs show employment rising at the fastest rate for 4 years in May pic.twitter.com/ZH5jfBqBWN ~@WilliamsonChris 9.11am BST Germany and France are now being outpaced by the rest of the eurozone, according to Markit’s monthly healthcheck of the region.Companies across the euro periphery are enjoying their best quarter since the credit crunch struck the global economy, with job creation and growth surging.The core is the periphery. The periphery is the core. pic.twitter.com/xHgIw71Ctg“The survey results suggest the German economy is on course for a reasonable expansion of 0.4% in the second quarter, but France is likely to struggle to see growth exceed 0.3%. However, it’s outside of these two ‘core’ countries where the main action appears to be, with the rest of the region enjoying its best quarter of economic growth and job creation for almost eight years.” 8.49am BST Greek PM Alexis Tsipras will meet with Francois Hollande in Riga tonight as well as Angela Merkel, in an attempt to reach a political solution to the crisis.That’s via the Kathimerini newspaper, which adds:Tsipras is hoping that his meeting with Merkel and Hollande will result in some kind of political gesture that will help the pace and direction of deliberations with the institutions. The Greek leader is expected to tell his counterparts that his government has made as many concessions as it can and that the lenders now have to find a way to move closer to Greece. Sources said the premier will stress that the agreement will have to show that there has been a change in Greece’s policy mix. 8.47am BST Not a good morning for the economy of #Germany as Markit composite #PMI falls to 52.8 with both services and manufacturing growth slowing 8.46am BST Growth across Germany’s companies has slowed to a five-month low, adding to concerns that Europe’s largest member is coming off the boil.The German Composite Output Index calculated by Markit has fallen to 52.8, down from 54.1 in April. Firms reported weak demand, and rising cost pressures.“While the survey data are consistent with further GDP growth heading into the middle of the year, it looks as if this rate of expansion of the German economy will remain sluggish in the months ahead. German PMIs on strike. https://t.co/9KO53SDY6q 8.31am BST France’s economy is strengthening this month, although its factories are still finding conditions quite tough.That’s the verdict from Markit’s latest assessment of the eurozone’ second largest economy. Its Flash France Composite Output Index rose to 51.0, up from 50.6, showing growth picking up [50 is the cut-off point between expansion and contraction].“The French private sector posted further modest output growth in May, suggesting that economic expansion is being maintained through the second quarter. The service sector remained the driver of growth, offsetting another contraction in manufacturing.” 8.25am BST The two-day Riga summit which begins tonight is also David Cameron’s first meeting with fellow leaders since winning the general election.The British have asked the EU to accept an architecture that demonstrably shows the UK is never heading to the same destination and has a different category of membership, otherwise the UK will end up outside the EU. 8.17am BST Is the eurozone considering throwing Greece a lifeline by extending its existing bailout over the summer?German newspaper Süddeutsche Zeitung claimed last night that EU policymakers are considering extending the existing programme until the autumn. At risk of looking silly in a few days - a Greek deal feels close. Tide over till Autumn with classic Euro-fudge on pensions/labour market? 8.02am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.“We know that decisive decisions ultimately are taken at the level of finance ministers in the Eurogroup but at this critical moment a meeting between Tsipras and Merkel can only be helpful.”“The persistence of the architects of this regime and their insistence of keeping the country on the same track, is simply irrational. We want to stop the vicious cycle of debt and recession. Its not about stubbornness. Its about preserving Greece and its people.”@yanisvaroufakis tells #c4news "If we can pay the IMF and pensions and salaries, then we shall, if not, Greece faces difficult choices." Continue reading...
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