Angela Merkel, Francois Hollande, Mario Draghi, Christine Lagarde and Jean-Claude Juncker have discussed the Greek crisis in BerlinLatest: Intensive work needed, says spokesmanMerkel looking to defuse the crisisIntroduction: Unexpected meeting in Berlin tonightDie Welt: Greece might compromise on pensionsLunchtime Summary: Goldman fears default 12.35am BST PS: Analysts at Macropolis, the respected Greek news and analysis site, are hopeful that creditors have made progress tonight:Greece’s negotiations with its lenders have entered the final stretch after creditors met in Berlin on Monday night to discuss the details of the offer that will be put to Athens in a bid to conclude the process and pave the way for the release of €7.2bn in bailout fundingSnap analysis: Creditors devise proposal in Berlin, Tsipras prepares ground in Athens https://t.co/RUaaRWuSU0 #Greece #euro #ECB #IMF 12.25am BST We don’t know, yet, exactly what happened in the Berlin chancellery over the last few hours; hopefully details will emerge in the morning.But as things stand, Greece’s creditors certainly haven’t revealed details of a new offer for Athens, after talking for more than two hours.“They agreed that work must continue with real intensity,”“The participants in the talks were in close contact in recent days and want this to remain the case in the coming days both among themselves and of course with the Greek government.”Another long night without specific progress on Greece, this time in Berlin. And the Greek government wasn't even around...At first glance the Juncker mediation between the institutions on #Greece failed in Berlin.Schedule of #Greece payments coming up pic.twitter.com/xcQ7X42mtr 11.52pm BST 11.48pm BST Some photos of Greece’s creditors ending their meeting tonight, and leaving the chancellery, just arrived (thanks Reuters!) 11.39pm BST Hopes of a major breakthrough tonight in Berlin have been dented, following those comments from the German spokesman as the meeting broke up."Step up intensity" OUCH!There surely more to the "step up intensity" cliché, but we won't know until at least tomorrow I suppose. 11.31pm BST German govt spokesperson: Greece creditors meeting ended in Berlin. Merkel, Lagarde, Draghi discussed status of Greek negotiations. (BBG) 11.28pm BST Newsflash from Germany: Creditors have agreed that there must be “intensive work” on Greece, a spokesman says.And Merkel, Draghi, Lagarde, Hollande and Juncker will stay in close contact with each other, and with Greece, in the days ahead.•Merkel, Draghi agree Greek talks must step up in intensity http://t.co/3ihkV8WZI2 pic.twitter.com/2bh3DCWFQx 11.20pm BST #Greece mini-summit in Berlin ended. Waiting for more drama to come. 11.18pm BST Financial news service RANsquawk is reporting that the Berlin meeting has just concluded....#GREECE CREDITORS MEETING IN BERLIN HAS NOW ENDED - #GERMAN SPOKESMAN 11.12pm BST The latest word from Berlin is that creditors don’t plan to hit Greece with a ‘final ultimatum’, but will craft the outlines of a deal.Whether Athens sees it the same way is another matter.....Or in other words, something for Tsipras to then call an ultimatum. (via http://t.co/jEObfJ1aQZ) pic.twitter.com/B5OEXjksjP 11.04pm BST The FT’s Peter Spiegel reports that the Berlin meeting includes paperwork showing where compromises might be made:Berlin summiteers working frm paper prepared by @EU_Commission to find trade-offs acceptable to all #Greece creditors http://t.co/9lt781AwoE 10.57pm BST This meeting in Berlin was meant to be focused on the worthy topic of boosting Europe’s economy through more investment. But it’s turned into so much more, once Christine Lagarde and Mario Draghi arrived unexpectedly to discuss the Greek crisis.The German chancellor Angela Merkel moved to try to defuse Greece’s financial and European crisis late on Monday, converting a routine long-scheduled meeting with French and EU leaders into a mini-summit on Greece that was said to be preparing a final response to Athens’ intractable debt dilemmas.Merkel met France’s president François Hollande and the president of the European commission, Jean-Claude Juncker, for what was billed as a session on how to boost investment in the EU. But they were joined by Mario Draghi, the president of the European Central Bank, and Christine Lagarde, the head of the International Monetary Fund, in what turned into a late-night session on Greece. Related: Merkel calls in Draghi and Lagarde for Greek debt talks 10.47pm BST Tonight’s emergency meeting shows that Greece’s creditors are losing patience, after months of crunch meetings, tough negotiations and scarce progress:So says the WSJ tonight, which adds:Officials from European institutions and the International Monetary Fund sent a draft text on the economic overhauls that Greece needs to implement to unlock bailout financing to a meeting in Berlin of key European leaders, according to people familiar with the matter. Creditors Prepare ‘Final’ Text of Greek Bailout Deal - @MMQWalker & @v_dendrinou report on what's happening in Berlin http://t.co/CTj3aQ8MXh 10.39pm BST Over in Athens, everyone is watching and waiting to see how this gripping crisis develops.“We are on the brink. We know something is going to happen, we just don’t know what.”“People don’t have to be worried.” 10.31pm BST The Financial Times has just published a handy explanation of the differences that have emerged between Greece’s creditors in recent weeks, prompting tonight’s emergency mini-summit.The IMF has been holding to a tough line, out of respect for its own lending rules and regard for pressure from countries in other parts of the world, which say Athens has already enjoyed very favourable treatment.The European Commission has argued for more generous terms for Athens because it sets a high priority on keeping the eurozone intact — a key symbol of EU unity.Greek bailout monitors hold emergency summit http://t.co/suWUwsiUME 10.17pm BST #grexit berlin mini-summit kicked off 2130. 'endgame begins' says @welt, quotes german sources.'the aim is to make the greeks a final offer' 10.16pm BST Tonight’s meeting on Greece is now well underway, between Angela Merkel, Francois Hollande, Jean-Claude Juncker, Mario Draghi and Christine Lagarde.One official told Reuters that:“They will discuss how to proceed and and whether they should make a new offer for an agreement to (Greek Prime Minister Alexis) Tsipras.” 10.08pm BST Tonight’s meeting in Berlin is missing one crucial actor - Alexis Tsipras himself, the left-wing leader who swept to power in January on a promise to end austerity and break away from the last five years.Tsipras had hoped to reach a political agreement over Greece, but tonight’s meeting suggests he’s going to get an ultimatum from creditors. Tsipras not invited to the party in Berlin. He will be handed a take it or leave it when he does finally sit down with Greece's creditors.People actually voted for Syriza expecting minimum wages to go up, taxes to go down, to be hired in the public sector & the end of austerity 10.00pm BST It’s now midnight in Athens, but prime minister Tsipras and his top team are going nowhere yet -- they’re watching events in Berlin like the rest of us#Greece cabinet mtng over. Tsipras in continuous mtng w Varoufakis, Alt FM Tsakalòtos & StateMin Pappàs, monitoring developments in Berlin 9.52pm BST Here’s another photo of “Super Mario” Draghi being whisked into tonight’s meeting in Berlin:#Draghi pulling into the Chancellery in Berlin for talks w #Merkel #Hollande #Lagarde & #Juncker on #Greece #IMF #ECB pic.twitter.com/WN8dlYg7az 9.48pm BST It’s looking like quite a night....Greece: Final countdown has begun. In Berlin, now, meeting of IMF, ECB, EUCOM, GER and FRA. Aim is to agree on a final offer to Tsipras. 9.45pm BST #IMF confirms Ms Lagarde is in Berlin to consult on #Greece. /via @mignatiou 9.44pm BST And here’s the German chancellery tonight, where the heads of the EC, the ECB, the IMF, Germany and France are trying to devise an offer to Greece to keep it in the euro and calm the crisis. 9.20pm BST A photo of Mario Draghi, head of the European Central Bank, arriving at tonight’s talks in Berlin has just arrived: 9.17pm BST Germany’s Frankfurter Allgemeine Zeitung newspaper reckons that tonight’s talks in Berlin could go late into the night (it’s currently 10.15pm there) in a bid to break the deadlock over Greece.#grexit merkel hollande in berlin. expected to agonise over greece into the wee hours. seeking final offer? http://t.co/CycVRakavP 9.12pm BST Tonight’s cabinet meeting in Athens has ended, but the top ministers are now hanging around waiting for news from Berlin.....#greece' mini cabinet meeting ended. Tsipras, Varoufakis, Pappas, Tsakalotos still at PMnistry waiting for Berlin https://t.co/MVLEUkXCz0 9.02pm BST Channel Four’s Paul Mason has heard that Greece wants the European Central Bank to provide more liquidity to its banking sector, as part of any deal.IMF-ECB said to be ready to offer take/leave deal to Greece. Greek source saying upfront verbal guarantee of restored liquidity = baseline. 8.51pm BST If you’ve been following this crisis closely, you’ll already know that June is an absolutely crunch month for Greece. But other readers might find this helpful:Athens owes €305m to the International Monetary Fund on Friday, and it may struggle to find the funds. It could bundle the payment in with other looming IMF bills, which total €1.6bn this month. Here's the list of June repayments again #Greece pic.twitter.com/kgdxSjfLTC 8.42pm BST Greek officials are hoping for positive news from Berlin:#Greece gov't official: "We expect developments tonight" ~@ThePressProject 8.32pm BST Rumours are swirling that Athens is about to get a ‘take it or leave it’ offer.RadioRadicale’s Brussels correspondent, David Carretta, tweets the latest word:From Berlin tonight could come a "Last offer" to #Greece I've been told. 8.27pm BST Several analysts and commentators are talking about the Greek crisis entering its “endgame” tonight, after four months of deadlock.Greek radio journalist Giannis Papageorgiou points out that Christine Lagarde has lingered on in Germany after last week’s G7 meeting of central bankers and finance chiefs, ready for tonight’s meeting.#Lagarde and Thomsen stayed in GER after G7. Final scenario for #Greece on the way. Some say #Tsipras has already agreed on pensions reforms 8.25pm BST Treat with caution: Germany’s Die Welt is reporting that Greece might be prepared to compromise on one of its ‘red lines’, pension reforms.They say that PM Alexis Tsipras has told creditors that he “wants to talk” about pension cuts and a later retirement age. That’s not the same as a concrete proposal, though. More hereDie Welt report on #Greece PM Tsipras alleged readiness to compromise on pensions & retirement age http://t.co/nqJ4ABOTaT ~@welt 8.18pm BST Alexis Tsipras has been pushing for a political deal for weeks, arguing that technical talks between officials can never resolve this crisis.Tonight’s talks between the Big Five in Berlin suggest he’s getting his wish, tweets our Europe editor Ian Traynor.#grexit sunday @atsipras said thing had to be settled by leaders. monday evening berlin merkel/hollande seem to be conceding he's right 8.16pm BST Earlier today, hope was building in Greece that a temporary deal could be reached.One well-placed insider told my colleague Helena Smith: “We are very close to the edge of the cliff, we are on the brink but we are not sure what is going to happen - yet.” 8.08pm BST Reuters is also reporting that Mario Draghi and Christine Lagarde will meet Angela Merkel, Francois Hollande and Jean-Claude Juncker in Berlin tonight. 8.02pm BST The MNI newswire is reporting that a statement might be released following tonight’s meeting in Berlin.We may get a statement following Berlin meeting today --MNI sources 7.53pm BST Greek media are also reporting that prime minister Alexis Tsipras is meeting with some of his cabinet tonight:Mini cabinet in progress with the participation of PM #Tsipras and ~10 ministers, according to local media. #Greece #politics 7.43pm BST Hello again. An interesting development tonight to flag up.Angela Merkel, Francois Hollande and Jean-Claude Juncker have been meeting in Berlin tonight to discuss a range of issues, including Greece (as we covered earlier). And there are some reports that they could be developing a proposal to present to Greece, to avoid a default.Top level talks were said to be taking place in Berlin on Monday evening to hammer out a proposal that would be presented to Greece as its only realistic chance of avoiding default and safeguarding its membership of the euro.German Chancellor Angela Merkel met with French President Francois Hollande and European Commission President Jean-Claude Juncker in the German capital. Representatives of creditor institutions are said to be preparing to convene with them this evening to discuss a plan to resolve the deadlock over Greece, according to people familiar with the plan. They asked not to be named because the negotiations are private.Merkel, Holland, and Juncker meeting tonight to save Greece. http://t.co/xFAF2bvjxLSome big names crashing Merkel/Juncker/Holladde Greece party: Draghi and, supposedly, Lagarde too. 5.25pm BST Worries about Greece continued to unsettle investors, but differing results from May’s manufacturing surveys was the main influence on markets. Signs of growth in Europe lifted most continental markets, but a disappointing UK figure - along with a falling oil price - helped send the FTSE 100 lower. Wall Street edged higher after a better than forecast ISM factory activity index, which pointed to a revival in the US economy but also suggested the Federal Reserve might indeed raise interest rates before the end of the year. The final scores showed: 5.18pm BST Italy’s public finances are improving, according to the latest government figures.The country’s state sector budget deficit came in at around €4.3bn in May, compared to €6.5bn in the same month last year. The Treasury said the deficit for the first five months of the year had narrowed by around €15bn from the same period last year to €33.8bn. 5.07pm BST Back with manufacturing, and here’s Markit’s global chart:Global #manufacturing's soft-patch persisted in May amid a stalling of trade flows http://t.co/5bYol107BM pic.twitter.com/JRg5F31bCJ 4.08pm BST A Greek exit from the eurozone may cause market ruptions in the short term but it could be a different story looking further ahead, says Capital Economics.But the recent moves in bond markets suggesting a deal could be reached may be mistaken, it adds, with spreads between German bunds and other goverment bonds looking remarkably low. Capital Economics Kevin Ferriter said:Spreads have presumably been contained as a result of four beliefs, each of which may be mistaken. First, a deal could be reached between Greece and its creditors. Second, a default does not automatically mean that Greece must exit the euro. Third, the ECB has backstops in place which are intended to prevent contagion. And fourth, if Greece does abandon the euro, this does not mean that other countries will necessarily follow suit.However, we think that investors are being complacent about these risks. Although a deal may be reached in these negotiations, the matter at hand is only the release of the final tranche of the existing bailout. We have not even got to the issue of the third bailout yet. Given how fractious the current talks have been, we envisage that further negotiations would reach an impasse.Whatever the specifics of how a Greek default were handled, we are sceptical that the ECB’s backstops would fully insulate other markets. The purchases of its quantitative easing (QE) programme be distributed across countries in proportion to the Bank’s capital key, so it is currently an inappropriate tool for fire-fighting spikes in the bond markets of particular countries. And for the ECB’s outright monetary transactions (OMTs) programme to be activated for a country, its government must have signed and be abiding by the conditions of a Memorandum of Understanding. Spreads could rise significantly before sufficient political will was mobilised to circumvent these technicalities.Finally, if Greece does exit the euro-zone, it is possible that it will only be the first domino. If Greece’s economy eventually thrives without the choke of austerity and with a devalued currency, this may fuel the rise of anti-austerity and euro-sceptic movements in other European countries. 3.36pm BST The US market seems uncertain what to make of this latest set of data.As reported, the ISM manufacturing index came in stronger than forecast, and construction spending rose 2.2% to an annual rate of $1trn, the biggest percentage increase since May 2012. 3.17pm BST The ISM data adds to the likelihood of the US Federal Reserve raising interest rates in the third quarter, says James Knightley of ING. He says:The US ISM manufacturing index for May has come in at 52.8 versus 51.5. This is above the 52.0 consensus expectation and is the best reading since February. The production component actually fell (to 54.5 from 56.0 in April), but there was a decent rise in new orders (55.8 versus 53.5 previously) and employment (51.7 versus 48.3). Indeed, new orders are at a five month high while the employment component is recording its strongest reading since January.This all hints at a rebound from the economic contraction experienced in the first quarter of 2015 although other numbers, such as today’s personal income and spending report, suggest it won’t be particularly vigorous growth in the second quarter. 3.10pm BST Here’s the Institute of Supply Management’s manufacturing data, which shows the pace of growth rising in May, with new orders and employment both rebounding.The ISM index of national factory activity was 52.8, up from 51.5 in April. The April figure was unchanged from March and the lowest since May 2013. 2.51pm BST Like the UK, final US manufacturing PMI misses forecasts but beats last month, at 54.0 vs 54.2 exp. and 53.8 in April #US #manufacturing 2.49pm BST Over in the US it’s time for the day’s two manufacturing surveys.First comes Markit’s data, with its purchasing managers’ index coming in at 54 in May, up slightly from an initial reading of 53.8 and marginally lower than April’s 54.1. With manufacturers reporting the smallest rise in new orders since the start of last year, the survey provides further evidence that the strong dollar is hurting the economy.While the economy still looks set to rebound from the decline seen in the first quarter, the extent of the second quarter recovery therefore remains highly uncertain and could well disappoint. 2.28pm BST Time for a recap on the Greek situation:Goldman Sachs has warned that Greece may need to default on a debt repayment to break the logjam between Athens and its creditors.Not only is it possible that we may need to see sovereign technical default and/or blocked Greek bank deposits in order to come to an accommodation between Greece and its official creditors, it may be necessary to do so in order to break the current impasse in negotiations.What matters more than op-eds are concrete reform proposals.“We are very close to the edge of the cliff, we are on the brink but we are not sure what is going to happen - yet.” 2.10pm BST Paul Mason of Channel 4 News has a good explanation on why Greece’s prime minister launched such a fierce critique of Europe’s approach to the crisis, in Le Monde today.Mason (who is well-connected with Syriza) says Tsipras has reassessed his view of the situation, and is now convinced Germany wants to create a two-speed Europe...“...where the ‘core’ will set tough rules regarding austerity and adaptation and will appoint a ‘super’ Finance Minister of the EZ with unlimited power, and with the ability to even reject budgets of sovereign states that are not aligned with the doctrines of extreme neoliberalism.For those countries that refuse to bow to the new authority, the solution will be simple: Harsh punishment. Mandatory austerity. And even worse, more restrictions on the movement of capital, disciplinary sanctions, fines and even a parallel currency”. So we’re in yet another nail-biting week. In a final flourish Tsipras advised the EU leaders to read Hemingway’s novel, For Whom the Bell Tolls. As it’s about a vicious civil war and the collapse of democracy in Europe in the 1930s, I think we all get the drift.But he could just as easily have quoted John Donne, from whom the phrase is taken: “If a Clod bee washed away by the Sea, Europe is the lesse, as well as if a Promontorie were.” We’ll know, I estimate within seven days, whether the Germans think Greece a promontory worth saving.As always, @paulmasonnews has @syriza_gr inside dope: thought deal was nigh swapping more austerity for debt relief https://t.co/xNBQwxELSQ 1.42pm BST Back in Athens, Prime minister Alexis Tsipras’ anti-austerity coalition is hoping that tonight’s meeting between the German chancellor Angela Merkel and French president Francois Hollande will provide a breakthrough (of sorts), reports Helena. “Under no circumstances will it be the broad “unified” deal that the government had hoped for, since it will even leave open the evaluation of the current programme which expires on June 30.The “good” scenario for the government would be for the deal [to include] a forecast for the debt (something that at this juncture is considered extremely difficult if not impossible) and to have a growth prospect (which is the more likely scenario).“We are very close to the edge of the cliff, we are on the brink but we are not sure what is going to happen - yet.” 1.38pm BST The euro is coming back from its earlier selloff too....#Euro up on ‘imminent’ Greek deal chatter. Common currency trades now $1.0950. pic.twitter.com/8s3kkg2M4W 1.01pm BST Don’t get excited if you hear that a Greek deal is coming this afternoon.A wild, unsourced and frankly baffling rumour did just sweep City trading floors and Twitter, but there seems to be nothing in it.Bund future erases gains on unconfirmed Greece rumour. What a market. pic.twitter.com/LQQIKib84BThat Greek deal rumour was possibly the most ridiculous things I've ever seen on finance twitter. I'm walking away for the day in protest. 12.46pm BST In the wake of Elena Panaritis’ withdrawal, the Greek government has issued one of its famous non-papers distancing finance minister Yanis Varoufakis from her appointment to the International Monetary Fund in the first place.“As I never sought this post, and given that I accepted it exclusively to help the government based on my experience on the way the IMF works (and other corresponding organisations) it is impossible for me to accept my appointment in the midst of the negative reactions of Syriza’s MPs and cadres.” 12.27pm BST Bond traders are ditching short-term Greek debt this morning, driving up the yield on two-year bonds higher into the danger zone.The lack of a deal and Alexis Tsipras’s claim that Greece’s creditors are threatening European democracy have not calmed nerves in the City today: 12.17pm BST Associated Press is also reporting that government MPs forced Elena Panaritis to abandon plans to represent Greece at the International Monetary Fund.Elena #Panariti, named as #Greece's representative at the #IMF, declines post after fierce criticism from members of governing #Syriza. 12.04pm BST Breaking News! Elena Panaritis has just announced that she does not wish to be Greece’s new representative at the International Monetary Fund, according to local media.She has withdrawn following the backlash from Syriza MPs who wrote to prime minister Alexis Tsipras, saying her previuus support for Greece’s bailout programmes made her an unacceptable candidate (see earlier post).It's impossible to accept my appointment (at the #IMF) amid negative reactions from #SYRIZA MPs, says @Elena_Panaritis (via @naftemporikigr)Blow To Greece Talks As Appointed IMF Rep. Panaritis Turns Down Post#Panariti declares no longer interested to represent #Greece in IMF. Syriza crisis over. Varoufakis continues as FinMin.Problem solved!? #Greece #Panaritis https://t.co/jG7eogWIL6 11.24am BST As feared, Alexis Tsipras’s blunt attack on the “absurd demands” made by Greece’s creditors has not improved the mood in Brussels.Jean-Claude Juncker’s official spokesperson, Mina Andreeva, has just told reporters that it’s more important to deliver ‘concrete reform proposals’ rather than opinion pieces in Le Monde.'We are not in the business of setting deadlines -- the only deadline is the end of June' says EU's @Mina_Andreeva on GreeceOuch: 'What matters more than op-eds are concfrete reform proposals', says @Mina_Andreeva of Tsipras commentsHint: 'The next eurogroup is on June 18, the eurogroup stands ready to reconvene earlier if need be' 11.01am BST Sigmar Gabriel, the vice-chancellor of Germany, says he’s not given up hope of a Greek deal.Gabriel told reporters in Berlin that:“I believe that all the proposals are now on the table and we can only hope that those holding political responsibility, also those in responsibility in Greece, will use the little time that is still left to reach decisions.” 10.36am BST Nice line in understatement here:GERMAN GOV'T SPOKESMAN SAYS GREECE WILL NOT BE CENTRAL TOPIC AT MEETING OF MERKEL, HOLLANDE AND JUNCKER BUT CAN'T RULE OUT IT WON'T COME UP 10.17am BST This is why June is such a crunch month for Greece:Key dates for #Greece in Jun (via @MacroPolis_gr) pic.twitter.com/VDqrqxQBES #economy #politics #ec #ecb #imf #banking #markets 9.54am BST Negotiations between Greece and her creditors seem to have hit an impasse, and could trigger new elections, a referendum or capital controls on bank deposits, or even a default, warns Goldman Sachs this morning.Huw Pill, Goldman’s chief European economist, fears it will be “very challenging” for the two sides to reach a deal to unlock the final €7.2bn of Greece’s bailout aid.Facing this reality, a new political mandate and thus a new government, a referendum or new elections will be required in Greece.Not only is it possible that we may need to see sovereign technical default and/or blocked Greek bank deposits in order to come to an accommodation between Greece and its official creditors, it may be necessary to do so in order to break the current impasse in negotiations.Default, capital controls, euro referendum, new elections. All now real possibilities for Greece, says Goldman: pic.twitter.com/Wz7VdctbRxThe ongoing negotiations between Greece and its official creditors are intensely political. And forwardlooking economic rationality is not characteristic of such interactions. Not only is it possible that we may need to see technical default and deposit blocks in order to come to a new programme, it may be necessary to do so in order to break the current impasse in negotiations. 9.34am BST Back to Greece....and it appears that a major row is blowing up over the nomination of the new Greek representative at the IMF.As flagged earlier, 43 Syriza MPs and other senior party officials have signed a letter expressing strong disapproval for the selection of Elena Panaritis. “A prominent representative of bailout policies cannot represent the government...It’s not a symbolic but a political issue. It’s a wrong decision and we ask that it is taken back.”Varoufakis under pressure and it shows - PHOTOS - http://t.co/ePGE9awzPs pic.twitter.com/ZcOMrR5VE5 9.32am BST Britain’s factories grew a little faster last month. The UK manufacturing PMI edged up to 52.0, up from 51.8. 9.15am BST Heads-up. German Chancellor Angela Merkel, French President François Hollande and European Commission President Jean-Claude Juncker are meeting in Berlin today for talks about Europe’s future.Greece’s bailout talks, and David Cameron’s bid to renegotiate the UK’s links with Europe, will be on the table. Just in case there's any doubt about who makes the call on #Grexit / #Brexit - Merkel, Hollande and Juncker hold 3-way talks in Berlin today 9.06am BST It’s official: Germany and France are dragging the eurozone back.Markit’s Eurozone Manufacturing PMI, just released, came in at 52.2 in May. That is up from April’s 52.0 and matches March’s figure (which was a 10-month high), but is below the flash estimate of 52.3 two weeks ago.“The rate of growth is modest rather than spectacular, however, and there are clearly countries which continue to struggle. Weakness is centred in the region’s core, with France’s manufacturing sector still in decline and Germany only seeing very meagre growth. “On the other hand, Spain and Italy appear to be staging strong recoveries, benefitting in particular from impressive export performances. Such export gains point to improved competitiveness which bodes well for longer-term economic prospects. Manufacturers in France and Germany need to be mindful of such competition.” 8.59am BST In contrast with Italy and Spain manufacturing in Germany is struggling according to the Markit #PMI https://t.co/bhTDLcZcNE 8.56am BST Germany’s factory growth slowed last month, and by more than expected:*GERMANY MAY MANUFACTURING PMI FALLS TO 51.1; PRELIM. 51.4 8.54am BST France’s factory sector is still shrinking. Markit’s French manufacturing PMI rose to 49.4, up from 48.0 in April -- the best reading in a year, but still below the 50-point mark showing no-change. 8.50am BST Boom! Italy’s manufacturing sector has reported its biggest jump in output in four years.Factories saw a sharp increase in output and new orders in May, leading to a rise in hiring. That pushed Markit’s Italy manufacturing PMI up to 54.8 from 53.8 in April -- which is the highest reading since April 2011.“Italy’s manufacturing sector is enjoying its best quarter of expansion since 2011. Output growth has accelerated in every month this year so far, and a further strong increase in new orders suggests production is set to remain on an upward trend throughout the summer. 8.46am BST Dutch factories enjoyed a good May (like their counterparts in Spain) with the sector growing at its fastest rate since December 2013.NEVI #Netherlands Mfg #PMI rises to 17-month of 55.5 (April: 54.2) high as Dutch mfg sector strengthens further http://t.co/6W2qrz90V6 8.43am BST The euro is weakening this morning, as concerns over Greece weigh on the market.The single currency has dropped by 0.7% against the US dollar, from $1.0987 to $1.091. 8.22am BST The recovery in Spain’s factory sector continued last month, with output growing at the fastest rate since April 2007.Markit’s Spanish manufacturing PMI jumped to 55.8 in May from 54.2 in April, showing “a sharp improvement in business conditions”. 8.16am BST Italy’s prime minister, the reformist Matteo Renzi, has been given a wake-up call by disgruntled voters.Renzi’s centre-left Democratic party performed worse than expected in regional elections last weekend, as populist and anti-establishment parties enjoyed a rise in support. It lost the governorship of Liguria, which is usually a left-wing stronghold, and was pushed hard in other districts.Italian Government received a slap from the electorate as the Northern League and 5* movements did well. Related: Silvio Berlusconi mistakenly arrives at leftist party rally in Italy local elections 8.01am BST China’s stock market has surged this morning, following the news that its factory sector had contracted for the third month running.Traders piled into stocks in Shanghai, giving the main index its biggest one-day gain since January. #China | *SHANGHAI COMPOSITE INDEX RISES 3.4%, BIGGEST GAIN SINCE JAN. 21 ...need worserer data pic.twitter.com/YIMZJyBFpE 7.52am BST A top official at Germany’s Bundesbank has warned that Greek banks are on the brink of crisis.Andreas Dombret, an executive board member of the German central bank, told Germany’s Bild newspaper that the Athens government must move swiftly to reach agreement with creditors:“The Greek government would be well advised to act quickly - for the Greek banks, it is five minutes to midnight.”“The situation in Greece is very critical and bank customers see that naturally...The direct dangers for European banks are relatively small.”Bundesbank's Dombret says It’s Five to Midnight for Greek Banks in interview w/ @BILD as deposits drop like a stone. pic.twitter.com/rXHAoMAmYb 7.49am BST Greece may have invented democracy, but it still has a bit to learn about diplomacy. Related: Tsipras lambasts 'absurd proposals' of creditors for Greece debt-deal failure “The lack of an agreement so far is not due to the supposed intransigent, uncompromising and incomprehensible Greek stance.It is due to the insistence of certain institutional actors on submitting absurd proposals and displaying a total indifference to the recent democratic choice of the Greek people.”....the beginning of the end for the European unification project by shifting the Eurozone from a monetary union to an exchange rate zone, [and] also triggers economic and political uncertainty, which is likely to entirely transform the economic and political balances throughout the West. Related: Tsipras lambasts 'absurd proposals' of creditors for Greece debt-deal failure #Greece's creditors long hoped @atsipras swoops into bailout talks to save deal. Not sure how he can after this op-ed http://t.co/KtChpba5xXPerhaps the closest to a "this is it, take it or Grexit" public statement by Tsipras: http://t.co/RmXjUwILHH 7.38am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.The clock is ticking louder for Greece, as Athens and its creditors continue to struggle to agree a deal before its bailout expires at the end of the month. Rumours of my impending resignation are (for the umpteenth time) grossly premature...@nikimoza1 "In the long run we are all dead." J.M.Keynes. (In the medium run, those nostalgic of the troika days are stuck with me @ FinMin) Continue reading...
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