Negotiations over a third Greek bailout are continuing as European markets rally following a recovery in ChinaTsipras: Need debt relief to take Grexit off tableTsipras radio interview - highlights start hereBavarian PM fears Grexit chaosMoscovici: Le Grexit est derrière nousCreditors back in AthensMarkets rally ahead of the FedChina bounces back 11.26am BST Breaking away from Greece, and the Bank of England’s deputy governor for financial stability has revealed his worries about the consequences of a US interest rate rise.Speaking to the Guardian, Sir Jon Cunliffe warned that markets are still ‘quite fragile’. So we can’t assume that a Fed rate hike won’t cause problems.“If and when US interest rates go up ... there are concerns about how the market will adjust. This must be the most advertised, well signalled change in monetary policy in the history of man.Nonetheless you don’t know. These are different sorts of markets to the ones we had before.” Related: Bank of England's Sir Jon Cunliffe: 'Markets are quite fragile' 11.13am BST Alexis Tsipras has warned radio listeners that Greece could still be forced out of the eurozone. The risk of Grexit won’t be removed until a third bailout deal, and debt relief, is secured, he says.Tsipras: capital controls damage reversible. Grexit still on the table until a debt forgiveness comesOn top of that there would be utter chaos. If Greece were not prepared to reform, a path like that would have to be accepted but one shouldn’t strive for it oneself or organise it.” Continue reading...
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