All the day’s economic and financial news, as Mervyn King says that eurozone countries must leave the euro to escape “crushing austerity and mass unemployment” * King: Eurozone is “extraordinarily dangerous” * Greece needs cheaper currency, less debt * Why Germany could quit the euro 8.46am GMT EUROPEAN STOCK MARKETS HAVE OPENED LOWER, AMID DISAPPOINTMENT THAT THE WORLD’S TOP FINANCE MINISTERS DIDN’T ANNOUNCE ANY CONCRETE MEASURES AT THEIR MEETING LAST WEEK. In London, the FTSE 100 has shed 38 points, or 0.6%, to 6057 points. Markets are kicking off the last trading day of February on a rather downbeat note with the weekend’s G20 meeting of finance ministers in Shanghai almost appearing to have muddied the waters, rather than provided any clarity. Policymakers appear to be in agreement that they need to act in a coordinated manner, but given the reactions we’ve seen so far, that certainly doesn’t appear to be the case. Related: UK officials 'instigated G20 Brexit warning' 8.21am GMT Merkin King also warns that Greece needs debt relief and a cheaper currency: As he puts it: It is evident, as it has been for a very long while, that the only way forward for Greece is to default on (or be forgiven) a substantial proportion of its debt burden and to devalue its currency so that exports and the substitution of domestic products for imports can compensate for the depressing effects of the fiscal contraction imposed to date. "It is evident that the only way forward for Greece is to default [...] and to devalue its currency." M'kayy Mervyn King. I liked it better when Mervyn King was boring. Continue reading...
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