All the latest business and financial developments, as Brent crude falls 2% to just $76, the lowest level since September 2010Latest on the Brent crude priceOpec unlikely to cut output 11.09am GMT There is also speculation in Greece that next February’s elections to replace outgoing president, Karolos Papoulias, could be brought forward in an attempt to ease the political uncertainty gripping the country.Former foreign minister Dora Baokoyannis told VIMA FM radio this morning that Greece was experiencing “a deep political, not economic crisis” that was now threatening to endanger any progress it had made. “The picture of instability and uncertainty is at the expense of the Greek economy with every day that passes.The process for the election of the president of the republic should start now, and parliament should not close for Christmas … we have a deep political crisis. Not an economic crisis.” 11.04am GMT Just in, Greece’s deputy prime minister Evangelos Venizelos has told reporters that the country’s bailout programme could be extended by a few weeks.“The European [side of the] programme expires on 31st December. The aim is for the last installment [of aid] to have been released by the 31st. If for technical reasons some procedures have not been completed, there could be an extension but not a new memorandum [bailout accord].” “A new programme means a new loan. That cannot happen.” We told them, these things cannot happen, and are not necessary. They are circulating scenarios about prolonging the memorandum [bailout accord]. We are saying no to a six-month extension.”#Greece 10-year bond yield climbs 17bps to 8.40%, following failed talks between the Greek gov't and the Troika. | #euro#Greece 10 year 8.48% pic.twitter.com/jTk3ByAiDJ 10.47am GMT The reluctance of many Opec members to agree an output cut shows that the cartel’s grip on the industry has weakened, says Miswin Mahesh, oil analyst at Barclays. 10.38am GMT Shares in oil producers have fallen this morning, tracking the selloff in crude (Brent is currently down 2.5% at $75.77 per barrel)OPEC’s (likely) reluctance to cut output today has knocked 3.5% off Petrofac’s share price, 1.5% off BG Group and 1.3% off Royal Dutch Shell. 10.25am GMT Elsewhere in the markets, the yield (or interest rate) on a flock of European government bonds is tumbling again to new record lows.This flow of money into eurozone sovereign debt has driven the yield on French 10-year bonds down to just 1%. Another day, another record-low 10Y yield in Germany, Austria, Belgium, France, Finland, Ireland, Italy, the Netherlands and PortugalEuro zone countries' bond yields below 1% Germany 0.71% Finland 0.79% Netherlands 0.83% Austria 0.86% Belgium 0.95% France 1% and falling 9.56am GMT Another photo of Saudi oil minister Ali al-Naimi (shaking hands, on the left) before the press pack were driven from the room.Naimi looking relaxed at #opec pic.twitter.com/O1fUlrA8ak 9.54am GMT Today’s Opec meeting has officially started, according to a newsflash from Reuters. 9.48am GMT Venezuela’s foreign minister, Rafael Ramirez, took a swipe at America’s burgeoning shale industry as he arrived at the Opec meeting, suggesting it should be reined in.Ramirez said (via Reuters):“The U.S. is producing in a very, very bad manner. The shale oil, I mean it is a disaster from the point of view of climate change...”OPEC: Dow Jones - Venezuela has proposed OPEC cut similar to Oran 2008 decision when OPEC cut output ceiling by 2.2 million b/d 9.38am GMT Jonah Hull, Al Jazeera’s man at the OPEC briefing, shows that oil ministers have taken their seats in Vienna and are being interrogated by the press....The #OPEC game of grab-an-oil-minister is underway in Vienna. No comment from the Saudis. pic.twitter.com/47rdUeIOnx#OPEC breakfast. This is what you get when the oil price falls below $80. pic.twitter.com/4rhmCBIUJd 9.30am GMT Back in Vienna, Saudi oil minister Ali bin Ibrahim Al-Naimi wasn’t keen to engage with the press as the OPEC meeting started.“I’ve made enough comments”, he said, according to this video clip from CNBC’s Rose Michelson:Saudi oil min Ali Al-Naimi refuses to answer any questions ahead of #OPEC meeting https://t.co/b9u9SqIrfT 9.24am GMT Day over? *DRAGHI SAYS HE 'WON'T ELABORATE ON POSSIBLE UPCOMING MEASURES' 9.21am GMT The text of ECB chief Mario Draghi’s speech to the Helsinki parliament has been released. No show-stoppers; Draghi will tell Finland’s MPs that monetary policy can’t do all the “heavy lifting” on its own, and repeated his call for a “comprehensive strategy” to put the eurozone economy back on track. 9.20am GMT Italian business confidence has taken another hit this month, as the country’s recession hurts the sector.The monthly index of corporate morale has fallen to 87.7 this month, from 89.1 in October (100 is the long-term average). There is one encouraging sign - manufacturers are slightly less gloomy. 9.09am GMT Just in: Germany’s unemployment total had fallen again as its labour market shrugs off the economy’s slowdown.German unemployment down 14k in November. Jobless rate steady at new record low of 6.6% (Oct rev from 6.7% to 6.6%) http://t.co/IB241xZiZT 8.58am GMT The oil price is sliding rapidly to fresh four-year lows, as traders come to the conclusion that OPEC will agree not to cut output at today’s meeting in Vienna.Media scrum building ahead of the arrival of opec ministers. pic.twitter.com/z7J9MyuZrkNow in the media holding pen (the stairwell) before start of opec meeting pic.twitter.com/fZ5uzDO77f 8.54am GMT Today’s OPEC meeting is a “watershed moment”, reckons Marc Ostwald, City analyst at ADM Investor Services, especially if the cartel declines to slice output.He adds:The signals from the various members appear to suggests that the Gulf oil producers (Kuwait, Qatar, UAE and Saudi Arabia) are set to reject demands from other members (and indeed Russia and Mexico) for an output cut, because they appear to be more concerned about “guarding market share”, which in turn will leave even more questions about the precarious budget positions of the other members. 8.45am GMT We have worrying inflation data from the eurozone too, which could increase the pressure on the ECB to launch a sovereign bond-buying programme.Spain’s annual consumer prices index has fallen to minus 0.4%, down from -0.1% in October.Deflation accelerated in Spain in November. EU HICP minus 0.5% y-o-y. pic.twitter.com/VCXArwz2mw#German #CPI - Saxony CPI first out: -0.1% m/m vs. expected Flat, 0.7% y/y vs. Oct 1.0%, ex-energy Flat m/m 8.25am GMT Brent crude has experienced a dramatic slide; down from $115 per barrel in late June to just $76 today, as this chart from Reuters’ Jamie McGeever shows:As we wait for OPEC, a reminder how much and how quickly oil has fallen. -34% since June: pic.twitter.com/HcUxJ2sZSE 8.14am GMT JP Morgan analysts reckon the oil price will soon fall below $70 without Opec action; other analysts have suggested we could even see $60/barrel.JPM expects OPEC not to reach an agreement on production cuts. In this event, oil prices will move down, possibly below $70/bbl for Brent. 8.13am GMT Singapore-based Daniel Ang of Phillip Capital agrees that the “consensus” reached by Saudi Arabia, Kuwait, Qatar and the United Arab Emirates means no output cuts today:He told Reuters:“Dreams of rising oil prices [have been] smashed with pre-OPEC meeting sentiments. Brace yourselves for lower oil prices.” 8.08am GMT Several other oil ministers have also indicated that Opec will resist pressure to cut output at today’s meeting.UAE oil minister Suhail bin Mohammed al-Mazroui told the FT that the market will, eventually, fix the oversupply in the oil market.“I don’t think we should panic. There is nothing that should cause us to panic.” "We have to live either $80 or with $60," says Kuwait oil minister: Oil prices fall to 4-year lows as OPEC pro... http://t.co/xjxonNHx7c 8.02am GMT The oil price has hit a fresh four-year low this morning, as speculation grows that producers will not agree output cuts at the crucial OPEC meeting in Vienna today.Brent crude oil slipped by over $1 per barrel, or 1.5%, to $76.58, extending the sell-off that began five months ago and has shaken the commodities market.Crude oil is trading at another four-year low this morning, as confirmation is beginning to emerge from the OPEC meeting that there will be no output cuts announced later today. 7.55am GMT Welcome to our rolling coverage of the financial markets, the world economy, business and the eurozone.On the agenda today.... Members of the Opec oil cartel are meeting in Vienna today; despite recent price falls, they are thought unlikely to cut production. More on that in a moment.German CPI, Draghi talking, holiday volumes and Opec could make European markets sporty todayThe Food Standards Agency will publish rates of contamination for each supermarket chain. The industry is bracing itself for the results to be significantly worse than those published by the FSA in August, which found six in 10 chickens were contaminated. Campylobacter rates tend to rise in the summer and averages similar to 75% found by the European Food Safety Authority in 2010 are expected. Continue reading...
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