Rolling economic and financial news, as eurozone officials discuss the slow-moving Greek negotiationsLatest: Eurozone manufacturing boosted by weak euroGreece hit by political uncertaintySpanish factory recovery is alive and wellOn Greece:Economy minister: bailout deal coming next weekThe Agenda: Euro officials to hold conference call today 10.13am BST Back to Greece......and eurocrisis expert Yannis Koutsomitis is tweeting some interesting developments around its funding needs:#Greece Public Debt Agency head Papadopoulos to meet with @PIMCO execs today over next week's T-bill auction ~@EFSYNTAKTON#Greece | General Accounting Office notifies Gov't cash runs out May 15 http://t.co/OhDhBjiNGn /via @EFSYNTAKTON 10.10am BST Vicky Redwood, UK economist at Capital Economics, is concerned that Britain’s productivity fell by another 0.2% in the last quarter:“This still isn’t great - productivity has still not even returned to its long-run average rate of about 2%, let alone recouped any of the shortfall relative to its pre-crisis trend.” 10.08am BST Britain’s persistently weak productivity gives another insight into the true state of the UK economy, as politicians trade blows ahead of May’s election.Today’s ONS report shows that David Cameron has presided over an economy with the weakest productivity record of any government since the second world war, says economics editor Larry Elliott.We're no more productive (q4 2014) than we were in 2007 (ONS): "the absence of productivity growth...is unprecedented in the post-war periodIf reducing corporation tax increases wages and investment, then why have real wages and productivity been taking a hammering? 9.55am BST Despite the recovery, Britain’s economy still suffers from weak productivity.Data just released by the Office for National Statistics shows that labour force productivity fell by 0.2% in the last three months of 2014.The absence of productivity growth in the seven years since 2007 is unprecedented in the post-war period.7 lean years of no productivity growth... Time for a biblical analogy? 9.36am BST Eight-month high for UK manufacturing purchasing managers' index counters some of those slowdown fears: http://t.co/16fY2GkFMk 9.36am BST March was a good month for UK factories too -- the sector grew at its fastest rate in eight months.The UK manufacturing PMI rose to 54.4 in March, up from 54.0 in February, thanks to strong domestic demand. Export orders picked up too, as the “bright start to the year” continues. 9.25am BST Greece is not sharing in this revival in the eurozone economy -- its factory sector contracted again last month.Greece’s manufacturers reported a third straight monthly drop in output in March, confirming that economic conditions have deteriorated since the country’s political upheaval began.Weighing on overall inflows of new business was a sharp and accelerated decrease in new export orders, which panel members linked in part to foreign clients being deterred by political uncertainty in Greece. 9.13am BST The eurozone’s economic recovery has strengthened, as manufacturing activity across the region grew at the fastest pace since last May.Growth accelerated in Germany, Spain, Italy and the Netherlands, as the European Central Bank’s quantitative easing programme stimulates demand and drives down the euro.“Producers are benefitting from the weaker euro, which has had the dual effect of boosting competitiveness in export markets as well as making competing imports more expensive in the home markets.“New orders are consequently showing the best growth for nearly a year, and the fact that manufacturers are boosting their payroll numbers at the fastest rate for three-and-a half years indicates optimism that the upturn will be sustained in coming months. 8.58am BST Those French and German PMIs are both higher than the ‘flash’ readings two weeks ago, suggesting that conditions improved during March.Upward revisions to final PMIs (Germany/France) suggest positive momentum continued in the past 10 days or so. #QEuphoria #QEboost 8.57am BST Here comes Germany’s manufacturing PMI......and it’s another month of solid growth for factories in Europe’s largest economy. 8.52am BST France’s factory sector has shrunk again, but at least the pace of decline has slowed.The French manufacturing PMI came in at 48.8 for March, up from 47.6 in February -- but still below the 50-point mark that splits expansion and contraction.France Manufacturing #PMI rises to 48.8 but still signals deteriorating business conditions http://t.co/bJEqHa6k3W http://t.co/6u8ZIS0WFp 8.49am BST Finally some good economic news for #Italy As its manufacturing #PMI rises to 53.3 http://t.co/4I79ddcDIF #ECB #QE #Euro 8.49am BST Good news from Italy too -- factory output has hit an 11-month high last month.Data firm Markit reports that the Italian manufacturing PMI jumped to 53.3, from 51.9, showing that the sector expanded. Growth is “gathering momentum”, it says, with firms hiring staff at the fastest rate since February 2011. 8.41am BST Spain’s economic recovery continues to pick up pace, as the weaker euro gives Spanish firms a boost.The Spanish PMI jumped to 54.3 from 54.2, which is another month of solid growth.The highlight from the latest survey was the strongest rise in employment since mid-2007, as the labour market continues to recover. Meanwhile, the sharp reductions in input prices seen in the first two months of the year were not repeated at the end of Q1 as the weakness of the euro led to rises in the cost of imported items.” 8.34am BST Turkey’s factory sector has contracted at the fastest rate in almost six years.Turkish manufacturing downturn intensifies in March, #PMI at 48.0 (49.6 in Feb), lowest since April 2009 http://t.co/TZAzecfbof 8.18am BST Russia’s factory sector continued to contract last month.“March’s survey data indicated that operating conditions remained challenging overall, with output, new orders and employment all posting modest falls. Access to working capital also remains a hurdle to overcome for a number of manufacturers.” 8.09am BST Overnight, an official survey of the Chinese factory sector was a little stronger than expected in March, driving the Shanghai stock market to a new seven-year high.Overnight data from China - especially HSBC manufacturing survey - point to a further slowdown in growth. 7.57am BST With a deal before Western Easter looking very unlikely, Greece’s government has now declared that it will reach agreement with its lenders before Orthodox Easter (which falls on 12 April).“The agreement will close on (Greek Orthodox) Easter week.”“The idea that prevailed is that we will not proceed with a privatisation of the 67 percent stake, which would mean a full privatisation of Piraeus port. We are not discussing this.”“We are trying to find some kind of joint venture.” 7.50am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.With Greece’s negotiations with its creditors over economic reforms seemingly becalmed, eurozone finance officials will hold a teleconference call today to assess the state of play.“If it turns out the Greeks leave, that may not be a bad thing for the euro.“If everybody learns that the rules mean something and if they come to general agreement about fiscal policy among members, or something of the sort, that they mean business, that could be a good thing.”#FTSE expected to open around 20 points lower. European stock index futures down on #Greece bailout uncertaintyEu #daybook: manufacturing PMI data; ECB policy makers are said to be holding weekly review of Emergency Liquidity Assistance to Greece Wed. Continue reading...
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