Greece’s debt negotiations are dominating discussions among the world’s top finance ministers and central bankers in DresdenLatest: Greece hopes for deal by Sunday (!)But EC warns more work is neededLagarde: Still lots to doECB says Greek crisis could shake marketsBomb threat at Greek finance ministryUK growth confirmed at 0.3% 1.45pm BST The bomb threat that forced the evacuation of the Greek finance ministry this morning was a hoax:Bomb threat @ Greek FinMin a hoax. But police on alert after jailed terrorist Maziòtis calls for armed uprising+sitins @ Parl/ministries/BoG 1.42pm BST Over in America, the number of people signing on for unemployment benefit rose unexpectedly last week.A total of 282,000 people filed ‘initial claims’ for jobless welfare, up from 275,000 the previous week. And the ‘continuing claims’ total also rose, to 2.222 million from 2.211 million). 1.00pm BST Here’s a list of Greece’s looming debt repayments, and key eurozone meetings, from Deutsche Bank.DB: A non-payment to the #IMF does not trigger CDS. pic.twitter.com/Z4KsZtjtMh 12.47pm BST Economists reckon there is a 30% chance that Greece will leave the eurozone this year, according to a Reuters poll of 70 City experts. 12.45pm BST Has Mark Carney taken an electric handshake buzzer to the G7? 12.16pm BST 11.58am BST Everyone say käse.....The so-called family photo. Happy family? Dysfunctional family? #G7dresden pic.twitter.com/gsWuQrUTJD 11.48am BST G7 finance ministers and central bank chiefs are posing for the traditional ‘family photo’ in Dresden right now.Lots of smiles and chuckles as finance ministers line up for the family photo #G7 pic.twitter.com/4v8P1gHepa 11.42am BST Once again, the European Commission has dampened Greece’s rosy view of the situation.Further progress is needed in the talks..... We are not there yet. 11.25am BST Here’s a video clip from outside the Greek finance ministry, following today’s bomb threat (thanks to Enikos) 11.21am BST Greek media are reporting that the Athens finance ministry was evacuated this morning because of a bomb threat.Skai News says the ministry received a phone call this morning, saying an explosive device had been planted.Bomb threat at the Greek MinFin. #Greece https://t.co/af3MFK6NeI 11.03am BST Back at the G7, a cheerful-looking Wolfgang Schäuble is looking forward to a jammy dodger. Hard money men in Dresden. Chilling. Looking intensely relaxed about Grexit, enjoying some biscuits pic.twitter.com/hj0JDV8s9i 11.01am BST #Greece govt spox Sakellaridis: "Now is the time that all of us will be judged - both the institutions and the Greek govt." No kiddin'! 11.01am BST Greek government spokesman Gabriel Sakellaridis is insisting that Athens is close to a deal with its creditors, and denied that finance minister Yanis Varoufakis could be replaced soon.Sakellaridis even claims that lenders are sounding pessimistic to pile more pressure on Greece to cave in on the areas where there isn’t agreement. 10.50am BST Greek bonds are strengthening in value, pushing down the yield on its shorter-term debt to slightly less dangerous levels.Greek 2yr yields plunge as Greek govt spokesperson says #Greece wants deal by sunday. pic.twitter.com/G1nVirAm91 10.47am BST Greece’s claim that it could get a deal by Sunday had prompted a certain amount of cynicism among financial experts:Greece wants a deal by Sunday. And a pony.And I would like a unicorn. https://t.co/SHHAdpvIst 10.43am BST Newsflash from Athens -- Greece is hoping to close a deal by Sunday, ‘hopefully’. 10.37am BST Vítor Constâncio went on to address the elephant in the room - what happens if Athens fails to repay €1.6bn to the International Monetary Fund in June?He says it would not automatically drive Greek banks into insolvency (so the ECB could keep helping) but it would force a reassessment of the Greek sovereign debt they own.Interesting: #ECB Constancio sees no direct link btw state default & bank insolvency in #Greece. Remember that's the ELA nerve in #ECB eyes.#ECB's Constâncio: #Greece default to #IMF would impact bank impairments. | ← Ah, alright. Now we're talking 10.20am BST Despite the lack of a Greek deal, the European Central Bank is working on the assumption that Greece won’t crash out of the single currency.That’s according to Vítor Constâncio, vice-president of the ECB, speaking in Frankfurt a few minute ago. 9.56am BST The European Central Bank has sounded the alarm over Greece’s escalating crisis.In its new financial stability review, just published, the ECB warns default risk expectations have “increased sharply in Greece” amid heightened political uncertainty. Sovereign risks emanating from Greece, in particular, have increased sharply owing to heightened political uncertainty over the past six months, while the banking sector in Greece has witnessed substantial deposit outflows, a loss of access to the wholesale funding market and deteriorating asset quality.Financial market reactions to the developments in Greece have been muted to date, but in the absence of a quick agreement on structural implementation needs, the risk of an upward adjustment of the risk premia demanded on vulnerable euro area sovereigns could materialise. 9.44am BST Economists had hoped that the ONS would raise its estimate of UK growth today, from 0.3% to 0.4%, but alas not.On a positive note, the ONS has decided that Britain’s industrial sector grew by 0.1%, rather than shrinking by 0.1%. It also now believes that construction only contracted by 1.1%, not by 1.6%.GDP increase confirmed (for now) at 0.3% in Q1. Stronger production and construction numbers offset by downward revision to services. 9.36am BST The UK economy grew by 0.3% in the first three months of 2015, according to the Office for National Statistics’ second estimate.That’s in line with the first estimate, released last month. Breaking down the UK Q1 GDP figure, services output revised DOWN to 0.4% from 0.5%. 9.25am BST Europe’s stock markets have dropped in early trading, as traders fret about the lack of progress over Greece.Shares jumped yesterday, after Greek officials claimed a deal was close, but sceptical creditors have now dented the optimism:Greece’s debt deadline is looming large and it remaining unclear whether an agreement can be reached. 9.02am BST Finance ministers from the world’s advanced nations, and the world’s top central bank chief, are gathering in Dresden now to discuss the world economy.Here’s some new photos: 8.48am BST G7 finance chiefs need to work together, tweets UK chancellor George Osborne from Dresden:In Dresden with other #g7finance ministers. Serious challenges facing global economy: we need to tackle them together. 8.44am BST Back to the G7 meeting....and Christine Lagarde has told a German TV station that Greece and its lenders must keep working hard to get a deal.“We are all in the process of working towards a solution for Greece and I would not say that we already have reached substantial results.“Things have moved, but there is still a lot of work to do.” 8.31am BST Chinese stocks now -6.5%. They've fallen more than that on only 7 occasions in the past 15 years. 8.30am BST Has the Chinese stock market bubble just started to burst?Shares in Shanghai have tumbled today, dragging the main index down by 6.5% by the close of trading. 8.12am BST There’s a lot of talk about Lehman Brothers at the G7 meeting of finance ministers in Dresden, says Bloomberg’s Hans Nichols.And that because those with long memories recall how the US investment bank was allowed to fail in September 2008, triggering the near-meltdown of financial system. Related: US to urge Greece to end brinkmanship with creditors at G7 meeting 8.01am BST Larry Summers, the top US economics professor and former US Treasury secretary, has urged eurozone leaders to compromise with Greece.He argues that Europeans “need to recognise there are limits” to the amount of austerity that can be imposed on the Greek economy.Ultimately, debt problems are resolved by growth, not just by austerity.Both Greece&creditors "have to move" .Debt limits get solved by growth, not just austerity Larry Summers tells @HansNichols #G7 7.53am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.#FTSE100 called flat ahead of UK GDP, EZ Sentiment and US Pending Home Sales, oh and of course another round of Greek 'deal or no deal' Continue reading...
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