Worried Greeks withdrew €5.6bn from their banks last month, as fears of a potential default swirlGreek bank deposits hit lowest since 2004Key chart: deposits keep fallingVaroufakis: We want a comprehensive dealMoscovici: We’re dedicating to avoiding GrexitIntroduction: Negotiations resuming today 11.27am BST The selloff in Europe’s stock markets is accelerating, as investors fret about Greece.The German DAX is the worst performer, down over 1%. European markets continued to feel the ongoing effects of the situation in Greece, with fresh fears that the country will be unable to make yet another repayment due to the IMF. The Greek government has still not made it clear how it intends to make the €1.6 billion repayment, the first tranche of which falls due next Friday. 11.04am BST Heads-up: Germany’s finance minister and central bank chief will be giving a press conference at the G7 meeting in Dresden, in around 40 minutes time.Live at 12:45 press conference on #g7finance in Dresden with Wolfgang Schäuble and Jens Weidmann http://t.co/QJSroxaDYc 10.55am BST Greece’s long slump is even worse than the Great Depression of the 1930s....ELSTAT confirms another recession in Greece. And it was already doing worse than the US Great Depression. pic.twitter.com/cx6jLuARoc 10.19am BST More gloom for Greece -- statistics body ELSAT has just confirmed that the country is back in recession.Updated GDP data showed that the Greek economy shrank by 0.2% in the first three months of 2015, in line with the initial estimate earlier this month. 9.53am BST Last month’s hefty withdrawals are part of a wider pattern.Greek banks have been suffering deposit outflows since December 2014, when the previous government called a general election after failing to elect a new president.Greek bank deposits fell another 4% in April. The problem is the euro leaving Greece, not Greece leaving the euro. pic.twitter.com/ynZz4UdzHT 9.43am BST In a sign of the times, Greek bank deposits have fallen to an 11 year low as the IMF repayment looms next Friday #Greece #bank #Grexit 9.37am BST Worried Greeks pulled €5.6bn out of their accounts last month, as the country’s banks continue to bleed.Official data just released shows that Greek bank deposits fell to €139.4bn in April, down from €145bn in March. CHART: #Greece bleeding continues. New OFFICIAL data show bank deposits down (again!) by 6 bn€ in April. 11-year low. pic.twitter.com/zmqoiQpKV5Won't be much left in #Greece's banks by the time #ECB gets the keys. Deposits down another €5.6 billion in April. pic.twitter.com/bN0qk0Pesm 9.15am BST The picture is brighter in Italy this morning. The Italian stats office has just confirmed that the economy grew by 0.3% in the last quarter.That’s in line with the initial estimate two weeks ago, and means Italy’s economy expanded for the first time since autumn 2013.#Italy GDP grows for 1st time in 6 quarters by 0.3% - been in/out of recession/negative quarters since 2009/10 crisis http://t.co/fko7vCezC2 9.11am BST Yanis Varoufakis made some interesting points in his interview with Vima FM radio station, and a couple of perplexing ones.He said:#Greece MinFin Varoufakis: "Our side on BrusselsGroup opposed with vigor the proposal re: a transaction tax." @vimafmVaroufakis claims that if new taxes introduced, they are not recessionary if they involve redistribution. Oh well...#Greece MinFin Varoufakis, when asked whether we got the money to pay the IMF, he says "let ME the MinFin worry about this, not the people!" 8.58am BST You can hear Yanis Varoufakis’s radio interview here (it’s in Greek.....)Thanks, Greek Analyst!Link on #Varoufakis's live interview at @vimafm here: http://t.co/jiNaoOOMz2 cc @graemewearden HT @YanniKouts 8.49am BST Greek finance minister Yanis Varoufakis is speaking on Greek radio now.I’m afraid I’ve not got the link, but the key points are being tweeted:#Greece FinMin says very close to completing Greek program review; Greek talks have new developments every day ~@vimafm#Greece FinMin Varoufakis says there is agreement with the 'Institutions' on VAT model; no agreement yet on rates ~@vimafm 8.46am BST As if the Fifa scandal wasn’t bad enough, Switzerland has been hit with the news that its economy is shrinking.Swiss GDP fell by 0.2% in the first three months of the year, worse than the stagnation which economists expected.“The trade balance in goods and services in particular delivered negative growth contributions.” 8.40am BST More news from the G7 meeting in Dresden, from French finance minister Michael Sapin.*SAPIN SAYS EUROPE NEEDS GREECE DEAL WITHIN 'DAYS OR WEEKS' 8.32am BST Worries about Greece are weighing on Europe’s stock markets again. They’re mostly down in early trading:I suspect there will be plenty of headlines about Greece driving volatility in coming weeks as €1.6 billion is due over four tranches. 8.17am BST What about Christine Lagarde’s comment that Greece could leave the euro, Commissioner Moscovici?We are dedicated to have Greece staying in the eurozone, a solid Greece, a reformed Greece. 8.05am BST European commissioner Pierre Moscovici is the first policymaker to break cover from the G7 this morning.He told CNBC thatthere’s been “good progress” between Greece and lenders.....*MOSCOVICI SAYS IT'S CLEAR TIME IS RUNNING SHORT ON GREECE*MOSCOVICI SAYS 'WE'RE NOT YET THERE' ON GREEK PENSION REFORMS 7.49am BST Greece’s deputy prime minister, Yannis Dragasakis, has claimed that ‘political will’ is the missing ingredient needed for a deal (explaining why his boss phoned the leaders of Germany and France last night)Greek Dep PM Dragasakis: Political will is missing on Greece deal --Corriere della Sera via BBGDragasakis: Greece is willing to pay its debts, but is against new austerity 7.44am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.We’re coming to the end of another week that started with hopes of a breakthrough between Greece and its creditors, but has seen little evidence of progress since. Related: Grexit is a possibility, warns head of IMF The three leaders spoke for about an hour and government sources referred to “a positive climate.”The exact content of the conversation remained unclear but it is thought Tsipras asked Merkel and Hollande to make good on a pledge they made at an EU leaders’ summit in Riga last week to help overcome potential obstacles in the negotiations. Continue reading...
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