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| Market turmoil: Stocks rally despite Greece falling back into recession - live updates | Market turmoil: Stocks rally despite Greece falling back into recession - live updates |
| (35 minutes later) | |
| 1.32pm GMT | |
| 13:32 | |
| Deutsche Bank has confirmed earlier reports it may buy back some of its debt, an idea which has been supporting its share price after its falls earlier this week. | |
| Deutsche has said it will offer to buy up to €3bn of European debt and $2bn of US debt. | |
| 1.30pm GMT | |
| 13:30 | |
| 1.29pm GMT | |
| 13:29 | |
| Ahead of Greece falling into recession and the new protests in Athens, the International Monetary Fund has said that fears of the country leaving the eurozone will increase unless a credible reform plan is put together. | |
| And Poul Thomsen, head of the IMF’s European department, said it had not yet seen such a plan. He repeated that debt relief - a bone of contention among some of the country’s creditors - needed to be a key element of the programme. He wrote in a new IMF commentary: | |
| The IMF does not want Greece to implement draconian fiscal adjustment in an already severely depressed economy. In fact, we have time and again been the ones arguing for a fiscal adjustment path that is more supportive of recovery in the near term and more realistic in the medium term. | |
| We have yet to see a credible plan for how Greece will reach the very ambitious medium-term surplus target that is key to the government’s plans for restoring debt sustainability. This emphasis on credibility is crucial for generating the investor confidence that is critical to Greece’s revival. A plan built on over-optimistic assumptions will soon cause Grexit fears to resurface once again and stifle the investment climate. | |
| The overriding objective of the IMF’s engagement with Greece is to help the country put itself back on a path of sustainable growth that benefits the Greek people. The IMF will support the Greek authorities and their European partners in developing a program of reforms and debt relief that adds up. There are difficult choices to be made, but it is important to make them so that Greece’s efforts over the last six years are not wasted. | |
| On the need for both reforms and debt relief, he said: | |
| It is argued that the IMF has made its participation dependent on socially draconian reforms, especially of the pension system. This is not the case. Ultimately a program must add up: the combination of reforms plus debt relief must give us and the international community reasonable assurances that by the end of Greece’s next program, after almost a decade of dependence on European and IMF assistance, Greece will finally be able to stand on its own. This implies an inverse trade-off between ambition of reforms and strength of debt relief—we can certainly support a program with less ambitious reforms, but this will inevitably involve more debt relief. | |
| This said, no amount of pension reforms will make Greece’s debt sustainable without debt relief, and no amount of debt relief will make Greece’s pension system sustainable without pension reforms. Both need to come about. There is no doubt that both Greece and its European partners will face politically difficult decisions in the coming months to arrive at a program that is viable—one that adds up. | |
| 1.12pm GMT | |
| 13:12 | |
| Larry Elliott | |
| The next phase of the eurozone crisis is about to begin, to judge by the latest GDP figures, argues our economics editor Larry Elliott. He writes: | |
| Greece is back in recession. Italy is barely growing. Portugal expanded but only at half the expected rate. The message could hardly be clearer: the next phase of the eurozone crisis is about to begin. | |
| On the face of it, the performance of the eurozone economy in the final three months of 2015 looks solid if unspectacular, with growth as measured by GDP up by 0.3%. | |
| But scratch beneath the surface and the picture looks far less rosy. The beneficial impacts of the European Central Bank’s quantitative easing programme have started to wear off, as has the effect of the big drop in oil prices in the second half of 2014. The eurozone peaked in the second quarter of 2015 and the trend was starting to weaken even before the recent turbulence on the financial markets... | |
| In the short term, further stimulus from the ECB is a bolt-on certainty next month, either through cuts in interest rates or an expansion of its QE programme, or more likely both. In the longer term, a summer of crisis eurozone summits to discuss the fate of Greece looms. Probably not what David Cameron wants as he contemplates how to win his Brexit referendum. | |
| Larry’s full comment is here: | |
| Related: The eurozone crisis is back on the boil | |
| 12.33pm GMT | 12.33pm GMT |
| 12:33 | 12:33 |
| Here’s our full report on the eurozone GDP figures: | Here’s our full report on the eurozone GDP figures: |
| Related: Eurozone recovery falters as Greece slips back into recession | Related: Eurozone recovery falters as Greece slips back into recession |
| 12.25pm GMT | 12.25pm GMT |
| 12:25 | 12:25 |
| More on the yen: | More on the yen: |
| Shaping up to be USD/JPY's worst 2 weeks since 1998 carry trade implosion #funfactoids pic.twitter.com/sOikXvUfKK | Shaping up to be USD/JPY's worst 2 weeks since 1998 carry trade implosion #funfactoids pic.twitter.com/sOikXvUfKK |
| 12.05pm GMT | 12.05pm GMT |
| 12:05 | 12:05 |
| Europe’s stock markets continue to shrug off the sight of protests in recession-hit Greece, and lacklustre growth in the euro area. | Europe’s stock markets continue to shrug off the sight of protests in recession-hit Greece, and lacklustre growth in the euro area. |
| Bank shares are still rallying, with Deutsche Bank up 9% and Commerzbank 17% higher after it announced its first dividend since 2007 today. | Bank shares are still rallying, with Deutsche Bank up 9% and Commerzbank 17% higher after it announced its first dividend since 2007 today. |
| Here’s the lunchtime scores: | Here’s the lunchtime scores: |
| David Lamb, head of dealing at the forex specialists FEXCO, says European investors are pinning their hopes on more stimulus from the European Central Bank: | David Lamb, head of dealing at the forex specialists FEXCO, says European investors are pinning their hopes on more stimulus from the European Central Bank: |
| “It’s hard to imagine how the sense of deja-vu could be any stronger. The confirmation that Greece has slumped back into recession came as rioters stalked the streets of Athens to protest against government austerity. | “It’s hard to imagine how the sense of deja-vu could be any stronger. The confirmation that Greece has slumped back into recession came as rioters stalked the streets of Athens to protest against government austerity. |
| “Growth in the Eurozone’s biggest economies remains weak too, so at first glance it’s a puzzle that both European stocks and the Euro should rally in response to such a bleak picture. | “Growth in the Eurozone’s biggest economies remains weak too, so at first glance it’s a puzzle that both European stocks and the Euro should rally in response to such a bleak picture. |
| “The reason is the now racing certainty that the ECB will soon restart the Euro’s printing presses. Mario Draghi has dropped ever heavier hints that more QE is coming - and on this evidence it may come as soon as March. | “The reason is the now racing certainty that the ECB will soon restart the Euro’s printing presses. Mario Draghi has dropped ever heavier hints that more QE is coming - and on this evidence it may come as soon as March. |
| 11.17am GMT | 11.17am GMT |
| 11:17 | 11:17 |
| Summary: Eurozone GDP | Summary: Eurozone GDP |
| Here’s a round-up of the latest eurozone GDP data, from Howard Archer of IHS Global Insight: | Here’s a round-up of the latest eurozone GDP data, from Howard Archer of IHS Global Insight: |
| Fourth-quarter Eurozone GDP growth was limited by lacklustre German GDP growth of 0.3% quarter-on-quarter, which matched the third-quarter performance. German growth was reportedly held back by negative net trade in the fourth quarter as exports fell and imports rose. | Fourth-quarter Eurozone GDP growth was limited by lacklustre German GDP growth of 0.3% quarter-on-quarter, which matched the third-quarter performance. German growth was reportedly held back by negative net trade in the fourth quarter as exports fell and imports rose. |
| In addition, French GDP growth edged down to 0.2% quarter-on-quarter in the fourth quarter from 0.3% quarter-on-quarter in the third quarter, as it was held back slightly by a hit to economic activity from the Paris terrorist attacks in November. | In addition, French GDP growth edged down to 0.2% quarter-on-quarter in the fourth quarter from 0.3% quarter-on-quarter in the third quarter, as it was held back slightly by a hit to economic activity from the Paris terrorist attacks in November. |
| Particularly disappointingly, Italian barely grew in the fourth quarter as GDP edged up just 0.1% quarter-on-quarter. This continued a disappointing slippage in growth through 2015, as quarter-on-quarter GDP expansion came down from 0.2% in the third quarter, 0.3% in the second quarter and 0.4% in the first. Seemingly, unlike most Eurozone countries, Italian GDP was reliant on net trade in the fourth quarter as domestic demand was reported to have been a drag. | Particularly disappointingly, Italian barely grew in the fourth quarter as GDP edged up just 0.1% quarter-on-quarter. This continued a disappointing slippage in growth through 2015, as quarter-on-quarter GDP expansion came down from 0.2% in the third quarter, 0.3% in the second quarter and 0.4% in the first. Seemingly, unlike most Eurozone countries, Italian GDP was reliant on net trade in the fourth quarter as domestic demand was reported to have been a drag. |
| On a more positive note, Spanish GDP growth held up well at 0.8% quarter-on-quarter in the fourth quarter, having edged back to this level in the third quarter from a peak growth rate of 1.0% quarter-on-quarter in the second quarter. | On a more positive note, Spanish GDP growth held up well at 0.8% quarter-on-quarter in the fourth quarter, having edged back to this level in the third quarter from a peak growth rate of 1.0% quarter-on-quarter in the second quarter. |
| Among the other Eurozone countries, there were modest pick-ups in quarter-on-quarter GDP growth in the fourth quarter in the Netherlands (to 0.3% from 0.1%), Belgium (to 0.3% from 0.2%) and Portugal (to 0.2% from 0.0%). Cyprus grew by 0.4% quarter-on-quarter, which was down slightly from 0.5% in the third quarter. | Among the other Eurozone countries, there were modest pick-ups in quarter-on-quarter GDP growth in the fourth quarter in the Netherlands (to 0.3% from 0.1%), Belgium (to 0.3% from 0.2%) and Portugal (to 0.2% from 0.0%). Cyprus grew by 0.4% quarter-on-quarter, which was down slightly from 0.5% in the third quarter. |
| Additionally, there was robust expansion in Slovakia (up 1.0% quarter-on-quarter, as it had been in the third quarter) and Estonia (up 1.2%). | Additionally, there was robust expansion in Slovakia (up 1.0% quarter-on-quarter, as it had been in the third quarter) and Estonia (up 1.2%). |
| However, Greece moved into recession as GDP contracted by 0.6% quarter-on-quarter in the fourth quarter after a drop of 1.4% in the third quarter as it continued to be hampered by fiscal austerity and capital controls | However, Greece moved into recession as GDP contracted by 0.6% quarter-on-quarter in the fourth quarter after a drop of 1.4% in the third quarter as it continued to be hampered by fiscal austerity and capital controls |
| Finland also moved into recession as GDP fell 0.1% quarter-on-quarter in the fourth quarter after a drop of 0.6% in the third quarter. | Finland also moved into recession as GDP fell 0.1% quarter-on-quarter in the fourth quarter after a drop of 0.6% in the third quarter. |
| Furthermore, Austrian GDP was only flat quarter-on-quarter in the fourth quarter, as it had been in the third quarter. | Furthermore, Austrian GDP was only flat quarter-on-quarter in the fourth quarter, as it had been in the third quarter. |
| 10.55am GMT | 10.55am GMT |
| 10:55 | 10:55 |
| Greece’s protesting farmers are digging in for the long haul. | Greece’s protesting farmers are digging in for the long haul. |
| Athens: protesting farmers camp at #syntagma sq. This takes us back to 2011. #agrotes #Greece (photos by @xpapamic) pic.twitter.com/3H74ds6pxx | Athens: protesting farmers camp at #syntagma sq. This takes us back to 2011. #agrotes #Greece (photos by @xpapamic) pic.twitter.com/3H74ds6pxx |
| 10.36am GMT | 10.36am GMT |
| 10:36 | 10:36 |
| Greek farmers: New taxes will kill us | Greek farmers: New taxes will kill us |
| Helena Smith | Helena Smith |
| Athens correspondent Helena Smith reports that there are “extraordinary scenes” in the capital, ahead of a major anti-austerity protest later today. | Athens correspondent Helena Smith reports that there are “extraordinary scenes” in the capital, ahead of a major anti-austerity protest later today. |
| She writes: | She writes: |
| The area outside the agriculture ministry now resembles a war zone after farmers - mostly from Crete - fought pitched battles with police. | The area outside the agriculture ministry now resembles a war zone after farmers - mostly from Crete - fought pitched battles with police. |
| Have just spoken to Manolis Gazakis, a farmer from the district of Rethymnon, who told me: | Have just spoken to Manolis Gazakis, a farmer from the district of Rethymnon, who told me: |
| “We said it would be war and we meant it. The government has to understand that it is us or them. | “We said it would be war and we meant it. The government has to understand that it is us or them. |
| We are not going to back down over measures that amount to our survival. Just the taxes they are proposing would kill us.” | We are not going to back down over measures that amount to our survival. Just the taxes they are proposing would kill us.” |
| The protestors are threatening to cut off major arteries in and around the city centre. Dozens of units of riot police have been deployed. Concern is such that road checks are even being conducted on trucks for fear that tractors may be hidden inside! | The protestors are threatening to cut off major arteries in and around the city centre. Dozens of units of riot police have been deployed. Concern is such that road checks are even being conducted on trucks for fear that tractors may be hidden inside! |
| Farmers, now pouring into the capital from other parts of the country, are said to be in negotiation with authorities ahead of a major rally later today. | Farmers, now pouring into the capital from other parts of the country, are said to be in negotiation with authorities ahead of a major rally later today. |
| Updated | Updated |
| at 10.49am GMT | at 10.49am GMT |
| 10.20am GMT | 10.20am GMT |
| 10:20 | 10:20 |
| Anti-austerity clashes in Athens | Anti-austerity clashes in Athens |
| Greece’s fall back into recession came as riot police clashed with farmers in Athens. | Greece’s fall back into recession came as riot police clashed with farmers in Athens. |
| They are holding a big anti-austerity rally, to urge prime minister Alexis Tsipras to withdraws its proposed social security and pension reform plan. | They are holding a big anti-austerity rally, to urge prime minister Alexis Tsipras to withdraws its proposed social security and pension reform plan. |
| Those reforms, though, are demanded by Greece’s creditors in return for bailout funds - and eventual debt relief. | Those reforms, though, are demanded by Greece’s creditors in return for bailout funds - and eventual debt relief. |
| 10.15am GMT | 10.15am GMT |
| 10:15 | 10:15 |
| Greece falls back into recession | Greece falls back into recession |
| Greece has lurched back into recession following the economic and political crisis last summer which saws its banks shuttered and capital controls imposed. | Greece has lurched back into recession following the economic and political crisis last summer which saws its banks shuttered and capital controls imposed. |
| Eurostat reports that Greek GDP fell by 0.6% in the last three months of 2015. That follows a 1.4% slump in output in the third quarter, and wipes out growth of 0.2% in April-June. | Eurostat reports that Greek GDP fell by 0.6% in the last three months of 2015. That follows a 1.4% slump in output in the third quarter, and wipes out growth of 0.2% in April-June. |
| Fourth-quarter GDP was a whopping 1.9% lower than a year earlier, Eurostat says. That’s a serious slump, showing the damage suffered by Greece during the long standoff between Athens and its creditors last year. | Fourth-quarter GDP was a whopping 1.9% lower than a year earlier, Eurostat says. That’s a serious slump, showing the damage suffered by Greece during the long standoff between Athens and its creditors last year. |
| Greece GDP fell by 0.6% in Q4 putting it back in recession and continuing the depression. Where are the Grecovery pundits now? #Euro | Greece GDP fell by 0.6% in Q4 putting it back in recession and continuing the depression. Where are the Grecovery pundits now? #Euro |
| Greek companies have been warning for months that capital controls are hurting them badly, and these figures appear to back that up. | Greek companies have been warning for months that capital controls are hurting them badly, and these figures appear to back that up. |
| 10.09am GMT | 10.09am GMT |
| 10:09 | 10:09 |
| Growth of 0.3% is quite mediocre, frankly, given the eurozone benefitted from substantial (and long-awaited) monetary stimulus last year. | Growth of 0.3% is quite mediocre, frankly, given the eurozone benefitted from substantial (and long-awaited) monetary stimulus last year. |
| Lower energy bills should also have given consumers a lift. | Lower energy bills should also have given consumers a lift. |
| Cheap oil, easy money, neutral fiscal policy - eurozone growth still only at 0.3pc in Q4 pic.twitter.com/lWOKdC7Kvj | Cheap oil, easy money, neutral fiscal policy - eurozone growth still only at 0.3pc in Q4 pic.twitter.com/lWOKdC7Kvj |
| 10.07am GMT | 10.07am GMT |
| 10:07 | 10:07 |
| These charts from Eurostat show how eurozone growth remained at 0.3% in the fourth quarter of last year. | These charts from Eurostat show how eurozone growth remained at 0.3% in the fourth quarter of last year. |
| Growth also slowed on an annual basis, across both the EU and the eurozone. | Growth also slowed on an annual basis, across both the EU and the eurozone. |
| Updated | Updated |
| at 10.21am GMT | at 10.21am GMT |
| 10.00am GMT | 10.00am GMT |
| 10:00 | 10:00 |
| Eurozone GDP: Up 0.3% | Eurozone GDP: Up 0.3% |
| Breaking: The eurozone economy grew by 0.3% in the final three months of 2015. | Breaking: The eurozone economy grew by 0.3% in the final three months of 2015. |
| 9.42am GMT | 9.42am GMT |
| 09:42 | 09:42 |
| Capital Economics isn’t impressed with Portugal’s growth rate: | Capital Economics isn’t impressed with Portugal’s growth rate: |
| #Portugal GDP +0.2% qq in Q4. Not disastrous, but probably not good enough to ease market concerns & reverse upward pressure on bond yields. | #Portugal GDP +0.2% qq in Q4. Not disastrous, but probably not good enough to ease market concerns & reverse upward pressure on bond yields. |
| 9.41am GMT | 9.41am GMT |
| 09:41 | 09:41 |
| Portugal's growth misses forecasts. | Portugal's growth misses forecasts. |
| Breaking: Portugal also struggled in the last quarter of 2015. | Breaking: Portugal also struggled in the last quarter of 2015. |
| New growth figures from Lisbon show that Portuguese GDP only increased by 0.2% in the final quarter of 2015. Economists had hoped for growth of +0.4%. | New growth figures from Lisbon show that Portuguese GDP only increased by 0.2% in the final quarter of 2015. Economists had hoped for growth of +0.4%. |
| On an annual basis, Portugal’s economy only expanded by 1.2% over 2015, below expectations of 1.4% growth. | On an annual basis, Portugal’s economy only expanded by 1.2% over 2015, below expectations of 1.4% growth. |
| Both Portuguese & Italian 4Q GDP data coming in below estimates . But stocks continue to gain | Both Portuguese & Italian 4Q GDP data coming in below estimates . But stocks continue to gain |
| Portugal's Y/Y GDP growth slows for 2nd consecutive quarter in Q4 | Portugal's Y/Y GDP growth slows for 2nd consecutive quarter in Q4 |
| 9.34am GMT | 9.34am GMT |
| 09:34 | 09:34 |
| Italy’s slowing economy will fuel concerns that Europe’s recovery is running out of puff. | Italy’s slowing economy will fuel concerns that Europe’s recovery is running out of puff. |
| Holger Sandte of Nordea Markets has tweeted this graph, showing how the eurozone lost momentum during 2015: | Holger Sandte of Nordea Markets has tweeted this graph, showing how the eurozone lost momentum during 2015: |
| We’re expecting the overall euro area GDP figures to show an increase of 0.3% for the last quarter (they are released in 30 minutes). | We’re expecting the overall euro area GDP figures to show an increase of 0.3% for the last quarter (they are released in 30 minutes). |
| 9.29am GMT | 9.29am GMT |
| 09:29 | 09:29 |
| There’s a clear downward trend in Italy’s quarterly growth over the last year. | There’s a clear downward trend in Italy’s quarterly growth over the last year. |
| 2015 italy gdp growth: - Q1 = 0.4% - Q2 = 0.3% - Q3 = 0.2% - Q4 = 0.1%...waiting the 2016 first quarter | 2015 italy gdp growth: - Q1 = 0.4% - Q2 = 0.3% - Q3 = 0.2% - Q4 = 0.1%...waiting the 2016 first quarter |
| 0.4% => 0.3% => 0.2% => 0.1%...(Q1) (Q2) (Q3) (Q4)#Italy's QoQ GDP growth in 2015 not looking particularly auspicious. | 0.4% => 0.3% => 0.2% => 0.1%...(Q1) (Q2) (Q3) (Q4)#Italy's QoQ GDP growth in 2015 not looking particularly auspicious. |
| 9.15am GMT | 9.15am GMT |
| 09:15 | 09:15 |
| ABN Amro economist Nick Kounis reminds us that Italy has been struggling for a while: | ABN Amro economist Nick Kounis reminds us that Italy has been struggling for a while: |
| The 'good' news is that this is above #Italy's trend growth rate of zero https://t.co/6skwNC0pBb | The 'good' news is that this is above #Italy's trend growth rate of zero https://t.co/6skwNC0pBb |
| Updated | Updated |
| at 9.21am GMT | at 9.21am GMT |
| 9.06am GMT | 9.06am GMT |
| 09:06 | 09:06 |
| Italian growth slows to 0.1% | Italian growth slows to 0.1% |
| Oh deary, deary me. Italy’s economy only grew by 0.1% in the final three months of 2015, new data show. | Oh deary, deary me. Italy’s economy only grew by 0.1% in the final three months of 2015, new data show. |
| That’s only half as fast as in July-September, when Italy expanded by 0.2%. | That’s only half as fast as in July-September, when Italy expanded by 0.2%. |
| It dashes hopes that growth might accelerate to +0.3%, and underlines the weakness of the eurozone economy. | It dashes hopes that growth might accelerate to +0.3%, and underlines the weakness of the eurozone economy. |
| It appears that poor domestic demand held Italy back. | It appears that poor domestic demand held Italy back. |
| Italy Q4 GDP slow to +0.1% Q/Q (from 0.2%) and industrial weakness weighs ... | Italy Q4 GDP slow to +0.1% Q/Q (from 0.2%) and industrial weakness weighs ... |
| The FT’s Rome correspondent, James Politi, sounds worried: | The FT’s Rome correspondent, James Politi, sounds worried: |
| Italian GDP rose by just 0.1 per cent in fourth quarter, which will raise more concerns about the recovery | Italian GDP rose by just 0.1 per cent in fourth quarter, which will raise more concerns about the recovery |
| Istat says domestic demand brought negative contribution to GDP, while external factors gave positive contribution, reversing recent trend | Istat says domestic demand brought negative contribution to GDP, while external factors gave positive contribution, reversing recent trend |
| 9.03am GMT | 9.03am GMT |
| 09:03 | 09:03 |
| A flurry of new GDP data is hitting the wires. | A flurry of new GDP data is hitting the wires. |
| Poland has posted decent-looking growth, with GDP gaining 3.9% in the last year, or 1.1% quarter-on-quarter. | Poland has posted decent-looking growth, with GDP gaining 3.9% in the last year, or 1.1% quarter-on-quarter. |
| And Bulgaria has grown by 3.1% annually, and 0.8% in the last quarter. | And Bulgaria has grown by 3.1% annually, and 0.8% in the last quarter. |
| 8.48am GMT | 8.48am GMT |
| 08:48 | 08:48 |
| Deutsche Bank is scrambling off the mat - shares are up by around 4%, and the cost of insuring its bonds against default has dipped. | Deutsche Bank is scrambling off the mat - shares are up by around 4%, and the cost of insuring its bonds against default has dipped. |
| Another dead cat bounce? Deutsche Bank shares rise almost 4% while 5y default probability lowers a tad. pic.twitter.com/S3ingOge1z | Another dead cat bounce? Deutsche Bank shares rise almost 4% while 5y default probability lowers a tad. pic.twitter.com/S3ingOge1z |
| 8.46am GMT | 8.46am GMT |
| 08:46 | 08:46 |
| Greece and Italy share the dubious distinction of the worst-performing stock markets in 2016. | Greece and Italy share the dubious distinction of the worst-performing stock markets in 2016. |
| Italy’s FTSE MIB has lost a quarter of its value since January 1, while the Athex Composite has plunged by 30%. | Italy’s FTSE MIB has lost a quarter of its value since January 1, while the Athex Composite has plunged by 30%. |
| Spain, Germany and Austria are also lagging, with losses of around 17% each. | Spain, Germany and Austria are also lagging, with losses of around 17% each. |
| 5 of the worst performing stock markets in the world this year are European.... pic.twitter.com/EVb5kIeoTY | 5 of the worst performing stock markets in the world this year are European.... pic.twitter.com/EVb5kIeoTY |
| 8.38am GMT | 8.38am GMT |
| 08:38 | 08:38 |
| Finland's recession continues | Finland's recession continues |
| Back to eurozone GDP, and Finland remains in recession after contracting by 0.1% in the last three months. | Back to eurozone GDP, and Finland remains in recession after contracting by 0.1% in the last three months. |
| That follows a 0.5% contraction in the July-September quarter, and means Finland’s economy is still smaller than in 2008. It has suffered from falling demand for its paper industry, the decline of Nokia, and the impact of sanctions on its neighbour, Russia. | That follows a 0.5% contraction in the July-September quarter, and means Finland’s economy is still smaller than in 2008. It has suffered from falling demand for its paper industry, the decline of Nokia, and the impact of sanctions on its neighbour, Russia. |
| And as a member of the eurozone, Finland hasn’t been able to devalue its currency. | And as a member of the eurozone, Finland hasn’t been able to devalue its currency. |
| #Finland in recession as preliminary estimate shows GDP fell 0.1% q/q in Q4 2015 after drop of 0.5% q/q in Q3. GDP down 0.3% y/y in Q4 | #Finland in recession as preliminary estimate shows GDP fell 0.1% q/q in Q4 2015 after drop of 0.5% q/q in Q3. GDP down 0.3% y/y in Q4 |
| Finland's economy remains in recession. GDP shrinks 0.1% in Q4 after 0.5% contraction in Q3. | Finland's economy remains in recession. GDP shrinks 0.1% in Q4 after 0.5% contraction in Q3. |
| 8.30am GMT | 8.30am GMT |
| 08:30 | 08:30 |
| There are remarkable scenes in Athens right now, as farmers protesting against pension cuts and austerity measures clash with riot police. | There are remarkable scenes in Athens right now, as farmers protesting against pension cuts and austerity measures clash with riot police. |
| After weeks of protests, which closed motorways, the farmers have decamped to the Greek capital for a mass rally. | After weeks of protests, which closed motorways, the farmers have decamped to the Greek capital for a mass rally. |
| More than 300 famers have made the trip from Crete, to urge Alexis Tsipras’s government not to impose reforms to social security system. | More than 300 famers have made the trip from Crete, to urge Alexis Tsipras’s government not to impose reforms to social security system. |
| Farmers throw vegetables at riot police in front of MinAgric, Athens #Greece pic.twitter.com/KTLagEJqFq | Farmers throw vegetables at riot police in front of MinAgric, Athens #Greece pic.twitter.com/KTLagEJqFq |
| Here’s a video clip which appears to show farmers chasing the riot police down an Athens street: | Here’s a video clip which appears to show farmers chasing the riot police down an Athens street: |
| Now in #Athens: Protesting farmers chasing (literally) a riot police squad. Video: https://t.co/UQK0QVgeKwp/v @dromografosNews #Greece | Now in #Athens: Protesting farmers chasing (literally) a riot police squad. Video: https://t.co/UQK0QVgeKwp/v @dromografosNews #Greece |
| 8.29am GMT | 8.29am GMT |
| 08:29 | 08:29 |
| Tony Cross, market analyst at Trustnet Direct, says we should be cautious about today’s rally: | Tony Cross, market analyst at Trustnet Direct, says we should be cautious about today’s rally: |
| London’s FTSE-100 is positively flying as the week’s final session gets underway, with almost 100 points having been tacked on already. A late rally on Wall Street and a relatively measured day’s trade across most of Asia – aside from Japan – is helping throw a little confidence into the mix as we run towards the weekend break. | London’s FTSE-100 is positively flying as the week’s final session gets underway, with almost 100 points having been tacked on already. A late rally on Wall Street and a relatively measured day’s trade across most of Asia – aside from Japan – is helping throw a little confidence into the mix as we run towards the weekend break. |
| Oil is also working its way a little higher off recent lows, which will be helping sentiment for stocks - but critically the fundamentals haven’t changed. As such, this still looks more like bargain hunting than the market turning its back definitively on the run lower. | Oil is also working its way a little higher off recent lows, which will be helping sentiment for stocks - but critically the fundamentals haven’t changed. As such, this still looks more like bargain hunting than the market turning its back definitively on the run lower. |