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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/jul/24/imf-cuts-uk-growth-forecasts-eurozone-pmi-manufacturing-services-euro-live
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| Greece launches first bond sale since 2014, as IMF cuts UK growth forecasts - business live | Greece launches first bond sale since 2014, as IMF cuts UK growth forecasts - business live |
| (about 1 hour later) | |
| 5.25pm BST | |
| 17:25 | |
| Another day of thrills and spills is over in the City, and 1% has been wiped off the value of the biggest firms lister in London: | |
| London Stock Exchange update: FTSE 100 closes at 7,377.73, down 1.01% | |
| #FTSE 100 biggest risers: Micro Focus (+1.48%) / Anglo American (+1.19%) / Burberry Group (+0.55%) | |
| #FTSE 100 biggest fallers: Reckitt Benckiser (-3.27%) / Next (-3.06%) / Provident Financial (-2.92%) | |
| 5.12pm BST | |
| 17:12 | |
| Greek bonds rallied today after news of the new debt sale and buyback hit the wires. | |
| This has been welcomed by politicians in Athens, as our correspondent Helena Smith reports: | |
| Senior members in the governing Syriza expressed satisfaction at reaction of markets to the news of Athens’ prospective foray. | |
| Marking the 43rd anniversary of the restoration of democracy to Greece following the collapse of military rule, prime minister Alexis Tsipras highlighted the optimism saying: | |
| “[it] coincides with the decisive restitution of economic stability and the recovery of the country. Now it is the responsibility of all of us to not repeat the mistakes of the past but to build a new Greece.” | |
| 3.53pm BST | 3.53pm BST |
| 15:53 | 15:53 |
| It’s not been a great day in the City for shares. | It’s not been a great day in the City for shares. |
| The FTSE 100 index is down 86 points, or 1.1% at 7365 points, with most stocks losing ground. | The FTSE 100 index is down 86 points, or 1.1% at 7365 points, with most stocks losing ground. |
| The news that the International Monetary Fund had downgraded Britain’s growth forecast this morning weighed on the market. Consumer-focused companies, such as Next, were among the fallers. | The news that the International Monetary Fund had downgraded Britain’s growth forecast this morning weighed on the market. Consumer-focused companies, such as Next, were among the fallers. |
| Exporters also suffered from the recent recovery in the pound, which gained 0.25% to $1.3026 today. | Exporters also suffered from the recent recovery in the pound, which gained 0.25% to $1.3026 today. |
| Connor Campbell of SpreadEx says: | Connor Campbell of SpreadEx says: |
| The FTSE was consistently the market’s worse performer this Monday, dropping nearly 90 points to plunge back below 7400. | The FTSE was consistently the market’s worse performer this Monday, dropping nearly 90 points to plunge back below 7400. |
| There were multiple reasons for the index’s decline, from the IMF cutting the UK’s 2017 growth forecasts, to sterling’s rebound and notable losses from the likes of easyJet, Next and Reckitt Benckiser. | There were multiple reasons for the index’s decline, from the IMF cutting the UK’s 2017 growth forecasts, to sterling’s rebound and notable losses from the likes of easyJet, Next and Reckitt Benckiser. |
| 3.40pm BST | 3.40pm BST |
| 15:40 | 15:40 |
| If you’re just tuning in, here’s our news story about Greece’s plan to issue fresh bonds for the first time in three years. | If you’re just tuning in, here’s our news story about Greece’s plan to issue fresh bonds for the first time in three years. |
| 3.31pm BST | 3.31pm BST |
| 15:31 | 15:31 |
| Here’s the latest from Athens: | Here’s the latest from Athens: |
| Greek PM's Office: Bond Issue Important Step Towards Greece's Full & Viable Market Return - RTRS | Greek PM's Office: Bond Issue Important Step Towards Greece's Full & Viable Market Return - RTRS |
| 3.08pm BST | 3.08pm BST |
| 15:08 | 15:08 |
| ..but US house sales slow | ..but US house sales slow |
| Another newsflash from America, but this one is less encouraging. | Another newsflash from America, but this one is less encouraging. |
| The number of home sales slumped by 1.8% in June, suggesting the housing market may be cooling. | The number of home sales slumped by 1.8% in June, suggesting the housing market may be cooling. |
| The annual rate of existing home sales dropped to 5.52m, down from 5.62m in June, and lower than Wall Street expected. | The annual rate of existing home sales dropped to 5.52m, down from 5.62m in June, and lower than Wall Street expected. |
| US 'Existing Home Sales' lower than expected for June . . . pic.twitter.com/hfFktELuWv | US 'Existing Home Sales' lower than expected for June . . . pic.twitter.com/hfFktELuWv |
| Existing home sales fall 1.8% in June, miss estimates at 5.52 million units ...Not looking good ... | Existing home sales fall 1.8% in June, miss estimates at 5.52 million units ...Not looking good ... |
| 2.55pm BST | 2.55pm BST |
| 14:55 | 14:55 |
| US company growth hits six-month high | US company growth hits six-month high |
| Newsflash! America’s private sector is growing at its fastest pace since January | Newsflash! America’s private sector is growing at its fastest pace since January |
| US companies are expanding in July, thanks to a boom in new orders that is driving employment up. | US companies are expanding in July, thanks to a boom in new orders that is driving employment up. |
| That’s according to Markit’s latest healthcheck on US manufacturing and service sector companies, just released. | That’s according to Markit’s latest healthcheck on US manufacturing and service sector companies, just released. |
| Markit’s flash US composite output index has hit 54.2 in July, up from 53.9 in June. That’s a six-month high; any reading over 50 shows growth. | Markit’s flash US composite output index has hit 54.2 in July, up from 53.9 in June. That’s a six-month high; any reading over 50 shows growth. |
| US flash #PMI surveys signal fastest growth for 6 months in July (though merely signal c2% GDP growth) https://t.co/fuZAZcD1Ow pic.twitter.com/tCq1ez5Jd9 | US flash #PMI surveys signal fastest growth for 6 months in July (though merely signal c2% GDP growth) https://t.co/fuZAZcD1Ow pic.twitter.com/tCq1ez5Jd9 |
| Chris Williamson, chief business economist at IHS Markit, says the figures show America’s economy is gaining momentum, but it’s not exactly racing. | Chris Williamson, chief business economist at IHS Markit, says the figures show America’s economy is gaining momentum, but it’s not exactly racing. |
| “The overall rate of expansion remains modest rather than impressive. The surveys are historically consistent with annualized GDP growth of approximately 2%, but the signs are that growth could accelerate further in coming months. | “The overall rate of expansion remains modest rather than impressive. The surveys are historically consistent with annualized GDP growth of approximately 2%, but the signs are that growth could accelerate further in coming months. |
| “Most encouraging was an upturn in new order inflows to the second-highest seen over the past two years, which helped push the rate of job creation to the highest so far this year, indicative of non-farm payrolls growing at a rate of around 200,000. | “Most encouraging was an upturn in new order inflows to the second-highest seen over the past two years, which helped push the rate of job creation to the highest so far this year, indicative of non-farm payrolls growing at a rate of around 200,000. |
| “The principal weak spot in the economy remained exports, with foreign goods orders dropping – albeit only marginally – for the first time since last September, often blamed on the strength of th | “The principal weak spot in the economy remained exports, with foreign goods orders dropping – albeit only marginally – for the first time since last September, often blamed on the strength of th |
| 2.33pm BST | 2.33pm BST |
| 14:33 | 14:33 |
| Wolf Piccoli of Teneo Intelligence believes this bond sale is meant to give Alexis Tsipras some respite from political pressures back home. | Wolf Piccoli of Teneo Intelligence believes this bond sale is meant to give Alexis Tsipras some respite from political pressures back home. |
| He writes: | He writes: |
| The government of Prime Minister Alexi Tsipras is pushing ahead with a bond issue. This is part of an attempt to gain some breathing space amid domestic political problems. The government would like to raise around €4bn; the bond is a switch and tender offer for a €3bn euro-bond issued by the Samaras government in 2014, which matures in April 2019. | The government of Prime Minister Alexi Tsipras is pushing ahead with a bond issue. This is part of an attempt to gain some breathing space amid domestic political problems. The government would like to raise around €4bn; the bond is a switch and tender offer for a €3bn euro-bond issued by the Samaras government in 2014, which matures in April 2019. |
| Athens will also issue new euro-denominated fixed rate notes due in 2022 for cash. The related tender process will take place on 25 July. | Athens will also issue new euro-denominated fixed rate notes due in 2022 for cash. The related tender process will take place on 25 July. |
| Tsipras’s Syriza party have fallen behind in the polls, with the right-leaning New Democracy opening up a substantial lead.... | Tsipras’s Syriza party have fallen behind in the polls, with the right-leaning New Democracy opening up a substantial lead.... |
| #Greece poll projection [MetronAnalysis]:ND 37%Syriza 22.2%Golden Dawn 8.3%PASOK & allies 8.1%KKE 8%EK 3.8%Potami 2.7%IndGrks 2.7% | #Greece poll projection [MetronAnalysis]:ND 37%Syriza 22.2%Golden Dawn 8.3%PASOK & allies 8.1%KKE 8%EK 3.8%Potami 2.7%IndGrks 2.7% |
| 2.16pm BST | 2.16pm BST |
| 14:16 | 14:16 |
| Helena Smith | Helena Smith |
| Greece’s new foray back into the financial markets will play a big role in setting the mood ahead of its expiry of its €86bn bailout next year. | Greece’s new foray back into the financial markets will play a big role in setting the mood ahead of its expiry of its €86bn bailout next year. |
| If it attracts strong interest from investors it will play a crucial role in quashing suggestions that the debt-stricken country requires a new credit line, or fourth bailout, at that time to keep default at bay. | If it attracts strong interest from investors it will play a crucial role in quashing suggestions that the debt-stricken country requires a new credit line, or fourth bailout, at that time to keep default at bay. |
| Instead, those who think a clean exit possible will be strengthened. | Instead, those who think a clean exit possible will be strengthened. |
| 1.55pm BST | 1.55pm BST |
| 13:55 | 13:55 |
| That was quick! | That was quick! |
| Yanis Varoufakis has hit back at Alexis Tsipras’s criticism over his tenure as finance minister. | Yanis Varoufakis has hit back at Alexis Tsipras’s criticism over his tenure as finance minister. |
| In a letter to the Guardian, Varoufakis says: | In a letter to the Guardian, Varoufakis says: |
| Either I was the right choice to spearhead the “collision” with the troika of Greece’s lenders because my plans were convincing, or my plans were not convincing and, thus, I was the wrong choice as his first finance minister. | Either I was the right choice to spearhead the “collision” with the troika of Greece’s lenders because my plans were convincing, or my plans were not convincing and, thus, I was the wrong choice as his first finance minister. |
| Arguing, as Mr Tsipras does, that I was both the right choice for the initial confrontation and that my plan B was so vague it wasn’t worth the trouble of even talking about is disingenuous, albeit insightful, for it reveals the impossibility of maintaining a radical critique of his predecessors while adopting the Tina (There Is No Alternative) doctrine. | Arguing, as Mr Tsipras does, that I was both the right choice for the initial confrontation and that my plan B was so vague it wasn’t worth the trouble of even talking about is disingenuous, albeit insightful, for it reveals the impossibility of maintaining a radical critique of his predecessors while adopting the Tina (There Is No Alternative) doctrine. |
| More here: | More here: |
| 1.45pm BST | 1.45pm BST |
| 13:45 | 13:45 |
| Helena Smith | Helena Smith |
| Greece’s prime minister set the scene for this week’s debt sale by telling the Guardian that the worst of the debt crisis was now over. | Greece’s prime minister set the scene for this week’s debt sale by telling the Guardian that the worst of the debt crisis was now over. |
| In an interview with my colleague Helena Smith published today, Alexis Tsipras declared that: | In an interview with my colleague Helena Smith published today, Alexis Tsipras declared that: |
| “We can now say with certainty that the economy is on the up … Slowly, slowly, what nobody believed could happen, will happen. We will extract the country from the crisis … and in the end that will be judged.” | “We can now say with certainty that the economy is on the up … Slowly, slowly, what nobody believed could happen, will happen. We will extract the country from the crisis … and in the end that will be judged.” |
| This interview has caused waves in Greece, where almost the entire media have reproducing excerpts -- including Tsipras’s concession that he made “big mistakes” since wining power in January 2015. | This interview has caused waves in Greece, where almost the entire media have reproducing excerpts -- including Tsipras’s concession that he made “big mistakes” since wining power in January 2015. |
| Other highlights include the leftist leader’s dismissal of his former finance minister, Yanis Varoufakis’ Plan B, the contingency programme the self-declared “erratic Marxist” had prepared in the event of debt-stricken Greece being ejected from the euro. | Other highlights include the leftist leader’s dismissal of his former finance minister, Yanis Varoufakis’ Plan B, the contingency programme the self-declared “erratic Marxist” had prepared in the event of debt-stricken Greece being ejected from the euro. |
| Tsipras broke his silence about Varoufakis’s scheme, labelling it “weak and ineffective.” | Tsipras broke his silence about Varoufakis’s scheme, labelling it “weak and ineffective.” |
| “Perhaps the moment will come when certain truths are told ... when we got to the point of reading what he presented as his plan B it was so vague, it wasn’t worth the trouble of even talking about,.... | “Perhaps the moment will come when certain truths are told ... when we got to the point of reading what he presented as his plan B it was so vague, it wasn’t worth the trouble of even talking about,.... |
| It was simply weak and ineffective.” | It was simply weak and ineffective.” |
| In terms of reaction watch this space! | In terms of reaction watch this space! |
| #Greece - my interview with prime minister Alexis Tsipras in the #Guardian this morning https://t.co/fspWKVyrnY | #Greece - my interview with prime minister Alexis Tsipras in the #Guardian this morning https://t.co/fspWKVyrnY |
| 1.25pm BST | 1.25pm BST |
| 13:25 | 13:25 |
| This chart shows how Greek bond yields have receded from their crisis-era heights, as confidence has slowly returned. | This chart shows how Greek bond yields have receded from their crisis-era heights, as confidence has slowly returned. |
| Greece is tapping the bond markets two years after it was bought to the brink of a eurozone exit https://t.co/aBNmmMXlTX pic.twitter.com/io2pEaGvMM | Greece is tapping the bond markets two years after it was bought to the brink of a eurozone exit https://t.co/aBNmmMXlTX pic.twitter.com/io2pEaGvMM |
| 1.15pm BST | 1.15pm BST |
| 13:15 | 13:15 |
| Greece’s offer to buy back some of its existing five-year bonds is good news for investors. | Greece’s offer to buy back some of its existing five-year bonds is good news for investors. |
| Anyone who bought the debt last year, when they traded below their face value, can now sell them back for a profit: | Anyone who bought the debt last year, when they traded below their face value, can now sell them back for a profit: |
| Greece is offering to buy 2019 bonds at 102.6% of face value. If you bought back in February at 90, you're laughing now pic.twitter.com/r9zcWYeaiq | Greece is offering to buy 2019 bonds at 102.6% of face value. If you bought back in February at 90, you're laughing now pic.twitter.com/r9zcWYeaiq |
| Updated | Updated |
| at 1.16pm BST | at 1.16pm BST |