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| Eurozone crisis live: Greece bailout fears unnerve markets | Eurozone crisis live: Greece bailout fears unnerve markets |
| (40 minutes later) | |
| 9.11am: News in from Athens. Our correspondent Helena Smith reports that finance minister Evangelos Venizelos has blasted those Greek politicians who back the debt-stricken country's exit from the euro zone. | |
| Speaking after last night's eurogroup conference call, Venizelos launched an attack on the communist and hard-left parties who believe Greece should abandon the euro. He said: | |
Those who support a euro exit, that is to say the bankruptcy solution, are not being of any help to the country. They don't understand that with their blind reaction [to the prospect of yet more austerity measures in return for the aid] they are endangering wages, pensions and the standard of living. | |
| Venizelos said the three-hour teleconference call with euro zone finance ministers focused as much on "the political and social situation" in Greece as on economic issues. | |
| His counterparts, though, wanted to know as much about ''what Greeks want" and whether implemtentation of the hard-hitting rescue program would be feasible after general elections in April. | |
| 8.35am: It's a relatively quiet day on the news agenda: | 8.35am: It's a relatively quiet day on the news agenda: |
| • European Central Bank publishes its monthly report for February - 9am GMT / 10am CET • Italian trade balance for December - 9am GMT / 10am CET • US weekly jobless data+housing starts - 1.30pm GMT / 8.30am EST | • European Central Bank publishes its monthly report for February - 9am GMT / 10am CET • Italian trade balance for December - 9am GMT / 10am CET • US weekly jobless data+housing starts - 1.30pm GMT / 8.30am EST |
| France, Spain and Hungary will all attempt to auction government debt this morning. | France, Spain and Hungary will all attempt to auction government debt this morning. |
| 8.19am: Another cause of unease this morning – Moody's has warned that it may cut the credit ratings of 114 banks across Europe. | 8.19am: Another cause of unease this morning – Moody's has warned that it may cut the credit ratings of 114 banks across Europe. |
| The rating agency announced the move following its actions on nine European countries earlier this week. It said that ratings could be lowered because of: | The rating agency announced the move following its actions on nine European countries earlier this week. It said that ratings could be lowered because of: |
| (i) the adverse and prolonged impact of the euro area crisis, which makes the operating environment very difficult for European banks; (ii) the deteriorating creditworthiness of euro area sovereigns (iii) the substantial challenges faced by banks and securities firms with significant capital market activities. | (i) the adverse and prolonged impact of the euro area crisis, which makes the operating environment very difficult for European banks; (ii) the deteriorating creditworthiness of euro area sovereigns (iii) the substantial challenges faced by banks and securities firms with significant capital market activities. |
| Moody's indicated that UBS, Credit Suisse and Morgan Stanley could all potentially be downgraded by up to 3 notches. | Moody's indicated that UBS, Credit Suisse and Morgan Stanley could all potentially be downgraded by up to 3 notches. |
| The move could remind European leaders that the region's banking sector is not well-positioned to copy with a disorderly Greek default. As Michael Hewson of CMC Markets points out: | The move could remind European leaders that the region's banking sector is not well-positioned to copy with a disorderly Greek default. As Michael Hewson of CMC Markets points out: |
There will be no winners or losers in this particular little saga as Europe gives the impression of gearing up to cut Greece loose, unless they subjugate to demands for new measures to sate various new concerns. This dangerous game has all the potential to blow up in their faces. | There will be no winners or losers in this particular little saga as Europe gives the impression of gearing up to cut Greece loose, unless they subjugate to demands for new measures to sate various new concerns. This dangerous game has all the potential to blow up in their faces. |
| 8.13am: In the currency markets, the euro slid nearly a cent against the dollar to as low as $1.2995 in early trading today. | 8.13am: In the currency markets, the euro slid nearly a cent against the dollar to as low as $1.2995 in early trading today. |
| 8.03am: Shares have fallen across Europe at the start of trading, driven down by jitters over the eurozone. | 8.03am: Shares have fallen across Europe at the start of trading, driven down by jitters over the eurozone. |
| The FTSE 100 fell 50 points, or 0.86%, to 5841. There are steeper losses in other markets – Germany's DAX fell 1.3%, the Spanish IBEX dropped by 1.4%. | The FTSE 100 fell 50 points, or 0.86%, to 5841. There are steeper losses in other markets – Germany's DAX fell 1.3%, the Spanish IBEX dropped by 1.4%. |
| Chris Weston of IG explained that traders were spooked by the Greek president's attack on Germany yesterday (he slammed Wolfgang Schäuble for insulting Greece): | Chris Weston of IG explained that traders were spooked by the Greek president's attack on Germany yesterday (he slammed Wolfgang Schäuble for insulting Greece): |
| There seems to be a war of words building between Germany and Greece, with tensions mounting when the market would clearly like to see officials singing with one voice. | There seems to be a war of words building between Germany and Greece, with tensions mounting when the market would clearly like to see officials singing with one voice. |
| Mr Papoulias' comments seemed to make reference to World War II, which can't help tensions in any way | Mr Papoulias' comments seemed to make reference to World War II, which can't help tensions in any way |
| 7.54am: Last night's conference call between euro finance leaders yielded four important developments. | 7.54am: Last night's conference call between euro finance leaders yielded four important developments. |
| 1) Greece and the Eurogroup have collectively found €325m of outstanding saving cuts 2) The Eurogroup will decide on Monday 20 February whether Greece has met the terms of its second, €130bn, rescue deal 3) Some Europeam ministers reportedly written commitments from Greece's smaller parties 4) There are rumours that Greece would not receive its bailout unless a senior presence from the Troika was installed in Athens. | 1) Greece and the Eurogroup have collectively found €325m of outstanding saving cuts 2) The Eurogroup will decide on Monday 20 February whether Greece has met the terms of its second, €130bn, rescue deal 3) Some Europeam ministers reportedly written commitments from Greece's smaller parties 4) There are rumours that Greece would not receive its bailout unless a senior presence from the Troika was installed in Athens. |
| Parts 3) and 4) aren't spelled out in the statement released last night – it merely hints at the need for " specific mechanisms to strengthen the surveillance of programme implementation and to ensure that priority is given to debt servicing". | Parts 3) and 4) aren't spelled out in the statement released last night – it merely hints at the need for " specific mechanisms to strengthen the surveillance of programme implementation and to ensure that priority is given to debt servicing". |
| 7.45am: Good morning, and welcome to another day of rolling coverage of the eurozone debt crisis. | 7.45am: Good morning, and welcome to another day of rolling coverage of the eurozone debt crisis. |
| It's a nervy day too, following the escalation in tensions between Greece and Germany on Wednesday. Evangelos Venizelos's claim that some countries are trying to loosen Greece's grip on its euro status has heightened fears that the country's second bailout may collapse. | It's a nervy day too, following the escalation in tensions between Greece and Germany on Wednesday. Evangelos Venizelos's claim that some countries are trying to loosen Greece's grip on its euro status has heightened fears that the country's second bailout may collapse. |
| Stock markets in Asia have already posted losses, the euro has dipped below the $1.30 point in early trading, and City analysts expect losses in London too. | Stock markets in Asia have already posted losses, the euro has dipped below the $1.30 point in early trading, and City analysts expect losses in London too. |
| Eurogroup ministers decided last night to make a final decision on Greece's rescue package on Monday – we'll be tracking the reaction to the decisions taken on that conference call. | Eurogroup ministers decided last night to make a final decision on Greece's rescue package on Monday – we'll be tracking the reaction to the decisions taken on that conference call. |
| And will yesterday's rumour that the bailout could be delayed until April, or split up, gather pace?..... | And will yesterday's rumour that the bailout could be delayed until April, or split up, gather pace?..... |