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Eurozone crisis live: Bank fears rattle markets Eurozone crisis live: Bank fears rattle markets
(40 minutes later)
9.07am: Things would be greatly helped if the Greeks could sort themselves out of course. To that end socialist leader Evangelos Venizelos is meeting his conservative counterpart Antonio Samaras today to see if they can put together a government of national unity.
The talks between the two leaders, whose usually dominant parties were hammered in Sunday's election, represents the last chance for Greece to get a government without fresh elections.
We'll get more on this as it happens.
8.54am: As promised, we've now got some words on the slowdown in China here.
Although China grew by 8.1% in the first quarter, that's not great by its recent standards and was down from 8.9% in the fourth quarter of 2011. Many experts are therefore talking about the need for new stimulus measures there to keep the growth up above 8%.
Here's Lorraine Tan, director of equities research at credit ratings agency Standard & Poor's:
Now that you have the European uncertainty coming back in a bigger way, I think people are going to hold back a bit longer. The key will be for China to grow at least 8 percent this year to help fuel global growth and demand.
8.48am: Also expected today are the European Commission's economic forecasts which our Europe editor, Ian Traynor, pictured, points out could be quite tricky for newly elected french president Francois Hollande. Here's Ian:
After a week of ferocious political austerity-v-growth argument across Europe, triggered by Francois Hollande's triumph last weekend and the electoral fallout in Greece, sobering statistics are expected from the European Commission this morning when Olli Rehn presents his spring forecasts on deficits, debt, and unemployment levels in the European economy.
Apart from the usual suspects - the Greek calamity and the worsening
situation in Spain - many eyes will be on the figures for France and
what they indicate about Hollande's ambitions.
The new regime in Paris has said it is committed to meeting the budget deficit target of 3% next year while relaxing austerity and trying to spur growth. The expectation in Brussels is that Rehn's figures will emphasise the daunting challenges faced by Hollande. The policy prescription is bound to be one of belt-tightening rather than stepping off the brakes.
The Dutch, also in a deficit mess despite their preaching of fiscal orthodoxy, will also be taken to task. Speculation is rife, however, that Mariano Rajoy in Spain might be given a bit more time to meet the eurozone targets.
8.39am: It's suddenly looking quite lively today. The unexpected news from JP Morgan last night has clearly upset market sentiment but a 75% fall in profits at Credit Agricole in France - blamed on losses in Greece - has added to renewed unease about the banking sector.8.39am: It's suddenly looking quite lively today. The unexpected news from JP Morgan last night has clearly upset market sentiment but a 75% fall in profits at Credit Agricole in France - blamed on losses in Greece - has added to renewed unease about the banking sector.
Given that we're also expecting a big announcement from Spain today about what they plan to do about their banks and the market reaction seems a bit easier to fathom.Given that we're also expecting a big announcement from Spain today about what they plan to do about their banks and the market reaction seems a bit easier to fathom.
8.27am: Markets all over Europe are down as well, following overnight falls in Asia. The Ibex in Madrid, which hit a 9-year low this week, is down 1.25%. The CAC in Paris is off 1% while the Dax in Frankfurt is down 0.6%.8.27am: Markets all over Europe are down as well, following overnight falls in Asia. The Ibex in Madrid, which hit a 9-year low this week, is down 1.25%. The CAC in Paris is off 1% while the Dax in Frankfurt is down 0.6%.
8.21am: The FTSE100 in London is down nearly 26 points, not helped by the overnight revelations that a trader here known as the London Whale has cost JP Morgan $2bn.8.21am: The FTSE100 in London is down nearly 26 points, not helped by the overnight revelations that a trader here known as the London Whale has cost JP Morgan $2bn.
Banks taking a bit of a pasting - Barclays down 2.3%, ditto RBS, which has also announced 500 job cuts in Holland. That's around 25% of its headcount in Amsterdam where it has operations as a result of its ill-fated takeover of ABN Amro. That, truly, is the deal that keeps on giving.Banks taking a bit of a pasting - Barclays down 2.3%, ditto RBS, which has also announced 500 job cuts in Holland. That's around 25% of its headcount in Amsterdam where it has operations as a result of its ill-fated takeover of ABN Amro. That, truly, is the deal that keeps on giving.
8.11am: Good morning and welcome to the live blog. The action today promises to be mainly in Spain where the cabinet is meeting to discuss banking reforms and how much taxpayer money might be needed to support the country's creaking banking system. See here for an excellent summary of how things have gone wrong there.8.11am: Good morning and welcome to the live blog. The action today promises to be mainly in Spain where the cabinet is meeting to discuss banking reforms and how much taxpayer money might be needed to support the country's creaking banking system. See here for an excellent summary of how things have gone wrong there.
Otherwise the markets are set to open sharply down after figures from China showed that its economy is still slowing down. Story coming on that soon. Could be a big day for "hard landing/soft landing" debates.Otherwise the markets are set to open sharply down after figures from China showed that its economy is still slowing down. Story coming on that soon. Could be a big day for "hard landing/soft landing" debates.
We've also got UK producer prices at 9.30am to look forward to.We've also got UK producer prices at 9.30am to look forward to.