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You can find the current article at its original source at http://www.guardian.co.uk/business/2012/jun/19/eurozone-crisis-live-greece-poised-to-form-coalition
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| Eurozone crisis live: Greece poised to form coalition | Eurozone crisis live: Greece poised to form coalition |
| (40 minutes later) | |
| 8.33am: French business confidence declined again in June. It decreased from 93 in May to 92, and was at 98 in March this year. Manuel Maleki of ING says: | |
| French business confidence stayed low due to an anaemic domestic market. Moreover, the poor international climate and the uncertainty regarding the future of the eurozone after the Greek election and doubts on the Spanish banking sector have hit French business confidence. The announced taxes on dividends and the political tensions between France and Germany, its first trade partner, are unlikely to improve business sentiment any time soon. | |
| 8.25am: There are rumours that the report on Spanish banks – which will determine how much of the proposed €100bn bailout they will need – could be released today instead of Thursday. Gary Jenkins of Swordfish Research says it is unlikely to be good news: | |
| Spain was not helped yesterday by speculation that the independent audit of the banks could show that the total amount required is over the already agreed €100bn bailout figure. This is just a rumour but I think it is fair to say that the €100bn figure was originally described as allowing for any eventuality with lots of headroom so if the figure does end up being over €75bn then yet again European officials / politicians will have made a bad situation even worse. | |
| 8.20am: In the debt markets, the yield on Spain's 10-year bonds – effectively the interest rate on the bonds – is at 7.16%, slightly lower than yesterday's high of 7.26%. | |
| The yield on Italy's 10-year bond is bouncing around the 6% mark, currently at 6.04% (according to Tradeweb data). | |
| Two banks, ING and BNP, are saying the ECB may resume its bond buying programme if Spain's 10-year yields reach 7.5%. | |
| 8.00am: Quick look at the markets, which have opened slightly higher. | 8.00am: Quick look at the markets, which have opened slightly higher. |
| UK FTSE 100: up 0.5%, or 28 points, at 5519 France CAC 40: up 0.5% Spain IBEX: up 0.3% Germany DAX: up 0.2% Italy: FTSE MIB: up 0.3% | UK FTSE 100: up 0.5%, or 28 points, at 5519 France CAC 40: up 0.5% Spain IBEX: up 0.3% Germany DAX: up 0.2% Italy: FTSE MIB: up 0.3% |
| 7.52am: The main news will be coming out of Greece and the G20 summit today, but there's also inflation figures in the UK and economic confidence from Germany. | 7.52am: The main news will be coming out of Greece and the G20 summit today, but there's also inflation figures in the UK and economic confidence from Germany. |
| Later in the day, the US Federal Reserve will start its two-day meeting on interest rates. My colleague Dominic Rushe reports that analysts expect the Fed to step in with a new round of Operation Twist to bolster the fragile American recovery. | Later in the day, the US Federal Reserve will start its two-day meeting on interest rates. My colleague Dominic Rushe reports that analysts expect the Fed to step in with a new round of Operation Twist to bolster the fragile American recovery. |
| • UK inflation figures for May: 9.30am • Germany ZEW economic confidence survey for June: 10am • Eurozone ZEW economic confidence survey for June: 10am • US housing starts and building permits for May: 1.30pm • JP Morgan's Jamie Dimon testifies: 2.30pm | • UK inflation figures for May: 9.30am • Germany ZEW economic confidence survey for June: 10am • Eurozone ZEW economic confidence survey for June: 10am • US housing starts and building permits for May: 1.30pm • JP Morgan's Jamie Dimon testifies: 2.30pm |
| In the debt markets, Spain will be selling €2bn-€3bn of 12-18 month debt, while Greece is looking to raise €1bn in 13-week treasury bills. Later in the day, the US will be selling 4-week bills. | In the debt markets, Spain will be selling €2bn-€3bn of 12-18 month debt, while Greece is looking to raise €1bn in 13-week treasury bills. Later in the day, the US will be selling 4-week bills. |
| 6.57am: Good morning and welcome to our rolling coverage of the eurozone debt crisis. Greece's conservatives, New Democracy, said late on Monday that they expect to form a new cabinet with the Pasok Socialists and possibly another smaller centre-left party today. | 6.57am: Good morning and welcome to our rolling coverage of the eurozone debt crisis. Greece's conservatives, New Democracy, said late on Monday that they expect to form a new cabinet with the Pasok Socialists and possibly another smaller centre-left party today. |
| Overnight, the IMF announced that its lending capacity has almost doubled following an increase in contributions to the fund to $456bn (£366bn). In a statement from the G20 meeting in Los Cabos, Mexico, IMF chief Christine Lagarde said: | Overnight, the IMF announced that its lending capacity has almost doubled following an increase in contributions to the fund to $456bn (£366bn). In a statement from the G20 meeting in Los Cabos, Mexico, IMF chief Christine Lagarde said: |
| These resources are being made available for crisis prevention and resolution and to meet the potential financing needs of all IMF members. They will be drawn only if they are needed as a second line of defence. | These resources are being made available for crisis prevention and resolution and to meet the potential financing needs of all IMF members. They will be drawn only if they are needed as a second line of defence. |
| Over in Los Cabos, EU commission president José Manuel Barroso has been sounding very defensive and insisting the origins of the eurozone crisis lie in the unorthodox policies of American capitalism. My colleague Patrick Wintour is reporting from the summit. | Over in Los Cabos, EU commission president José Manuel Barroso has been sounding very defensive and insisting the origins of the eurozone crisis lie in the unorthodox policies of American capitalism. My colleague Patrick Wintour is reporting from the summit. |