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Greek debt crisis: markets slide after capital controls imposed - live Greek debt crisis: markets slide after capital controls imposed - live
(35 minutes later)
9.54am BST09:54
French president Francois Hollande has emerged from an emergency cabinet meeting on Greece, to announce that there is still time, just, to save a deal.
Hollande said:
“There are a few hours before the negotiation is definitively closed, in particular for the prolongation of the Greek aid programme.
I wish, if the Greeks, if their government, so decide, that talks resume.”
Hollande also warned that Sunday’s referendum is a choice between staying in the eurozone and taking “the risk to leave it.”
#GreeceCrisis MT @ThomaisERT_RIK Hollande: The #Greferendumis a "sovereign choice" by the Greeks on whether they stay of leave the euro
French President Hollande: Greek referendum is choice to remain in Euro or likely exit. (DJ) #Greferendum #Grexit
9.45am BST09:45
9.43am BST09:43
The market turmoil has forced Switzerland’s central bank to intervene in the currency markets to weaken the Swiss franc.
Thomas Jordan, head of the Swiss National Bank, revealed this morning that the SNB stepped in, to protect Switzerland being hit by the Greek crisis.
He also told a financial conference in Bern that the Greek situation remained uncertain:
And this chart shows how the euro had plunged against the Swiss franc in early trading, only to bounce back as the SNB revealed it had intervened:
SNB's Jordan: Intervened in Franc overnight as #Greece is a very critical situation and SNB is watching closely. pic.twitter.com/zQFzRVPOi8
9.31am BST09:31
A war of tweets appears to have broken out between Athens and Brussels this morning.
This follows the European Commission’s claims on Sunday that Greece had been offered a sweetened version of a cash-for-reform deal to avert bankruptcy, when prime minister Alexis Tsipras announced his shock referendum.
Our correspondent Helena Smith reports from the Greek capital.
The radical leftists in power in Athens are not backing down. Denying that a better offer had ever been made, Minister of state Nikos Pappas, the Greek prime minister’s closest ally, took to twitter this morning to denounce what government officials are calling the chicanery now being spun out of Brussels.
“Look at the “non existent” ultimatum,” he tweeted under a picture showing him holding a sheet of proposals from creditors. “They are asking us to say “YES to everything.”
Ιδού το "ανύπαρκτο" τελεσίγραφο. Ζητάνε να πούμε "ΝΑΙ σε όλα". pic.twitter.com/j2Gn3g3gJY
On Sunday EU commission chief Jean-Claude Juncker, addressing Greek voters directly, published what he said was a sweetened version of the deal the Athens government was looking at when Tsipras made his bombshell announcement.
In a tweet also released in Greek (Juncker’s spokesman Margaritis Schinas is Greek), the EU chief wrote:
“In the interest of transparency and for the information of the Greek people”
and linked to a 10-page document of budgetary and other “prior actions” set by the EU and IMF as conditions for releasing cash to Greece.
Για την ενημέρωση του ελληνικού λαού και σε πνεύμα διαφάνειας η Ευρωπαϊκή Επιτροπή ενημερώνει. http://t.co/dgkGu2AywX
9.17am BST09:179.17am BST09:17
Coming up: Juncker and Merkel....Coming up: Juncker and Merkel....
Reminder: EC president Jean-Claude Juncker will speak about the Greek situation in two and a half hours (11.45am BST/1.45pm Athens)Reminder: EC president Jean-Claude Juncker will speak about the Greek situation in two and a half hours (11.45am BST/1.45pm Athens)
Shortly afterwards (and possibly clashing), Angela Merkel is due in the German parliament to discuss the crisis. She also due to hold emergency meetings today with German political party leaders, and her own CDU party.Shortly afterwards (and possibly clashing), Angela Merkel is due in the German parliament to discuss the crisis. She also due to hold emergency meetings today with German political party leaders, and her own CDU party.
Le Président @JunckerEU fera annonce à 12h45 sur la voie à suivre avec #Grèce. Les dernières prop. @EU_Commission sont connues et publiéesLe Président @JunckerEU fera annonce à 12h45 sur la voie à suivre avec #Grèce. Les dernières prop. @EU_Commission sont connues et publiées
Reminder: #Merkel to address Bundestag at 12.30 BST today. We'll follow and translate live from @OpenEurope #Greece #GreferendumReminder: #Merkel to address Bundestag at 12.30 BST today. We'll follow and translate live from @OpenEurope #Greece #Greferendum
9.05am BST09:059.05am BST09:05
Pensioners queuing at Greek banksPensioners queuing at Greek banks
Back in Athens, pensioners have been queuing outside some bank branches - even though the system has been shut down for a week.Back in Athens, pensioners have been queuing outside some bank branches - even though the system has been shut down for a week.
According to the Kathimerini newspaper, “some local lenders’ branches were expected to open on Monday in order to services pensioners unable to use credit or cash cards to retrieve their pensions”.According to the Kathimerini newspaper, “some local lenders’ branches were expected to open on Monday in order to services pensioners unable to use credit or cash cards to retrieve their pensions”.
Banks were expected to release more information regarding which branches would open their doors later in the day, Kathimerini adds.Banks were expected to release more information regarding which branches would open their doors later in the day, Kathimerini adds.
Banks are closed but have seen quite a few pensioners, many of whom usually use banks rather than ATMs, outside them pic.twitter.com/SX6q1phb1vBanks are closed but have seen quite a few pensioners, many of whom usually use banks rather than ATMs, outside them pic.twitter.com/SX6q1phb1v
8.51am BST08:518.51am BST08:51
All Europe’s main stock markets are deep in the red, after a nervy opening session.All Europe’s main stock markets are deep in the red, after a nervy opening session.
8.47am BST08:478.47am BST08:47
Jessica ElgotJessica Elgot
David Cameron explains that a Downing Street team had been preparing for months for the possibility of a Greek exit from the Euro, and said he would put the “final touches” to a plan in a meeting later today.David Cameron explains that a Downing Street team had been preparing for months for the possibility of a Greek exit from the Euro, and said he would put the “final touches” to a plan in a meeting later today.
“We must make sure we are prepared for any eventuality, that means advising British tourists, looking after British pensioners and people receiving benefits who are living in Greece as well as dealing with issues of Greek banks.”“We must make sure we are prepared for any eventuality, that means advising British tourists, looking after British pensioners and people receiving benefits who are living in Greece as well as dealing with issues of Greek banks.”
The prime minister skirted around whether a Greek departure from the eurozone would make Britain’s renegotiation with the European Union ahead of the UK’s own “in-out” referendum easier.The prime minister skirted around whether a Greek departure from the eurozone would make Britain’s renegotiation with the European Union ahead of the UK’s own “in-out” referendum easier.
“If this organisation is going to would it has to be flexible enough to work for both Eurozone members and countries that I believer are never going to join the Euro, like Britain. My point is that this organisation needs to have the flexibility of a network not the rigidity of a block. This is a two-way street... there are lots of difficult negotiations to come but every journey starts with a single step, as they say.”“If this organisation is going to would it has to be flexible enough to work for both Eurozone members and countries that I believer are never going to join the Euro, like Britain. My point is that this organisation needs to have the flexibility of a network not the rigidity of a block. This is a two-way street... there are lots of difficult negotiations to come but every journey starts with a single step, as they say.”
8.40am BST08:408.40am BST08:40
Cameron: Greek referendum is about eurozone membershipCameron: Greek referendum is about eurozone membership
David Cameron has just discussed the Greek crisis on BBC Radio 4’s Today Programme.David Cameron has just discussed the Greek crisis on BBC Radio 4’s Today Programme.
Does he believe Greece should leave the euro? (the Guardian revealed on Friday that the UK PM told a fellow EU leader that it “might be better” for Greece to withdraw from the eurozone)Does he believe Greece should leave the euro? (the Guardian revealed on Friday that the UK PM told a fellow EU leader that it “might be better” for Greece to withdraw from the eurozone)
Britain’s interest are best served by an agreement between Greece and the eurozone that delivers the security that we want to see, Cameron replies.Britain’s interest are best served by an agreement between Greece and the eurozone that delivers the security that we want to see, Cameron replies.
Will Sunday’s referendum effectively be a vote on whether to stay in the euro?Will Sunday’s referendum effectively be a vote on whether to stay in the euro?
I think that’s what it will come down to, Cameron replies.I think that’s what it will come down to, Cameron replies.
If the Greek people vote yes, they are voting for the sort of deal put forward by the institutions....If the Greek people vote yes, they are voting for the sort of deal put forward by the institutions....
“If they vote no, I find it hard to see how that is consistent with staying in the euro, because there would be, I think, a very significant default and a very significant problem.”“If they vote no, I find it hard to see how that is consistent with staying in the euro, because there would be, I think, a very significant default and a very significant problem.”
#Cameron: Greek Referendum ‘No’ Vote May Lead to Debt Default#Cameron: Greek Referendum ‘No’ Vote May Lead to Debt Default
Cameron adds that Britain has drawn up contingency plan for Greece, and he’ll put the final touches to it today.Cameron adds that Britain has drawn up contingency plan for Greece, and he’ll put the final touches to it today.
Most of the interview covered the terrorism attacks in Tunisia - my colleague Andrew Sparrow covered it in his Politics Live blog.Most of the interview covered the terrorism attacks in Tunisia - my colleague Andrew Sparrow covered it in his Politics Live blog.
Updated at 8.54am BSTUpdated at 8.54am BST
8.26am BST08:268.26am BST08:26
The overall European banking index has tumbled by over 4% in the opening minutes of trading, as investors react to last weekend’s drama.The overall European banking index has tumbled by over 4% in the opening minutes of trading, as investors react to last weekend’s drama.
Deutsche Bank’s Francis Yared explains that there will be short, and long-term consequences of the Greek crisis:Deutsche Bank’s Francis Yared explains that there will be short, and long-term consequences of the Greek crisis:
Given market optimism towards a Greek deal over the last week, the initial risk-off move could be pronounced.Given market optimism towards a Greek deal over the last week, the initial risk-off move could be pronounced.
Post the initial shock, the ECB’s response and sticky domestic capital should limit contagion. Longer term, the events in Greece are a stark reminder that the current eurozone architecture is vulnerable to domestic politics. This in itself will justify some structural risk premium unless there is an institutional change or further economic convergencePost the initial shock, the ECB’s response and sticky domestic capital should limit contagion. Longer term, the events in Greece are a stark reminder that the current eurozone architecture is vulnerable to domestic politics. This in itself will justify some structural risk premium unless there is an institutional change or further economic convergence
Updated at 8.27am BSTUpdated at 8.27am BST
8.10am BST08:108.10am BST08:10
Bank shares hammeredBank shares hammered
Bank shares across Europe are in retreat:Bank shares across Europe are in retreat:
8.07am BST08:078.07am BST08:07
European markets tumble at the openEuropean markets tumble at the open
The German DAX and French CAC have both tumbled by around 4.4% at the open.The German DAX and French CAC have both tumbled by around 4.4% at the open.
And the Portuguese stock market plunged by around 5.8%, as the Greek crisis ripples through the markets.And the Portuguese stock market plunged by around 5.8%, as the Greek crisis ripples through the markets.
8.03am BST08:038.03am BST08:03
Europe’s stock markets are opening... and the FTSE 100 index has promptly tumbled by 2.2%, or 147 points.Europe’s stock markets are opening... and the FTSE 100 index has promptly tumbled by 2.2%, or 147 points.
8.02am BST08:028.02am BST08:02
France’s finance minister, Michel Sapin, has admitted that Greece could leave the euro, in an interview with France Inter radio this morning.France’s finance minister, Michel Sapin, has admitted that Greece could leave the euro, in an interview with France Inter radio this morning.
Of a euro exit for Greece, he said:Of a euro exit for Greece, he said:
“It’s always a possibility, it’s a risk.”“It’s always a possibility, it’s a risk.”
Sapin insisted that negotiations could resume at any time -- and added that Athens must decide:Sapin insisted that negotiations could resume at any time -- and added that Athens must decide:
“Do you want to continue the negotiations or do you want to take the risk of exiting the euro?”“Do you want to continue the negotiations or do you want to take the risk of exiting the euro?”
7.57am BST07:577.57am BST07:57
The Economist Intelligence Unit reckons Grexit is now more likely than not:The Economist Intelligence Unit reckons Grexit is now more likely than not:
#Greece referendum is game changer. Team revise probability of Grexit to 60%. Vote likely to either reject bailout deal, or reject Gov.#Greece referendum is game changer. Team revise probability of Grexit to 60%. Vote likely to either reject bailout deal, or reject Gov.
7.56am BST07:567.56am BST07:56
El-Erian: 85% chance of GrexitEl-Erian: 85% chance of Grexit
Mohamed El-Erian, the chief economic adviser at German financial services firm Allianz, believes there is only a 15% chance that Greece will stay in the eurozone.Mohamed El-Erian, the chief economic adviser at German financial services firm Allianz, believes there is only a 15% chance that Greece will stay in the eurozone.
He told Bloomberg this morning that Greece will probably be forced to leave the single currency in the weeks ahead, saying:He told Bloomberg this morning that Greece will probably be forced to leave the single currency in the weeks ahead, saying:
“There’s an 85 percent probability that Greece will be forced to leave the euro zone.”“There’s an 85 percent probability that Greece will be forced to leave the euro zone.”
“What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it’s going to make continued membership of the euro zone very difficult for Greece.“What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it’s going to make continued membership of the euro zone very difficult for Greece.
7.50am BST07:507.50am BST07:50
Those capital controls in full:Those capital controls in full:
Claire PhippsClaire Phipps
Overnight, the Greek government released details of its capital control measures..Overnight, the Greek government released details of its capital control measures..
Here are the key points:Here are the key points:
All banks shut until 6 JulyAll banks shut until 6 July
All Greek banks – including branches of foreign banks – will remain closed until after the referendum on the bailout proposals. The government says they will reopen on Tuesday 7 July.All Greek banks – including branches of foreign banks – will remain closed until after the referendum on the bailout proposals. The government says they will reopen on Tuesday 7 July.
ATM withdrawals limited to €60 a dayATM withdrawals limited to €60 a day
Cash machine withdrawals will be capped until 6 July. Many machines are already reported to have run out of bank notes, although the government said ATMs should “operate normally again by Monday noon at the latest”.Cash machine withdrawals will be capped until 6 July. Many machines are already reported to have run out of bank notes, although the government said ATMs should “operate normally again by Monday noon at the latest”.
The €60 limit is per bank card. The limit can be changed by the finance minister.The €60 limit is per bank card. The limit can be changed by the finance minister.
Foreign bank cards excepted from controlsForeign bank cards excepted from controls
People using a credit or debit card issued in a foreign country will not be affected by the limits on ATM withdrawals. Thousands of foreign tourists currently staying in Greece could still be affected by cash machines running dry, however, and the finance minister could yet set withdrawal limits here too.People using a credit or debit card issued in a foreign country will not be affected by the limits on ATM withdrawals. Thousands of foreign tourists currently staying in Greece could still be affected by cash machines running dry, however, and the finance minister could yet set withdrawal limits here too.
Stock exchange closed on MondayStock exchange closed on Monday
The Athens stock exchange will not open on Monday.The Athens stock exchange will not open on Monday.
Bank card payments ‘as normal’Bank card payments ‘as normal’
Paying by credit or debit card in shops and between Greek bank accounts should continue to work as normal.Paying by credit or debit card in shops and between Greek bank accounts should continue to work as normal.
Internet banking ‘unaffected’Internet banking ‘unaffected’
The government statement said online transactions inside Greece will not be affected.The government statement said online transactions inside Greece will not be affected.
Foreign transfers prohibitedForeign transfers prohibited
Transfers of money to destinations outside Greece are prohibited and will require approval from a Ministry of Finance commission.Transfers of money to destinations outside Greece are prohibited and will require approval from a Ministry of Finance commission.
Other transactions subject to approvalOther transactions subject to approval
A new banking transactions approval committee will have to approve, on a case-by-case basis, any urgent transactions deemed “necessary to safeguard a public or social interest”, such as medical expenses or pharmaceutical imports.A new banking transactions approval committee will have to approve, on a case-by-case basis, any urgent transactions deemed “necessary to safeguard a public or social interest”, such as medical expenses or pharmaceutical imports.
Interest surcharges prohibitedInterest surcharges prohibited
Interest surcharges on due payments are prohibited during the period of closure.Interest surcharges on due payments are prohibited during the period of closure.
Penalties for banks breaching controlsPenalties for banks breaching controls
Banks breaching the rules face fines of up to 10% of the amount of any transaction violating the control measures.Banks breaching the rules face fines of up to 10% of the amount of any transaction violating the control measures.
What will happen after 6 July?What will happen after 6 July?
The statement allows for the “bank holiday period” to be extended – or shortened – by the finance minister.The statement allows for the “bank holiday period” to be extended – or shortened – by the finance minister.
7.44am BST07:447.44am BST07:44
Asian markets in the redAsian markets in the red
Overnight, markets from Mumbai to Tokyo were rattled by the Greek debt crisis:Overnight, markets from Mumbai to Tokyo were rattled by the Greek debt crisis:
Updated at 7.45am BSTUpdated at 7.45am BST
7.37am BST07:377.37am BST07:37
Introduction: Greek crisis throws markets into turmoilIntroduction: Greek crisis throws markets into turmoil
Good morning.Good morning.
The Greek debt crisis is set to sent turmoil through Europe’s financial markets this morning, as the looming prospect of Greece plunging out of the eurozone sends panic through trading floors.The Greek debt crisis is set to sent turmoil through Europe’s financial markets this morning, as the looming prospect of Greece plunging out of the eurozone sends panic through trading floors.
Shares are set to tumble in London, Frankfurt, Paris and beyond, after a dramatic weekend which began with Alexis Tsipras announce a referendum on bailout terms next Sunday - and ended with the imposition of capital controls and a bank holiday for at least a week.Shares are set to tumble in London, Frankfurt, Paris and beyond, after a dramatic weekend which began with Alexis Tsipras announce a referendum on bailout terms next Sunday - and ended with the imposition of capital controls and a bank holiday for at least a week.
In Greece, people are facing up to the news that banks will remain shut for at least a week - and that they will be restricted to taking out €60 per day at the cash machines.In Greece, people are facing up to the news that banks will remain shut for at least a week - and that they will be restricted to taking out €60 per day at the cash machines.
Greece crisis deepens as banks close for a week after weekend that shook euroGreece crisis deepens as banks close for a week after weekend that shook euro
Germany’s DAX index is predicted to plunge by 5% - an alarming selloff - while Britain’s FTSE 100 is on track to shed over 2% when trading begins at 8am BST.Germany’s DAX index is predicted to plunge by 5% - an alarming selloff - while Britain’s FTSE 100 is on track to shed over 2% when trading begins at 8am BST.
European government bonds could also come under pressure, if investors calculate that the eurozone debt crisis is going to spread.European government bonds could also come under pressure, if investors calculate that the eurozone debt crisis is going to spread.
Asian stock markets have already been through a torrid day, with Japan’s Nikkei tumbling almost 3%. And the euro has already shed around 1% against the US dollar.Asian stock markets have already been through a torrid day, with Japan’s Nikkei tumbling almost 3%. And the euro has already shed around 1% against the US dollar.
Here’s our overnight story:Here’s our overnight story:
Greece crisis: markets begin to tumble as investors fleeGreece crisis: markets begin to tumble as investors flee
Europe’s political leaders are also scrambling to address the crisis, with Greece now on track to exit its bailout tomorrow night and default on its €1.6bn repayment to the International Monetary Fund.Europe’s political leaders are also scrambling to address the crisis, with Greece now on track to exit its bailout tomorrow night and default on its €1.6bn repayment to the International Monetary Fund.
European Commission head Jean-Claude Juncker is due to hold a press conference at 10.45am BST to discuss the latest developments on Greece.European Commission head Jean-Claude Juncker is due to hold a press conference at 10.45am BST to discuss the latest developments on Greece.
In Berlin, German Chancellor Angela Merkel has called an emergency meeting with the heads of parliamentary groups and party leaders today, while French President Francois Hollande will chair crisis talks with key ministers in Paris this morning.In Berlin, German Chancellor Angela Merkel has called an emergency meeting with the heads of parliamentary groups and party leaders today, while French President Francois Hollande will chair crisis talks with key ministers in Paris this morning.
UK prime minister David Cameron is due to speak on the situation soon - he’s due on Radio 4’s Today Programme this morning (the ten past eight slot).UK prime minister David Cameron is due to speak on the situation soon - he’s due on Radio 4’s Today Programme this morning (the ten past eight slot).
I’ll be tracking all the main events through the day....I’ll be tracking all the main events through the day....