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Greek debt crisis: markets fall and bond yields rise after no vote – live Greek crisis: markets fall and bond yields rise as Varoufakis goes – live
(35 minutes later)
8.57pm AEST11:57
In Spain Pablo Iglesias, leader of the anti-austerity party Podemos, welcomed the results of the Greek referendum but cautioned those who sought to draw parallels between Spain and Greece. Ashifa Kassam in Madrid reports:
“It’s a very clear message,” Iglesias told Spanish radio Cadena Ser. “The citizens of Greece have said that austerity isn’t the way to end the economic crisis.”
He called on Europe’s leaders to reach an agreement with Greece, pointing to the resignation of Greek finance minister Yanis Varoufakis. “Now there is no excuse. The time has come for sensibility and to find a reasonable agreement.”
On Varoufakis’ resignation he said: “It hurt me a lot because I think he’s an excellent economist....but I think the act of resigning is honorable as it will help the push for the agreement that his country needs.”
With a general election due in Spain by the end of the year, Iglesias carefully chose his words, knowing that the situation in Greece could drive moderate voters away from his party. “We have a great friendship with Syriza, but luckily, Spain is not Greece. We’re an economy with much more weight in the eurozone, we’re a country with a stronger administration and with a better economic situation,” he said, taking aim at the many comparisons being drawn between Spain and Greece. “The circumstances are different and I think it makes no sense to draw these parallels.”
The situation in Greece has been used by the governing People’s Party to justify the austerity measures imposed during the height of the economic crisis. “Fortunately Spain has a prime minister who said no to the bailout and instead undertook reforms,” PP vice-president Fernando Martínez-Maillo told broadcaster Radio Nacional de España on Monday. “Thanks to those reforms...we’re in a situation of economic growth and job creation.”
Spain’s finance minister, Luis de Guindos said on Monday that although the No vote made the situation more complex, everyone wants Greece to “stay in the euro.” His government is ready to talk about a third bailout, he added, but only if Greece was willing to play by the rules.
8.47pm AEST11:47
Eleni Varvitsiotis of Greek newspaper Kathimerini is not very upbeat about Dombrovskis:
the mood set by @VDombrovskis was not positive for a new agreement. hope I'm wrong
8.46pm AEST11:46
More from Dombrovskis:
There are going to be few winners in this situation, says @VDombrovskis , side-stepping question whether Juncker should resign.
"Going to be very complicated to restore financial stability in #Greece w/o any agreement," @VDombrovskis in case message not getting thru.
8.41pm AEST11:41
EC's Dombrovskis says no vote complicates things
European Commissioner vice president Valdis Dombrovskis has said the no vote complicates the situation, but Greece’s place remains in the eurozone.
#EC takes note of the result of referendum in Greece. To negotiate we need a mandate from the #Eurogroup. pic.twitter.com/U8KfafNsHd
My colleague Jennifer Rankin notes:
Situation must be bad because no Greek flag backdrop to Dombrovskis speech.
Greece has had €184bn since 2010, but reforms only partially implemented. @EU_Commission blames Tsipras gov for failure return to ec. growth
#EU supported #Greece to reform its economy so it could stand proud and independent from outside help in the future. #EC
The stability of the #Eurozone is not in question - we are willing and able to ensure financial stability by all available means. #EC
No result widens gap between Greece and other eurozone countries, says Valdis Dombrovskis.
The place of Greece is and remains in Europe says @VDombrovskis . All sides need to work responsibly.
Meaning of this referendum was to send a political signal to the rest of Europe, says @VDombrovskis. No will make things more complicated.
Yes vote would have sent positive signal, no vote complicates things, says @VDombrovskis. No change in tough message after #Grefenderum
Eurogroup and Eurosummit will decide on path forward, @VDombrovskis says, Commission will not pre-judge. #Greece
Updated at 8.58pm AEST
8.33pm AEST11:33
Britain has called on Greece and its eurozone partners to sit down together and find a sustainable solution, Reuters reports.
Prime minister David Cameron’ spokeswoman said finding a solution was clearly in Britain’s best interests, and Britain supports a 28 member EU.
8.30pm AEST11:30
Meanwhile the ECB’s Ewald Nowotny, also president of the National Bank of Austria, said any new Greek deal needs time. To expect an agreement within two days - as Greece had suggested - is “illusionary.”
And regarding the emergency liquidity assistance for Greek banks:
*NOWOTNY SAYS DEVELOPMENTS DON'T MAKE ELA DECISION EASIER
8.25pm AEST11:25
Greek prime minister Alexis Tsipras has reportedly already been on the phone to European Central Bank president Mario Draghi - not surprising when the ECB has to decide its next move with regard to Greek banks.
Meanwhile Tsipras will apparently also speak to Russian president Putin on the phone before the end of the day.
8.23pm AEST11:238.23pm AEST11:23
And here’s a bit of a dampener on things, from Austria’s Finance Minister Hans Joerg Schelling:And here’s a bit of a dampener on things, from Austria’s Finance Minister Hans Joerg Schelling:
BREAKING: Austrian FinMin Schelling says he thinks there's not much room for movement on Greece at Eurogroup meeting on Tuesday.BREAKING: Austrian FinMin Schelling says he thinks there's not much room for movement on Greece at Eurogroup meeting on Tuesday.
But he did say he hopes talks would be easier now Varoufakis has gone.
Updated at 8.26pm AEST
8.04pm AEST11:048.04pm AEST11:04
What happens next?What happens next?
So what happens next, for Greece’s bailout negotiations, the country’s banks, its future in the eurozone? Here is our updated assessment of where we stand:So what happens next, for Greece’s bailout negotiations, the country’s banks, its future in the eurozone? Here is our updated assessment of where we stand:
Related: Greek referendum: what happens now after the no vote?Related: Greek referendum: what happens now after the no vote?
7.56pm AEST10:567.56pm AEST10:56
And as a tribute to Yanis Varoufakis brief but colourful period as Greek finance minister, here is a piece of video from 1993. As an economics professor he was discussing government policies and, topically, austerity.And as a tribute to Yanis Varoufakis brief but colourful period as Greek finance minister, here is a piece of video from 1993. As an economics professor he was discussing government policies and, topically, austerity.
7.44pm AEST10:447.44pm AEST10:44
Spain’s economy minister Luis de Guindos has echoed that Greece should remain part of the eurozone and the euro is irreversible.Spain’s economy minister Luis de Guindos has echoed that Greece should remain part of the eurozone and the euro is irreversible.
He said the Spanish government was open to negotiating a third bailout, and any new Greek package should include a comprehensive analysis of Greek needs.He said the Spanish government was open to negotiating a third bailout, and any new Greek package should include a comprehensive analysis of Greek needs.
(Quotes courtesy Reuters).(Quotes courtesy Reuters).
7.38pm AEST10:387.38pm AEST10:38
Conditions for talks with Greece are not in place, German government spokesman Steffen Seibert has said.Conditions for talks with Greece are not in place, German government spokesman Steffen Seibert has said.
But Greece is part of the eurozone and the government must act to make sure this remains the case. Germany is now waiting for the new proposals from Greece:But Greece is part of the eurozone and the government must act to make sure this remains the case. Germany is now waiting for the new proposals from Greece:
*SEIBERT SAYS FUTURE DEPENDS ON NEW GREEK PROPOSALS*SEIBERT SAYS FUTURE DEPENDS ON NEW GREEK PROPOSALS
7.34pm AEST10:347.34pm AEST10:34
Donald Tusk, President of the European Council, has confirmed this morning’s conference call and its participants:Donald Tusk, President of the European Council, has confirmed this morning’s conference call and its participants:
To prepare #EuroSummit on #Greece I convened a conference call this morning with @ECB #Draghi @JunckerEU @J_Dijsselbloem & #ESM ReglingTo prepare #EuroSummit on #Greece I convened a conference call this morning with @ECB #Draghi @JunckerEU @J_Dijsselbloem & #ESM Regling
7.31pm AEST10:317.31pm AEST10:31
George Osborne to make Commons statement on GreeceGeorge Osborne to make Commons statement on Greece
UK chancellor George Osborne is set to make a statement about Greece in the Commons at around 3.30 today. Earlier Osborne met prime minister David Cameron and Bank of England governor Mark Carney to discuss the crisis:UK chancellor George Osborne is set to make a statement about Greece in the Commons at around 3.30 today. Earlier Osborne met prime minister David Cameron and Bank of England governor Mark Carney to discuss the crisis:
Mark Carney pursed by @BBCNormanS after meeting Cameron & Osborne over Greece. Tight lipped on content of meeting pic.twitter.com/Ii8EhU3AcaMark Carney pursed by @BBCNormanS after meeting Cameron & Osborne over Greece. Tight lipped on content of meeting pic.twitter.com/Ii8EhU3Aca
7.27pm AEST10:277.27pm AEST10:27
Greek banks can keep allowing withdrawals until Friday, depending on what happens with the ECB, the BBC’s Robert Peston has reported:Greek banks can keep allowing withdrawals until Friday, depending on what happens with the ECB, the BBC’s Robert Peston has reported:
Banks can continue to allow €60 withdrawals till Friday, if ECB continues to freeze emergency assistance, minister Stathakis tells meBanks can continue to allow €60 withdrawals till Friday, if ECB continues to freeze emergency assistance, minister Stathakis tells me
Meanwhile, earlier:Meanwhile, earlier:
Syriza minister Antanopolou tells Humphrys and @BBCr4today that there are just 48 hours to keep Greece in euro #GreeceCrisisSyriza minister Antanopolou tells Humphrys and @BBCr4today that there are just 48 hours to keep Greece in euro #GreeceCrisis
7.24pm AEST10:247.24pm AEST10:24
The Eurogroup - which as we said earlier is to meet on Tuesday - has said it expects new proposals from Greece. In a statement it said:The Eurogroup - which as we said earlier is to meet on Tuesday - has said it expects new proposals from Greece. In a statement it said:
The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities.The Eurogroup will discuss the situation following the referendum in Greece that was held on 5 July 2015. Ministers expect new proposals from the Greek authorities.
The referendum was held after the Greek government unilaterally withdrew from ongoing negotiations with the institutions (the European Commission, the European Central Bank and the International Monetary Fund) on Greece’s comprehensive reform plan, foreseen under the agreement of February 2015.The referendum was held after the Greek government unilaterally withdrew from ongoing negotiations with the institutions (the European Commission, the European Central Bank and the International Monetary Fund) on Greece’s comprehensive reform plan, foreseen under the agreement of February 2015.
7.18pm AEST10:187.18pm AEST10:18
Greece likely to be on BRICS summit agendaGreece likely to be on BRICS summit agenda
There has been no official reaction from the Kremlin yet about the Greek vote, writes Shaun Walker, but Russia has been watching the drama unfold between Athens and Brussels with some interest, and Greek prime minister Alexis Tsipras has made two visits to Moscow in recent months to make the point that Greece could seek alternative creditors. He has left with little in the way of concrete commitments, however.There has been no official reaction from the Kremlin yet about the Greek vote, writes Shaun Walker, but Russia has been watching the drama unfold between Athens and Brussels with some interest, and Greek prime minister Alexis Tsipras has made two visits to Moscow in recent months to make the point that Greece could seek alternative creditors. He has left with little in the way of concrete commitments, however.
A summit of the BRICS group of nations (Brazil, Russia, India, China, South Africa) will be held in the Russian city of Ufa later this week and Greece is likely to be on the agenda. Various ideas have been floated in recent weeks, including making Greece a member of the club, which would give it access to loans from the newly founded BRICS development bank.A summit of the BRICS group of nations (Brazil, Russia, India, China, South Africa) will be held in the Russian city of Ufa later this week and Greece is likely to be on the agenda. Various ideas have been floated in recent weeks, including making Greece a member of the club, which would give it access to loans from the newly founded BRICS development bank.
However, while Moscow might be keen on the idea for political reasons, Russia is also still in a difficult financial situation, and the other BRICS members may well be less keen.However, while Moscow might be keen on the idea for political reasons, Russia is also still in a difficult financial situation, and the other BRICS members may well be less keen.
7.14pm AEST10:147.14pm AEST10:14
The Eurogroup will be meeting tomorrow ahead of the eurozone leaders’ summit, its president Jeroen Dijsselbloem has just said:The Eurogroup will be meeting tomorrow ahead of the eurozone leaders’ summit, its president Jeroen Dijsselbloem has just said:
Starting time additional #eurogroup Tuesday 7 July at 1pm #GreeceStarting time additional #eurogroup Tuesday 7 July at 1pm #Greece
7.07pm AEST10:077.07pm AEST10:07
As the European Central Bank decides about liquidity for Greek banks - ahead of the July 20 date for the country to repay €3.5bn on a bond held by the ECB - economist Dario Perkins at Lombard Street Research points to one possible outcome:As the European Central Bank decides about liquidity for Greek banks - ahead of the July 20 date for the country to repay €3.5bn on a bond held by the ECB - economist Dario Perkins at Lombard Street Research points to one possible outcome:
Sensible way for ECB to get itself off the hook: Greece votes No — now what? - http://t.co/UkJj0TUT3T http://t.co/VxVal6HbNj via @FTSensible way for ECB to get itself off the hook: Greece votes No — now what? - http://t.co/UkJj0TUT3T http://t.co/VxVal6HbNj via @FT
ECB doesn't want to decide Grexit, so asking creditor govts to guarantee Greek collateral - i.e passing the buck - seems like best strategyECB doesn't want to decide Grexit, so asking creditor govts to guarantee Greek collateral - i.e passing the buck - seems like best strategy
Updated at 8.19pm AESTUpdated at 8.19pm AEST
7.01pm AEST10:017.01pm AEST10:01
UK papers have reflected the uncertainty over the what comes next for the eurozone, as Roy Greenslade reports:UK papers have reflected the uncertainty over the what comes next for the eurozone, as Roy Greenslade reports:
Crisis, chaos, turmoil. Today’s British national newspaper headlines reflect the seriousness of the situation facing the European Union and the eurozone after the referendum vote in Greece.Crisis, chaos, turmoil. Today’s British national newspaper headlines reflect the seriousness of the situation facing the European Union and the eurozone after the referendum vote in Greece.
Several of the newspapers also convey the sense of bafflement at what happens next: “Europe faces crisis after gambling Greeks say No” (The Times); “Europe in turmoil as Greeks vote No” (Daily Telegraph); “Greek ‘no’ plunges Europe into crisis” (The Independent); “Greeks vote ‘no’ - Europe shudders (i); and “Greece’s eurozone future hangs in balance as No vote set to triumph” (Financial Times).Several of the newspapers also convey the sense of bafflement at what happens next: “Europe faces crisis after gambling Greeks say No” (The Times); “Europe in turmoil as Greeks vote No” (Daily Telegraph); “Greek ‘no’ plunges Europe into crisis” (The Independent); “Greeks vote ‘no’ - Europe shudders (i); and “Greece’s eurozone future hangs in balance as No vote set to triumph” (Financial Times).
The Daily Mail and Daily Express engage in some prediction: “Meltdown: EU in crisis as Greece votes ‘no’ to crippling cuts and heads for eurozone exit” and “Greece ready to leave the Euro after day of chaos”.The Daily Mail and Daily Express engage in some prediction: “Meltdown: EU in crisis as Greece votes ‘no’ to crippling cuts and heads for eurozone exit” and “Greece ready to leave the Euro after day of chaos”.
Two prefer to state the bald fact: “Greek voters defy Europe” (The Guardian) and “Greeks vote no” (Metro). And the red-tops, being the red-tops, indulge in puns: “Greeky bum time” (The Sun); “Rhodes to ruin?” (Daily Mirror); and “It’s Greece frightenin’.” (Daily Star).Two prefer to state the bald fact: “Greek voters defy Europe” (The Guardian) and “Greeks vote no” (Metro). And the red-tops, being the red-tops, indulge in puns: “Greeky bum time” (The Sun); “Rhodes to ruin?” (Daily Mirror); and “It’s Greece frightenin’.” (Daily Star).
But there is nothing to smile about in the editorials, several of which refer to it, predictably, as a “Greek tragedy.” Newspapers opposed to the EU or, at the least, to the euro, barely conceal their delight at the possible unravelling of the eurozone.But there is nothing to smile about in the editorials, several of which refer to it, predictably, as a “Greek tragedy.” Newspapers opposed to the EU or, at the least, to the euro, barely conceal their delight at the possible unravelling of the eurozone.
Full story here:Full story here:
Related: Greek referendum: what the British national newspapers sayRelated: Greek referendum: what the British national newspapers say
6.55pm AEST09:556.55pm AEST09:55
Here’s Alexis Tsipras and his colleagues at their meeting this morning to discuss their next move after the no victory in the referendum:Here’s Alexis Tsipras and his colleagues at their meeting this morning to discuss their next move after the no victory in the referendum:
Earlier Tsipras met Greek president Prokopis Pavlopoulos:Earlier Tsipras met Greek president Prokopis Pavlopoulos:
6.51pm AEST09:516.51pm AEST09:51
ECB member and Bank of France governor Christian Noyer has been commenting on Greek finances:ECB member and Bank of France governor Christian Noyer has been commenting on Greek finances:
ECB Noyer: Greece Debt To Eurosystem Cannot Be RestructuredECB Noyer: Greece Debt To Eurosystem Cannot Be Restructured
This refers to Greek debt held by the ECB, which he says cannot be restructured because it would be monetary financing of a state.This refers to Greek debt held by the ECB, which he says cannot be restructured because it would be monetary financing of a state.
6.47pm AEST09:476.47pm AEST09:47
According to the bookies, Greece will not leave the eurozone this year but Britain is likely to vote to leave the EU in a referendum:According to the bookies, Greece will not leave the eurozone this year but Britain is likely to vote to leave the EU in a referendum:
Ladbrokes: Betting markets say no to Grexit, yes to Brexit - Greece 2/5 to stay within Eurozone this year -Brexit odds cut to 3/1 (from 7/2)Ladbrokes: Betting markets say no to Grexit, yes to Brexit - Greece 2/5 to stay within Eurozone this year -Brexit odds cut to 3/1 (from 7/2)
6.43pm AEST09:436.43pm AEST09:43
European Commission president Jean-Claude Juncker will hold a conference call with the Eurogroup and European Central Bank (among others) this morning.European Commission president Jean-Claude Juncker will hold a conference call with the Eurogroup and European Central Bank (among others) this morning.
In a statement the commission said it “takes note of and respects the result of the referendum in Greece,” and added:In a statement the commission said it “takes note of and respects the result of the referendum in Greece,” and added:
President Juncker is consulting (…) with the democratically elected leaders of the other 18 Eurozone members as well as with the Heads of the EU institutions. He will have a conference call among the “Euro-Institutionals” (with the President of the Euro Summit, the President of the Euro Group and the President of the European Central Bank) on Monday morning. He intends to address the European Parliament in Strasbourg on Tuesday.President Juncker is consulting (…) with the democratically elected leaders of the other 18 Eurozone members as well as with the Heads of the EU institutions. He will have a conference call among the “Euro-Institutionals” (with the President of the Euro Summit, the President of the Euro Group and the President of the European Central Bank) on Monday morning. He intends to address the European Parliament in Strasbourg on Tuesday.
On Tuesday 7 July at 18h a special Euro Summit will take place to discuss the situation after the referendum in Greece.On Tuesday 7 July at 18h a special Euro Summit will take place to discuss the situation after the referendum in Greece.
Updated at 6.43pm AESTUpdated at 6.43pm AEST
6.34pm AEST09:346.34pm AEST09:34
Fabio Sdogati, professor of International Economics at Politecnico di Milano, the largest technical university in Italy, is clearly a Varoufakis fan:Fabio Sdogati, professor of International Economics at Politecnico di Milano, the largest technical university in Italy, is clearly a Varoufakis fan:
@yanisvaroufakis: Dear Colleague your work for Greece and the European people has been exemplary. Thank you. @keeptalkingGR @tsipras_eu@yanisvaroufakis: Dear Colleague your work for Greece and the European people has been exemplary. Thank you. @keeptalkingGR @tsipras_eu
6.28pm AEST09:286.28pm AEST09:28
More from Simon Goodley on IG’s trading floor:More from Simon Goodley on IG’s trading floor:
Despite Greece being the world’s biggest financial story since, er, the last time Greece was the world’s biggest financial story, there is surprisingly little activity in the equity markets, where volumes are low. According to Alastair McCaig, market analyst at IG, this is because investors don’t like uncertainty and nobody knows what is going to happen next.Despite Greece being the world’s biggest financial story since, er, the last time Greece was the world’s biggest financial story, there is surprisingly little activity in the equity markets, where volumes are low. According to Alastair McCaig, market analyst at IG, this is because investors don’t like uncertainty and nobody knows what is going to happen next.
He said: “Ask politicians what is happening with Greece and they say ‘I don’t know’. Markets are the same. Greece has surprised at every opportunity. Last week they surprised by calling a referendum. This week they surprised by voting ‘no’. They have the propensity to surprise again”.He said: “Ask politicians what is happening with Greece and they say ‘I don’t know’. Markets are the same. Greece has surprised at every opportunity. Last week they surprised by calling a referendum. This week they surprised by voting ‘no’. They have the propensity to surprise again”.
Added to that, there is also the wobbly Chinese stock market, which is causing further nervousness (and which here they suspect is a bigger markets story) plus the fact that we are currently inhabiting a month between May and September - a section of the year the City tends to like to take off.Added to that, there is also the wobbly Chinese stock market, which is causing further nervousness (and which here they suspect is a bigger markets story) plus the fact that we are currently inhabiting a month between May and September - a section of the year the City tends to like to take off.
6.25pm AEST09:256.25pm AEST09:25
European markets down, Greek bond yields higherEuropean markets down, Greek bond yields higher
European markets remain in the red, but are not in freefall:European markets remain in the red, but are not in freefall:
The bond markets are more volatile.The bond markets are more volatile.
Greek 10 year bond yields are back above 17% at 17.3% while two year yields are up 13 percentage points at a hefty 48% (although Reuters is reporting no trading is going on.)Greek 10 year bond yields are back above 17% at 17.3% while two year yields are up 13 percentage points at a hefty 48% (although Reuters is reporting no trading is going on.)
Meanwhile Spanish 10-year yields are up marginally at 2.3%, Italy’s are at 2.32% and Portugal at 3%.Meanwhile Spanish 10-year yields are up marginally at 2.3%, Italy’s are at 2.32% and Portugal at 3%.
Given a missed IMF payment & a v strong no - peripheral bond markets v calm. Either think Greece contained or think a deal is coming.Given a missed IMF payment & a v strong no - peripheral bond markets v calm. Either think Greece contained or think a deal is coming.
Updated at 6.29pm AESTUpdated at 6.29pm AEST
6.12pm AEST09:126.12pm AEST09:12
So, is Grexit more or less likely now given the developments of the last few hours:So, is Grexit more or less likely now given the developments of the last few hours:
On one hand @yanisvaroufakis’s departure makes Grexit marginally less likely. On other, lack of contagion makes it marginally more likelyOn one hand @yanisvaroufakis’s departure makes Grexit marginally less likely. On other, lack of contagion makes it marginally more likely
6.10pm AEST09:106.10pm AEST09:10
However:However:
Euclid Tsakalotos had a paper in 2010 on the Greek crisis written in comic sans. Unacceptable http://t.co/HZGLEqTlP8 pic.twitter.com/cW65NldmN7Euclid Tsakalotos had a paper in 2010 on the Greek crisis written in comic sans. Unacceptable http://t.co/HZGLEqTlP8 pic.twitter.com/cW65NldmN7
6.07pm AEST09:076.07pm AEST09:07
Euclid Tsakalotos, the Oxford-educated chief spokesman of the economics ministry, has been tipped as the most likely replacement for Yanis Varoufakis, writes Jennifer Rankin.Euclid Tsakalotos, the Oxford-educated chief spokesman of the economics ministry, has been tipped as the most likely replacement for Yanis Varoufakis, writes Jennifer Rankin.
“He is one of the most sensible/moderate figures in Syriza and his appointment, if confirmed, would increase the chances for a sensible negotiation and a positive outcome,” Demetrios Efstathiou of Standard Chartered bank said.“He is one of the most sensible/moderate figures in Syriza and his appointment, if confirmed, would increase the chances for a sensible negotiation and a positive outcome,” Demetrios Efstathiou of Standard Chartered bank said.
6.04pm AEST09:046.04pm AEST09:04
Back in the bond markets and UK 10-year gilt yields have hit their lowest level since mid-June, with investors seeing the UK as something of a haven.Back in the bond markets and UK 10-year gilt yields have hit their lowest level since mid-June, with investors seeing the UK as something of a haven.
6.02pm AEST09:026.02pm AEST09:02
The no vote raises the risk of Greece leaving the eurozone, but the basis for a dialogue between the two sides still exists, according to French finance minister Michel Sapin.The no vote raises the risk of Greece leaving the eurozone, but the basis for a dialogue between the two sides still exists, according to French finance minister Michel Sapin.
He also said discussions of possible debt relief were “not taboo” and said France had put this proposal on the table. MNI reports:He also said discussions of possible debt relief were “not taboo” and said France had put this proposal on the table. MNI reports:
“The ‘no’ carries a considerable risk for Greece,” Sapin told Europe 1 radio. “In this risk for Greece is the risk of an exit from the euro. But there is nothing automatic.”“The ‘no’ carries a considerable risk for Greece,” Sapin told Europe 1 radio. “In this risk for Greece is the risk of an exit from the euro. But there is nothing automatic.”
Sapin said that “there is on the table a basis for dialogue but it is up to Greece to show that it will take this dialogue seriously.” He said it was “up to the Greek government and Mr. Tsipras to make new proposals as quickly as possible.”Sapin said that “there is on the table a basis for dialogue but it is up to Greece to show that it will take this dialogue seriously.” He said it was “up to the Greek government and Mr. Tsipras to make new proposals as quickly as possible.”
Sapin declined to comment on the possible reaction of the European Central Bank to the Greek vote, other than to say that “there is a level today of liquidity. This level of liquidity cannot be reduced.”Sapin declined to comment on the possible reaction of the European Central Bank to the Greek vote, other than to say that “there is a level today of liquidity. This level of liquidity cannot be reduced.”
5.45pm AEST08:455.45pm AEST08:45
Greek bond yields are currently up 139 basis points at 16.24% but they have been higher this morning:Greek bond yields are currently up 139 basis points at 16.24% but they have been higher this morning:
#Greece's 10yr yields briefly jump >17%, highest since 2012, on higher redomination risk after Greek referendum. pic.twitter.com/DEHhmaMP9c#Greece's 10yr yields briefly jump >17%, highest since 2012, on higher redomination risk after Greek referendum. pic.twitter.com/DEHhmaMP9c
5.43pm AEST08:435.43pm AEST08:43
View from the trading room floorView from the trading room floor
“The Greek bloke’s resigned. He’s run rings round ‘em.”“The Greek bloke’s resigned. He’s run rings round ‘em.”
That was how one IG trader was overheard explaining the news of the resignation of Greek finance minister Yanis Varoufakis following Sunday’s referendum, as he chatted on the phone in early trading this morning, writes Simon Goodley.That was how one IG trader was overheard explaining the news of the resignation of Greek finance minister Yanis Varoufakis following Sunday’s referendum, as he chatted on the phone in early trading this morning, writes Simon Goodley.
To say the City is surprised by the news coming out of Greece is an understatement. Like eurozone officials it had expected that last week’s trailer of capital controls would be enough to get the country to vote yes, and IG priced a yes vote as a 60% chance last week.To say the City is surprised by the news coming out of Greece is an understatement. Like eurozone officials it had expected that last week’s trailer of capital controls would be enough to get the country to vote yes, and IG priced a yes vote as a 60% chance last week.
So what now? Chris Beauchamp, senior market analyst at IG, said: “[German stock market] the Dax has opened down but is surging back - much like it did last Monday and much like the euro is doing. It is coming back on Varoufakis’s resignation - possibly more hope than expectation, but if you take out the most irritating man in the room then you might get a more reasonable response from Germany and France”.So what now? Chris Beauchamp, senior market analyst at IG, said: “[German stock market] the Dax has opened down but is surging back - much like it did last Monday and much like the euro is doing. It is coming back on Varoufakis’s resignation - possibly more hope than expectation, but if you take out the most irritating man in the room then you might get a more reasonable response from Germany and France”.
Updated at 5.44pm AESTUpdated at 5.44pm AEST
5.39pm AEST08:395.39pm AEST08:39
And here’s a (typical) reaction from London mayor Boris Johnson:And here’s a (typical) reaction from London mayor Boris Johnson:
Greeks have shown they can't be pushed around. EU bluff called. EU political class told Greece to vote yes - and Greeks told them to bog offGreeks have shown they can't be pushed around. EU bluff called. EU political class told Greece to vote yes - and Greeks told them to bog off
5.38pm AEST08:385.38pm AEST08:38
Some timings for German comments on the Greece situation, courtesy Reuters:Some timings for German comments on the Greece situation, courtesy Reuters:
German Greaction today (CET times): 1130 govt press conf, 1430 #Gabriel, 1600 #Schaeuble & possible statements from #Merkel & #Hollande 1830German Greaction today (CET times): 1130 govt press conf, 1430 #Gabriel, 1600 #Schaeuble & possible statements from #Merkel & #Hollande 1830
5.35pm AEST08:355.35pm AEST08:35
Elsewhere German industrial orders fell by just 0.2% in May, better than an expected 0.4% decline, despite the current eurozone crisis.Elsewhere German industrial orders fell by just 0.2% in May, better than an expected 0.4% decline, despite the current eurozone crisis.
Economist Dr. Andreas Rees at UniCredit said:Economist Dr. Andreas Rees at UniCredit said:
After two consecutive and strong rises, German new orders in the manufacturing sector declined a moderate 0.2% month on month. The latest decrease is neither driven by a fundamental deterioration nor by the events in Greece.After two consecutive and strong rises, German new orders in the manufacturing sector declined a moderate 0.2% month on month. The latest decrease is neither driven by a fundamental deterioration nor by the events in Greece.
The direct macro impact is limited, as only 0.4% of all German exports are shipped to Greece. The same is true for other eurozone countries. The most likely scenario going forward is that German companies (and their peers in the eurozone) will resume momentum in the next few months.The direct macro impact is limited, as only 0.4% of all German exports are shipped to Greece. The same is true for other eurozone countries. The most likely scenario going forward is that German companies (and their peers in the eurozone) will resume momentum in the next few months.
5.28pm AEST08:285.28pm AEST08:28
Italian Prime Minister Matteo Renzi is due to meet his finance minister, Pier Carlo Padoan, at 9.30am (8.30am BST) today to discuss the Greek referendum, writes Rosie Scammell. As the result came in last night, Padoan took to Twitter to share his views on the vote:Italian Prime Minister Matteo Renzi is due to meet his finance minister, Pier Carlo Padoan, at 9.30am (8.30am BST) today to discuss the Greek referendum, writes Rosie Scammell. As the result came in last night, Padoan took to Twitter to share his views on the vote:
L'Italia lavora da sempre per una Europa solidale e più integrata. Era vero ieri e lo sarà ancora domani. #EuropaL'Italia lavora da sempre per una Europa solidale e più integrata. Era vero ieri e lo sarà ancora domani. #Europa
(Italy has always worked for a solid and more integrated Europe. It was true yesterday and it will still be true tomorrow.)(Italy has always worked for a solid and more integrated Europe. It was true yesterday and it will still be true tomorrow.)
Regole condivise dai popoli europei servono a garantire stesso obiettivo: il benessere attraverso crescita economica e occupazione #EuropaRegole condivise dai popoli europei servono a garantire stesso obiettivo: il benessere attraverso crescita economica e occupazione #Europa
(Shared rules by European peoples serve to guarantee the same objectives: affluence through economic growth and employment )(Shared rules by European peoples serve to guarantee the same objectives: affluence through economic growth and employment )
Riforme e investimenti sono in tutti i paesi la chiave per recuperare crescita sostenibile #EuropaRiforme e investimenti sono in tutti i paesi la chiave per recuperare crescita sostenibile #Europa
(Reforms and investments are in all countries the key to regain sustainable growth)(Reforms and investments are in all countries the key to regain sustainable growth)
5.23pm AEST08:235.23pm AEST08:23
The Greek government spokesman has just said Varoufakis’ replacement will be announced after the meeting of party political leaders. That would suggest the leftist-led government is attempting to find consensus over the issue, Helena Smith reports.The Greek government spokesman has just said Varoufakis’ replacement will be announced after the meeting of party political leaders. That would suggest the leftist-led government is attempting to find consensus over the issue, Helena Smith reports.
The spokesman said.The spokesman said.
As finance minister Yanis Varoufakis placed a leading role in negotiations from the government’s first day. The prime minister feels the need to thank him for his ceaseless effort to promote the positions of the government and the interests of the Greek people under very difficult circumstances. After the meeting of political leaders, his replacement will be announced.As finance minister Yanis Varoufakis placed a leading role in negotiations from the government’s first day. The prime minister feels the need to thank him for his ceaseless effort to promote the positions of the government and the interests of the Greek people under very difficult circumstances. After the meeting of political leaders, his replacement will be announced.
Updated at 5.28pm AESTUpdated at 5.28pm AEST
5.18pm AEST08:185.18pm AEST08:18
Tsipras to decide on Varoufakis replacementTsipras to decide on Varoufakis replacement
Over in Athens our correspondent Helena Smith says prime minister Alexis Tsipras is now debating who to replace his finance minister with. She writes:Over in Athens our correspondent Helena Smith says prime minister Alexis Tsipras is now debating who to replace his finance minister with. She writes:
Talks are being held between deputy prime minister Yannis Dragasakis and Tsipras as I write with the sole purpose of deciding who should replace Yanis Varoufakis.Talks are being held between deputy prime minister Yannis Dragasakis and Tsipras as I write with the sole purpose of deciding who should replace Yanis Varoufakis.
Dragasakis, a former Marxist who is also an economist, is himself one of the contenders. The low-profile politician has had broad oversight of Greece’s economic policy over the last five months – and had expressed growing displeasure with Varoufakis’ tactics. But the 67-year-old may well wish to remain behind the scenes where he has a particularly powerful role.Dragasakis, a former Marxist who is also an economist, is himself one of the contenders. The low-profile politician has had broad oversight of Greece’s economic policy over the last five months – and had expressed growing displeasure with Varoufakis’ tactics. But the 67-year-old may well wish to remain behind the scenes where he has a particularly powerful role.
That leaves the economics professor Giorgos Stathakis, currently the economics minister and the Oxford-educated economist Euclid Tsakalotos, who has had a lead role coordinating negotiations.That leaves the economics professor Giorgos Stathakis, currently the economics minister and the Oxford-educated economist Euclid Tsakalotos, who has had a lead role coordinating negotiations.
George Chouliarakis, the Manchester University academic heading the Greek government’s negotiating team – whose moderate views and comportment has been particularly well received by creditors – is reportedly also being considered.George Chouliarakis, the Manchester University academic heading the Greek government’s negotiating team – whose moderate views and comportment has been particularly well received by creditors – is reportedly also being considered.
#Greece political leaders' meeting with President about to start. #Greferendum #politics pic.twitter.com/1O7tgS1eHu#Greece political leaders' meeting with President about to start. #Greferendum #politics pic.twitter.com/1O7tgS1eHu
5.17pm AEST08:175.17pm AEST08:17
Banking shares are among the major fallers, given the prospect of contagion from the struggling Greek banking system.Banking shares are among the major fallers, given the prospect of contagion from the struggling Greek banking system.
Deutsche Bank is down 2.7%, Santander 2.6% and Italy’s Monte Dei Paschi is 3.5% lower. In the UK Barclays and HSBC have both fallen around 1.2%.Deutsche Bank is down 2.7%, Santander 2.6% and Italy’s Monte Dei Paschi is 3.5% lower. In the UK Barclays and HSBC have both fallen around 1.2%.
But generally the reaction so far has been fairly subdued - at least compared to the expected falls.But generally the reaction so far has been fairly subdued - at least compared to the expected falls.
Of course, the surprise resignation of Yanis Varoufakis has probably helped limit the damage, since it could well make negotiations easier when leaders meet on Tuesday.Of course, the surprise resignation of Yanis Varoufakis has probably helped limit the damage, since it could well make negotiations easier when leaders meet on Tuesday.
European markets not exactly falling apart today. All eyes on big meeting European leaders tomorrow.European markets not exactly falling apart today. All eyes on big meeting European leaders tomorrow.
5.07pm AEST08:075.07pm AEST08:07
European markets open lowerEuropean markets open lower
After shares fell sharply in Asia after the no vote in the Greek referendum, European markets are following suit.After shares fell sharply in Asia after the no vote in the Greek referendum, European markets are following suit.
The FTSE 100 is currently down just over 1% or 70 points but this is less than the 130 originally expected. Early days yet, of course.The FTSE 100 is currently down just over 1% or 70 points but this is less than the 130 originally expected. Early days yet, of course.
Germany’s Dax is down around 2%, Spain’s Ibex is off 2.2%, Italy’s FTSE MIB is 2.8% lower and France’s Cac has fallen 2%.Germany’s Dax is down around 2%, Spain’s Ibex is off 2.2%, Italy’s FTSE MIB is 2.8% lower and France’s Cac has fallen 2%.
5.02pm AEST08:025.02pm AEST08:02
Other events to watch out for today:Other events to watch out for today:
4.55pm AEST07:554.55pm AEST07:55
More reaction, this time from Italy. Rosie Scammell writes:More reaction, this time from Italy. Rosie Scammell writes:
Italy’s newspapers are today awash with Greek flags, with most leading on the impact the no vote will have on Europe. “Greece, a slap in Brussels’ face” reads the front page of left-leaning daily La Repubblica, while Italy’s leading daily, Corriere della Sera, writes “The Greek NO scares Europe”.Italy’s newspapers are today awash with Greek flags, with most leading on the impact the no vote will have on Europe. “Greece, a slap in Brussels’ face” reads the front page of left-leaning daily La Repubblica, while Italy’s leading daily, Corriere della Sera, writes “The Greek NO scares Europe”.
In covering the resignation of the Greek finance minister, Yanis Varoufakis, Italian media have honed in on his fashion choice. Varoufakis appeared at a press conference in a grey t-shirt on Sunday night, before today announcing his decision to quit. Italians themselves are still getting used to the casual clothing choices of their own prime minister, Matteo Renzi, who often makes public appearances in jeans.In covering the resignation of the Greek finance minister, Yanis Varoufakis, Italian media have honed in on his fashion choice. Varoufakis appeared at a press conference in a grey t-shirt on Sunday night, before today announcing his decision to quit. Italians themselves are still getting used to the casual clothing choices of their own prime minister, Matteo Renzi, who often makes public appearances in jeans.
4.50pm AEST07:504.50pm AEST07:50
Bond yields rise after referendum resultBond yields rise after referendum result
Yields on government bonds in Spain, Italy and Portugal are moving higher after the no vote, not surprising given the implications of Greece moving closer to a eurozone exit on these countries:Yields on government bonds in Spain, Italy and Portugal are moving higher after the no vote, not surprising given the implications of Greece moving closer to a eurozone exit on these countries:
Reaction in Govvies pretty unsurprising: 10 years : Spain 2.34 +13 Italy 2.37 +12 Portugal 3.055 +12Reaction in Govvies pretty unsurprising: 10 years : Spain 2.34 +13 Italy 2.37 +12 Portugal 3.055 +12
Updated at 5.31pm AESTUpdated at 5.31pm AEST
4.46pm AEST07:464.46pm AEST07:46
European Central Bank to meet on GreeceEuropean Central Bank to meet on Greece
One of the key decisions of the day will be made by the European Central Bank when it looks at whether to continue providing liquidity to Greek banks. If not, they will struggle to reopen on Tuesday, as Greek politicians (notably the now departed Yanis Varoufakis) had promised. Michael Hewson, chief market analyst at CMC Markets UK, said:One of the key decisions of the day will be made by the European Central Bank when it looks at whether to continue providing liquidity to Greek banks. If not, they will struggle to reopen on Tuesday, as Greek politicians (notably the now departed Yanis Varoufakis) had promised. Michael Hewson, chief market analyst at CMC Markets UK, said:
The ball now lies firmly in the ECB’s court as the prospect of Greek banks running out of money in the coming hours is likely to increase, with the prospect that the ECB will cut off Greek banks in the process causing a collapse of the Greek banking system, and in the process highlighting the significant structural flaws of the euro.The ball now lies firmly in the ECB’s court as the prospect of Greek banks running out of money in the coming hours is likely to increase, with the prospect that the ECB will cut off Greek banks in the process causing a collapse of the Greek banking system, and in the process highlighting the significant structural flaws of the euro.
In a proper monetary union it would be inconceivable for the US to cut off Florida or for the UK government to cut off Scotland from their lender of last resort, but if the ECB ends ELA then that is precisely what will happen to Greece, either later today, or later this week.In a proper monetary union it would be inconceivable for the US to cut off Florida or for the UK government to cut off Scotland from their lender of last resort, but if the ECB ends ELA then that is precisely what will happen to Greece, either later today, or later this week.
Updated at 5.16pm AESTUpdated at 5.16pm AEST
4.41pm AEST07:414.41pm AEST07:41
The surprise resignation of Yanis Varoufakis comes ahead of a meeting tomorrow between eurozone leaders to discuss their next steps following the no victory in the referendum.The surprise resignation of Yanis Varoufakis comes ahead of a meeting tomorrow between eurozone leaders to discuss their next steps following the no victory in the referendum.
That could of course make things easier for Greek prime minister Alexis Tsipras in any discussions with his peers. Varoufakis himself said as much: “I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my … ‘absence’ from its meetings.” Over the weekend he had accused Greece’s European creditors of “terrorism.”That could of course make things easier for Greek prime minister Alexis Tsipras in any discussions with his peers. Varoufakis himself said as much: “I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my … ‘absence’ from its meetings.” Over the weekend he had accused Greece’s European creditors of “terrorism.”
And in keeping with his tenure as finance minister he ended with a jibe at his tormentors: “I shall wear the creditors’ loathing with pride.”And in keeping with his tenure as finance minister he ended with a jibe at his tormentors: “I shall wear the creditors’ loathing with pride.”
His departure was not the first in the wake of the vote – yesterday Antonis Samaras, the head of the opposition rightwing New Democracy party who campaigned for the yes side, stepped down.His departure was not the first in the wake of the vote – yesterday Antonis Samaras, the head of the opposition rightwing New Democracy party who campaigned for the yes side, stepped down.
But the decision by the motorcycle-riding, game-playing Varoufakis has far more significance, as shown by the fact the euro recovered some of its lost ground in the wake of the announcement:But the decision by the motorcycle-riding, game-playing Varoufakis has far more significance, as shown by the fact the euro recovered some of its lost ground in the wake of the announcement:
Updated at 5.51pm AESTUpdated at 5.51pm AEST
4.27pm AEST07:274.27pm AEST07:27
Here’s an early call on how European markets are expected to open, courtesy IG:Here’s an early call on how European markets are expected to open, courtesy IG:
Our European opening calls: $FTSE 6455 down 131 $DAX 10731 down 327 $CAC 4662 down 146 $IBEX 10385 down 395 $MIB 21734 down 774Our European opening calls: $FTSE 6455 down 131 $DAX 10731 down 327 $CAC 4662 down 146 $IBEX 10385 down 395 $MIB 21734 down 774
4.15pm AEST07:154.15pm AEST07:15
SummarySummary
I’m handing over our continuing coverage of events in Greece and across Europe to my colleague Nick Fletcher. Here’s a short summary of how events stand at the moment:I’m handing over our continuing coverage of events in Greece and across Europe to my colleague Nick Fletcher. Here’s a short summary of how events stand at the moment:
Here’s our report on the dramatic referendum result:Here’s our report on the dramatic referendum result:
European leaders were scrambling for a response on Monday after a resounding no from Greek voters in a momentous referendum on austerity which could send the country crashing out of the eurozone.European leaders were scrambling for a response on Monday after a resounding no from Greek voters in a momentous referendum on austerity which could send the country crashing out of the eurozone.
With Europe’s financial markets set to follow Asia’s overnight lead by going sharply into the red, German chancellor Angela Merkel was to meet with French leader François Hollande in Paris after Greece overwhelmingly rejected international creditors’ tough bailout terms.With Europe’s financial markets set to follow Asia’s overnight lead by going sharply into the red, German chancellor Angela Merkel was to meet with French leader François Hollande in Paris after Greece overwhelmingly rejected international creditors’ tough bailout terms.
The pair spoke by telephone late Sunday, declaring the referendum decision must “be respected” and calling for an emergency eurozone summit which European Union president Donald Tusk said would be held on Tuesday.The pair spoke by telephone late Sunday, declaring the referendum decision must “be respected” and calling for an emergency eurozone summit which European Union president Donald Tusk said would be held on Tuesday.
A flurry of other meetings will also be held Monday as European leaders sized up the implications of the vote, a victory for Greece’s radical prime minister Alexis Tsipras, who insisted it did not mean a “rupture” with Europe.A flurry of other meetings will also be held Monday as European leaders sized up the implications of the vote, a victory for Greece’s radical prime minister Alexis Tsipras, who insisted it did not mean a “rupture” with Europe.
Here’s the full story:Here’s the full story:
Related: Greek crisis: European leaders scramble for response to referendum no voteRelated: Greek crisis: European leaders scramble for response to referendum no vote
Updated at 5.05pm AESTUpdated at 5.05pm AEST
4.08pm AEST07:084.08pm AEST07:08
Here’s the very immediate response from some of the financial markets.Here’s the very immediate response from some of the financial markets.
The Euro likes the Varoufexit. Hope for a deal? pic.twitter.com/gsaL4JDWaNThe Euro likes the Varoufexit. Hope for a deal? pic.twitter.com/gsaL4JDWaN
4.07pm AEST07:074.07pm AEST07:07
A short time before the post announcing his resignation, Varoufakis posted a much more jubilant note about the referendum decision:A short time before the post announcing his resignation, Varoufakis posted a much more jubilant note about the referendum decision:
On the 25th of January, dignity was restored to the people of Greece.On the 25th of January, dignity was restored to the people of Greece.
In the five months that intervened since then, we became the first government that dared raise its voice, speaking on behalf of the people, saying no to the damaging irrationality of our extend-and-pretend ‘Bailout Program’.In the five months that intervened since then, we became the first government that dared raise its voice, speaking on behalf of the people, saying no to the damaging irrationality of our extend-and-pretend ‘Bailout Program’.
WeWe
Ending interminable, self-defeating, austerity and restructuring Greece’s public debt were our two targets. But these two were also our creditors’ targets. From the moment our election seemed likely, last December, the powers-that-be started a bank run and planned, eventually, to shut Greece’s banks down. Their purpose?Ending interminable, self-defeating, austerity and restructuring Greece’s public debt were our two targets. But these two were also our creditors’ targets. From the moment our election seemed likely, last December, the powers-that-be started a bank run and planned, eventually, to shut Greece’s banks down. Their purpose?
Updated at 5.06pm AESTUpdated at 5.06pm AEST
4.02pm AEST07:024.02pm AEST07:02
Here’s our latest report on Varoufakis’ resignation. More details to be added shortly:Here’s our latest report on Varoufakis’ resignation. More details to be added shortly:
The Greek finance minister Yanis Varoufakis has resigned in the wake of the country’s resounding no vote rejecting the eurozone’s austerity terms.The Greek finance minister Yanis Varoufakis has resigned in the wake of the country’s resounding no vote rejecting the eurozone’s austerity terms.
Writing on his blog on Monday morning he said that he would be standing down immediately after pressure from Greece’s European partners.Writing on his blog on Monday morning he said that he would be standing down immediately after pressure from Greece’s European partners.
“Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my … ‘absence’ from its meetings,” he wrote.“Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my … ‘absence’ from its meetings,” he wrote.
The prime minister Alexis Tsipras judged this to be “potentially helpful to him in reaching an agreement. For this reason I am leaving the ministry of finance today”.The prime minister Alexis Tsipras judged this to be “potentially helpful to him in reaching an agreement. For this reason I am leaving the ministry of finance today”.
He added: “The referendum of 5 July will stay in history as a unique moment when a small European nation rose up against debt-bondage.He added: “The referendum of 5 July will stay in history as a unique moment when a small European nation rose up against debt-bondage.
“Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25 June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.“Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25 June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.
Updated at 5.06pm AESTUpdated at 5.06pm AEST
3.51pm AEST06:513.51pm AEST06:51
Varoufakis’ presence in further negotiations was always going to be difficult after his public rhetoric about the role of European leaders.Varoufakis’ presence in further negotiations was always going to be difficult after his public rhetoric about the role of European leaders.
In one interview published on Saturday, he accused the country’s creditors of terrorism:In one interview published on Saturday, he accused the country’s creditors of terrorism:
“What they’re doing with Greece has a name: terrorism,” Varoufakis told Spain’s El Mundo. “What Brussels and the troika want today is for the yes [vote] to win so they could humiliate the Greeks. Why did they force us to close the banks? To instil fear in people. And spreading fear is called terrorism.”“What they’re doing with Greece has a name: terrorism,” Varoufakis told Spain’s El Mundo. “What Brussels and the troika want today is for the yes [vote] to win so they could humiliate the Greeks. Why did they force us to close the banks? To instil fear in people. And spreading fear is called terrorism.”
On Sunday night he promised to resign in the event a yes vote was recorded. Despite the outcome of a no vote, he has still followed through on that decision to resign.On Sunday night he promised to resign in the event a yes vote was recorded. Despite the outcome of a no vote, he has still followed through on that decision to resign.
Updated at 3.53pm AESTUpdated at 3.53pm AEST
3.40pm AEST06:403.40pm AEST06:40
"Minister no more": Greek finance minister Yanis Varoufakis resigns"Minister no more": Greek finance minister Yanis Varoufakis resigns
In another extraordinary development the Greek finance minister has just announced his resignation.In another extraordinary development the Greek finance minister has just announced his resignation.
In a move likely to spark further concerns about the role of other European leaders in Greece’s internal politics, Varoufakis said he was made aware of a preference by “some European participants” of his absence throughout the continuing negotiations.In a move likely to spark further concerns about the role of other European leaders in Greece’s internal politics, Varoufakis said he was made aware of a preference by “some European participants” of his absence throughout the continuing negotiations.
The post was made on Varoufakis’ blog and there is nothing to suggest it is not authentic. It has also been cross-posted on his Twitter account.The post was made on Varoufakis’ blog and there is nothing to suggest it is not authentic. It has also been cross-posted on his Twitter account.
Here’s the post in full:Here’s the post in full:
The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.The referendum of 5th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.
Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.
Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.
I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.
And I shall wear the creditors’ loathing with pride.And I shall wear the creditors’ loathing with pride.
We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.
The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.
3.28pm AEST06:283.28pm AEST06:28
Peter Kazimir, the Slovakian finance minister, has also made some rather colourful observations of the current situation overnight:Peter Kazimir, the Slovakian finance minister, has also made some rather colourful observations of the current situation overnight:
Rejection of reforms by #Greece cannot mean that they will get the money easierRejection of reforms by #Greece cannot mean that they will get the money easier
The nightmare of the 'euro-architects' that a country could leave the club seems like a realistic scenario after #Greece voted No todayThe nightmare of the 'euro-architects' that a country could leave the club seems like a realistic scenario after #Greece voted No today
3.24pm AEST06:243.24pm AEST06:24
The UK government is also prepared to do whatever necessary to protect the country from the impact of a possible exit from the Eurozone for Greece. This from AFP is the latest update:The UK government is also prepared to do whatever necessary to protect the country from the impact of a possible exit from the Eurozone for Greece. This from AFP is the latest update:
Britain will do “whatever is necessary to protect its economic security”, a government spokesman said Monday after Greeks voted overwhelmingly against austerity in a referendum that could send them crashing out of the eurozone with unknown consequences.Britain will do “whatever is necessary to protect its economic security”, a government spokesman said Monday after Greeks voted overwhelmingly against austerity in a referendum that could send them crashing out of the eurozone with unknown consequences.
“This is a critical moment in the economic crisis in Greece,” a Downing Street spokesman said. “We will continue to do whatever is necessary to protect our economic security at this uncertain time. We have already got contingency plans in place and later this morning the Prime Minister will chair a further meeting to review those plans in light of yesterday’s result.”“This is a critical moment in the economic crisis in Greece,” a Downing Street spokesman said. “We will continue to do whatever is necessary to protect our economic security at this uncertain time. We have already got contingency plans in place and later this morning the Prime Minister will chair a further meeting to review those plans in light of yesterday’s result.”
3.18pm AEST06:183.18pm AEST06:18
The front pages of newspapers across Europe are a combination of fear, hope and (on occasion) somewhat comical absurdity.The front pages of newspapers across Europe are a combination of fear, hope and (on occasion) somewhat comical absurdity.
Here’s a short sample of a few of them, starting off with a rather extraordinary one from Efsyn featuring Dutch politician Jeroen Dijsselbloem:Here’s a short sample of a few of them, starting off with a rather extraordinary one from Efsyn featuring Dutch politician Jeroen Dijsselbloem:
First page of @EFSYNTAKTON newspaper starring #Dijsselbloem. #OXI #Grefenderum pic.twitter.com/kXWk0vf6z7First page of @EFSYNTAKTON newspaper starring #Dijsselbloem. #OXI #Grefenderum pic.twitter.com/kXWk0vf6z7
The National Front Page Greece Says #OXI To Europe pic.twitter.com/I2sSYBQZHWThe National Front Page Greece Says #OXI To Europe pic.twitter.com/I2sSYBQZHW
Monday's Daily Telegraph front page "Europe in turmoil as Greece nears exit" pic.twitter.com/1IOmccYsb5Monday's Daily Telegraph front page "Europe in turmoil as Greece nears exit" pic.twitter.com/1IOmccYsb5
The Guardian front page, Monday 6 July 2015: Greek voters defy Europe pic.twitter.com/gnBI2bWcjcThe Guardian front page, Monday 6 July 2015: Greek voters defy Europe pic.twitter.com/gnBI2bWcjc
3.07pm AEST06:073.07pm AEST06:07
Here’s the Guardian’s view on the current impasse now facing Europe following the Greek referendum:Here’s the Guardian’s view on the current impasse now facing Europe following the Greek referendum:
Kicking the can down the road has been the cliche of choice over a slow euro crisis that has steadily strangled the life out of the Greek economy. But at some point Europe was bound to run out of road. That happened on Sunday night, when it emerged that the Greek people had said no to continuing to engage with their creditors on the same suffocating terms.Kicking the can down the road has been the cliche of choice over a slow euro crisis that has steadily strangled the life out of the Greek economy. But at some point Europe was bound to run out of road. That happened on Sunday night, when it emerged that the Greek people had said no to continuing to engage with their creditors on the same suffocating terms.
Just over a week ago, Alexis Tsipras staked his future on forcing this denouement. The eight days that followed his midnight declaration of a plebiscite, to accept or reject the creditors’ terms for the latest slug of overdraft, have witnessed many extraordinary things. The Greek parliament licensed a hasty referendum on a question that had already been overtaken by events. A ballot paper written in jargon posed a ludicrously technical question, opening up a void for emotion to fill. Mixing talk of “terror” from their partners with haze about what would happen after a no, Mr Tsipras and his finance minister, Yanis Varoufakis, aimed squarely for the heart rather than the head. Meanwhile, Greeks faced the fiercest financial controls ever seen in modern Europe: bank doors were shut, supplies disrupted, and citizens queued at every cashpoint for their ration of notes. In countries such as Germany, where history engenders suspicion of referendums, it may have looked like a paradigm case of how not to do democracy.Just over a week ago, Alexis Tsipras staked his future on forcing this denouement. The eight days that followed his midnight declaration of a plebiscite, to accept or reject the creditors’ terms for the latest slug of overdraft, have witnessed many extraordinary things. The Greek parliament licensed a hasty referendum on a question that had already been overtaken by events. A ballot paper written in jargon posed a ludicrously technical question, opening up a void for emotion to fill. Mixing talk of “terror” from their partners with haze about what would happen after a no, Mr Tsipras and his finance minister, Yanis Varoufakis, aimed squarely for the heart rather than the head. Meanwhile, Greeks faced the fiercest financial controls ever seen in modern Europe: bank doors were shut, supplies disrupted, and citizens queued at every cashpoint for their ration of notes. In countries such as Germany, where history engenders suspicion of referendums, it may have looked like a paradigm case of how not to do democracy.
2.57pm AEST05:572.57pm AEST05:57
As the sun begins to rise now in Greece on “the morning after” Syntagma Square appears empty. That may well change as another highly politically charged day is set to get underway across EuropeAs the sun begins to rise now in Greece on “the morning after” Syntagma Square appears empty. That may well change as another highly politically charged day is set to get underway across Europe
Syntagma Square, the morning after pic.twitter.com/8FRSRVSLsqSyntagma Square, the morning after pic.twitter.com/8FRSRVSLsq
2.54pm AEST05:542.54pm AEST05:54
John Cassidy in the New Yorker has outlined some useful analysis on the implications of the no vote:John Cassidy in the New Yorker has outlined some useful analysis on the implications of the no vote:
Whether they will be offered one within the eurozone remains to be seen. Although the result was a great political triumph for Tsipras and Syriza, it doesn’t automatically translate into a victory in the showdown with the European Union and the International Monetary Fund. Greece is still broke, and its banks are still closed. If the Europeans want to force the Greeks out of their currency club, they have the means to do it at any moment. All they have to do is turn off the credit that the European Central Bank has been providing to Greece’s banks. Indeed, the ECB’s governing council will decide on Monday what to do next.Whether they will be offered one within the eurozone remains to be seen. Although the result was a great political triumph for Tsipras and Syriza, it doesn’t automatically translate into a victory in the showdown with the European Union and the International Monetary Fund. Greece is still broke, and its banks are still closed. If the Europeans want to force the Greeks out of their currency club, they have the means to do it at any moment. All they have to do is turn off the credit that the European Central Bank has been providing to Greece’s banks. Indeed, the ECB’s governing council will decide on Monday what to do next.
With Angela Merkel, the German chancellor, and François Hollande, the French president, due to meet in Paris on Monday afternoon, and an emergency summit of all European Union leaders scheduled for Tuesday, it seems highly unlikely that the ECB. will render these deliberations pointless by immediately torpedoing the Greek financial system. In all likelihood, there will be at least one more round of talks between the two sides, and, quite possibly, more than one. Greece’s next big payment to its creditors isn’t due until 23 July, which is more than two weeks away. If the country’s banks can somehow be propped up until then, there is time for more deliberation.With Angela Merkel, the German chancellor, and François Hollande, the French president, due to meet in Paris on Monday afternoon, and an emergency summit of all European Union leaders scheduled for Tuesday, it seems highly unlikely that the ECB. will render these deliberations pointless by immediately torpedoing the Greek financial system. In all likelihood, there will be at least one more round of talks between the two sides, and, quite possibly, more than one. Greece’s next big payment to its creditors isn’t due until 23 July, which is more than two weeks away. If the country’s banks can somehow be propped up until then, there is time for more deliberation.
Updated at 5.09pm AESTUpdated at 5.09pm AEST
2.50pm AEST05:502.50pm AEST05:50
We’ve written a lot about the market reaction to events in Europe, but the political fallout in Greece is still likely to unfold rapidly over the next few days.We’ve written a lot about the market reaction to events in Europe, but the political fallout in Greece is still likely to unfold rapidly over the next few days.
Prime minister Alexis Tsipras is convening a meeting of key political leaders at 10am on Monday in Athens, according to Enikos. Overnight the Greek opposition leader Antonis Samaras resigned following the referendum decision.Prime minister Alexis Tsipras is convening a meeting of key political leaders at 10am on Monday in Athens, according to Enikos. Overnight the Greek opposition leader Antonis Samaras resigned following the referendum decision.
How Tsipras proceeds throughout this week will continue to shape how events unfold across Europe.How Tsipras proceeds throughout this week will continue to shape how events unfold across Europe.
2.30pm AEST05:302.30pm AEST05:30
China’s response to the Greek referendum and the market uncertainty has been to engage in a series of complex manoeuvres aimed at stimulating the market.China’s response to the Greek referendum and the market uncertainty has been to engage in a series of complex manoeuvres aimed at stimulating the market.
It’s not yet clear how successful the measures – which involve a variety of investments and buyouts aided by the central bank – will be in preventing setbacks for their markets.It’s not yet clear how successful the measures – which involve a variety of investments and buyouts aided by the central bank – will be in preventing setbacks for their markets.
Reuters have a good take on the different measures that have been employed here:Reuters have a good take on the different measures that have been employed here:
Chinese stocks jumped on Monday after Beijing unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilize the world’s second-biggest economy.Chinese stocks jumped on Monday after Beijing unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilize the world’s second-biggest economy.
In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
Investors, who had ignored official measures to prop up the market as equity indexes slid around 12% last week, finally reacted, with the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen jumping 4%, while the Shanghai Composite Index .SSEC gained 3 percent. [.SS]Investors, who had ignored official measures to prop up the market as equity indexes slid around 12% last week, finally reacted, with the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen jumping 4%, while the Shanghai Composite Index .SSEC gained 3 percent. [.SS]
Blue chips, the explicit target of the stabilization fund, outperformed stocks on the small-cap ChiNext indexes.Blue chips, the explicit target of the stabilization fund, outperformed stocks on the small-cap ChiNext indexes.
The rapid decline of China’s previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China’s top leaders, who were already struggling to avert a sharper economic slowdown.The rapid decline of China’s previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China’s top leaders, who were already struggling to avert a sharper economic slowdown.
In response, China has orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.In response, China has orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.
Updated at 5.11pm AESTUpdated at 5.11pm AEST
1.55pm AEST04:551.55pm AEST04:55
My colleague Justin McCurry has filed a more comprehensive take on the Asian market reaction to the Greek referendum, which largely recorded falls across the board but with limited losses.My colleague Justin McCurry has filed a more comprehensive take on the Asian market reaction to the Greek referendum, which largely recorded falls across the board but with limited losses.
China is the exception – it saw a boost on open this morning – but that is attributed to the enormous and unprecedented government measures implemented over the weekend to try and stop a market crash.China is the exception – it saw a boost on open this morning – but that is attributed to the enormous and unprecedented government measures implemented over the weekend to try and stop a market crash.
This from Justin:This from Justin:
Analysts said that regional market panic was unlikely, even after Athens appeared to take a step closer to a “Grexit” by roundly rejecting the bailout terms set by its international creditors But they added that negotiations this week would be critical.Analysts said that regional market panic was unlikely, even after Athens appeared to take a step closer to a “Grexit” by roundly rejecting the bailout terms set by its international creditors But they added that negotiations this week would be critical.
“The Greece ‘no’ vote is a surprise,” Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News. “But the key is that the direction is going toward more talks after this.”“The Greece ‘no’ vote is a surprise,” Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News. “But the key is that the direction is going toward more talks after this.”
Other analysts said markets had not expected Greek voters to reject the terms of the bailout so emphatically – a move that could see further losses on Monday and trigger an investor rush to US Treasuries or other government bonds that are seen as largely immune to market turbulence.Other analysts said markets had not expected Greek voters to reject the terms of the bailout so emphatically – a move that could see further losses on Monday and trigger an investor rush to US Treasuries or other government bonds that are seen as largely immune to market turbulence.
......
In one of the day’s more colourful commentaries, analysts at Japan’s Mizuho Bank said the Sunday’s “Greferendum” had turned out to be a “Grief-erendum”.In one of the day’s more colourful commentaries, analysts at Japan’s Mizuho Bank said the Sunday’s “Greferendum” had turned out to be a “Grief-erendum”.
On what most had expected to be a tricky day for markets around the world, dealers stressed that uncertainty over Greece’s future had not rocked markets as badly as some might have expected.On what most had expected to be a tricky day for markets around the world, dealers stressed that uncertainty over Greece’s future had not rocked markets as badly as some might have expected.
Read his report in full here.Read his report in full here.
Updated at 5.12pm AESTUpdated at 5.12pm AEST
1.45pm AEST04:451.45pm AEST04:45
“The fightback for a Europe of dignity starts here.”“The fightback for a Europe of dignity starts here.”
Another short documentary from John Domokos and Phoebe Greenwood.Another short documentary from John Domokos and Phoebe Greenwood.
As Syriza supporters flock to Athens’ Syntagma square to celebrate, Phoebe Greenwood talks to those who are celebrating a historic referendum outcome. ‘They thought they could intimidate us,’ one man says. Despite jitters on the financial markets, others happy with the historic oxi (no) vote say they hope it will be the moment that Greeks can come together.As Syriza supporters flock to Athens’ Syntagma square to celebrate, Phoebe Greenwood talks to those who are celebrating a historic referendum outcome. ‘They thought they could intimidate us,’ one man says. Despite jitters on the financial markets, others happy with the historic oxi (no) vote say they hope it will be the moment that Greeks can come together.
1.29pm AEST04:291.29pm AEST04:29
Crisis will be "appropriately resolved" China minister saysCrisis will be "appropriately resolved" China minister says
Deputy Chinese foreign minister Cheng Guoping believes the Greek crisis will be “appropriately resolved” and the economy will turn around, Reuters reports.Deputy Chinese foreign minister Cheng Guoping believes the Greek crisis will be “appropriately resolved” and the economy will turn around, Reuters reports.
However he would not say if Alexis Tsipras could attend an emerging powers summit later in the week in Russia.However he would not say if Alexis Tsipras could attend an emerging powers summit later in the week in Russia.
“I believe that with the hard efforts of all sides, Greece’s economic situation will turn around. The economic crisis will be appropriately handled,” he told reporters, in China’s first official comment since the Greek vote.“I believe that with the hard efforts of all sides, Greece’s economic situation will turn around. The economic crisis will be appropriately handled,” he told reporters, in China’s first official comment since the Greek vote.
“Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too.”“Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too.”
Asked whether Greek Prime Minister Alexis Tsipras might come to this week’s summit of the BRICS group of five major emerging nations - Brazil, Russia, India, China and South Africa - Cheng said that as Russia was the host it was its decision on whether to invite other countries.Asked whether Greek Prime Minister Alexis Tsipras might come to this week’s summit of the BRICS group of five major emerging nations - Brazil, Russia, India, China and South Africa - Cheng said that as Russia was the host it was its decision on whether to invite other countries.
Russia’s finance minister said last week that Russia had not offered Greece the chance to become a member of the New Development Bank that is being created by the BRICS group.Russia’s finance minister said last week that Russia had not offered Greece the chance to become a member of the New Development Bank that is being created by the BRICS group.
Updated at 1.43pm AESTUpdated at 1.43pm AEST
1.05pm AEST04:051.05pm AEST04:05
Result is very regrettable - Eurogroup presidentResult is very regrettable - Eurogroup president
Jeroen Dijsselbloem, Dutch finance minister and president of the Eurogroup, has released a statement on the referendum results.Jeroen Dijsselbloem, Dutch finance minister and president of the Eurogroup, has released a statement on the referendum results.
It is a short statement, but needless to say, Dijsselbloem is disappointed.It is a short statement, but needless to say, Dijsselbloem is disappointed.
I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece. For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July.I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece. For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July.
Statement of the #Eurogroup President following the referendum in #Greece: http://t.co/WxITIfwUthStatement of the #Eurogroup President following the referendum in #Greece: http://t.co/WxITIfwUth
12.44pm AEST03:4412.44pm AEST03:44
Argentinian president Cristina Fernández de Kirchner, who is never shy of enthusiastically tweeting her opinions, has welcomed the referendum results.Argentinian president Cristina Fernández de Kirchner, who is never shy of enthusiastically tweeting her opinions, has welcomed the referendum results.
In a series of tweets written in English, Fernández labeled the No vote an “outright victory of democracy and dignity.”In a series of tweets written in English, Fernández labeled the No vote an “outright victory of democracy and dignity.”
The Greek people have said NO to the impossible and humiliating conditions imposed upon them for the restructuring of their foreign debt. We Argentines understand what this is about. We hope Europe and its leaders understand the message of the polls. Nobody can be asked to sign their own death certificate. The words of President Kirchner still resound at the UN General Assembly in 2003 he said: “The dead do not pay their debts.”The Greek people have said NO to the impossible and humiliating conditions imposed upon them for the restructuring of their foreign debt. We Argentines understand what this is about. We hope Europe and its leaders understand the message of the polls. Nobody can be asked to sign their own death certificate. The words of President Kirchner still resound at the UN General Assembly in 2003 he said: “The dead do not pay their debts.”
On behalf of our People and Government, our solidarity with the brave Greek people and their Government @tsipras_eu pic.twitter.com/MkvxuZIKFzOn behalf of our People and Government, our solidarity with the brave Greek people and their Government @tsipras_eu pic.twitter.com/MkvxuZIKFz
Some background on the link between Argentina and Greece in this current crisis, from Reuters:Some background on the link between Argentina and Greece in this current crisis, from Reuters:
There are stark similarities between Argentina’s 2002 financial meltdown and the turmoil in Greece: rigid monetary regimes, creditors battling domestic politics to fix the problem and banking systems at breaking point.There are stark similarities between Argentina’s 2002 financial meltdown and the turmoil in Greece: rigid monetary regimes, creditors battling domestic politics to fix the problem and banking systems at breaking point.
The South American grains behemoth defaulted on $100 billion in bonds in a 2002 crisis that thrust millions of middle-class Argentines into poverty. By the next year, helped by a massive soy crop, Argentina started growing again.The South American grains behemoth defaulted on $100 billion in bonds in a 2002 crisis that thrust millions of middle-class Argentines into poverty. By the next year, helped by a massive soy crop, Argentina started growing again.
But the 2002 crisis continues to plague its finances.But the 2002 crisis continues to plague its finances.
Fernandez regularly blasts bondholders who have sued the country over the debt it failed to pay 13 years ago.Fernandez regularly blasts bondholders who have sued the country over the debt it failed to pay 13 years ago.
Most holders agreed to restructurings that paid about 30 cents on the dollar, while a group of hedge funds sued for full repayment.Most holders agreed to restructurings that paid about 30 cents on the dollar, while a group of hedge funds sued for full repayment.
The country defaulted again last year when a U.S. judge barred it from honouring its restructured debt without reaching a deal with the funds, which Fernandez denounces as “vultures.”The country defaulted again last year when a U.S. judge barred it from honouring its restructured debt without reaching a deal with the funds, which Fernandez denounces as “vultures.”
Argentina became one of the world’s fastest expanding economies after its default, growing at an averaging above 8.5 percent between 2003 and 2007, when Fernandez was first elected.Argentina became one of the world’s fastest expanding economies after its default, growing at an averaging above 8.5 percent between 2003 and 2007, when Fernandez was first elected.
Since then she has ordered trade and currency controls that have slowed investment while government fiscal accounts deteriorate due to high state spending.Since then she has ordered trade and currency controls that have slowed investment while government fiscal accounts deteriorate due to high state spending.
Updated at 12.45pm AESTUpdated at 12.45pm AEST
12.22pm AEST03:2212.22pm AEST03:22
Greek finance minister, Yanis Varoufakis, has claimed the successful No campaign is a “majestic, big YES to a democratic, rational Europe.”Greek finance minister, Yanis Varoufakis, has claimed the successful No campaign is a “majestic, big YES to a democratic, rational Europe.”
Varoufakis accuses Greece’s creditors of attempting to “humiliate” the leftwing government by forcing stringent austerity, and dragging them into an agreement which “offers no firm commitment to a sensible, well-defined debt restructure.”Varoufakis accuses Greece’s creditors of attempting to “humiliate” the leftwing government by forcing stringent austerity, and dragging them into an agreement which “offers no firm commitment to a sensible, well-defined debt restructure.”
He further writes:He further writes:
Today’s referendum delivered a resounding call for a mutually beneficial agreement between Greece and our European partners. We shall respond to the Greek voters’ call with a positive approach to:Today’s referendum delivered a resounding call for a mutually beneficial agreement between Greece and our European partners. We shall respond to the Greek voters’ call with a positive approach to:
Updated at 12.30pm AESTUpdated at 12.30pm AEST
12.10pm AEST03:1012.10pm AEST03:10
'We're going to hit the iceberg''We're going to hit the iceberg'
A great short film here from John Domokos.A great short film here from John Domokos.
From the Syriza faithful to the run-down docks of Piraeus and the middle-class district of Faliro, Greeks spent the day of the referendum locked in debate, suspense and catharsis.From the Syriza faithful to the run-down docks of Piraeus and the middle-class district of Faliro, Greeks spent the day of the referendum locked in debate, suspense and catharsis.
For some it was a day they sent a message to Europe that they will ‘not be intimidated’. But many Greeks fear trouble lies ahead. As one voter said, both a yes and no outcome would result in calamity: ‘We’re three metres from the iceberg and we’re here to be asked if we’re going to go right or left.’ Either way, he said, ‘we’re going to hit the iceberg’.For some it was a day they sent a message to Europe that they will ‘not be intimidated’. But many Greeks fear trouble lies ahead. As one voter said, both a yes and no outcome would result in calamity: ‘We’re three metres from the iceberg and we’re here to be asked if we’re going to go right or left.’ Either way, he said, ‘we’re going to hit the iceberg’.
Updated at 12.22pm AESTUpdated at 12.22pm AEST
11.55am AEST02:5511.55am AEST02:55
Shanghai stocks have jumped almost 8%. The government boosts AFP refers to are emergency measures taken to prevent a possible stock market crash in the world’s second-largest economy. It’s not directly related to Greece, but could still have an effect on world markets.Shanghai stocks have jumped almost 8%. The government boosts AFP refers to are emergency measures taken to prevent a possible stock market crash in the world’s second-largest economy. It’s not directly related to Greece, but could still have an effect on world markets.
From Reuters: In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.From Reuters: In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.
China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.
#BREAKING Shanghai stocks surge 7.82% at open after govt boosts#BREAKING Shanghai stocks surge 7.82% at open after govt boosts
11.37am AEST02:3711.37am AEST02:37
Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.
Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:
Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.
But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.
What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.
Ouch.Ouch.
Updated at 11.38am AESTUpdated at 11.38am AEST
11.32am AEST02:3211.32am AEST02:32
As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.
Worst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1UsWorst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1Us
11.21am AEST02:2111.21am AEST02:21
Justin McCurryJustin McCurry
Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.
The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
South Korea’s Kospi was down 0.9% at 2,085.67.South Korea’s Kospi was down 0.9% at 2,085.67.
11.08am AEST02:0811.08am AEST02:08
Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.
You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.
That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?
All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.
Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”
10.58am AEST01:5810.58am AEST01:58
The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.
The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.
The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.
The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.
Updated at 10.59am AESTUpdated at 10.59am AEST
10.39am AEST01:3910.39am AEST01:39
In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:
“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.
But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”
Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.
10.27am AEST01:2710.27am AEST01:27
SummarySummary
While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.
You can relive the night blow by blow here, or Graeme’s summary is below.You can relive the night blow by blow here, or Graeme’s summary is below.
Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.
In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].
As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.
Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.
In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.
“You made a very brave choice.“You made a very brave choice.
“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”
Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.
German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.
Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.
Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:
“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”
But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.
A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:
“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”
Finance minister Yanis Varoufakis, though, has denied this is an option:Finance minister Yanis Varoufakis, though, has denied this is an option:
Updated at 10.29am AESTUpdated at 10.29am AEST
10.20am AEST01:2010.20am AEST01:20
Japan, S Korea, Australia markets open downJapan, S Korea, Australia markets open down
Futures tradingFutures trading
The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.
Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.
Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.
He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.
10.05am AEST01:0510.05am AEST01:05
Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.
“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.
“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”
Over to you Mario Draghi.Over to you Mario Draghi.
Updated at 10.14am AESTUpdated at 10.14am AEST
10.01am AEST01:0110.01am AEST01:01
All votes counted - Greece votes noAll votes counted - Greece votes no
All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.
9.56am AEST00:569.56am AEST00:56
Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.
Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.
The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.
The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.
Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.
9.52am AEST00:529.52am AEST00:52
Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”
However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”
9.52am AEST00:529.52am AEST00:52
Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.
No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.
Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.