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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jul/23/business-live-greece-mps-reforms-tsipras-bailout-live
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| Version 15 | Version 16 |
|---|---|
| Greece to fall deeper into recession as bailout moves closer - as it happened | Greece to fall deeper into recession as bailout moves closer - as it happened |
| (25 days later) | |
| 7.13pm BST | 7.13pm BST |
| 19:13 | 19:13 |
| Closing summary | Closing summary |
| No point staying up until 3am with this blog, I think. Let’s have a closing summary. | No point staying up until 3am with this blog, I think. Let’s have a closing summary. |
| Greece took a step closer to a third bailout early this morning, after MP voted to accept legal and banking sector reforms at a late-night session in Athens. | Greece took a step closer to a third bailout early this morning, after MP voted to accept legal and banking sector reforms at a late-night session in Athens. |
| A request for fresh help could be sent to the IMF as early as Friday. | A request for fresh help could be sent to the IMF as early as Friday. |
| The country is likely to suffer a deep recession this year, according to a new report from influential thinktank IOBE. It believes GDP could fall by 2.5% this year, due to the impact of capital controls on the economy. | The country is likely to suffer a deep recession this year, according to a new report from influential thinktank IOBE. It believes GDP could fall by 2.5% this year, due to the impact of capital controls on the economy. |
| The turmoil over Greece has been blamed for a drop in consumer confidence across the eurozone. | The turmoil over Greece has been blamed for a drop in consumer confidence across the eurozone. |
| Howard Archer of IHS Global Insight explains: | Howard Archer of IHS Global Insight explains: |
| While there is no breakdown available yet of Eurozone consumer confidence in July, it looks highly probable that the heightened crisis in Greece contributed to reduced perceptions of the economic outlook. | While there is no breakdown available yet of Eurozone consumer confidence in July, it looks highly probable that the heightened crisis in Greece contributed to reduced perceptions of the economic outlook. |
| This was certainly true of both Belgium (especially) and the Netherlands, where confidence weakened. | This was certainly true of both Belgium (especially) and the Netherlands, where confidence weakened. |
| Divisions appear to be deepening in the Syriza party, after prime minister Alexis Tsipras accused speaker Zoe Konstantopoulou of creating “institutional discord”. | Divisions appear to be deepening in the Syriza party, after prime minister Alexis Tsipras accused speaker Zoe Konstantopoulou of creating “institutional discord”. |
| Last night saw 36 Syriza MPs defy Tsipras - this list shows all the details. | Last night saw 36 Syriza MPs defy Tsipras - this list shows all the details. |
| Athens stock market traders must wait until next week to discover when they can return to work. | Athens stock market traders must wait until next week to discover when they can return to work. |
| And there has been a protest at the Acropolis today, by contract workers seeking back pay from the government. | And there has been a protest at the Acropolis today, by contract workers seeking back pay from the government. |
| I’ll be back tomorrow to do it all again. Thanks for reading and commenting, as ever. Goodnight! GW | I’ll be back tomorrow to do it all again. Thanks for reading and commenting, as ever. Goodnight! GW |
| 6.57pm BST | 6.57pm BST |
| 18:57 | 18:57 |
| Greece’s largest opposition party, New Democracy, has decided to keep its current interim leader, Evangelos Meimarakis, in place until next spring. | Greece’s largest opposition party, New Democracy, has decided to keep its current interim leader, Evangelos Meimarakis, in place until next spring. |
| New Democracy decides Meimarakis will remain as leader until spring 2016, reports @geoterzis. 62 of 76 ND MPs had asked for this #Greece | New Democracy decides Meimarakis will remain as leader until spring 2016, reports @geoterzis. 62 of 76 ND MPs had asked for this #Greece |
| That means ND won’t be caught up in a leadership fight if snap elections were called this autumn. | That means ND won’t be caught up in a leadership fight if snap elections were called this autumn. |
| 6.52pm BST | 6.52pm BST |
| 18:52 | 18:52 |
| The Kathimerini newspaper reports that eight suspected members of the anarchist group Rouvikonas were detained for questioning on Thursday, after a group of protesters gathered outside the Greek PM’s residence. | The Kathimerini newspaper reports that eight suspected members of the anarchist group Rouvikonas were detained for questioning on Thursday, after a group of protesters gathered outside the Greek PM’s residence. |
| They released leaflets calling for a debt writedown, and for Greece to leave the EU. | They released leaflets calling for a debt writedown, and for Greece to leave the EU. |
| Eight arrested during protest outside PM's office http://t.co/iu5YJTsXYa pic.twitter.com/C5Mj3joxix | Eight arrested during protest outside PM's office http://t.co/iu5YJTsXYa pic.twitter.com/C5Mj3joxix |
| 6.40pm BST | 6.40pm BST |
| 18:40 | 18:40 |
| Greece could make its formal request to the International Monetary Fund for fresh financing on Friday, as part of its third bailout, reports the Ethnos newspaper tonight. | Greece could make its formal request to the International Monetary Fund for fresh financing on Friday, as part of its third bailout, reports the Ethnos newspaper tonight. |
| #Greece expected to make official bailout request to the #IMF tomorrow http://t.co/PS986yHRIj /via @ethnosgr | #Greece expected to make official bailout request to the #IMF tomorrow http://t.co/PS986yHRIj /via @ethnosgr |
| Earlier today, IMF spokesman Gerry Rice confirmed that a request hasn’t been made yet. He also warned that the Fund would need to assess Greece’s financial situation before negotiations could start. | Earlier today, IMF spokesman Gerry Rice confirmed that a request hasn’t been made yet. He also warned that the Fund would need to assess Greece’s financial situation before negotiations could start. |
| And, as Christine Lagarde has made clear several times, Europe needs to make a promise on debt sustainability. | And, as Christine Lagarde has made clear several times, Europe needs to make a promise on debt sustainability. |
| As Rice put it: | As Rice put it: |
| “On the debt relief, there would need to be a specific, concrete commitment.” | “On the debt relief, there would need to be a specific, concrete commitment.” |
| 6.09pm BST | 6.09pm BST |
| 18:09 | 18:09 |
| The morning rally in Europe’s stock markets fizzled out by the close. | The morning rally in Europe’s stock markets fizzled out by the close. |
| Jasper Lawler of CMC Markets explains: | Jasper Lawler of CMC Markets explains: |
| Early gains in Europe slipped away with the open of US markets which are still plagued by disappointment over Apple’s quarterly earnings update. | Early gains in Europe slipped away with the open of US markets which are still plagued by disappointment over Apple’s quarterly earnings update. |
| Tony Cross of Trustnet Direct has run through the main movers in London: | Tony Cross of Trustnet Direct has run through the main movers in London: |
| ARM Holdings is finishing the day at the top of the board after yesterday’s rout inspired by those rotten Apple results on Tuesday. Given ARM’s diverse customer base the sell-off has been seen to have little merit, so whether the rally has further to run here remains to be seen. Pearson is also up around 2% on the back of news that it has finally sold The Financial Times although there are suggestions that given both the London premises and the 50% stake in The Economist have been retained, this price achieved was more than fair. Once the numbers have been dissected there could be further reaction seen here, too. | ARM Holdings is finishing the day at the top of the board after yesterday’s rout inspired by those rotten Apple results on Tuesday. Given ARM’s diverse customer base the sell-off has been seen to have little merit, so whether the rally has further to run here remains to be seen. Pearson is also up around 2% on the back of news that it has finally sold The Financial Times although there are suggestions that given both the London premises and the 50% stake in The Economist have been retained, this price achieved was more than fair. Once the numbers have been dissected there could be further reaction seen here, too. |
| Scottish and Southern is lagging both off the back of having gone ex-div and some disappointing sales figures, but it’s Aberdeen Asset Management that’s at the foot of the index, down 7% after a notable fall in AUM was reported with volatility in emerging markets being seen as the culprit. | Scottish and Southern is lagging both off the back of having gone ex-div and some disappointing sales figures, but it’s Aberdeen Asset Management that’s at the foot of the index, down 7% after a notable fall in AUM was reported with volatility in emerging markets being seen as the culprit. |
| 4.51pm BST | 4.51pm BST |
| 16:51 | 16:51 |
| Pierre Moscovici, European commissioner, still expects the Greek bailout to be agreed in the second half of August: | Pierre Moscovici, European commissioner, still expects the Greek bailout to be agreed in the second half of August: |
| #Grèce dynamique à poursuive pour conclusion négociations nouveau programme d'aide 2e quinzaine d'août http://t.co/55DF76yqk8 @EU_Commission | #Grèce dynamique à poursuive pour conclusion négociations nouveau programme d'aide 2e quinzaine d'août http://t.co/55DF76yqk8 @EU_Commission |
| Updated | Updated |
| at 4.51pm BST | at 4.51pm BST |
| 4.43pm BST | 4.43pm BST |
| 16:43 | 16:43 |
| Helena Smith | Helena Smith |
| Over in Athens the gloves appear to be finally off in Syriza. | Over in Athens the gloves appear to be finally off in Syriza. |
| Our correspondent Helena Smith reports: | Our correspondent Helena Smith reports: |
| It didn’t take long. Barely three hours after Zoe Konstantopoulou emerged from his office, the Greek prime minister has issued a statement with a thinly veiled warning that he might be forced to take drastic action if the parliament speaker doesn’t change tact. | It didn’t take long. Barely three hours after Zoe Konstantopoulou emerged from his office, the Greek prime minister has issued a statement with a thinly veiled warning that he might be forced to take drastic action if the parliament speaker doesn’t change tact. |
| “The prime minister today received the president of the parliament at her request. Alexis Tsipras listened to the views of Zoe Konstantopoulou carefully. He expressed his concern at the institutional discord caused by her otherwise respected decision to differ from the collective direction the government [has taken] and the parliamentary majority which supports it. | “The prime minister today received the president of the parliament at her request. Alexis Tsipras listened to the views of Zoe Konstantopoulou carefully. He expressed his concern at the institutional discord caused by her otherwise respected decision to differ from the collective direction the government [has taken] and the parliamentary majority which supports it. |
| The meeting took place in a climate of sincerity and comradeship.” | The meeting took place in a climate of sincerity and comradeship.” |
| Konstantopoulou, fast becoming the face of anger over the government’s spectacular u-turn in recent weeks, has yet to respond. Leaving Tsipras’ office, she had played down differences telling reporters that both were bonded by feelings of comradeship and sincerity and a common desire to defend the: | Konstantopoulou, fast becoming the face of anger over the government’s spectacular u-turn in recent weeks, has yet to respond. Leaving Tsipras’ office, she had played down differences telling reporters that both were bonded by feelings of comradeship and sincerity and a common desire to defend the: |
| “rights of our people ... and the cohesion of the left and of Syriza which some would like to see break up.” | “rights of our people ... and the cohesion of the left and of Syriza which some would like to see break up.” |
| Updated | Updated |
| at 4.48pm BST | at 4.48pm BST |
| 4.31pm BST | 4.31pm BST |
| 16:31 | 16:31 |
| Life is full of surprises. And few members of the Financial Times suspected that they’d end up being sold to Nikkei, Japan’s largest media company, for £844m today. | Life is full of surprises. And few members of the Financial Times suspected that they’d end up being sold to Nikkei, Japan’s largest media company, for £844m today. |
| Here’s the full story: | Here’s the full story: |
| Related: Financial Times sold to Japanese media group Nikkei for £844m | Related: Financial Times sold to Japanese media group Nikkei for £844m |
| Exciting times for the FT’s finest, once they’ve mastered a few technical challenges: | Exciting times for the FT’s finest, once they’ve mastered a few technical challenges: |
| Classic. @Pearson CEO puts message to @FT employees on some internal messaging system I have no idea how to use. | Classic. @Pearson CEO puts message to @FT employees on some internal messaging system I have no idea how to use. |
| OH in the newsroom: 'Does anyone know how to open this thing?' | OH in the newsroom: 'Does anyone know how to open this thing?' |
| It sounds nearly as bad as a paywall!! | It sounds nearly as bad as a paywall!! |
| Updated | Updated |
| at 4.33pm BST | at 4.33pm BST |
| 4.27pm BST | 4.27pm BST |
| 16:27 | 16:27 |
| Bundesbank chief signals openness to (some) debt relief | Bundesbank chief signals openness to (some) debt relief |
| The head of Germany’s central bank, Bundesbank chief Jens Weidmann, has signalled his willingness to consider extending Greece’s debt repayments. | The head of Germany’s central bank, Bundesbank chief Jens Weidmann, has signalled his willingness to consider extending Greece’s debt repayments. |
| Over to Reuters: | Over to Reuters: |
| In remarks that may show a willingness to compromise on the question of Greece’s debt burden, Jens Weidmann said: “One proposal of the Bundesbank envisages, for example, an automatic extension of the maturities on all the bonds of a country as soon as it has applied for an ESM (European Stability Mechanism) programme.” | In remarks that may show a willingness to compromise on the question of Greece’s debt burden, Jens Weidmann said: “One proposal of the Bundesbank envisages, for example, an automatic extension of the maturities on all the bonds of a country as soon as it has applied for an ESM (European Stability Mechanism) programme.” |
| “That would drastically reduce the financing needs of a possible programme.” | “That would drastically reduce the financing needs of a possible programme.” |
| However, Weidmann also suggested a three-year extension. The IMF believes a three-decade one is needed.... | However, Weidmann also suggested a three-year extension. The IMF believes a three-decade one is needed.... |
| 4.20pm BST | 4.20pm BST |
| 16:20 | 16:20 |
| Eurozone consumer confidence weakens | Eurozone consumer confidence weakens |
| The Greece crisis has dented consumer morale in the eurozone. | The Greece crisis has dented consumer morale in the eurozone. |
| The European Commission’s flash estimate showed the euro zone consumer morale indicator was -7.1 points, a chunky deterioration on the -5.6 in June. | The European Commission’s flash estimate showed the euro zone consumer morale indicator was -7.1 points, a chunky deterioration on the -5.6 in June. |
| All those long crisis meetings, the deadlock, and the talk of Grexit may have unsettled Europeans. | All those long crisis meetings, the deadlock, and the talk of Grexit may have unsettled Europeans. |
| 2.04pm BST | 2.04pm BST |
| 14:04 | 14:04 |
| German newspaper publisher Axel Springer has now emerged as the front runner to buy the Financial Times, and add it to its stable of titles including the tabloid Bilt. | German newspaper publisher Axel Springer has now emerged as the front runner to buy the Financial Times, and add it to its stable of titles including the tabloid Bilt. |
| Axel Springer now favourites to be the company in talks to buy the @ft http://t.co/mLJktZOVPg pic.twitter.com/oVJZvxSBu0 | Axel Springer now favourites to be the company in talks to buy the @ft http://t.co/mLJktZOVPg pic.twitter.com/oVJZvxSBu0 |
| Updated | Updated |
| at 2.04pm BST | at 2.04pm BST |
| 2.01pm BST | 2.01pm BST |
| 14:01 | 14:01 |
| Veteran economics writer Anatole Kaletsky has reinforced his reputation for going against the flow, by arguing that Greece’s bailout deal will end well. | Veteran economics writer Anatole Kaletsky has reinforced his reputation for going against the flow, by arguing that Greece’s bailout deal will end well. |
| Kaletsky argues that Europe’s leaders will want to show that their tough approach to Athens will work, by showing a little flexibility in its bailout targets. | Kaletsky argues that Europe’s leaders will want to show that their tough approach to Athens will work, by showing a little flexibility in its bailout targets. |
| And with the eurozone growing, and the ECB committed to stimulating the economy through QE for at least another 14 months, Greece’s future might not be as awful as many people reckon. | And with the eurozone growing, and the ECB committed to stimulating the economy through QE for at least another 14 months, Greece’s future might not be as awful as many people reckon. |
| Worth reading (and then bookmarking so we can mark him out of 10 in a few years....) | Worth reading (and then bookmarking so we can mark him out of 10 in a few years....) |
| Related: Eurozone debt crisis: why the Greece deal will work | Related: Eurozone debt crisis: why the Greece deal will work |
| Updated | Updated |
| at 2.01pm BST | at 2.01pm BST |
| 1.54pm BST | 1.54pm BST |
| 13:54 | 13:54 |
| Speaking of central banks, Turkey left interest rates unchanged today: | Speaking of central banks, Turkey left interest rates unchanged today: |
| Turkey's central bank left its repo rate unchanged at 7.5 percent on Thursday, as expected $USDTRY ^MW | Turkey's central bank left its repo rate unchanged at 7.5 percent on Thursday, as expected $USDTRY ^MW |
| That went down badly with the country’s economy minister, who said he couldn’t view it ‘positively’ (code for ‘Wish they’d cut rates instead’) | That went down badly with the country’s economy minister, who said he couldn’t view it ‘positively’ (code for ‘Wish they’d cut rates instead’) |
| 1.50pm BST | 1.50pm BST |
| 13:50 | 13:50 |
| ...and up goes the US dollar, on the back of that surprisingly decent weekly jobs report: | ...and up goes the US dollar, on the back of that surprisingly decent weekly jobs report: |
| Dollar basket spikes as US initial jobless claims falls to lowest since 1973 at 255,000. 1 min @IGcom chart pic.twitter.com/OFExqDnyDO | Dollar basket spikes as US initial jobless claims falls to lowest since 1973 at 255,000. 1 min @IGcom chart pic.twitter.com/OFExqDnyDO |
| 1.35pm BST | 1.35pm BST |
| 13:35 | 13:35 |
| US jobless claim are lowest in four decades | US jobless claim are lowest in four decades |
| Over to America, where the number of people filing new claims for unemployment benefit has hit its lowest level since 1973! | Over to America, where the number of people filing new claims for unemployment benefit has hit its lowest level since 1973! |
| Just 255,000 filed initial jobless claims last week, down from 281,000 the previous seven days. | Just 255,000 filed initial jobless claims last week, down from 281,000 the previous seven days. |
| A strengthening US jobs market is going to put more pressure on the Federal Reserve to raise borrowing costs this year, especially once the Greek bailout is signed and sealed. | A strengthening US jobs market is going to put more pressure on the Federal Reserve to raise borrowing costs this year, especially once the Greek bailout is signed and sealed. |
| US back to work! 255K weekly jobless claims vs 278K est #usd | US back to work! 255K weekly jobless claims vs 278K est #usd |
| Claims look even better when you consider how much the population has grown since 1973 | Claims look even better when you consider how much the population has grown since 1973 |
| 1.15pm BST | 1.15pm BST |
| 13:15 | 13:15 |
| The shadow of Greece’s financial crisis even reaches the Acropolis today. | The shadow of Greece’s financial crisis even reaches the Acropolis today. |
| A group of contract employees from the Ministry of Culture are protesting at the entrance of the ancient site today, saying they are owed up to six months of unpaid wages: | A group of contract employees from the Ministry of Culture are protesting at the entrance of the ancient site today, saying they are owed up to six months of unpaid wages: |
| 12.47pm BST | 12.47pm BST |
| 12:47 | 12:47 |
| That much-anticipated meeting between prime minister Tsipras and speaker Konstantopoulou has ended.... | That much-anticipated meeting between prime minister Tsipras and speaker Konstantopoulou has ended.... |
| Speaker Zoe Konstantopoulou meets PM, says priority is to safeguard party unity #Greece pic.twitter.com/pBQXtvKBqC | Speaker Zoe Konstantopoulou meets PM, says priority is to safeguard party unity #Greece pic.twitter.com/pBQXtvKBqC |
| 12.12pm BST | 12.12pm BST |
| 12:12 | 12:12 |
| Greece to fall deeper into recession this year | Greece to fall deeper into recession this year |
| A third bailout deal won’t prevent Greece plunging into a deep recession year, a leading Greek thinktank has warned. | A third bailout deal won’t prevent Greece plunging into a deep recession year, a leading Greek thinktank has warned. |
| The Foundation for Economic & Industrial Research (IOBE) has abandoned its prediction from April that Greek GDP would rise by 1% this year, given the turmoil in the economy since capital controls were imposed. | The Foundation for Economic & Industrial Research (IOBE) has abandoned its prediction from April that Greek GDP would rise by 1% this year, given the turmoil in the economy since capital controls were imposed. |
| IOBE now fears that the economy will shrink by between 2% and 2.5% in 2015, due to the damage caused to exports, tourism, business investment and consumer spending. | IOBE now fears that the economy will shrink by between 2% and 2.5% in 2015, due to the damage caused to exports, tourism, business investment and consumer spending. |
| That would more than wipe out last year’s modest progress, when Greece grew by 0.7%. | That would more than wipe out last year’s modest progress, when Greece grew by 0.7%. |
| Greece is already in recession, having contracted since the last three months of 2014. IOBE fears this slump will last until 2016, when growth could return if reforms are carried out. | Greece is already in recession, having contracted since the last three months of 2014. IOBE fears this slump will last until 2016, when growth could return if reforms are carried out. |
| That would mean even more damage to an economy that has already shrunk by a quarter since the crisis began. | That would mean even more damage to an economy that has already shrunk by a quarter since the crisis began. |
| IOBE is presenting the report now in Athens, and it has urged the Greek government to conclude its bailout talks quickly. Any delay would cause even deeper damage, it argues: | IOBE is presenting the report now in Athens, and it has urged the Greek government to conclude its bailout talks quickly. Any delay would cause even deeper damage, it argues: |
| “The recent turbulence in the banking system and its impact on its capital adequacy along with the wait for the outcome of negotiations for a new programme would be the main cause for a suspension of the overwhelming majority of business investment in the second half of 2015.” | “The recent turbulence in the banking system and its impact on its capital adequacy along with the wait for the outcome of negotiations for a new programme would be the main cause for a suspension of the overwhelming majority of business investment in the second half of 2015.” |
| 11.54am BST | 11.54am BST |
| 11:54 | 11:54 |