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| Business live: Chinese stock market suffers biggest fall since 2007 | Business live: Chinese stock market suffers biggest fall since 2007 |
| (35 minutes later) | |
| 9.58am BST09:58 | |
| Chinese investors are nursing some very heavy losses today, and must also be fearing more turmoil when markets reopen on Tuesday. | |
| Reuters reports that 1,500 individual shares were suspended after crashing 10% - the maximum allowed – fuelling fears that a a full-blown crash is building. | |
| #China crash: More than 1,500 shares listed in Shanghai and Shenzhen dived by the daily limit. http://t.co/gapGk0CYGo | |
| 9.52am BST09:52 | |
| Very few stock markets have avoided being dragged down today, either in Asia or Europe. | |
| 9.47am BST09:47 | |
| Amateur chartists in the audience may see some similarities between today’s slump and the events of 2007 and 2008: | |
| Updated at 9.47am BST | |
| 9.37am BST09:37 | |
| Here’s confirmation that China’s main stock markets just suffered its biggest selloff since the dawn of the credit crunch over eight years ago. | |
| How today's session on the Shanghai market rollercoaster compares with other one-day drops. http://t.co/VqPFn9JYER pic.twitter.com/4YZ7Dm9rpT | |
| 9.26am BST09:26 | |
| German business confidence beats forecasts | |
| Germany appears to have taken the Greek debt crisis in its stride, with business confidence rising this month. | |
| The IFO thinktank’s monthly business climate survey ticked up to 108 this month, up from 107.5 in June. Firms reported an improvement in current conditions, and are slightly more optimistic about future prospects. | |
| It appears that the underlying strength of Europe’s largest economy helped it to defy the turmoil in Athens in recent months. | |
| Carsten Brzeski, ING economists, says: | |
| Even if the doses has been reduced somewhat, the German economy is still on steroids. Despite some recent rebounds, the weak euro exchange rate and low energy prices are still artificially extending the last phase of a very positive reform-growth cycle. | |
| Forget about Greece? German Ifo increases in July. A quick take. http://t.co/gz7cgDbskm | |
| 9.10am BST09:10 | 9.10am BST09:10 |
| Greek jitters weigh on European markets | Greek jitters weigh on European markets |
| Europe’s stock markets are also suffering a bout of Greek worries, after talks with creditors had a false start on Friday (but should start today or tomorrow). | Europe’s stock markets are also suffering a bout of Greek worries, after talks with creditors had a false start on Friday (but should start today or tomorrow). |
| Sunday’s revelations about plans for a secret parallel payment system haven’t calmed nerves either, as Connor Campbell of SpreadEX explains: | Sunday’s revelations about plans for a secret parallel payment system haven’t calmed nerves either, as Connor Campbell of SpreadEX explains: |
| The Eurozone indices weren’t helped by the weekend’s news that Yanis Varoufakis, at the behest of Tsipras, spent months working on a parallel banking system that, for all intents and purposes, would have dealt with an abrupt switch from euro to drachma; an unwelcome reminder as negotiations begin of the Grexit-stakes that lie at the heart of the saga. | The Eurozone indices weren’t helped by the weekend’s news that Yanis Varoufakis, at the behest of Tsipras, spent months working on a parallel banking system that, for all intents and purposes, would have dealt with an abrupt switch from euro to drachma; an unwelcome reminder as negotiations begin of the Grexit-stakes that lie at the heart of the saga. |
| Here’s our take on the story: | Here’s our take on the story: |
| Related: Greece rocked by reports of secret plan to raid banks for drachma return | Related: Greece rocked by reports of secret plan to raid banks for drachma return |
| Ambrose Evans-Pritchard of the Telegraph has spoken with Varoufakis, who confirmed the story but denied that he’d been plotting Greece’s exit from the eurozone. | Ambrose Evans-Pritchard of the Telegraph has spoken with Varoufakis, who confirmed the story but denied that he’d been plotting Greece’s exit from the eurozone. |
| Varoufakis expects treason indictment. My two drachma on Plan B leak, his reaction. Greek crisis will go on and on http://t.co/a1VTNW6ZtR | Varoufakis expects treason indictment. My two drachma on Plan B leak, his reaction. Greek crisis will go on and on http://t.co/a1VTNW6ZtR |
| Updated at 9.10am BST | Updated at 9.10am BST |
| 8.59am BST08:59 | 8.59am BST08:59 |
| Europe’s stock markets have followed China’s lead, with the French CAC and German DAX both falling over 1%. | Europe’s stock markets have followed China’s lead, with the French CAC and German DAX both falling over 1%. |
| The FTSE 100 is only down 0.35%, though, with mining stocks recovering after Friday’s rout. | The FTSE 100 is only down 0.35%, though, with mining stocks recovering after Friday’s rout. |
| 8.51am BST08:51 | 8.51am BST08:51 |
| Here’s another reason for alarm: the amount of capital leaving China has accelerated sharply in recent months. | Here’s another reason for alarm: the amount of capital leaving China has accelerated sharply in recent months. |
| China's capital outflows are accelerating at an alarming rate. Chart via Goldman: pic.twitter.com/LUQpjUcnnl | China's capital outflows are accelerating at an alarming rate. Chart via Goldman: pic.twitter.com/LUQpjUcnnl |
| That indicates companies are investing less, suggesting economic growth is faltering. | That indicates companies are investing less, suggesting economic growth is faltering. |
| 8.48am BST08:48 | 8.48am BST08:48 |
| Chinese share prices were a sea of green today (red, being a lucky colour, is used for rising prices): | Chinese share prices were a sea of green today (red, being a lucky colour, is used for rising prices): |
| 8.46am BST08:46 | 8.46am BST08:46 |
| Andrew MacFarlane of BNP Paribas says today’s slump shows “the vulnerability of the Chinese market despite the recent government support.” | Andrew MacFarlane of BNP Paribas says today’s slump shows “the vulnerability of the Chinese market despite the recent government support.” |
| 8.44am BST08:44 | 8.44am BST08:44 |
| Today’s crash comes three weeks after China took dramatic action to stem falling prices. | Today’s crash comes three weeks after China took dramatic action to stem falling prices. |
| In a remarkable intervention, Beijing banned large shareholders from selling stakes, ordered state-run institutions to buy shares and letting many companies halt trading in their shares. | In a remarkable intervention, Beijing banned large shareholders from selling stakes, ordered state-run institutions to buy shares and letting many companies halt trading in their shares. |
| My colleague Nils Pratley covered it here: | My colleague Nils Pratley covered it here: |
| Related: Beijing's desperate attempts to control the stock market will end badly | Related: Beijing's desperate attempts to control the stock market will end badly |
| In the short term, China’s actions did help the Shanghai stock market to recover: | In the short term, China’s actions did help the Shanghai stock market to recover: |
| But that sticking-plaster appears to be coming off. On Friday, it emerged that the International Monetary Fund was pushing China to unwind its intervention, so that market forces could set the true price of shares. That may now be underway... | But that sticking-plaster appears to be coming off. On Friday, it emerged that the International Monetary Fund was pushing China to unwind its intervention, so that market forces could set the true price of shares. That may now be underway... |
| 8.39am BST08:39 | 8.39am BST08:39 |
| Analysts are struggling to explain exactly why the Chinese stock markets suffered such a slump. | Analysts are struggling to explain exactly why the Chinese stock markets suffered such a slump. |
| Reuters attributes it to “profit-taking, concerns over economic health and fears of an end to Beijing’s inclination toward looser monetary policies.” | Reuters attributes it to “profit-taking, concerns over economic health and fears of an end to Beijing’s inclination toward looser monetary policies.” |
| 8.34am BST08:34 | 8.34am BST08:34 |
| Many stocks on the Shanghai stock market were suspended after plunging 10%, which is the maximum allowed in one day. | Many stocks on the Shanghai stock market were suspended after plunging 10%, which is the maximum allowed in one day. |
| Only four stocks rose, out of 300. | Only four stocks rose, out of 300. |
| 8.21am BST08:21 | 8.21am BST08:21 |
| Shanghai stock market plunges by 8.5% | Shanghai stock market plunges by 8.5% |
| The Chinese stock market has suffered its worst one-day fall in eight years, after a day of panic selling. | The Chinese stock market has suffered its worst one-day fall in eight years, after a day of panic selling. |
| The benchmark Shanghai composite index just crashed by 8.5%, which is the biggest one-day fall since 2007, according to Bloomberg data. | The benchmark Shanghai composite index just crashed by 8.5%, which is the biggest one-day fall since 2007, according to Bloomberg data. |
| The slump was triggered by worries over the Chinese economy, with a new survey showing that profit at China’s industrial firms fell by 0.3% last month. | The slump was triggered by worries over the Chinese economy, with a new survey showing that profit at China’s industrial firms fell by 0.3% last month. |
| But the scale of the rout suggests investors are also losing faith in recent efforts by the Beijing government to prop up share prices. | But the scale of the rout suggests investors are also losing faith in recent efforts by the Beijing government to prop up share prices. |
| Updated at 8.27am BST | Updated at 8.27am BST |
| 8.06am BST08:06 | 8.06am BST08:06 |
| Introduction: China woes mount, as creditors return to Greece | Introduction: China woes mount, as creditors return to Greece |
| Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business. | Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business. |
| With Greece temporarily on the back-burner (but not for long), China has elbowed its way to the forefront of investors’ attention, on fears that its economy is suffering a serious slowdown. | With Greece temporarily on the back-burner (but not for long), China has elbowed its way to the forefront of investors’ attention, on fears that its economy is suffering a serious slowdown. |
| And the Chinese stock markets is suffering a bad day. The benchmark Shanghai index is has slumped by around 7% in late trading, in another rush of late selling. | And the Chinese stock markets is suffering a bad day. The benchmark Shanghai index is has slumped by around 7% in late trading, in another rush of late selling. |
| That’s likely to hit Europe’s stock markets this morning too. | That’s likely to hit Europe’s stock markets this morning too. |
| Also coming up today | Also coming up today |
| Negotiators from Greece’s creditors are due to arrive in Athens today formally begin talks on a €86bn bailout, after talks were aborted on Friday due to a row over access to ministries - and which hotel would house the Troika. | Negotiators from Greece’s creditors are due to arrive in Athens today formally begin talks on a €86bn bailout, after talks were aborted on Friday due to a row over access to ministries - and which hotel would house the Troika. |
| We find out how much damage the Greek crisis has caused to Germany’s economy, when the IFO index is released at 9am. | We find out how much damage the Greek crisis has caused to Germany’s economy, when the IFO index is released at 9am. |
| And Greeks are also digesting the news that former finance minister Yanis Varoufakis spent months on a plan to develop a parallel banking system while in office. | And Greeks are also digesting the news that former finance minister Yanis Varoufakis spent months on a plan to develop a parallel banking system while in office. |
| Sunday’s edition of the Greek newspaper Kathimerini has the story. | Sunday’s edition of the Greek newspaper Kathimerini has the story. |
| Varoufakis claims had approval to plan parallel banking system | Varoufakis claims had approval to plan parallel banking system |
| Here’s a flavour: | Here’s a flavour: |
| Former Finance Minister Yanis Varoufakis has claimed that he was authorized by Alexis Tsipras last December to look into a parallel payment system that would operate using wiretapped tax registration numbers (AFMs) and could eventually work as a parallel banking system, Kathimerini has learned. | Former Finance Minister Yanis Varoufakis has claimed that he was authorized by Alexis Tsipras last December to look into a parallel payment system that would operate using wiretapped tax registration numbers (AFMs) and could eventually work as a parallel banking system, Kathimerini has learned. |
| In a teleconference call with members of international hedge funds that was allegedly coordinated by former British Chancellor of the Exchequer Norman Lamont, Varoufakis claimed to have been given the okay by Tsipras last December – a month before general elections that brought SYRIZA to power – to plan a payment system that could operate in euros but which could be changed into drachmas “overnight” if necessary, Kathimerini understands. | In a teleconference call with members of international hedge funds that was allegedly coordinated by former British Chancellor of the Exchequer Norman Lamont, Varoufakis claimed to have been given the okay by Tsipras last December – a month before general elections that brought SYRIZA to power – to plan a payment system that could operate in euros but which could be changed into drachmas “overnight” if necessary, Kathimerini understands. |
| Lamont’s involvement is the icing on a particularly eye-catching cake. | Lamont’s involvement is the icing on a particularly eye-catching cake. |
| I’ll be tracking all the main events through the day..... | I’ll be tracking all the main events through the day..... |
| Updated at 8.10am BST | Updated at 8.10am BST |