Live blog

Welcome back to our live coverage of the eurozone crisis. By Tom Burgis and Esther Bintliff on the news desk in London with contributions from our correspondents around the world. All times GMT.

18.58 That’s about it for the live blog today. Follow FT.com through the evening for all the news from the summit and analysis of the day’s developments. Before we go, a quick recap:

  • Eurozone finance ministers held back more than half of Greece’s €130bn bail-out on the grounds that Athens has yet to jump through all the hoops lined up by its international creditors. That money could be released as soon as next week, though, and the ministers did sign off on a package of incentives and instruments to underpin a debt restructuring deal with private investors in Greek bonds
  • ISDA, the industry body that decides what is and is not a “credit event”, ruled that the Greek debt restructuring does not constitute one – or not yet, at any rate. That means that $3.25bn of credit default swaps on Greek government bonds do not pay out – unless ISDA comes to a different view at a later date. The decision could have significant knock-on effects in the market for CDS, which serve as insurance against a sovereign default.
  • There was more fallout from the Irish plan to hold a referendum on the eurozone’s fiscal compact, following the resignation of Fianna Fail’s deputy leader – and an apparent threat to execute a kitten (see 15.22)
  • Unemployment in the 17-member eurozone jumped to an all-time high of 10.7 per cent in January, new data showed
  • Spain held another successful bond auction and Italian yields fell too

And we leave you with a little light reading on the travails of Greece and one line — perhaps unfair, given today’s progress — that’s been raising wry smiles on Twitter.

[blackbirdpie url="https://twitter.com/#!/sickipediabot/status/169089627783827457"]

18.55 As expected, Herman Van Rompuy is elected for another term as president of the European Council.

[blackbirdpie url="https://twitter.com/#!/euHvR/status/175291547821158401"]

18.18 Now the finance ministers have done their work — well, some of it — it’s over the Europe’s leaders for the summit proper. Once again, all lenses on Germany’s Angela Merkel.

Angela Merkel arrives at the EU summit

Angela Merkel arrives at the EU summit in Brussels (Photo: AP)

17.58 Earlier, Bill Gross, the manager of Pimco, the world’s largest bond fund, was to be heard fulminating against ISDA’s decision not to deem the Greek restructuring a “credit event”, thereby preventing credit default swaps from paying out (15.27).

Our hawk-eyed colleagues at FT Alphaville have, however, been studying the list of the ISDA members that voted unanimously against calling a credit event. Check the last name….

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Tom Burgis

A tram passes the euro sign sculpture in front of the European Central Bank ( ECB) in Frankfurt, Germany. Photographer: Hannelore Foerster/Bloomberg

Welcome to our continuing coverage of the eurozone crisis. All times are GMT. By Tom Burgis, James Crabtree and John Aglionby on the news desk in London, with contributions from FT correspondents around the world.

The turmoil in the eurozone has taken a troubling turn in recent days, with anxiety spreading from Europe’s periphery to its “core” countries. Even as Italy’s Mario Monti readies his economic agenda to be presented today, investors are looking at France, the Netherlands and Austria with increasing unease and wondering whether the ECB might yet ride to the rescue. Over in Greece, today is the anniversary of 1973′s mass student protests – with demonstrators once more planning to take to the streets. And the bond markets are showing ever more strain, with today’s Spanish bond auction souring sentiment still further. 

Welcome back to the FT’s live coverage of the eurozone crisis and the global fallout. By Tom Burgis and David Crouch in London with contributions from correspondents around the world. All times are GMT.

Italian bond yields are back up over 7 per cent, and French and Spanish bonds are also under pressure. Stock markets are down across Europe. Meanwhile, Mario Monti – Italy’s prime minister designate – is battling to create a new government capable of dragging Italy out of the eye of the storm.

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17.59 We are wrapping up our rolling coverage – thank you for reading. But before we go, here is a quick reminder of today’s latest FT news and insights on the eurozone crisis:

  • Italian prime minister designate Mario Monti will see president Georgio Napolitano on Wednesday morning to present his new government, after he received the backing of outgoing premier Silvio Berlusconi’s People of Lilverty party
  • Following anaemic data on European economies today, more than three quarters of fund managers predicted Europe will slide into recession next year
  • Italy’s 10-year bond yield once again soared above the 7 per cent mark and French yields hit a record spread over German Bunds, causing global markets to wobble
  • US Treasury yields were close to unchanged as better-than-expected retail sales data offset safe-haven buying due to rising eurozone yields
  • The Austrian coalition government, faced with rising yields on government debt and a possible downgrade, decided to accelerate the pace of spending cuts
  • German frustration over Britain’s approach to the eurozone crisis was laid bare after a close ally of Angela Merkel accused the UK of selfishly pursuing its own interests just days before a meeting in Berlin between the German chancellor and UK prime minister David Cameron

 

John Aglionby

Silvio Berlusconi – shutting one's eyes won't make the problems go away. Image AFP/Getty

Welcome back to the FT’s coverage of the eurozone crisis. Curated by John Aglionby, Tom Burgis and David Crouch on the news desk in London, with contributions from correspondents around the world. All times are GMT.

Greece really is expected to get a new prime minister today – 48 hours later than expected. Italy, well who knows what’s going to happen there as bond yields surge and the EU’s economic inspectors arrive … And policymakers and financiers are becoming increasingly concerned about the impact of the crisis on global liquidity levels.

18.53 That’s it for our live coverage today. We leave you with a round-up of where we stand at the end of another turbulent day in Europe – and some cold hard numbers (and letters) for your bedtime reading.

 

Tom Burgis

Nicolas Sarkozy, French president and G20 host, blows a kiss to someone – presumably not the Greek prime minister (AFP/Getty)

  • Welcome back to the FT’s live coverage of the eurozone crisis. By Tom Burgis and John Aglionby on the news desk in London, with contributions from correspondents around the world. All times are GMT.

One issue dominates the agenda for as the Group of 20 leading economies enters its second and final: the fate of the eurozone amid the turmoil in Greece.

16.41: That’s it for the live blog for today. See FT.com over the coming hours for news and analysis on the G20 summit, Berlusconi’s woes and the outcome of tonight’s Greek vote.

16.31: Before we wind up the live blog, a brief re-cap of the day’s developments

  • The IMF is to monitor Italy’s progress on promises to reform its economy
  • Italian bond yields rose to fresh euro-era highs as Berlusconi said he was going nowhere
  • The Italian PM insisted his majority at home was “solid”, though it looks anything but
  • The G20 summit in Cannes ended with plenty of rhetoric urging the euorzone to get its house in order but no actual cash to help it do so
  • Any decision on boosting the IMF’s resources to help tackle the crisis was put of until when G20 finance ministers meet in February
  • Greek MPs are debating a vote of confidence in the government and will vote at midnight Athens time, 10pm London

 

Tom Burgis

 

Getty

Welcome back to the FT’s live coverage of the eurozone crisis. By Tom Burgis and John Aglionby on the news desk in London, with contributions from correspondents around the world. All times are GMT.

One issue dominates the agenda for today and tomorrow’s summit of the Group of 20 leading economies: the fate of the eurozone amid the turmoil in Greece.

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19.30: And what will tomorrow bring? Who knows. It’s day two of the G20 summit, the confidence vote in the Greek parliament and the US non-farm payrolls (monthly unemployment data) are announced.

Thanks for all your comments and tweets today – especially the song suggestions! For further updates from the late-night meetings in Cannes follow ft.com 

Tom Burgis

Welcome back to our continuing coverage of the eurozone crisis. In the early hours of the morning, eurozone leaders emerged from their summit in Brussels with a deal designed to stem the sovereign debt crisis. The markets seem pleased but big questions on the details remain. We’ll bring you reactions, news and commentary as we get it throughout the day.

All times are London time. By Tom Burgis on the news desk in London, with contributions from FT correspondents around the world.

18.34: It’s time to wrap up the live blog for today. But keep reading FT.com through the evening for:

18.13: Der Spiegel has a nice tale about whether or not Angela Merkel did in fact apologise to Silvio Berlusconi for appearing to smirk when asked publicly if she still had faith in his leadership.

18.07: Chatham House has just published a paper arguing that international debt bailout systems are ill-equipped to handle any further instability.

“As the problems in the eurozone deepen and threaten to spread globally, action is required to strengthen financial safety nets beyond what was agreed by EU Heads of State on 27 October 2011.”

Read the full report by Stephen Pickford, former managing director at the UK Treasury and former executive director at the IMF.

18.00: An evening update of the day’s developments:

  • At the end of trading in Europe, the FTSE Eurofirst 300 finished 3.69 per cent higher for the day at 1,020. US stocks rose too, with GDP numbers that matched expectations adding to a positive reception for the EU’s moves
  • Despite the ebullience in equities markets, concerns remained over soveriegn debt in the eurozone. Italian government bond yields first sank to 5.7 per cent, before rebounding to 5.9 per cent, near their euro-era highs
  • Questions remain over the details of the eurozone deal, notably over the terms of the new bonds that will replace existing Greek debt as part of the agreed 50 per cent “haircut” (see 13.17), how banks will go about raising new capital and where the cash to fund the various eurozone plans will come from
  • European officials are keen to involve China and other Bric nations in a fund to buy eurozone debt, though here too there are no firm plans yet

 

Tom Burgis

Welcome back to our continuing coverage of the eurozone crisis as we head into the evening. Europe’s leaders have gathered in Brussels to try to deliver a solution to the sovereign debt crisis. It has been a nervy day in the markets and national capitals – all of which you can read about on our live coverage from earlier on. Tonight we should discover whether Europe’s leaders can overcome their differences and chart a course towards recovery or whether they will once again fail to reach a deal. We’ll bring you news and commentary as we get it.

All times are London time. By Tom Burgis on the news desk in London, with contributions from FT correspondents around the world.

22.38: We’re going to wrap up our live coverage from London now. But fear not, the FT reporters at the summit will not rest until we have an outcome from the evening’s second summit, of all 17 eurozone leaders. See ft.com for all the latest news.

It seems only right to give the final word on today’s developments to Justin Timberlake, whose new film, In Time, has the strap line: “Tomorrow is a luxury you can’t afford.” Over the coming hours we’ll discover whether European leaders – and the markets – share that sentiment.

22.35: A quick recap on what we know so far

  • The 27 EU leaders agreed a statement as per a leaked draft, fleshing out some headline details of how the bank recapitalisation will work
  • Silvio Berlusconi’s letter to his fellow eurozone leaders included a commitment to raise the Italian retirement age to 67
  • Nicolas Sarkozy will call his Chinese counterpart tomorrow in what seems to be part of efforts to win Chinese investment for a fund to buy eurozone debt
  • US markets dealt with all of this pretty calmly, finishing the day in the black

 

Esther Bintliff

Welcome to the live blog where we are covering developments in the case of Dominique Strauss-Kahn (DSK), the former head of the International Monetary Fund.

All times are London time; New York is five hours behind. By Peggy Hollinger and James Boxell in Paris, Esther Bintliff in London and Barney Jopson and Johanna Kassel in New York.

21.22: Barney Jopson says DSK  is still in New York and at lunch, apparently, at the TimeWarner Centre at Columbus Circle, which happens to be home to CNN.

Hang on, whispers that he’s now on his way back. 

As events unfold in Libya and across the wider region, the FT is running live coverage on Gideon Rachman’s blog. This post will update automatically.