Last night talks between Greek politicians and the country’s lenders again broke down, with the two sides failing to move towards an urgently required bailout deal. Greek negotiators, including Prime Minister Alexis Tsipras walked out of talks after just 45 minutes.
Germany’s economy minister and vice-chancellor Sigmar Gabriel warned Greece that its exit from the euro is becoming increasingly likely. According to a European Commission spokesperson, progress was made, but significant gaps remain between the two parties’ positions.
Last night International Monetary Fund (IMF) chief economist Olivier Blanchard published a blog post laying out areas of conflict between the two sides. As has been widely reported, sticking points include primary budget surplus targets, VAT and pension reforms.
On Friday, shares at some of Greece's biggest banks fell sharply on the Athens Stock Exchange, with stocks in the National Bank of Greece and Piraeus falling approximately 9%, while Alpha bank fell by almost 10%.
Consumer confidence rose more than forecast in June as Americans were the most upbeat about their wage prospects in seven years. Preliminary consumer sentiment index increased to 94.6, topping all estimates
Consistent labor-market improvement has helped buoy consumers’ attitudes even as costs at the gas pump rise from the cheapest rates since 2009. Further job gains and bigger paychecks should brighten moods and help underpin the household spending that makes up the largest part of the economy.
Americans expected an inflation rate of 2.7 percent in the next year, down from 2.8 percent in May. Over the next five to 10 years, they also projected a 2.7 percent rate of inflation, compared with 2.8 percent in the previous month.
Measures of sentiment have been uneven as Americans adjust their outlook after the first-quarter growth slump.
The Conference Board’s consumer confidence index rose in May to 95.4 from 94.3 the prior month that was the weakest since December. More Americans viewed current economic conditions as favourable, according to the New York-based private research group’s data.
Output in the construction industry fell 0.8% in April compared to the previous month, official figures show. The fall reverses March's surprise 1.4% increase, the Office for National Statistics said. After revising its methodology for measuring construction, the ONS said output fell 0.2% in the first quarter, rather than 1.1% as previously thought. This revision could have a theoretical impact on the UK's overall rate of economic growth, the ONS said. It means the economy could have grown by 0.4% in the first quarter rather than 0.3% as previously forecast, and by 2.9% in 2014 rather than 2.8%.
The third and final revision of overall GDP for the first three months of this year will be published on 30 June. It is also possible that GDP for 2014 will be revised up at the same time.
14:00 - EUR - ECB President Mario Draghi speaks