Debt crisis: live



Greek finance ministry announces investors will be invited to take up to a 70pc loss on their bond holdings, as eurozone finance ministers meet to discuss the deal.

• Greece's investors to take up to 70pc haircut on bonds • Eurozone finance ministers meet to discuss Greek debt • French manufacturing sector shrinks for ninth month

= Latest =

09.02 We have a lot of PMI data out this morning. First (OTC BB: FSTC.OB - news) up is France, where the manufacturing sector has shrunk for a ninth straight month in November (Xetra: A0Z24E - news) . The Markit index came out at 44.5 - well into contraction territory. That's up from the previous month's 43.7 but is still bad news, and will stoke fears that France's economy is due to contract overall in the fourth quarter. Markit economist Jack Kennedy said:

The French manufacturing sector remained in the grip of a sharp downturn in November. Companies remained firmly in retrenchment mode, cutting employment, purchasing and stock levels further, highlighting an expectation that conditions will remain tough.

08.53 Predictably, the news of the Greek bond buy-back has sent yields shooting downward from 15.8pc to around 14.5pc this morning. Reading further into the details of the plan, Greece says it will spend up to €10bn, and that it will be run along the lines of a "Dutch auction", where you start with a high price and lower it gradually until someone bites.

08.44 It seems that the Greek bond buy-back will see willing investors swapping their holdings for new, six-month debt. They'll get somewhere between 30.2pc and 40.1pc of the face value of their old bonds, according to a table in Annex 1 of the document released this morning .

08.35 Greece's finance ministry has released details of its bond buy-back this morning. The invitation will offer new bonds for old - with a haircut - until a deadline on December 7 at 5pm. The settlement is expected to be complete by December 17.

The London branch of Deutsche Bank (Xetra: 514000 - news) has been appointed to run the buy-back with Morgan Stanley (Dusseldorf: 653571.DU - news) also playing a role.

08.10 Eurozone finance ministers are meeting today to discuss the Greek debt buy-back deal and a bailout for Cyprus. The Greek plan is a key part of a debt reduction scheme designed to cut down to 124pc of GDP in 2020.

08.00 Good morning and welcome to our live coverage of the eurozone debt crisis.

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