Warned that ECB OMT blurs the line between monetary and fiscal policy - this makes it more difficult to achieve price stability and spreads solvency risks amongst eurozone countries, but does so without any parliamentary or democratic approval. Pushed for a narrow interpretation of a central bank's primary mandate, with a complete focus on price stability. Suggested that the OMT does represent potential losses for taxpayers, arguing that if the ECB took on significant amounts of risky debt, it may face large a loss which it cannot absorb and may require aid from member states. Argued that even secondary market purchases can overturn the force of market discipline and undermine fiscal autonomy. Issued a warning over the interpretation of the real-risk premiums for bonds, which he suggested was very subjective and dependent on future policies. Accepted that the inflation outlook in the eurozone fits with price stability at the moment, but still expressed serious concern about comprising the ECB's focus on this. Open Europe concludes: It seems to us that, of the two sides, Weidmann had the tougher case to make. Ultimately, as much of the above shows, he is forced to consider hypothetical scenarios and potential worst cases. These are undoubtedly risks that should be highlighted, but it does leave one feeling that his argument is slightly less clear cut than Asmussen's. Having heard the key testimony of both sides, we still expect the court to side with the ECB, but with some caveats (although how strict they will be is very much up in the air). Of course, this could still develop more tomorrow. 17.41 And according to Open Europe, proceedings in the constitutional court have now wrapped up for the day. 17.33 Courtesy of Open Europe, here's a little more detail on what Jens Weidmann had to say at the constitutional court today. 17.23 Here's a bit of Twitter reaction to that move by the Greek government to close the country's public television and radio broadcaster: 17.14 Back with the eurozone, Greece's government announced today the immediate closure of ERT, the country's public television and radio broadcaster. Government spokesman Simos Kedikoglou said: "ERT is a case of an exceptional lack of transparency and incredible extravagance. This ends now. He added that the organisation will reopen at a later stage under a new format and considerably fewer employees. The broadcaster is currently said to employ around 2,700 people. Greek unions protested at the move, AFP reported. "In order to keep in line with the (EU-IMF creditors), the government is willing to sacrifice public television and radio," the ERT union said in a statement. Public sector union Adedy described the closure as a "coup d'etat." 17.07 On the corporate front, oil and gas producer Afren has held its annual shareholder meeting. A staggering 79.7pc of shareholders have voted against the company's remuneration report. As Peter Campbell of the Daily Mail tweets: 16.59 With bond yields on the rise today, these comments from Italy's central bank governor feel pertinent. Salvatore Rossi has told a conference in Milan that he sees the eurozone debt crisis as largely over, adding that bond yields in the region are close to levels that are justified by national economic conditions: The sovereign debt crisis is to a large extent over. Spreads have largely returned close to the levels where, according to technical analyses, they would be if they depended on purely national factors. 16.55 Back in London, the FTSE 100 has rallied from its worst levels to close down 60.37 points, or 0.9pc, at 6,340.08, having dropped as much as 120.37 points, or 1.9pc, during the day. No change in stimulus policy from the Bank of Japan has flustered investors today, with traders preoccupied by the future course of easing measures by the world's central banks. The Dow Jones Industrial Average was essentially flat when London closed. 16.50 A snap of Jens Weidmann and Joerg Asmussen ahead of the hearing: 16.44 Here's what Jack Ewing of the International Herald Tribune makes of Mr Weidmann's evidence: 16.41 Next up at the constitutional court, we have Jens Weidmann of the Bundesbank. Some flashes from his testimony are appearing on Reuters. He has said that he sees a risk of OMT slowing down eurozone reform efforts and reducing the ECB's credibility. 16.36 Open Europe have summed up the key points from Mr Asmussen's testimony. They are: The OMT will have the ability to sell bonds as well as buy them, and it will not take them off the market permanently, unlike its forerunner the SMP (in fact Asmussen repeatedly highlighted the differences between the two), The OMT is pari passu (equal to) other creditors, The OMT seeks only to reduce unwarranted interest rate spikes and is not aimed at harmonising financing conditions of member states, The ECB would react if a country were to try to game the system by converting all its bond issues to a short maturity (of up to three years), but that in any case markets themselves would "see through and deny" such attempts, The only risks associated with the programme stem from countries operating "un-sound" policies, but that those states that fail to comply with the OMT's conditionality could be faced with the prospect of having to leave the eurozone. Read more on Open Europe's take on the hearing here. 16.32 Back with the German constitutional court, if you want to read all that Joerg Asmussen had to say, there's a full text of his statement available here. 16.18 Here's what Laura Kuenssberg of ITV tweets about Davide Serra at Downing Street: 15.46 Could the government be thinking of selling RBS to the Canadians? The well-respected hedge fund boss Davide Serra of Algebris Investments has been snapped going into Downing Street with papers apparently discussing RBS and Canadian banks. Here's Mr Serra heading up Downing Street his morning... ...and a close-up of his papers. Photos: David Beck 15.38 Returning to the bond sell-off, it's worth noting our columnist Roger Bootle's warning that the bond market is seriously distorted, and that the bubble bursting represents the greatest threat to financial stability. 15.20 The hearing has resumed at the German Constitutional Court, and Joerg Asmussen is up. Michael Steen at the Financial Times has been tweeting out lines from his testimony - here are his key points courtesy of @michaelsteen: that the ECB's measures were necessary, effective and within the Bank's mandate that although Outright Monetary Transactions are theoretically unlimited, they are "factually limited" because it focuses on the short end of the yield curve. he adds that OMT's focus on buying bonds with one to three year maturities is one factor that keeps the risks under control that the ECB's goal is to prevent the involuntary break-up of the eurozone and that it cannot replace government actions. 14.50 Has the tide turned in global markets ahead of a regime change at the world's central banks? Equities and bonds are down across the board this afternoon, seemingly in anticipation of being weaned off all that extra money in the economy that has provided such buoyancy. And since central banks typically buy bonds in order to create new money, any tapering would erode this reliable source of demand for the bond market. The Fed is expected to taper asset purchases in the coming months - there's even a rumour flying around Twitter that this could come as soon as next week, though many have dismissed this as unlikely. Meanwhile, the Bank of Japan today refrained from increasing asset purchases, seeming satisfied with what Abenomics has achieved so far. There are other forces at play too. In Europe, Mario Draghi's unmoving stance from the ECB, saying the bank is ready to act, but happy to wait, has frustrated markets. One analyst reckoned that markets are worried that investors in mortgage-backed securities will start selling off US Treasuries as a hedge. As yields go up, reducing the ability of homeowners to repay their mortgages soon, investors have to further hedge their positions through more sales of US Treasuries. The sea of red in the second column from the right indicates rising yields across the board. Source: Bloomberg 14.35 With the FTSE 100 still down around 1.7pc and European stock markets falling, the US has followed our lead and the Dow Jones Industrial Average is off some 0.9pc, not as steep a decline as seen in London. 13.56 Almost half of the trainees recruited by BAE Systems this year will join the defence giant's burgeoning cyber and security business, the company said today. Rachel Cooper has more details. FTSE 100-listed BAE said on Tuesday that of the 293 graduates and trainees recruited by the company this year, 130 of them - 44pc - will join Detica, BAE's cyber and security division. Alongside its more traditional defence business, BAE offers services to companies to help them collect and manage data, as well as manage risk and respond to breaches of cyber security and protect themselves in future. BAE said hiring more people for its Detica arm reflected Britian's growing need for cyber security and the cost of cyber crime to the UK, which is currently estimated to be between £18bn and £27bn, according to the National Audit Office. Britain suffered 44m cyber attacks in 2011 - the equivalent of 120,000 a day and - the NAO has warned that Britain may be vulnerable from cyber attacks for at least two decades due to a lack of computer experts. It cautioned that the country's critical infrastructure, such as emergency services and transport, are under threat because companies are not taking cyber security seriously enough. 13.10 Anti-capitalist demonstrations are underway in central London this afternoon ahead of the G8 summit in Northern Ireland next week. The protestors aim to stage a "Carnival Against Capitalism" across the capital today, targeting some 100 centres of finance, such as hedge funds, banks and large companies. Police are seen on Beak Street to diffuse anti G8 protesters potentially becoming violent, as they reportedly occupy a Police Station. Photo: Getty Images 12.59 Shares in Ocado are some 5.9pc higher today, having jumped 13.3pc yesterday. Traders say that, as on Monday, the move is likely to have been caused by short-covering. There was also unsubstantiated bid speculation in the market on Monday, which is once again helping to push the shares higher today. 12.38 Air passengers are feeling the disruption in France, where hundreds of flights have been cancelled as air traffic controllers go on strike to protest EU plans to create a single European airspace. Travellers check a board which shows departing flights, many of which are cancelled, on Tuesday at Roissy Charles de Gaulle international airport. 12.22 Joerg Asmussen, one of the ECB's top officials, is up in the German Constitutional Court to defend the Bank's unlimited bond buying programme. He's caused quite a flutter on Twitter by saying the ECB never saw the need to publish legal texts on OMT, but that the Bank could agree "very quickly" on the bond purchases. 12.07 Meanwhile in India, the finance ministry's chief economic advisor Raghuram Rajan has rushed to calm investors over the tumbling rupee. The currency fell even further since our 08.20 post to 58.98 rupees to the greenback, before recovering somewhat to 57.32 rupees to the dollar. Mr Rajan told reporters there was "no sense of panic," saying the rupee's fall "is due to dollar strength." The US dollar has strengthened since official US jobs figures on Friday showed the economy is making a steady recovery, paving the way for the Fed's easing to taper off in coming months. Nonetheless, the Reserve Bank of India was suspected to have intervened at around the 58.97 level by selling dollars, according to AFP, citing a private bank dealer. 11.35 Turkey's prime minister Tayyip Erdogan has said the anti-government demonstrations in recent weeks have been a deliberate attempt to damage the economy, as he called on protesters to leave central Istanbul's Gezi Park. The Turkish economy has been targeted through these events ... Efforts to distort Turkey's image have been put in place as part of a systematic plan. Turkish riot police fire tear gas at demonstrators during clashes in Istanbul's Taksim square on Tuesday. 11.22 Wondering what the German Constitutional Court hearing on the ECB bond buying is all about? Szu Chan explains the key issues here. Think tank Open Europe has also set out likely scenarios in a handy analysis. According to a poll conducted for newspaper Handeslblatt, 48pc of Germans hope the Court will stop the ECB's unlimited bond purchases, also known as 'Outright Monetary Transactions'. 11.14 The fall in the FTSE 100 has worsened somewhat this morning, with the benchmark index down 1.4pc after the Bank of Japan refrained from altering its stimulus programme. Here's Brenda Kelly, senior market strategist at IG, on the market moves today: Despite the continued aggressive monetary easing from the Bank of Japan, the failure to adapt additional stimulus measures to help ease volatility in debt markets has caused European markets fall into the red in early trade. In Europe, the two-day court hearing in Germany's constitutional court is catching the attention of all market participants. Adding to the uncertainty, the legitimacy of the ECB president's Outright Monetary Transactions programme is being called into question, given that Mr Draghi has been credited with saving the day and helping to drive down peripheral bond yields with his now famous "everything it takes" statement. 11.06 A spot of good news for Turkey, where latest figures have shown the economy smashed expectations in the first quarter to grow 3pc. The growth figure serves to highlight the extent of damage that could be done by the current unrest, which has already seen the currency take a battering. The country was seen as a star performer among emerging markets, and was aiming to break into the world's top ten economies within decade, but current events have thrown doubt over what once seemed an inexorable economic rise. Earlier (09.20) we reported that the central bank has moved to curb falls in the Turkish lira, and did not rule out direct intervention if needed. 10.56 The hearing in the German Constitutional Court has started, and Wolfgang Schaeuble, German finance minister, is up. The Financial Times' Michael Steen is there. 10.46 Former head of the Eurogroup of eurozone finance ministers Jean-Claude Juncker has admitted fault over the troika's first bail-out of Greece. Speaking at an event on the euro in Athens, he expressed regret for the "immoral words arrogantly uttered in Northern European countries by politicians and media against Greece, which has been on the right path of work since 2010." It was our mistakes to listen to the market gurus. Former head of the Eurogroup, Jean-Claude Juncker. Photo: EPA 10.36 David Kern, chief economist at the British Chambers of Commerce, is downbeat about this morning's industrial production figures. The figures are slightly worse than expected, coming after two monthly increases in February and March. Longer-term trends are also concerning, as both manufacturing and total industrial output show declined compared to a year ago, and even three years ago. Our manufacturing exporters are still overly focused on the weak eurozone, but low domestic demand has also limited progress. Our view remains that while manufacturing output will begin to make slow progress, we still expect the sector to record negative growth in 2013 as a whole. 10.30 When you delve into the industrial production figures, the picture looks a bit more mixed. The boost was provided by oil and gas extraction output, which rose 0.6pc on the month, and stronger water supply, sewage and waste manufacturing output, which also climbed 0.6pc. By contrast, manufacturing activity declined by 0.2pc in April. 10.23 Back in the stock market, ground engineer Keller, up 5.3pc, is selling shares to help pay for its £202.5m acquisition of North American Piling, a Canadian foundations business. Keller is placing 6.6m shares - about 9.9pc of the company - at 890p apiece, raising £58.7m in the process. Panmure Gordon analyst Andy brown is a fan of the acquisition: A large Canadian piling acquisition that enhances presence in the region and increases group exposure to the energy sector looks to be a good move. Part funded by a £59m placing with balance from debt, the acquisition looks to be significantly EPS enhancing. The shares have done well, hence our neutral stance, but we like the look of this deal. 10.00 Greek prime minister Antonis Samaras has reassured voters that there will be no extra austerity to make up for a shortfall in revenue from the failure to find a buyer for the state-run gas firm DEPA. Athens has been selling off government assets in a bid to lower the deficit and curb austerity measures. It completed its first major privatisation in May, when it sold a 33pc stake in state-owned gambling monopoly OPAP for €650m, to Greek-Czech investment fund Emma Delta, but will need to strike more deals to hit its target of raising €1.8bn by the end of September. 09.47 It looks like the EU-China trade dispute has bubbled up again. Reuters is reporting that the EU plans to lodge a complaint with the World Trade Organisation against Chinese duties on imports of stainless steel tubes, citing sources familiar with the matter. Japan filed a similar complaint in December. 09.30 More good news for the British economy, where industrial output has risen for the third month running. Latest figures from the ONS show industrial output rose 0.1pc in the month, continuing the 0.7pc rise seen in March. The figures reinforce the "slow and steady" picture that has been painted by economic data in recent months - including stronger than expected GDP growth of 0.3pc in the first quarter. 09.28 Today kicks off the crucial two-day hearing in Germany's top court to decide whether the European Central Bank's unlimited bond purchases, announced last year in a last-ditch bid to calm eurozone chaos, are compatible with the country's constitution. ECB bods have been keen to stress the success of the programme, known as outright monetary transactions (OMT) - following Mario Draghi's announcement of the measure in September, soaring borrowing costs for Spain and Italy were brought under control, without the Bank ever having to make any actual bond purchases. Mr Draghi hailed the move as "probably the most successful monetary poilcy measure undertaken in recent times." But the president of the German Constitutional Court, Andreas Vosskuhle, has said the success has nothing to do with whether the programme is constitutional. 09.20 Turkey's central bank this morning announced that it would move to strengthen the Turkish lira, which has tumbled against major world currencies in recent weeks. It said it would operate in the open market to influence the currency, and intervene directly if necessary. Activists stands on a television vehicle with banners reading on 'Tayyip (Turkish Prime Minister) must resign' earlier this month. 09.18 The protests are raging on in Turkey - you can watch the Telegraph's live coverage from Taksim Square in Istanbul here. Meanwhile, the finance minister Zafer Caglayan has hit out at media reports on the falling Turkish lira and made some anti-bank comments. 09.16 On the FTSE 250 - down 103 points at 13,921 - LED producer Dialight is a stand-out faller, having plunged 13.5pc after cautioning investors that first-half profits will be hit by lower sales at its signals division. Following it rights issues, FirstGroup's new shares have also started trading, sending the transport group down 13.7pc.