09.26 Bank of England policymaker Adam Posen has told newswire MNSI that he may have been premature in dropping his call for additional stimulus last month, because the underlying UK economy may be weaker than he thought earlier this year. I had been hopeful in the last few months that after we did an additional £125bn [quantitative easing] that was getting close to enough. And now I am debating whether... I was premature to think that. He added that he was not sure the UK had avoided falling into a Japan-style downturn. 09.20 Big turnaround in Spanish banking shares. Bankia has leapt 19.6pc to €1.70, while number-one bank Santander surged 3.5pc and BBVA advanced 4.2pc. The IBEX is now up 0.5pc after falling 2.3pc on opening. 09.15 Alexis Tsipras, head of the Greek Coalition of the Radical Left, has told the Wall Street Journal that he sees little chance Europe will cut off funding to his country but that if it does, Athens will stop paying its debts. Our first choice is to convince our European partners that, in their own interest, financing must not be stopped... If they proceed with unilateral action on their side, in other words they cut off our funding, then we will be forced to stop paying our creditors, to go to a suspension in payments to our creditors. 09.08 Spain has seen the eurozone's biggest outflow of bank deposits since last January (see 08.58): 09.05 The eurozone could cope with a Greek exit from the bloc, a top member of German Chancellor Angela Merkel's junior coalition partners has said. Former economic minister Rainer Bruederle told German business daily Handelsblat: Unlike two years ago, the eurozone today could cope with a Greek exit. It would cost a lot of money but it would be manageable. The decision, however, lies in Athens and not in Berlin. The Greeks themselves have to weigh up whether reintroducing the drachma would help their economic recovery more than staying in the eurozone. 09.03 Italian industrial orders rose 3.5pc in March from previous month. 09.00 William Hill has said a Greek euro exit before the end of 2012 is now odds on at 5/6. 1/8 favourite to be first to go. 08.58 Bank of Spain deposits fell 4.2pc in March from the same period in 2011. Country's bad loans rate increases to 8.37pc from 8.3pc in February. 08.30 David Cameron has said the euro-region crisis could get "a lot worse" unless decisive action is taken. "These are very difficult economic times and what's happening in the eurozone is truly worrying," Mr Cameron said in an interview with ITV television's Daybreak. If things go badly wrong in the eurozone that affects us. He said more needed to be done "to persuade eurozone countries to take really decisive action" to deal with their problems rather than "kicking the can down the road." He added that his deficit-reduction plans are supporting economic growth, not harming it, and are no more demanding than those of newly elected French President Francois Hollande. I listen to all the criticism, I'm not living in some cut-off world, but the fundamental judgment is you need a plan to get on top of your debt and deficit to keep the economy growing. 08.19 Greece's European partners took too long to help the country and the goal must now be to spur economic growth as well as cutting the debts of the eurozone country, French Prime Minister Jean-Marc Ayrault has said. Greece needs to revive its economy. There are unused [EU] structural funds and what's needed now is help to secure that revival alongside putting its accounts back in shape. We waited too long before helping Greece. This has been going on for two years now and only gets worse. 08.09 German two, five, 10 and 30-year yields have hit record lows this morning. European markets have opened lower. The FTSE 100 is down 0.6pc, the French CAC is off 1pc, the German DAX has lost 0.9pc, Spain's IBEX has fallen 2.3pc and Italy's MIB is down 1.2pc. Spain's banks falling after Moody's downgrades yesterday. Banesto -2.9pc, Popular -2.6pc, Santander -1.7pc, Sabadell -1.6pc, BBVA -1.3pc, CaixaBank -2pc. Meanwhile, China's Shanghai Composite has ended the day down 1.4pc and the Hang Seng has lost 2.1pc. 08.00 At the G8 today, David Cameron will also hold talks with Barack Obama about tapping into emergency oil reserves in an effort to drive down petrol prices. The Prime Minister will arrive at a G8 summit in the US promising to help families "struggling with the impact of oil prices." 07.51 The Nikkei 225 index at the Tokyo Stock Exchange has closed down 3pc. It lost 265.28 points to finish at 8,611.31. 07.49 Germany's 10-year borrowing rate has fallen to a record low of 1.399pc. 07.47 The Spanish government has reportedly hired Goldman Sachs to carry out an independent valuation of Bankia, the ailing bank taken over by the state last week. Spanish newspaper Expansion said on Friday that the US bank will review Bankia's and its parent company BFA's books and determine within a month how much the state should inject to refloat the lende 07.39 European parliament chief Martin Schulz has warned against any Greek exit from the eurozone, saying the country's economy could collapse within days if it abandoned the single currency. Many people believe that it would be the end of a negative cycle but for me it would be the beginning of an even more negative cycle. 07.25 German finance minister Wolfgang Schaeuble believes markets will be calmer in 12-18 months' time. He reiterates that he wants Greece to stay in the euro and for France to respect the fiscal treaty pact. He adds that a common Europena position at the G8 is important. The G8 gets under way at Camp David in the US today. David Cameron will meet new French President Francois Hollande for the first time. Cameron's French counterpart opposes several of the Prime Minister's European policies.