Follow ZeroHedge in Real-Time on FinancialJuice HEADLINES Greek Govt Official: Greece Won't Accept Ultimatums But Deal Feasible Greek Dep Foreign Minister: Will Not Be Blackmailed Into Keeping Bailout Spanish EconMin de Guindos: Greek Govt Should Reconsider Its Position EU's Moscovici Denies EU Divisions On Greece Austrian FinMin Schelling: Grexit Ruled Out At The Moment Rebels In One Part Of East Ukraine Pulling Back Big Guns - TASS Over 120 Ukrainian Servicemen Surrender In East Ukraine's Debaltseve Bank Indonesia Unexpectedly Cuts Interest Rate To Bolster Growth UK Inflation At Historic Low On Lower Crude, Food Prices Surge In Investor Optimism Continues In February - German ZEW Medtronic Q3 Earnings Results Beat Estimates General Mills Reaffirms Goals For Fiscal 2015 Kering 2014 Profit Up On Smaller-Brand Growth Orange Warns Sales Will Continue To Slide Caixabank Launches Takeover Bid For Banco BPI COMMENTARY 'Grexit' Risks Rise But Compromise Seen Still Possible The chances of Greece being forced out of the euro zone have risen but a compromise agreement between Athens and its European partners is still possible, Greek media and investment banks said on Tuesday. They said all eyes were now on the European Central Bank, which must decide on Wednesday whether to extend Emergency Liquidity Assistance (ELA) funds to Greek banks to keep them in cash while the crisis unfolds. "Hard ultimatum from the EU, 96 hours until an agreement or an accident," ran the headline of Greek daily Eleftheros Typos. (Reuters – Continue Reading) Draghi's QE Plan Seen Challenged By Hoarders Amassing Bonds As if Mario Draghi doesn’t have enough problems already. Europe is trying to avert a crippling bout of deflation. Germany wants austerity and less stimulus. And Greece is demanding to renegotiate the terms of its bailout, a move that has revived the risk of the euro area splintering. Now, there’s yet another: the European Central Bank president’s unprecedented plan to jolt the eurozone out of its economic malaise by buying 1.1 trillion euros ($1.3 trillion) of bonds may be hamstrung, even before it starts. (ekathimerini – Continue Reading) Ukraine Crisis: Battle Rages For Debaltseve Despite Truce Rebels say they have taken most of Debaltseve, a transport hub, but the government says it is still in control. International observers tasked with monitoring the ceasefire have been unable to enter the town. Earlier, both sides failed to begin withdrawing heavy weapons, despite a Monday deadline agreed in the truce. The two sides were given until two days after the latest ceasefire came into effect to start the pullout. A spokesman for the self-proclaimed Donetsk People's Republic told Russian news agency Interfax that the police station in Debaltseve had been taken as well as the railway station. (BBC – Continue Reading) UK Inflation Drops To Record Low As Petrol Prices And Food Costs Tumble Tumbling petrol prices and falling food costs pushed inflation to its lowest level on record in January, as economists said there were further falls to come. Prices, as measured by the consumer prices index (CPI), rose by just 0.3pc in the year to January, from 0.5pc in December, according to the Office for National Statistics (ONS). This was lower than economists' expectations for a fall to 0.4pc and the lowest rate of inflation since comparable records began in 1989. The decline was led by a big drop in petrol prices, which fell by 8.5p per litre between December 2014 and January 2015, to 108.3p. Petrol and diesel prices have fallen by 16.2pc over the past year, while food prices, which have fallen by 2.8pc, also pushed inflation down in January. (Telegraph – Continue Reading) Fiscal Austerity Versus European Society Over the last five years, the eurozone has, without explicit popular consent, maintained a strict policy focus on fiscal austerity and structural reforms – despite serious social repercussions, not only in the Mediterranean periphery and Ireland, but even in a “core" European Union country like France. Unless eurozone leaders rethink their approach, the radical Syriza party's success in Greece's recent general election could turn out to be just one more step toward a future of social fragmentation and political instability in Europe. Or it could mark the beginning of a realistic and beneficial re-orientation of Europe's economic strategy. (Project Syndicate – Continue Reading) DATA EU New Car Registrations Jan: 6.70% (prev 4.70%) German ZEW Survey Expectations Feb: 53 (est 55; prev 48.4) UK CPI (YoY) Jan: 0.30% (est 0.40%; prev 0.50%) UK PPI Input NSA (YoY) Jan: -14.20% (est -11.90%; rev prev -11.60%) UK RPI (MoM) Jan: -0.80% (est -0.70%; prev 0.20%) UK ONS House Price (YoY) Dec: 9.80% (est 9.50%; rev prev 9.90%) Italian Trade Balance Total Dec: 5756M (prev 3541M) Spanish Industrial Orders NSA (YoY) Dec 2.60% Greek CPI (YoY) Jan: -2.80% (est -2.70%; prev -2.60%) Swedish CPI (YoY) Jan: -0.20% (est -0.30%; prev -0.30%) GOVERNMENT/ CENTRAL BANK NEWS & COMMENTARY Greece Told To Extend Bailout As Eurogroup Talks Collapse Greek FinMin Varoufakis: 'Solution Possible In 48 Hours, Based On Moscovici Draft' Greek FinMin Varoufakis: We Will Continue To Deliberate Greek Govt Official: Greece Won't Accept Ultimatums But Deal Feasible Greek Dep Foreign Minister: Greece Will Not Be Blackmailed Into Keeping Bailout Eurogroup's Dijsselbloem: Hopes Greece Will Ask For Programme Extension EU's Moscovici Denies EU Divisions On Greece Spain EconMin de Guindos: Greece Must Fully Repay Its Debt Austrian FinMin Schelling: Grexit Ruled Out At The Moment UK Chancellor Osborne: It's 'Crunch Time' For Greece RBA Minutes Confirm Concerns Over AUD Helped Drive February's Rate Cut Japan's Amari: Yen's Current Level Is Positive For Economy GOVERNMENT/ BOND NEWS & COMMENTARY BlackRock: How To Invest In Bonds This Year Greek Markets Slip But No Panic After Debt Talks Collapse ECB Allots EUR122.114 Bln In 7-Day Refis (Fixed Rate 0.05%; 138 Bids) EQUITY NEWS & COMMENTARY US Stocks: Greek Deadlock Hits Futures Greek Impasse Limits Gains For European Stocks Standard Chartered Falls As City Supporter Caves In, But FTSE Recovers Asian Stocks Mixed On Greece Fears, Earnings General Mills Reaffirms Goals For Fiscal 2015 Telef?nica Lowers Value Of Venezuelan Assets Kering 2014 Profit Up On Smaller-Brand Growth Air Liquide Expects Net Profit To Rise In 2015 Orange Warns Sales Will Continue To Slide TNT Express Swings To Fourth-Quarter Loss Caixabank Launches Takeover Bid For Banco BPI CURRENCY/ COMMODITY NEWS & COMMENTARY EUR/USD: Euro Solid Following German ZEW Survey GBP/USD Could Test 1.5480 Ahead Of Tomorrow's Fed Minutes USD/JPY: Yen Posts Slight Gains Ahead Of BoJ Statement Gold Snaps 3-Day Rally After Greece Talks Collapse, Low China Demand Copper Falls After Greek Talks Collapse; Tin Shrugs Off Quota Oil Rises To $62, Near 2015 High As Mideast Risks Support EMERGING MARKET NEWS & COMMENTARY Bank Indonesia Unexpectedly Cuts Interest Rate To Bolster Growth Rebels In One Part Of East Ukraine Pulling Back Big Guns - TASS Over 120 Ukrainian Servicemen Surrender In East Ukraine's Debaltseve Dutch Military To Inspect Southern Russia For ?Military Activity?