Business

Morning business round-up: Greek confidence vote weighs

What made the business news in Asia and Europe this morning? Here's our daily business round-up:

Greece and its economic plight were in the forefront for the second week running as markets awaited the first test on the road to new EU/IMF money being released.

Later on Tuesday, a confidence vote in the prime minister and his new cabinet is due to take place. If passed, new austerity measures would then have to be agreed by parliament before 12bn euros ($17nm, £12bn) would be made available.

Meanwhile, credit rating agency Fitch said that any new help from commercial lenders for Greece would be "default".

Another substantial bail-out for Greece, involving commercial lenders for the first time, is being planned. Fitch's warning means that could backfire.

In the UK, the news on the country's public finances was good. Government figures showed public borrowing was back on track in May.

Public sector net borrowing fell in May, reversing a surprise overshoot in government borrowing seen in April.

The total borrowing requirement, excluding the cost of bank bail-outs and other interventions, was £17.4bn for the month, the Office of National Statistics (ONS) said.

But, as in the rest of Europe, cutbacks have left workers angry, and the public sector union Unison started its conference amid plans for a strike vote.

Some unwelcome winners appear to be emerging from the downturn. The consumer watchdog, the Citizens Advice said that the financial climate was "aiding rogues".

These are taking advantage of the economic climate to exploit consumers' attempts to make money or find a job, it said.

Citizens Advice reported an "unprecedented boom" in scams that target people's wish for homes and jobs.

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In deals, the Australian brewing giant Foster's rejected a $10bn takeover from its global rival, SAB Miller, saying it was too low.

Meanwhile, at the Paris Air Show more plane orders were piling up.

The second day of the show saw brisk trade, with further competition between the two biggest aircraft makers Airbus and Boeing.

An order by Malaysia's low-cost airline AirAsia for 200 of Airbus' new upgraded A320neo planes, potentially worth $18bn (£11.1bn), is expected this week.

Finally, in today's Business Daily podcast, one of the ECB policymakers at the heart of the Greek drama, Erkki Liikanen, warns if the sovereign debt crisis is not contained, it could become a repeat of the 2008 credit crunch.

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