Morning business round-up: Eurozone deal on Greece bailout


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

Eurozone finance ministers and the IMF have reached a deal on an urgently needed bailout for debt-laden Greece.

They have agreed to cut debts by 40bn euros ($51bn; £32bn) and have paved the way for releasing the next tranche of bailout loans - some 44bn euros.

Greek Prime Minister Antonis Samaras welcomed the deal, saying "a new day begins for all Greeks", but it was criticised by the main opposition party.

European and Asian shares and the euro all climbed on news of the agreement.

The EU's top court has ruled that the eurozone's new permanent bailout fund, the European Stability Mechanism (ESM), is in line with EU law.

The European Court of Justice in Luxembourg had examined a case lodged by an Irish MP, Thomas Pringle. He said the ESM altered the EU's powers.

The ESM was launched in October as a permanent agency, based in Luxembourg.

From 2014 it will have up to 500bn euros (£405bn; $650bn) to help countries in difficulty.

The UK economy grew by 1% between July and September, latest official figures have confirmed.

Last month, the Office for National Statistics' first estimate showed the surprisingly strong growth, bringing to an end a nine-month long recession.

The Olympic Games helped to boost growth over the summer.

The Organisation for Economic Co-operation and Development (OECD) has warned that decisive policy action is needed to ensure the world is not "plunged back into recession".

The group's economies will grow by 1.4% next year, rather than the 2.2% forecast in May, it said.

The eurozone recession will also be deeper and more prolonged than previously thought, it added.

Shares of shipbuilder China Rongsheng Heavy have fallen more than 9% after its chairman resigned, the latest in a series of setbacks for the firm.

Chairman Zhang Zhi Rong is leaving to devote time to personal interests, the company said in a filing to the Hong Kong stock exchange.

Rongsheng has seen profits decline as the shipping industry suffers.

Media caption,
Biz Heads

It will be the state-controlled producer's biggest overseas acquisition, worth $5bn (£3.1bn) if given various approvals.

However, analysts said major delays and mounting costs at the field in central Asia could prove a challenge.

The company said that some 60 drivers, all of whom were recruited from China, failed to turn up for work on Tuesday.

This follows similar action on Monday, when the company said that more than 100 drivers failed to turn up for work.

Industrial action does not happen very often in Singapore, and the last major strike took place in 1986.

The latest Business Daily podcast from the BBC World Service looks at the exodus of workers from rural China and reflects on the allure of cities in the ancient world.

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