Business

Morning business round-up: EU extends Greek deadline

  • 13 November 2012
  • From the section Business

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

Eurozone ministers have agreed to give Greece two more years, until 2016, to meet its deficit-reduction targets.

However, the finance ministers delayed a decision on releasing the latest 31.5bn euro (£25.2bn; $40bn) tranche of bailout funds.

Differences also emerged among Greece's lenders on how to make its debt sustainable into the next decade.

The Greek government has managed to sell 4.06bn euros ($5.15bn; £3.24bn) of treasury bills.

The money is needed to cover 5bn euros of old treasury bills, which are due for payment on Friday.

Steven Sinofsky, the head of Microsoft's Windows division, has left the company with immediate effect.

His departure comes just weeks after Microsoft launched Windows 8, the latest edition of its flagship product, seen as key to the firm's future.

Microsoft did not give any reason for Mr Sinofsky's departure, but industry watchers suggest the real reason could be an internal "war" between him and chief executive Steve Ballmer.

Vodafone has written down the value of its units in Spain and Italy by £5.9bn, which the firm has blamed on the tough market conditions in the two countries.

The news came as the mobile phone firm reported a pre-tax loss of £492m for the six months to 30 September, against an £8bn profit a year earlier.

Shares in E.On have fallen 9% after Germany's biggest power generator issued a profits warning for next year.

Media captionBusiness headlines

E.On said its "previous 2013 forecast no longer seems achievable", blaming "substantial economic uncertainties".

The company maintained its forecast for full-year earnings for 2012.

For the three months to the end of September, it reported a net loss of 107m euros ($136m; £85m), compared with a profit of 196m euros in the same period last year.

The UK's inflation rate rose sharply last month following an increase in tuition fees and food prices.

The Office for National Statistics said the rate of Consumer Prices Index inflation rose to 2.7% in October, up from 2.2% the month before.

The latest Business Daily podcast from the BBC World Service speaks to Goldman Sach's head of asset management, Jim O'Neill, on why we should be worried about America's lack of action over the so-called "fiscal cliff".

Around the BBC