Morning business round-up: Emergency Greece talks


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

Greek Prime Minister George Papandreou is to hold emergency talks with French President Nicolas Sarkozy and German Chancellor Angela Merkel on Wednesday, ahead of the G20 summit starting on Thursday.

It comes a day after Mr Papandreou made the surprise announcement that Greece would hold a referendum on the eurozone rescue plan agreed last week.

Markets fall sharply on Tuesday as it raises fears the deal could collapse.

European stock markets have fallen back from early Wednesday gains, as concerns persist about Greece's decision to hold a referendum on last week's eurozone bailout deal.

Germany's main Dax index was up 1.2% in initial exchanges, but had weakened to 0.2% by late morning.

The UK's FTSE 100 had pulled back to be down 0.3%, after earlier rising 0.9%.

Japanese electronics giant Sony has warned that it will make its fourth annual loss in a row.

The warning came as it unveiled a 27bn yen ($346m; £216m) loss for its second quarter, compared with a profit of 31bn yen for the same period last year.

The company said the strong yen, floods in Thailand, and weak demand in the US and Europe were to blame.

Qantas has agreed to further compensate passengers affected by its move to ground its entire fleet over a dispute with unions.

The move comes after the Australian Competition and Consumer Commission (ACCC) asked it to act on the matter.

Qantas had grounded its entire fleet on Saturday, affecting almost 70,000 passengers.

Media caption,
Biz Heads

Toyota's sales dropped 8% due to a shortage in supply of its Corolla cars, while Honda's numbers fell 0.5% from a year earlier.

Sales of the two firms have dipped in the US after the quake and tsunami hurt their production earlier this year.

Shares in Lloyds Banking Group have fallen 5% after the company said that chief executive Antonio Horta-Osorio is to take medical leave.

The part-nationalised bank's board of directors are due to meet on Wednesday to discuss an interim replacement.

In a statement, Lloyds said Mr Horta-Osorio "is expected to return to his position before the end of the year".

Companies from Russia and China are most likely to pay bribes when doing business abroad, a survey suggests.

The two scored worst out of 28 countries in a poll of 3,000 business executives conducted by anti-corruption group Transparency International (TI).

The Netherlands and Switzerland came top, while the UK ranked eighth, just ahead of the US and France.

The latest edition of Business Daily sees Justin Rowlatt interview the BBC's economics correspondent about why Prime Minister Papandreou has decided to put the latest austerity measures to the people.

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