Morning business round-up: Debt stalemate hits shares


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

European stock markets started the day lower as eurozone finance ministers continued to put pressure on Greece's private creditors to accept a lower interest rate on their loans to Athens.

Share indexes in the UK, France and Germany fell 0.5% in early trading.

Late on Monday, ministers said creditors must accept a lower rate than the 4% they had offered and called on both parties to reach a deal this week.

A deal is necessary for Greece to receive the bailout funds it needs.

The outlook for the global labour market has worsened from last year, the International Labour Organization (ILO) has said.

It called the situation an "urgent challenge" and said governments needed to create 600 million jobs over the next decade.

The ILO said it was more pessimistic because of the weaker global economy.

India's central bank has left interest rates unchanged but moved to increase liquidity as it battles high inflation and the prospect of weaker growth.

The Reserve Bank of India pointed to the government's "policy and administrative uncertainty" as one of the reasons for the economic problems.

Japan's prime minister vowed to push for tax reform to help tackle debt as he convened a new session of parliament.

Media caption,
Biz Heads

Yoshihiko Noda called for the sales tax to be doubled to 10% by 2015 - a controversial move seen as very unpopular with his electorate.

His call came as the central bank downgraded its growth forecast.

The Bank of Japan said it expected the economy to shrink this financial year and kept interest rates at near 0%.

Swiss oil refiner Petroplus has said it will file for insolvency after failing to reach an agreement with creditors to extend deadlines for loan repayments.

Shares in the company, which is Europe's largest independent oil refiner, were suspended on Monday.

Petroplus had its credit lines frozen by its lenders in December 2011.

The latest edition of Business Daily looks at why, despite many problems, businesses are investing in Pakistan.

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