Finance ministers in Europe have postponed a decision on whether to send more funding in emergency loans to Greece, with the group saying the country will have introduce more austerity plans.
In a statement, the ministers said they expect funds to be paid in July, after which Greece has warned it may default on its debt.
“Ministers agreed that the required additional funding will be financed through both official and private sources and welcome the pursuit of voluntary private sector involvement in the form of informal and voluntary roll-overs of existing Greek debt at maturity for a substantial reduction of the required year-by-year funding within the programme, while avoiding a selective default for Greece,” the group of ministers said in a statement.
The statement was produced after a seven-hour meeting and also came alongside a commitment to provide more funding for Greece.
However, Greek Prime Minister George Papandreou, will be hard-pressed to introduce new austerity measures. His previous attempts to do have been met with wide-spread protests and riots, with major unions essentially shutting down much of the country’s business.
Caltex shares have dropped over 7% this morning after the company said its margins have dropped and first half-profit could fall by nearly 40%.
Shares were trading at $10.65 at 12.00 AEST, but had dropped to $10.54 earlier in the morning.
Caltex announced it expects earnings of between $100 million and $115 million, compared to $163 million in the previous corresponding period.
“The difference between 2010 and 2011 is largely attributable to challenging externalities and operational disruptions that negatively impacted production levels,” Caltex said in a statement.
“While production volumes will increase in the first half of 2011 compared to 2010 due to the lower level of planned maintenance, production volumes will be lower than expected,” it said.
The company also expects its debt to increase due to the higher costs in managing rises in oil prices.
The Australian share market has opened higher this morning after a strong performance late last week from Wall Street stocks.
The benchmark S&P/ASX200 index was up by 19 points or 0.43% to 4504.1 at 12.00 AEST, while the Australian dollar was up to $US1.06c.
AMP shares gained 0.21% to $4.73, while Commonwealth Bank shares gained 0.93% to $49.98. Westpac shares rose 0.8% to $21.38, while NAB shares rose 1.68% to $24.77.
Russia to buy more Aussie dollars
The Russian central bank has purchased $US5 billion worth of Australian dollars, according to a report in The Australian.
The move is a sign the country will shift exposure away from the US dollar.
“They will place funds on deposit and buy securities (in Australian dollars),” central bank first deputy chairman Alexei Ulyukayev said.
“I expect (the start of operations) in (the northern) autumn. I cannot say more – maybe in September, maybe in October.”
Live cattle exports to Indonesia could be back on the table, according to The Australian, with Agriculture Minister Joe Ludwig to meet with the Indonesian Government and discuss plans to reinstate the trading of livestock.
Sources have informed the publication that Indonesian Agriculture Minister Suswono is upset with the way the matter has been handled.
“Indonesia is one of our closest trading partners,” Ludwig told the publication.
“It is a relationship of tremendous importance to Australia and the Australian government remains committed to working constructively and cooperatively with Indonesia on this issue.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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