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>> and now "bbc world news." >> hello and welcome. the headlines. reaching a deal. eurozone's finance ministers say a 130 billion euro bailout for greece is close. over 12 hours of tense talks, international leaders say the bailout talks guarantee that greece will reduce its crippling deficit. >> we'll have the latest from asia and how market traders will react to the latest development. and we're live in brussels where they are expected to outline how the multibillion euro deal will

be structured for private and public lenders. it is 12:00 in the afternoon in singapore. >> it is 4:00 in the morning in london. broadcasting to america and around the world. welcome to "newsday." >> a warm welcome to you. we bring you the latest news. reports from brussels say eurozone finance ministered have reached an agreement. the deal came after talks that went late into the night lasting almost 12 hours are said to be worth 130 billion euros. in return, greece will undertake to reduce its debts to no more than 121% of its g.d.p. this is scene live we have been

watching for the last few hours or so. we are expecting the eurozone finance ministers to gather and give us further details on the announcement of the plan that was agreed within the last hour or so. we will of course bring you the latest as soon as that happens. as daniel griffith catches us up and keeps us up to date. >> finance ministers and other officials arriving in brussels on monday to decide if greece would get a second massive bailout to stop it from going bankrupt. i'm opt pisk. we need clear political approval from the eurozone. >> the talks went into the early hours of tuesday morning, it seems like a deal has been reached. the rescue package would give greece a loan of 130 billion euros. a further 100 billion euros of greek debt would be written off with investors likely to take heavy losses.

in greece, there has been huge opposition to the deep cuts, the price of the bailout. jobs, pensions and the minimum wage will all be slashed. >> i don't see light on the horizon. unfortunately no matter how many loans you receive, if we don't starting something to stand on our own two feet, we won't have recovery in greece. this is the reality. >> this situation is not leading to reform. in fact, greece is already in recession. even this new bailout may not be enough to restore its broken economy. daniel griffith, bbc news. >> a european union official told the news agency that we have the essentials of the deal. let's get the very latest from steven evans, our correspondent

in brussels. they are there, aren't they? >> from what it seems. they have not actually appeared in front of a microphone and camera and said we have got the deal but officials are saying that the deal is there. and what they have been doing inching away over the last 12 hours at that burden of debt in the ratio to the size of the economy if, you like. greece came bearing promises to cut the debt down to 129% of g.d.p. by the year 2020. that is now apparently come down to just above 120%. the difficulty is that the deeper the cuts you impose on the greek economy, the more the tax revenue falls. so the fear will be that in the longer term, not immediately, not before this tranche of money is owed in march, but in the longer term, the calculation is changed so that the patient

doesn't get better but the patient actually gets worse. >> what was this about? the survival of the eurozone and ensuring that they had to agree to a deal so that greece couldn't or wouldn't default? >> i think that is the fundamental difficulty being addressed certainly by the german finance ministry. what this deal does it doesn't tease situation for the people of greece. it may -- ease the situation for the people of greece. what it will do is it means there will not be a default on march 20. they will get the money to make sure they can pay the loans that are do on march 20. so it ought to ease the immediate prospect of a financial crisis, for example,? if you have that default in what is it? a month's time. for the broader situation within

the eurozone and therefore the world economy, a threat is lifted, but for the greek people in the greek economy, the pain plains. >> steven evans. -- the pain remains. >> the euro jumps on the news today that eurozone finance ministers had agreed on that deal from $1.32 from $1.31 prior to that announcement. not much movement on the initial announcement. how is it doing now? >> well, we're seeing some movement in the asian financial markets. earlier, just about a minute ago, we saw japan's nikkei 225 in positive territory by about 20 points until they took a lunchtime break. we're seeing them in negative territory once again by about 19 350eu7b points but we're seeing -- 19.5 points.

we're seeing the kospi index trimming some of those losses earlier. after digesting that 170 billion dollar greek bailout deal. but australia seems to be well entrenched in positive territory by about 28 points with rising commodity price, particularly the oil prices, which are now at eight to nine month highs. brent crude at $120 per barrel. let's get some reaction on the asian marks from our guest in singapore who joins us now on the line. steven, thank you so much for joining us. tell us whoofment why has there tell us, why has there been a muted reaction? by the eurozone finance ministers? >> basically because a lot of

this has already been discounted. if you have a look at the asia, japan indices, those are already rallied off the course of this year, of% in u.s. dollar terms and a lot of that on predication to a successful collusion on the discussions of the greek debt and the eurozone. >> 130 billion euros? $170 billion? it was already out and about over the past few weeks. >> yes, that's correct. obviously the markets are now going to continue to focus on the growth numbers coming out of of greece over the next six months or so because really that will be the is that you determines whether or not this money is enough or whether or not they are going to have to return to the troika to get more

cash to pay off their debt. at the moment, the odds appear to be the latter rather than former. >> and everyone is also very skeptical whether this second bailout package will stick. there could potentially be another bailout package and whether or not the greek government and the greek people will indeed stick with this austerity measures which are basically very steep and strict. >> that's absolutely correct. as i say, you know, the issue really comes down to whether or not the greek economy is going to be able to start growing its way out of what at the moment is an extremely painful resex. recession. austerity does not lead to growth. at the moment, with all of the restructuring that is a core

part of this debt program and companies in greece are going to be facing a period of extreme uncertainty for at least next year or two. >> thank you so much for your insights. >> just to reiterate that breaking news in the eurozone, finance ministers have agreed, it seems to a 130 billion euro second bailout package. a revamped bailout for greece's economy. that news broke around an hour or so ago. what we are waiting for is a press conference. we're hoping to see euro group leaders, the finance ministers have been locked in these 12 hours of talks. i think we can see the scene there live in brussels. people are beginning to peter in and take their seats. i think we're a way off from

hearing an official announcement there but we will, of course, keep an eye on that for you. let's get more reaction from,000 news. -- from this news. welcome to bbc news. thank you for joining us. i just want to ask you key to how you're reacting to this, of course, is your reaction to the markets in sydney. are they going like this deal? >> well, it is hard to tell at this stage with little detail come through. there are a lot of questions about this deal. last week we saw reaction to the delayed announcement to the deal that was expected early last week. now that we have had the deal announced, it has been quite muted. the e.c.b. moved late last year and will move next week to increase liquidity in the system and that removes a lot of dangerous this a greek default

would pose to the global markets. >> this is from the e.c.b. president mario draghi saying that he welcomes a very good agreement on greece, but i suppose we're expecting him to say that, aren't we, michael? >> we would be very disappointed if he said anything else. however there still remain questions for markets. the best case scenario that was described in a paper circulated amongst euro finance ministers monday night described a debt falling to 29% of g.d.p. over the next 10 years. this agreement seems to pint a more optimistic -- paint a more optimistic picture. given that we're still seeing rising in athens, the ability of the greek government to implement the reforms required there has to be question ps.

>> an economist gave us the view that he had concerns doing business in the future with the eurozone countries. is that something that you think market also reflect in sydney? >> sydney is in the eurozone so we have no options there. no plans to move out of that. you don't dessert your friends even -- desert your friends even when things are tough. >> concern of the trading of the shifting of investments between countries, do you still have those kinds of real concerns? >> we have the sort of concerns that customers focus on more when they are looking at the trading instruments they choose. for us it is a long commitment to be in the region. i don't see us putting in place any special measures in light of the current situation. >> for now, michael, thank you so much for that. of course we are keeping a very close eye on the markets react across the world, in particular, in asia.

you have more for us. there was a initial prediction of a short-term rally of markets following this announcement. that hasn't been the case, has it? >> that's right. we're seeing the asian stock markets are basically moving south and we're seeing the foreign exchange markets heading north at this hour in asia. the euro jumping against the u.s. dollar and the japanese yen on the greece deal and we're seeing the euro at 1.3185 to 1.3291. let's cross over to singapore for more about the strength of the currency market. andrew, can these gains in the euro be sustained? >> i'm not so sure that they can.

i think what we're seeing now is actually a little bit of a conflict that a deal has been announced and that's why we are seeing the euro rallying some 50 points against u.s. dollar. it dim did seem did seem to peter out. how is this deal to be put together? as the deal where the numbers are relatively close to what has been talked about before. it boils down fact can greece deliver on the austerity measures that the troika are demanding? >> absolutely. that is a skepticism among investors in the market whether or not greece can deliver. going toward what does the market really want to hear about the eurozone debt crisis for the strength in the euro to be

sustained? >> i think we need to have some kind of -- to avoid the contagion effect into the likes of portugal, stain and -- spain and italy. it hasn't been completely resolved. we still have got to go into into notions -- negotiations about the private sector. i'm sure there will be headlines about that in the future. >> these gains in the euro against u.s. dollar and the yen, emerging currencies are benefiting from the upward friend the euro? >> yes, i think it is generally seeing that the safe haven currencies within the asian zone do follow the euro at this time. i think what we're seeing is a short-term effect but i'm not so sure that it will be

sustainable. >> thank you so much for your in"bloomberg insight" on the foreign markets. >> this agreement announced within the last hour or so. comes against a backdrop of lots of disconcern among the greek people there have been protests. very difficult protests in the streetsor athens almost for 18 months or so when greece initially got into trouble back in 2010. this is the second bailout package to be agreed by them. let's get a reaction from athens now. we can speak to a journalist. thank you very much for joifpk us. -- joining us. we just heard from the e.c.b. president mario draghi saying that it is a very good deal for greece. perhaps no surprise there, but what is your reading of it? >> we don't know what happened

in there. we don't know what they finally agreed to. we know they are probably going to accept greece's a deeper haircut. we know there has been talk of the e.c.b. taking a haircut. on the greek debt it holds. however these details are not finalized. what we know is that greece's outlook isn't that great. we have seen the least reports from the troika on the sustainability of the greek debt which pretty much sums up what everybody here appears to know that greece's position has deteriorated in the last few years. it has deteriorated because the austerity packages haven't done what they were supposed to do. so far they have turned the country into an ever deepening recession which is obviously making greece very, very unhappy. they are afraid that yet more of

this -- >> i've got to bring in the live shots. sorry to interrupt you there. just want to show you viewers what we are seeing. this is the scene live in brussels, the scene that we have been anticipating for some three or four hours or so. we are expecting officials there to actually make an official announcement regarding the second bailout package that has been released. jean-claude there alongside christine lagarde. let's have a listen in. >> good morning. after a meeting of at least i think 13 or 14 hours, we have reached an agreement on greece's new program. and private sector involvement that will lead to a very significant debt reduction for greece and pave the way for an

unprecedented amount of financing being provided by is efsf to secure greece's future in the euro area. this will give greece the time needed to follow a credible part of fiscal consolidation and structural reforms and allow a return to sustainable growth and employment. while preserving the financial stability of greece and the euro area as a whole. the euro group is fully aware of the significant efforts of the greek citizens. further major and joint efforts by all parts of the greek society are needed to return the know a sustainable growth path. the agreed package contains significant efforts from both private and official sector creditors. in this way, the program will --

the pyramid set by the state or government. that is debt to g.d.p. ratio is expected to reach 100.5% by 2020 and program financing is estimated to amount to 130 billion euros until 2014. regarding the involvement of the private sector, greece will launch the bond exchange offer in the coming days. given the balanced agreement reached with the creditor group led by i.i.f., we expect a very high rate. the exchange offer involves a nominal haircut aming to 53.5%.

2% until 2014. 3% between 2015 and 2020 and 4.3% thereafter. next, i would like to turn to the official sector involvement. in order to show our -- honor to commitment, to ensure greece's stability to ensure our good faith, the official sector will be making a very important contribution. first, creditors will implement a further lowering of the lending margin of the loans to greece to 150 basis points over the entire period. compared to a current margin of 200 basis points if tr first

three years and 300 basis points thereafter. this will bring the debt-to-g.d.p. rhio down to 2.8 percentage points in 2020 and produce financing needs with 1.4 billion euro. there will be no additional conference saying for higher funding costs. the absence of the additional compensation for higher funding costs should be counted by the fact that euro system holdings of greek government bonds, which have been acquired for public policy purposes and thus will be protected fra losses other than debt -- from losses other than debt exchange. eventually revenue for government. second, governance states that

-- hold greek government bonds commit to pass on to greece an amount equal to any future income according to their national zasm. this income flows would be expected to help reducing the greek debt ratio by 1.8 percentage points by 2020 and estimated to lower the financing needs over the program period by approximately 1.8 billion euro. we are making every effort so that the new program will be a success and will no longer be subject. this will require resolute actions from all sides, in particular the commission will enforce -- the task force for greece, in particular on the ground in athens in order to enis that your greece to ensure

that greece that is means to carry it out. the troika will reinforce its presence in athens in order to be able to -- with the task force for greece will also be reinforced. greece has announced that it will introduce the concept of absolute priority of debt service payments in its legal framework in the next coming two months and later on in its constitution. this is something that spain, for example, has already done and this should encourage to return of investor confidence. in the meantime, a mechanism will be put in place to service greece's debt. to this effect, debt service should be paid directly to a

segregated account of greece's paying agent. on the basis of these elements and subject to -->> make sense of international news. bbc.com/news. >> funding was made possible by -- the freeman foundation of new york, stowe, vermont, and honolulu newman's own foundation and union bank. >> at union bank, our relationship managers work hard to understand the industry you operate in, working to nurture new ventures and help provide capital for key, strategic decisions. we offer expertise and tailored solutions in a wide range of industries.

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