Morning in brief: Greek debt swap falls short, Japan posts record deficit

A 60% participation rate among bond holders is confirmed for the Greek debt swap – short of the 66% minimum needed to avoid CDSs, while Japan reveals its worst ever trade deficit.

International

Investors accounting for approximately 60% of Greek government debt have committed to Greece’s debt exchange ahead of today’s deadline, reports Bloomberg. Greece needs a minimum of 66% voluntary participation in order to avoid triggering credit default swaps (CDSs).

The European Union Court of Justice had issued a ruling criticising the EU for imposing overzealous restructuring terms on Dutch bank and insurance group ING Groep in exchange for a bailout, according to the Wall Street Journal. The Journal reports that the ruling may open up other similar decisions in Europe to scrutiny.

Markets

Rising energy imports have led to Japan posting its highest ever account deficit of £3.4 billion, writes the BBC. Japan closed 52 out of 54 reactors in response to the damage leveled against the Fukushima nuclear reactor by the tsunami last year, leading to nationwide power shortages.

The National Association of Pension Funds has attributed a £90 billion shortfall in UK corporate pensions to the Bank of England’s resumption of gilt purchases in October, reports the Financial Times.

Companies

Sergio Marchionne, chief executive of Chrysler Group, declined a salary and bonus for the second year in a row in 2011, according to Reuters. Last year saw Chrysler repay more than $7 billion (£4.4 billion) in government loans following the auto industry bailout in 2008.