City morning headlines: Greece buys time for new bailout deal, Lloyds fined over PPI

The City is waking up to the news that Greece has bought itself some more time to reach deal to release fresh bailout funds.

Greece had been due to pay €300 million back to the International Monetary Fund today, but has now told the organisation that it will be paid along with three other debt repayments totaling €1.5 billion at the end of the month.

That deadline coincides with the day its current bailout deal with the IMF and European Union runs out.

Angela Merkel struck a cautious tone on that subject, saying “we’re still far from reaching a conclusion”.

While the Greek security minister remained defiant, threatening an election to stave off its lenders' “blackmail”.

Greek prime minister Alexis Tsipras will address the Greek parliament about the plan later today.

Greece is likely to dominate the headlines today but there's much more to report. Here are the morning's highlights:

These stories are breaking and may develop throughout the day. Keep checking the Standard's business pages for the latest.

Lloyds has paid a record £117 million settlement to the Financial Conduct Authority over the mishandling of complaints about payment protection insurance.

The bank's boss Antonio Horta-Osorio said its intentions were right but admitted mistakes were made. "I am very sorry," he said in a statement.

The lender said all those affected by the errors would be paid by the end of June.

The world's largest oil services firm Schlumberger confirms the discovery of 271 million barrels of oil near the Sussex airport.

But investors backing the project admit it might not be “recoverable”.

New Halfords boss Jill McDonald gets in gear quickly as the retailer reports growth at both its stores and online arms.

Craft beer Frontier becomes Fullers second biggest brand as hipsters and pizza pubs drive profits up 7%.

Bellway defies the housing market slowdown as it spends a record £500 million on land amid “favourable mortgage market”, especially in London. It says that the election did not hit consumer confidence.

Vodafone is set to be the talk of the City today it said it is in the "early stages of discussions with Liberty Global regarding a possible exchange of selected assets between the two companies".

Goldman Sachs reportedly nears a $2-3 billion US settlement over a probe into some mortgage bonds which helped trigger the financial crisis.

BHS' pensions deficit is at least £160 million, its new owners are warned.