TODAY’S HEADLINES IN BRIEF: Potential for run on Spanish owned banks like Santander. Cameron’s warning to Greek voters & the Yelps Over the Italian Dog Tax
….THE POTENTIAL FOR A RUN ON THE BANKS ….
THE SUN
Santander insists Brits should not fear Spanish banks panic
By Steve Hawkes, Business Editor
Banking giant Santander UK insisted it was safe yesterday as the eurozone crisis hit the high street. Bosses said the bank was of “Premier League” quality after a mass downgrade of Spanish banks sparked panic among British customers. Sources said punters withdrew £200million more yesterday than on a normal Friday. That is less than 0.1 per cent of total savings deposits at the bank, and an insider said: “There has been an increased outflow but nothing causing us any concern.”
DAILY MAIL
FRENCH BANKING CRISIS ADDS TO EUROZONE WOES AMID FEARS OF CONTAGION
By Geoff Foster
Wafer thin confidence in world stock markets could take a further knock today following reports that French mortgage lender Caisse Centrale du Credit Immobilier deFrance (3CIF) has become the latest victim of the eurozone crisis. It has been put up for sale and may yet have to be nationalised. Speculation intensified after Moody’s last week slashed its credit rating and said that it is no longer viable without ongoing financial support. HSBC is believed to have been given the difficult job of finding a buyer for the group which has about 4 per cent of the French mortgage market.
……THE EURO CRISIS ….
GUARDIAN
EUROZONE CRISIS: HIGH-STAKES GAMBLE AS DAVID CAMERON WARNS GREEK VOTERS
By Patrick Wintour and Giles Tremlett in Madrid
A second Greek vote next month backing parties opposed to the European Union's bailout package would be a decisive vote to leave the euro for which contingency plans have to be made now, David Cameron warned on Sunday in a dramatic raising of the stakes. Speaking in Chicago after two days of talks with world leaders on the euro crisis, he said: "We now have to send a very clear message to people in Greece: there is a choice – you can either vote to stay in the euro, with all the commitments you've made, or if you vote another way you're effectively voting to leave." His remarks are in effect an attempt to make next month's vote a referendum on continued membership of the euro.
DAILY TELEGRAPH
CRACKS ARE APPEARING IN EUROPE'S STATE-BACKED LENDERS
By Harry Wilson and Philip Aldrick
Financiers are becoming increasingly concerned that many taxpayer-backed borrowers are losing their ability to access private funding markets. The development raises the prospect of already heavily indebted eurozone national governments being forced to take on hundreds of billions of euros of additional debts. “Cracks are appearing in the funding markets for these institutions. If you don’t like the sovereign risk, why would you take the risk of buying the debt of the institutions they support,” said one credit banker. European taxpayers face having to bankroll a new wave of bailouts amid growing funding problems at state-backed borrowers across the region, according to senior bankers.
DAILY EXPRESS
EUROZONE CRISIS TRIGGERS MORE CREDIT CRUNCH FEARS
By Peter Cunliffe
Investors and traders are braced for another volatile week on financial markets as fears grow that the mounting eurozone crisis could trigger a new credit crunch in the banking system. Spanish banks are likely to come under renewed pressure after last week suffering a downgrade by credit ratings agency Moody’s. Among them was Santander which owns the former Abbey National, Bradford & Bingley and Alliance & Leicester banks. Its Santander UK arm responded by reassuring UK customers about its financial strength.
WWW.BBC.CO.UK
OBAMA: EUROZONE 'MUST FOCUS ON JOBS AND GROWTH'
US President Barack Obama has said there is an "emerging consensus" that European countries must now focus on jobs and growth. Speaking after the G8 summit of some of the world's leading economies, he said the US was confident that Europe can meet its challenges. President Obama said leaders had made good progress on a range of issues. In addition the eurozone crisis, they discussed Iran, Afghanistan and global energy supply.
FINANCIAL TIMES
JOBS PLANS SPLIT COALITION PARTNERS
By Jim Pickard and George Parker in London and Kiran Stacey in Chicago
Vince Cable, business secretary, has vowed to resist “bonkers” proposals to allow bosses to fire underperforming staff at will, as coalition tensions flared over a Number 10-inspired report on cutting jobs red tape. David Cameron said he would examine the idea of “no fault dismissal”, as the publication of the so-called Beecroft report this week threatened to worsen coalition relations.
FINANCIAL TIMES
EU SUMMIT TO RAISE PRESSURE ON MERKEL
By Peter Spiegel in Brussels and Patrick Jenkins in London
European leaders are drawing up a series of crisis-fighting proposals to raise at an informal EU summit this week that have in the past been rejected by Germany putting further pressure on Chancellor Angela Merkel. The proposals, which could include empowering the eurozone’s €500bn rescue fund to directly recapitalise faltering European banks and commonly backed eurozone bonds, have been backed by some leaders in the past but forced off the agenda by the German chancellor’s objections.
…. AND FINALLY …..
REUTERS
ITALY "DOG AND CAT TAX" MUZZLED AFTER UPROAR
A proposal to levy a tax on cats and dogs that stunned Italy on Friday turned out to be all bark and no bite after a wave of popular anger saw it withdrawn on the same day it was made public. Italy was abuzz for hours after local media reported that a parliamentary commission had proposed a tax on domestic "animals of affection" to raise revenue for debt-strapped cities and towns. The proposal was withdrawn by early Friday evening however, and it seemed everyone on the commission where it was discussed was denying its paternity.
