TODAY’S HEADLINES IN BRIEF: SPAIN PROPS UP BANK AND BANKING SHARES AROUND EUROPE FALL HEAVILY. SAINSBURY ATTACKS NUMBER 10. AND NOSTALGIA FOR SPANGLES AND VIMTO
FINANCIAL TIMES
SPAIN TAKES 45% STAKE IN BANKIA
By Miles Johnson in Madrid and David Oakley in London
Spain has taken a 45 per cent stake in Bankia, the country’s third-largest bank by assets. The Bank of Spain said Bankia and BFA, its parent company, had informed it that the conversion of €4.47bn of state aid in the bank into ordinary shares was “the most advisable option for strengthening the [bank’s] financial soundness”.
CITY AM
BANKS ROCKED BY EURO FEARS
By Katie Hope And Juliet Samuel
Italy and Spain send Europe’s banking index plunging to 2008 levels. Greece fails to form a government for the third day running. Spain last night part-nationalised its fourth-largest bank, Bankia, in a dramatic move to try and contain the escalating financial crisis as fears grow over the sector’s exposure to property assets. The turmoil at Bankia contributed to huge stock market falls across Europe yesterday, with banking stocks plunging to levels not seen since the depths of the financial crisis.
FINANCIAL TIMES
SAINSBURY CHIEF ATTACKS NO 10 POLICY
By Andrea Felsted and Jennifer Thompson
Justin King, chief executive of J Sainsbury, has launched a stinging attack on the government, claiming that its inconsistency in crucial policy areas is fuelling uncertainty among cash-strapped consumers. He acknowledged that events in Europe were beyond the control of the government, but that it should be working hard to improve consumer confidence, battered by rising fuel prices and sluggish wage growth.
DAILY EXPRESS
SAINSBURY'S IN PROFIT BOOST
By David Craik
Thrifty shoppers are saving their cash to “splash out” on special events such as the Olympics, revealed Sainsbury’s as it unveiled better than expected sales and profits. Chief executive Justin King said shoppers were “battening down the hatches” in between major national events or personal celebrations.“Consumer confidence remains depressed and that is unlikely to recover for some time,” he said.
DAILY TELEGRAPH
QUEEN'S SPEECH: WHY WAS THERE NO PLAN FOR GROWTH?
By Robert Winnett, Political Editor
David Cameron was facing growing criticism from business leaders who claimed that the Queen’s Speech contained too few measures that would boost the economy. Just a day after he and Nick Clegg declared that economic growth was the Coalition’s first priority, the Prime Minister said that “tough, long-term” policies had been unveiled to “return our country to strength”. Business groups said that only one of the 19 pieces of legislation announced yesterday — an overhaul of employment tribunals — would directly help boost enterprise and the beleaguered economy.
GUARDIAN
PUBLIC SECTOR WORKERS PREPARE TO STRIKE OVER CUTS AND PENSION REFORMS
By Dan Milmo and Jessica Shepherd
Hundreds of thousands of public sector employees, including police officers, lecturers and border control staff, will stage a day of protest against the government austerity programme on Thursday. About 20,000 off-duty police officers are expected to March in central London and plan to wear a total of 16,000 black caps to mark projected job losses over the next four years. At the same time public sector unions will hold their third one-day walkout in 12 months, led by the Public and Commercial Services (PCS) civil servants' union, health workers at the Unite union, teachers and lecturers at the University and College Union, the Nipsa civil servants' union in Northern Ireland and Royal Navy support staff at the RMT union
THE SUN
DROPPED DIRECT -1,000 JOBS ON THE LINE IN HOLLY FASHION FIRM SWITCH
By Steve Hawkes, Business Editor
Shop Direct called time on 1,000 jobs last night by outsourcing its entire customer service operation. The owner of Littlewoods will hand four call centres to SERCO — the giant that runs everything from London’s “Boris Bike” scheme to prisoner escort services. Two Shop Direct call centres in Preston and Worcester are almost certain to close — costing 1,000 jobs.
DAILY MAIL
BANK OF ENGLAND LIKELY TO PUT OFF DOSE OF CASH PRINTING DESPITE RECESSION SHOCK
Bank of England policymakers are unlikely to vote for another dose of cash-printing tomorrow, despite the UK economy's shock return to recession. Concerns that inflation is proving sticky are likely to stay the hands of most monetary policy committee members against voting for more quantitative easing. The nine members voted in favour of a further £50billion of quantitative easing in February bringing the total to £325billion, after pressure for more stimulus had intensified as the deepening in the eurozone crisis hit the UK economy.
WWW.BBC.CO.UK
CHINA'S EXPORTS AND IMPORTS SEE SLOWER GROWTH
Worker at a China factory China has been diversifying its exports from low-cost goods to high-tech products. China's export and import growth slowed in April raising fears about a sharp slowdown in its economy and triggering calls for monetary policy easing.
AND FINALLY...
THE SCOTSMAN
CHILDHOOD SWEETIES GROWN-UPS MISS THE MOST
By Claire Smith
Memories of childhood and a longing for simpler times are fuelling a craving for retro treats such as Creamola Foam, Spangles and Vimto. Nostalgic Britons are also yearning for the taste of Salt ’n’ Shake crisps, Babycham and Caramac, according to a new survey.. Among Scots, Creamola Foam makes them most nostalgic, with 30 per cent wishing it was more widely available. Spangles was the discontinued product
