TODAY’S HEADLINES IN BRIEF:BILLIONS TO BAIL OUT SPANISH BANK. RENEWED OPTIMISM IN UK. AND THE COST OF NICE NEIGHBOURS
…..BANK BAILOUT …..
FINANCIAL TIMES
SPAIN TO SPEND BILLIONS ON BANK RESCUE
By Miles Johnson in Madrid
Spain is planning a state bail-out of Bankia, the country’s third biggest bank by assets, in a move likely to involve the injection of billions of euros of public money into the troubled lender. In an abrupt reversal of policy, the Spanish government, which had previously insisted that no additional state money would be needed to clean up the country’s banking sector, confirmed that an intervention was being prepared.
DAILY TELEGRAPH
NEW EUROZONE CRISIS LOOMS AS SPAIN PREPARES BAIL-OUT
By Roland Gribben and Fiona Govan, Madrid
A new eurozone crisis is looming as Spain signalled on Monday it was ready to bail out ailing banks after markets shrugged off the election results in France and Greece. Prime minister Marian Rajoy indicated the Government was ready to intervene to save banks wrestling with the collapse of the housing market. Bankia, Spain's fourth biggest bank, is the first in line for state aid. Rodrigo Rato, chairman and former IMF managing director, swiftly resigned after it was disclosed the finance ministry was preparing to refinance the bank and introduce legislation to protect the balance sheets of others.
….. OPTIMISM IN THE UK …..
WWW.BBC.CO.UK
UK COMPANIES REMAIN OPTIMISTIC, SURVEYS SUGGEST
UK companies remain confident despite the UK economy entering a double-dip recession, two new surveys suggest. Optimism among smaller manufacturers rose for the first time since the mid-2011, the business group CBI said. And another survey - the UK Business Confidence Monitor - found confidence improved in the last three months, suggesting the UK will return to growth in the April-June quarter.
SCOTSMAN
OUTBREAK OF OPTIMISM FROM MANUFACTURERS
By Gareth Mackie
Optimism among Britain’s small manufacturers has risen for the first time in a year, despite many companies expressing fears that political and economic uncertainty could curtail demand for exports, the CBI said today. Of the 356 respondents to the CBI’s latest quarterly SME trends survey, a balance of 22 per cent said they were more optimistic than not regarding the current business environment. That marked the first rise in sentiment since April 2011, when the balance was 12 per cent. Although SMEs expect export orders to rise, 43 per cent of those surveyed said they were concerned that political upheaval and worsening economic conditions overseas would limit export demand, up from 23 per cent a year earlier.
…. THE OTHER NEWS …..
FINANCIAL TIMES
CAMERON VOWS ‘NO GOING BACK’ ON DEFICIT
By Jim Pickard, Political Correspondent
David Cameron will invoke Margaret Thatcher’s “not for turning” rhetoric on Tuesday, promising the coalition will stick to its “long and hard” deficit reduction programme in spite of the electoral backlash against austerity in France and Greece. In a joint appearance in Essex with Nick Clegg, his Lib Dem deputy, Mr Cameron will say that sorting out the nation’s finances remains the coalition’s “guiding task” even though it involves tough decisions.
DAILY TELEGRAPH
COALITION AND BANKS UNDER FIRE AS WONGA LAUNCHES BUSINESS LOANS
By Katherine Rushton
Controversial money lending service Wonga has ignited a political row by offering business loans at annual interest rates of up to 180pc. Chuka Umunna, the shadow Business Secretary, told The Daily Telegraph Wonga's move was "a damning indictment" of the British banking system and the failures of the coalition Government to get cash to successful firms "Look at the rates of interest Wonga is charging. This is not cheap money," he said.
GUARDIAN
GLOBAL ACTION ON TAX EVASION HAS LARGELY FAILED, STUDY SHOWS
By Simon Bowers
Flow of funds to tax havens has not been reversed – the $2.7tn deposited offshore is the same as in 2007. The most concerted global push ever undertaken against international tax evasion has failed to reverse the flow of funds to offshore financial centres, according to banking industry data. Despite unprecedented action from political leaders, and a blizzard of bilateral co-operation treaties entered into by offshore centres, deposit data from the Bank of International Settlements (BIS) shows bank accounts in tax havens still held $2.7tn (£1.7tn) last year – about the same amount as in 2007.
DAILY EXPRESS
SLUMP IN TAKEOVERS AS FIRMS CUT COSTS
Volatility in Europe and a double-dip recession at home has forced British ¬companies to batten down the hatches when it comes to takeover deals. Instead of splashing the cash on mergers or takeovers, firms are focusing on cutting costs and improved efficiency, according to the Ernst & Young UK Capital Confidence Barometer.
…AND FINALLY ….
DAILY MAIL
HOMEOWNERS WOULD HAPPILY PAY AN EXTRA £15,000 TO HAVE NICE NEIGHBOURS
By Andrew Levy
Four in ten of us would gladly pay more for a home if someone ‘trustworthy and quiet’ was living next door, a survey has found. The average premium we would be prepared to shoulder is 7 per cent – £15,321 on a typical home. But one in 30 would pay an extra 20 per cent – nearly £44,000. A quarter of the 2,011 adults surveyed by findaproperty.com said they didn’t know their neighbour’s full name.
