|Royal Bank of Scotland offices raided; Lloyds, Barclays and HSBC expected to be targeted next|
|Thursday, 20 October 2011 08:30|
News round up: RBS, Lloyds Banking Group, capital shortfall, Merkel, Sarkozy, double-dip recession, rent prices, public sector workforce and C&C Group.
Europe’s grand plan to strengthen its banking system is set to fall well short of market expectations, identifying a capital shortfall of less than €100bn that must be made up over the next six to nine months, according to the latest official estimates. The European Union’s estimate of the necessary recapitalisation effort compares with a recent Inernational Monetary Fund report that identified a €200bn hole in banks’ balance sheets stemming from sovereign debt writedowns. It also falls far short of analyst estimates that banks might have a capital deficit of up to €275bn, the Financial Times reports.
Merkel and Sarkozy emergency talks
Angela Merkel, the German chancellor, and Nicolas Sarkozy, the French president, held emergency talks in Frankfurt to try to cement a full-scale deal to save the eurozone from meltdown. As around 100,000 Greeks staged violent protests in Athens at the austerity measures being imposed to prevent their country sliding into bankruptcy, Sarkozy underlined the scale of the crisis by flying straight to Germany's financial capital rather than stay with his wife, Carla, for the birth of their first child, says the Guardian.
Avoiding a double-dip recession
Britain's faltering economy could slip back into recession but government action to boost growth is likely to help the country avoid another downturn, Business Secretary Vince Cable said on Wednesday night. Asked if he could promise that Britain would not experience a double-dip recession, Cable said: "I can't do that. We know conditions are very difficult but the government is doing the best it can to protect people," writes the Telegraph.
Average rent prices have risen
Hard-up families are spending more renting their home than ever before, it has been revealed. Figures released today show nearly half the average British family's monthly income goes on renting their home. The average rent has risen to £890 a month – 46 per cent of the typical tenant's net income, according to the Daily Mail.
Public sector workforce cut
The Government is cutting the public sector workforce at a much faster pace than expected, a report to be published today reveals. In an analysis of the Government’s Spending Review, which was announced a year ago today, PwC says that after only one quarter of data this financial year, job losses in the public sector have exceeded the Office for Budget Responsibility’s forecast for the whole financial year, reports the Times.
C&C Group boss to stand down
The boss of Magners Irish cider maker C&C Group is to stand down at the end of the year after receiving the final award from a share scheme worth €8million (£7million). Brewing veteran John Duns more is resigning after just three years in charge, saying now was the right time to hand over to finance director Stephen Glancey with the company’s strategic direction assured, the Daily Express writes.
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