News round up: Lloyds Banking Group plc, Royal Bank of Scotland Group plc, Spain, US Federal Reserve, Whitbread, JJB Sports.

The Government should not try to "play the stock market" and must begin the sale of the state's holding in  Lloyds Banking Group plc (LON:LLOY) and Royal Bank of Scotland Group plc (LON:RBS) and as soon as possible, according to the Taxpayers' Alliance. Emma Boon, campaign director of the lobby group, said the Government must look at selling some of its shares in the two state-backed banks even if their value remained below the breakeven price.

"Politicians shouldn't play the stock market with other peoples' money, imagining that they might get a better or worse price if they buy or sell today or tomorrow. Who's got a crystal ball and can say they'll be worth much more in the future? If we hold onto our shares in the banks, then that might turn a profit eventually but the returns could just as easily not justify even the current price. If taxpayers want to take that risk, they can do so with their own money," she said.

RBS and Lloyds shares remain well below the state's break-even price. RBS shares ended last week below 30p, more than 20p below their break-even price of 50p, writes the Telegraph.

Spain

Spain has set off further alarm bells among bond investors and its crisis-hit eurozone neighbours by conceding that its debts will balloon this year to their highest level for two decades. The admission fanned fears that the recession-bound country will lose its battle to stay on top of its debts without reaching for outside bailout funds and knocked Spanish government bond prices.

Despite announcing its most austere budget for more than 30 years last week, Spain's government admitted on Tuesday that the debt-to-GDP ratio will jump to 79.8% in 2012 from 68.5% last year, according to the Guardian.

US Federal Reserve

The US Federal Reserve has stepped back from another round of quantitative easing, with only two out of 10 voting members saying it 'could become necessary', according to the minutes of its March meeting.

That is in marked contrast to January when a 'few' members of the rate-setting Federal Open Market Committee thought that economic conditions could justify another round of asset purchases 'before long' and several more thought that additional QE might be needed, writes the Financial Times.

Whitbread

Leisure giant Whitbread yesterday down-played speculation that it would demerge its Costa Coffee chain despite highly- regarded financial director Chris Rogers being put in charge of the fast-growing brand. Whitbread chief executive Andy Harrison said there was no 'hidden agenda' behind the management change and added that Costa’s future lay within Whitbread. However, he declined to rule out a demerger at some stage, writes the Scotsman.

JJB Sports

The market value of JJB Sports surged by more than a half yesterday after the embattled chain said it was in talks with a 'potential strategic partner' that is understood to be a US sports equipment giant. Dick's Sporting Goods, which has nearly 500 shops in the US, is thought to be in negotiations with JJB about acquiring a minority stake, which would provide it with funds to help safeguard its medium-term future, reports the Independent.