Morning papers: Fitch words on France rating cheer markets

European markets were cheered on Tuesday by an absence of terrible news and an assurance by Fitch that France’s AAA credit rating was unlikely to be downgraded in 2012, reports the Daily Telegraph.

Italy remained the biggest worry among the embattled eurozone countries, Fitch said, and warned it could see its credit rating cut this month.

Euro crisis puts continent’s future in doubt, warns Fiat boss

Europe is “playing with fire” and its future is in doubt if it doesn’t “get serious,” the boss of the Italian car giant Fiat has warned, as ratings agency Fitch put Italy on notice of a credit downgrade, reports the Guardian.

Sergio Marchionne, chief of Fiat and Chrysler, said the European debt crisis was likely to flatten his business for the next two years.

Time is running out for Greece to avoid default

Chancellor Angela Merkel met the International Monetary Fund’s managing director Christine Lagarde in Berlin yesterday for talks dominated by the worsening Greek debt crisis and Athens’s race against time to avoid a disorderly default in little over two months time, reports the Independent.

Sarkozy refuses to drop financial tax proposal

President Nicolas Sarkozy insisted on Tuesday that France must press ahead with a tax on financial transactions to force the issue in Europe, despite concerns that a unilateral move would isolate the country and damage the French financial services industry, reports the Financial Times.

UK banks left vulnerable by Bank of England and politicians

City analysts have criticised the Bank of England’s handling of the Britain’s banking sector and warned that Bank and government policies have left major lenders vulnerable if the eurozone debt crisis spreads to the UK, reports the Daily Telegraph.

Banks and insurers take hard line on complaints in bid to cut costs

Giant banks and insurers are stone-walling disgruntled customers and dragging their feet over simple complaints in a desperate bid to cut costs, a report reveals, reports the Daily Mail.

The Financial Ombudsman Service says that firms are increasingly deploying hardline tactics to reject legitimate complaints, leading to more agonising delays for customers.

Citi chief urges risk disclosure shake-up

The chief executive of Citigroup has said banks should be forced to publicise how they measure risk so that investors can “punish” institutions that are too optimistic about the quality of their assets, reports the Financial Times.

Europe set to block New York Stock Exchange merger

The odds of a merger between the stock exchanges of New York and Europe dramatically lengthened last night after it emerged the European Commission competition regulator has recommended blocking the deal, reports the Independent.