Morning papers: France seeks eurozone stability deal
France is pressing the EU to adopt a financial stability package to stem the eurozone crisis, believing negative market reaction to the €100bn (£81bn) bailout of Spain’s banks shows the need for more comprehensive action, reports the Financial Times.
Ahead of the EU summit due on 28 June, Paris is set to propose a package of measures to put the European Central Bank in charge of bank supervision and to use the European Stability Mechanism, the new €500bn eurozone rescue fund due to come into force next month, to recapitalise banks directly.
Sir Martin Sorrell on course for a pay cut following shareholder revolt
Sir Martin Sorrell, chief executive of the WPP advertising group and one of Britain’s most successful businessmen, is on course for a pay cut after an overwhelming number of investors voted against his near £13m-a-year pay package, reports The Daily Telegraph.
Nearly 60 per cent of the shareholder vote went against WPP’s remuneration report at its annual general meeting, including those held by Scottish Widows, Standard Life and Co-operative Asset Management, marking one of the biggest revolts of this year’s so-called shareholder spring.
Greek banks under pressure
The owner of Greece’s largest foreign-held bank is making plans to walk away from the bank if the country leaves the eurozone, the latest sign of growing international concern over the future of Europe’s currency union, reports The Wall Street Journal.
The contingency plan for Crédit Agricole, France’s third-largest publicly traded bank, comes ahead of pivotal elections in Greece Sunday that could set the country on a path to leave the 17-nation currency bloc.
Chancellor to split banks’ high street and City arms
George Osborne is set to unveil an historic overhaul of Britain’s largest banks that will force them to separate their retail and investment banking operations and prevent problems at City banks “spilling onto high streets”, reports The Daily Telegraph.
In a Mansion House speech tonight, the Chancellor will hail the government’s publication of a white paper on banking as a move towards “fundamentally reforming” the industry.
French finance minister says cap on top pay is ‘moral issue’
France’s finance minister has declared a crusade against executive pay at state-controlled companies, describing a wage cap of €450,000 a year for bosses as a matter of “justice and morality”, reports The Guardian.
Pierre Moscovici said the pay squeeze would come into effect over the next two years and deliver on a campaign promise by France’s new Socialist president, François Hollande, who sought to tap into widespread public anger over executive salary packages.
Fears raised that giant Italy could be next for bailout after borrowing costs soar
Borrowing costs in Italy soared yesterday as prime minister Mario Monti admitted he was ‘worried by the situation of emergency’ engulfing the eurozone, reports the Daily Mail.
Rome managed to sell €6.5bn of one-year bonds to investors – but the yield jumped to a punishing 3.97 per cent from 2.34 per cent at a similar auction last month.