Investments  

Morning papers: Co-op faces battle over unpaid bonuses

The Co-operative Bank is facing a new strain on its creaking finances as fund managers step up their fight for bonuses they were not paid last year, reports The Times.

The employees of the Co-operative Insurance Society, who moved to Royal London this month after it bought the business for £220m, are demanding a collective payment of more than £1m and have started a grievance process against the Co-op.

Disappointing GDP growth revives Japan sales tax debate

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Gross domestic product expanded at an annualised rate of 2.6 per cent, a preliminary government estimate showed on Monday, reports the Financial Times.

That was more than twice as fast as Japan’s average over the last decade, but it was less robust than the previous quarter and a full percentage point slower than the average forecast of economists surveyed by news agencies.

Eurozone banks need to shed €3.2tn in assets to meet Basel III

Europe’s biggest banks will have to cut €661bn (£569bn) of assets and generate €47bn of fresh capital over the next five years to comply with forthcoming regulations aimed at reducing the likelihood of another taxpayer funded bailout, reports the Financial Times.

The figures form part of an analysis by the UK’s Royal Bank of Scotland – which singles out Deutsche Bank, Crédit Agricole and Barclays as the banks most in need of fresh capital – highlighting that five years on since the financial crisis, Europe’s banks are still “too big to fail”.

No RBS sell-off for another five years, warns Vince Cable, increasing chances of bank being broken up

Royal Bank of Scotland will not be back in private sector hands for another five years, Vince Cable has warned, reports the Daily Mail.

The business secretary dashed hopes entertained by chancellor George Osborne and RBS chairman Sir Philip Hampton that the sell-off could begin before the next general election in 2015.

He described the prospect of it happening within five years as ‘unrealistic’.

Gibraltar: Spain considers joint diplomatic offensive with Argentina over Falkland Islands

Spanish foreign minister Jose Manuel Garcia-Margallo will use a trip to Buenos Aires next month to raise the possibility of forging a joint diplomatic offensive with the South American country over the disputed territories, sources told Spain’s El Pais newspaper, reports the Daily Telegraph.

Spain’s foreign ministry was also discussing whether to take its complaints over Gibraltar to the United Nations, the newspaper reported on Sunday.