Tuesday newspaper round-up: Service sector, bank ringfence, Eurozone

30th Aug 2011 06:44

Business activity in Britain's dominant services sector has fallen at the fastest rate since the economy was barely crawling out of recession, a CBI survey shows. The quarterly survey of the employers' lobby, which is published today,reveals an accelerating decline in the consumer services industry, as well as a surprise drop in business and professional services, the Independent reports.The government would be "barking mad" to press ahead with proposals to ringfence British banks' retail arms from other banking operations given the darkening economic clouds over the economy, John Cridland, director-general of the Confederation of British Industry, has warned. Mr Cridland, speaking ahead of the publication of the final report by the Independent Commission on Banking next month, argued that "unilateral" changes to banking regulation could threaten Britain's fragile recovery, the Financial Times reports.Eurozone governments were attacked yesterday for failing to find a solution to the area's debt crisis. Poland's Finance Minister warned that the failure could have "traumatic consequences" for countries both inside and outside the single currency, the Times reports.A fresh round of capitalisation for European banks was firmly ruled out by EU officials and bankers when they appeared before an emergency meeting of the European Parliament's economic committee. The officials poured cold water on calls from Christine Lagarde, head of the International Monetary Fund for "mandatory" recapitalisation to avoid another financial crisis but acknowledged that the EU economy was continuing to weaken, the Telegraph reports.ITV could join forces with Silvio Berlusconi's Mediaset to buy Endemol, the debt-ridden production giant behind Big Brother, and Secret Diary of A Call Girl. The deal is understood to be one of a number of options being discussed by Mediaset, the media group which owns around a third of Endemol, restructure its €2bn (£1.77bn) of debt , according to the Telegraph.Recession-hit Britons are latching on to online discount vouchers despite mounting evidence that consumers are being misled. In less than six months, the advertising watchdog has banned 60 voucher adverts by the burgeoning industry of websites offering alluring discounts on goods and services stretching from meals out and hotel stays to fish-based pedicure treatments, says the Times.Formula One boss Bernie Ecclestone has said that a lawsuit, filed against him over the sale of the sport to private equity firm CVC, is an empty threat designed to put pressure on him. Constantin Medien, a former part-owner of F1, filed the lawsuit last month just days after Mr Ecclestone was accused by German prosecutors of paying a $44m (£27m) bribe to allegedly get the sport undervalued when it was sold to CVC in 2006, the Independent says.Royal Bank of Scotland has been forced into an embarrassing climbdown following heavy criticism of its dealings with one of eastern Europe's most repressive regimes. The taxpayer-controlled lender yesterday cut its commercial ties with Belarus after helping the former Soviet republic raise more than £500m from international investors in January, the Daily Mail reports.Cash shell Radiant Growth Investments plans to tap into soaring Chinese demand for natural resources when it joins Aim on September 20. It will raise £6.3m, giving it a market value of £10.3m. Its broker is Daniel Stewart, the Daily Express reports.---RG