Friday Papers: Sovereign debt concerns drive confidence lower - other news

Financial Times

* The FTSE All-World index was down 1.2 per cent on a tepid outlook for the global economy and a renewed focus on European sovereign debt; the S&P 500 index was 1.7 per cent lower; Hong Kong’s Hang Seng index was 0.6 per cent lower, while Japan’s Nikkei 225 defied the stronger yen and added 0.1 per cent.

* The UK’s economic recovery is at risk if the nation’s banks do not move swiftly to raise the £750bn-£800bn needed to refinance their borrowings due by the end of 2012, the Bank of England warns on Friday.

* Plans by global regulators to compel banks to set aside billions of dollars in extra capital to cope with future crises are to be pared back after intense lobbying by the industry.

* Regulators will not back away from their “more intrusive” supervision both of financial firms and specific products even though the Financial Services Authority is being broken up, Hector Sants, the authority’s chief executive, told its annual meeting.

* Credit Suisse has made Eric Varvel the permanent chief executive of its investment banking division on Thursday, taking over from Paul Calello, who is to become chairman.

* Russia resumes gas supplies to Belarus.

* French trade unions organised their biggest strike in a year in protest against government plans to raise the retirement age from 60 to 62.

* The French government intends to raise between €300m and €1bn ($1.23bn) a year from its planned bank levy.

* Oil majors rethink links with BP.

* Australia has its first female prime minister after Julia Gillard toppled Kevin Rudd in a stunning leadership challenge early on Thursday morning.

* British Airways is to hire more than 1,000 cabin crew for its main UK base at London’s Heathrow airport on drastically reduced pay and conditions.