Morning papers: Germany backs ECB aid conditionality

By Jenna Voigt

Chancellor Angela Merkel backed the European Central Bank’s (ECB) insistence on conditions for helping reduce borrowing costs in indebted countries, saying Germany is “in line” with the ECB’s approach to defending the euro, reports Bloomberg.

Finland prepares for break-up of eurozone

Finland is preparing for the break-up of the eurozone, the country’s foreign minister warned today, according to the Daily Telegraph.

Britain heading for rebound from recession

The end of the 2012 Olympics has left economists more uncertain than ever about the Games’ boost to Britain’s economy, although most agree they will help thrust the country out of recession, a Reuters poll showed on Thursday.

Robust retail sales figures boost hopes of UK economic recovery

Stronger-than-expected retail sales in July raised hopes that Britain’s double-dip recession might turn out to be shallower than initially expected, reports the Independent.

Investors defriend Facebook’s shares

Facebook’s shares dropped below $20 (£12.7) to a new low yesterday, extending a slump that has marred the third-biggest US initial public offering and dented retail investor confidence in equity issues, reports the Financial Times.

Gold price falls as slowdown in Asia curbs consumer purchases

Global demand for gold is seeing a significant slowdown as top consumers in India and China pare purchases amid weak economic growth, abruptly halting a consumption boom that started five years ago with the onset of the financial crisis, reports the Financial Times.

More headaches for UK banks as lawsuits linked to US housing collapse and Bernard Madoff could cost them billions

British banks face multi-billion dollar bills from a host of lawsuits linked to the US housing market collapse and dealings with fraudster Bernard Madoff, adding to their money-laundering and Libor headaches.

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