Morning in brief: Cameron, King and Turner meet on euro crisis
The prime minister discusses plans for a worsening of the eurozone crisis with the heads of the Bank of England and the Financial Services Authority, while the government backs down over the so-called pasty tax.
Bargain hunting prompts Asian shares to rise but the euro drops on the back of an increase in Spanish government borrowing costs, Reuters says.
Bob Diamond, chief executive of Barclays, accuses the government of causing the bank “unnecessary damage” through its handling of a £500m tax dispute, according to the Daily Telegraph.
Dewey & LeBoeuf files for chapter 11 bankruptcy protection and plans to liquidate its business after failing to secure a merger, the BBC reports, making the company likely to become the biggest law firm to collapse in the US.
David Cameron and senior ministers meet with Mervyn King, governor of the Bank of England, and Adair Turner, chairman of the Financial Services Authority, to discuss contingency plans for an escalation of the eurozone crisis, according to the Financial Times.
Chancellor George Osborne plans to reverse the ‘pasty tax’ – the proposed levy VAT on foods designed to cool down such as Cornish pasties and sausage rolls – after weeks of protest, the Guardian says.
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