Angela Merkel Dismisses Spain And Italy’s Pleas For Aid
The Telegraph
Pleas from Spain and Italy for urgent financial aid from the eurozone to bring down borrowing costs were dismissed by Angela Merkel as divisions hardened on the eve of a critical summit.
http://jlne.ws/MUgH9m

More Homeowners Get Mortgage Principal Reduced, but Numbers Still Small
WSJ.com
The number of troubled U.S. homeowners who have been able to get their home-mortgage balances reduced remains small but is on the rise, according to a federal banking regulator.
http://jlne.ws/Ql6eVv

Warsaw and Prague warn on bank union plan
FT.com
Poland and the Czech Republic are deeply concerned about the banking union being proposed at Thursday’s EU summit, with the Czech premier warning on Wednesday that his country would not accept a measure that could be “extremely damaging” for its economy.
http://jlne.ws/LCM6Q9

U.S. pending home sales match two-year high
The Globe And Mail
Contracts to purchase previously owned U.S. homes matched a two-year high in May, fuelling optimism the housing market is poised for a recovery.
http://jlne.ws/LQv0uv

Why German bonds are no ‘big short’
FT.com
German bond yields have proven to be a far more sensitive indicator of stress in the euro-system than the euro itself. As Europe rumbles towards another leaders’ summit, but one that has ‘urgency’ boldly emblazoned, the eurozone’s core bond market will tell us more about whether politicians are getting a grip on the crisis than any communique.
http://jlne.ws/LQuw7O

Spain cannot finance itself for long, says PM Mariano Rajoy
The Telegraph
Spain’s prime minister warned that his country cannot continue to finance itself and he called for Europe to move urgently to reduce unsustainably high interest rates.
http://jlne.ws/MUhaIO

RBS computer failure ’caused by inexperienced operative in India
Telegraph
The computer glitch at the Royal Bank of Scotland which left millions of customers unable to access their accounts could have been caused by just one junior technician in India, it was suggested last night.
http://jlne.ws/LR5Dc2

Bob Diamond forgoes bonus as Barclays fined for Libor manipulation
The Telegraph
The British and US authorities said they had found evidence Barclays had attempted to manipulate a key borrowing rate for years, meaning that home owners could have paid millions more in mortgage payments than they might otherwise have had to.
http://jlne.ws/MUiHyB