Europe News update

NEWS PAPERS HEADLINES:

·     European leaders must quickly agree a comprehensive bail-out of Greece or risk a "large global spill over" of financial turmoil, the International Monetary Fund (IMF) has warned. The stark message to Europe's politicians, who held a second day of crisis talks in Luxembourg on Monday, came as markets were again rattled by uncertainty surrounding the Greek crisis, writes the Telegraph.

·   Rolls-Royce flew the flag for the British contingent on the first day of the Paris Air show yesterday, bagging a $2.2bn (£1.4bn) order with Brazil's TAM Airlines to provide engines for its fleet of Airbus A350 jets.

·      The deal includes an agreement for services and support over 12 years, and comes after TAM placed an order for 27 A350s with the European plane maker. Rolls-Royce also won a $250m share of an order from China Southern Airlines for engines to power 30 A320s, the Independent reports.

·  US regulators have sued Royal Bank of Scotland and JP Morgan for $800m (£495m), alleging that the banks made "numerous misrepresentations" selling mortgage-based securities.

·   The National Credit Union Administration (NCUA) is seeking to recover billions lost during the credit crisis and said it intends to file more suits. According to its suit, filed in Kansas, the banks gave investors documents that contained "untrue statements of material fact" or "omitted to state material facts" in violation of state and federal securities laws, the Guardian writes.

·  Citigroup has fired the starting gun on the auction of EMI, the record label behind Pink Floyd and Kylie Minogue. The American bank seized control of EMI from Guy Hands's Terra Firma, its heavily indebted private equity owner, in February and needs to sell it to recoup more than £2 billion of losses, according to the Times.

·      Paulson & Co has lost more than $500m after selling its entire holding in Sino Forest, the Chinese forestry company fighting allegations of fraud. The sale adds to the pressure on Sino Forest as it attempts to fight a series of accusations by short seller Carson Block, and represents a high-profile setback for John Paulson, Paulson & Co’s founder, as his hedge fund struggles with recent poor performance, reports the Financial Times.

·    Supergroup yesterday failed to convince investors it was back on course despite an upbeat trading update. The company, which owns the Superdry brand beloved of celebrities such as David Beckham and Brad Pitt, saw shares slide 37p to 863p yesterday even though it said trading had seen a "marked improvement" over the past three weeks after sales slowed for the fourth quarter to May, according to the Daily Express.

·      More families are raiding their rainy day savings pots to cope with the soaringcost of living, new research shows. High levels of inflation in Britain have made it tough for families to continue a 'normal' life without cut-backs.In response, some families have turned to raiding their cash reserves. And despite the re-launch of National Savings & Investment's popular index-link certificates - which promise to keep pace with the cost of living – one in three households saved less over the last month, says the Daily Mail.