Barclays Share News (BARC)

"Greece threw the Eurozone into fresh turmoil last night by announcing that it would allow voters the chance to reject the emergency bailout package agreed in Brussels last week. George Papandreou, the Greek Prime Minister, stunned European capitals by saying that he would hold a referendum on the details tortuously negotiated by Eurozone leaders. The announcement, made after European financial markets had closed, effectively gives Greek voters a veto on the deal and raises the spectre of financial chaos across Europe if they reject it," writes The Financial Times.Brazil's gross domestic product for 2011 is expected to hit $2.44tn (£1.51tn) compared with $2.43tn for the UK, the latest monthly forecasts from the Economist Intelligence Unit (EIU) show. This will see Brazil, which last year overtook Italy to become the world's seventh biggest economy, move up one more place to sixth with the UK falling to seventh. Robert Wood, the EIU's chief economist on Brazil, said the country's surge up the table owed much to a growing consumer class and a booming trade relationship with China, based on the Asian giant's need for commodities such as soy and iron ore, writes The Telegraph. Investment bank UBS reckons "The likelihood of a technical recession is high in the UK." The bank has cut its growth forecast for the UK for this year from 1.1% to 0.9% and from 1.5% to 0.7% for 2012. The reason for the downgrade is the euro area crisis and its continued belief that "the single currency region has some way to go before stability returns." The warning came on the eve of the UK's latest growth figures. The Office for National Statistics (ONS) on Tuesday morning is expected to reveal that the economy expanded by 0.3% to 0.5% in the three months to September. British banking shares have plunged from trading at a premium of 150% above their book value before the financial crisis to a 40% discount now, according to accountancy firm PwC. Its latest valuation index focuses on the banking sector and highlights the extent to which bank valuations have declined. The report says UK banks are still attracting a higher valuation than their continental rivals and predicts a slow return to "normal" levels, according to The Scotsman.Banking giant Barclays came under fire from leading analysts as it included a £559m gain from "hedging activities" in its financial results, which meant the bank's profits for the three months to the end of September came in ahead of City forecasts at £1.3bn. Analysts had expected a profit of closer to £1.1bn and initially cheered the performance, but as the impact of the hedging gain became clear their view soured. "Tricks and treats drove the adjusted results, in our view," said Hank Calenti, a banks analyst at Societe Generale. "Despite the liquidity and sovereign periphery treats, Barclays Q3 results fail to inspire as the hedging impact was an unexpected gain that tarnishes this announcement," he said, reports The Telegraph.The Daily Express reports that Barclays is determined to dispel any notion that it has a weak cash position following the release of its quarterly figures yesterday. The paper quotes Bob Diamond as saying his bank has "rock-solid capital, funding and liquidity" in "very challenging markets".  Security firm G4S's controversial £5.2bn takeover of the Danish business ISS was dealt a hammer blow after the British company's third-largest shareholder voted against the deal.Harris Associates, a fund management company in the United States that owns 5% of G4S, said that it felt unable to support the transaction, which would create a sprawling cleaning, catering and guarding empire. Its decision comes after outspoken opposition to the transaction by Parvus Asset Management, a hedge fund with a 4% stake. Other investors, including Artemis and Schroders, are unconvinced, leaving G4S with an uphill struggle tomorrow when it requires the support of 75% of shareholders in a key vote.The Guardian's business section leads with the warning from the International Labour Organisation that a crisis in the global jobs market is likely to lead to unrest. The report points out that the Eurozone's unemployment rate has reached a 15 year high..The Independent leads on the coalition government's decision to offer "more than 100 companies, including Bentley, Pirelli and JC Bamford, £950m in government support designed to bolster industry in hard-pressed parts of the country."BS