Público
«European Union pressure mounts on Cavaco Silva to resolve Portugal’s political crisis », reports Público, as the Prime Minister, Pedro Passos Coelho, the President of the European Commission, Durão Barroso and the German Chancellor, Angela Merkel meet today in Berlin to launch a European youth job-creation initiative but at which Portugal’s political crisis is set to dominate. The President of the Portuguese Republic, Aníbal Cavaco Silva will not be in Berlin but will be omnipresent at a meeting in which the Prime Minister will be examining his options for manoeuvre abroad with regards to Portugal’s financial creditors.
«Bolivia accuses Portugal and other European countries of putting the life of Evo Morales at risk », reports Público, as Portugal refused to allow the flight carrying the Bolivian president to enter its air space after rumours that the flight from Moscow may have been carrying diplomatic whistle blower Edward Snowden who is wanted by the Americans for leaking State secrets. The Portuguese Ministry of Foreign Affairs has yet to pronounce on the diplomatic crisis after Morales’ plane, which was not carrying the fugitive, landed in Vienna.
Correio da Manhã
«Interest rates on Portuguese sovereign debt skyrockets in the wake of political crisis», writes Correio da Manhã, as the cost of servicing the nation’s bonds rose on Wednesday for 10 and five year emissions. The interest rate demanded by investors for 10-year bonds climbed to 8,002% after having closed on Tuesday at 6,720%. The interest on two and five year bonds were trading at 4,434% and 6,816% respectively compared with 3,504% and 5,508% the day before, leading to renewed fears that Portugal may need to negotiate a second bailout with international investors.
Diário de Notícias
«More coalition CDS ministers to resign today», reports Diário de Notícias, following yesterdays shock resignation of CDS leader Paulo Portas from his position as Minister of Foreign Affairs. Agricultural minister Assunção Cristas and Social Security minister Pedro Mota Soares also announced their intention to stand down from the coalition government while the Portuguese Prime Minister, Pedro Passos Coelho headed off to Berlin for a European Union meeting on youth job creation measures. The CDS-PP Executive Commission met on Wednesday to discuss the crisis within the coalition and to decide its next move.
Jornal de Notícias
«Government’s fall would wipe out 13.4 billion», reveals Jornal de Notícias as it is made clear that blank cheques will not be issued to Portugal if it fails to meets its commitments to international troika lenders as fears mount that Portugal is approaching a Greek tragedy and a second bailout. Ex-minister of Foreign Affairs, Paulo Portas, who resigned unexpectedly on Tuesday, had warned in April, as had PSD economist and Government economic adviser João Duque, that the Government’s fall would lead to a second bailout. “We’ve got to see if we can find a solution: either the Government will fall apart or a solution will be found from within the Portuguese parliament.
«American soul singer Alicia Keys soaks up the sun in Costa de Caparica», reveals Jornal de Notícias as the singer whose song New York topped the charts two years ago took advantage of her concert dates in Portugal to visit the Cabana do Pescador beach where she was reported to have danced by the bar. Alicia Keys even published a photograph of herself posing in green near the beach bar popular with surfers. “Lisbon has been magic! Thanks for your lovely energy and making me so welcome!” she posted. The R&B singer had packed out the MEO Arena in Lisbon on June 28.
i
«Portugal on a par with Greece – a second bailout is on the cards», reports i, as Portugal’s political crisis deepened on Tuesday with the departure of a second high-ranking minister in as many days. With Portuguese shares taking a 10% haircut with over 800 million wiped of the share values from the nation’s top 20 companies, the outlook for Portugal is starting to look eerily similar to Greece’s two years after it had opened the door to an international bailout agreement. After two years insisting that Portugal was not in the same boat as Greece, the newspaper now reports that it looks worryingly like it now is.
Diario Económico
«Bank shares tumble and interest rates climb in finance minister exit fallout», reveals Diário Económico, as the replacement of Vítor Gaspar at the helm of the Finance Ministry in Lisbon shakes the Portuguese stock market on Tuesday morning and puts pressure on the cost of interest on Portuguese bonds. The PSI 20 Index loses 0.6% to 5.578 points for the session that also sees slight falls in European stock markets. The banking sector leads the losses with Banif, BCP, and BPI taking a 1% haircut. This at a time when yields on 10-year treasury bonds climb 7 base points to 6.47%.
Jornal de Negócios
«Citigroup predicts new bailout and restructuring of Portugal’s debt», reports Jornal de Negócios, which states that Portugal is likely to “follow the footsteps of Greece and Cyprus”, quoting a Citigroup source who adds that the political crisis makes the need for a second bailout more probable and which will “have to include some kind of restructuring of Portugal’s debt.”
«Government prepares fresh operation to relieve debt repayments.», reports Jornal de Negócios, which states that market uncertainty has put plans to issue new Portuguese state bonds “on ice”. But the troika thinks that Portugal can lower its repayments over the next few years. In the short-term the Government could push ahead with a new debt swap operation with the aim of relaxing the State’s financial needs for the next few years. The business daily reports that the troika’s opinion is that this possibility is on the table for the Portuguese treasury despite a greater aversion to risk in the international markets caused by USA Federal Reserve stimuli.
«Djuricic: “With each step that I take I realise I’ve joined a great club” », writes A Bola, as Djuricic midfielder says that he is over-the-moon at being a part Benfica but admits his first day of training with trainer Jorge Jesus was a “nightmare”.
Record
«Cissé – just one step away from Sporting », reports Record, claiming that the forward from Académica has already been offered a five-year contract. The possibility of the player from Guiné joining the Lions does not involve them giving up any of their players.
O Jogo
«I was always prized at Dragon», says Portuguese mid-fielder João Moutinho in an interview with the football daily O Jogo after having been heaped with praise by the Porto fans.