08.31 Fitch: "third LTRO [from ECB] is increasingly likely]." Adds that a Greek exit would make LTRO inevitable. 08.25 An unnamed Irish minister has said that the "Spain bank deal doesn't appear to have worked." Bond yields are up and markets fell yesterday after the inital joy over the bailout wore off. 08.19 In his daily email, Damian Reece, head of business at the Telegraph, has looked at Sainsbury's latest deal: Sainsbury's has upped the stakes in the online retailing world this morning by taking on Amazon after acquiring a 64pc stake in the e-book platform Anobii from the troubled HMV Group for £1. Anobii is an online e-books platform which enables readers to research titles and purchase them to read on a range of e-reader, smartphone and tablet devices. Readers can rate, review, share and discuss their choices with other Anobii members on its website and across related social networking sites. The service currently has over 600,000 users worldwide, with a library of over 60,000 e-books. Sainsbury's will join other famous names on the Anobii's share register including HarperCollins, Penguin and Random House. The grocer says it intends to invest in, and develop, the business both here and overseas. 08.15 European markets open. DAX flat 08.13 European Central Bank Governing Council member Christian Noyer says eurozone central banks should supervise/monitor larger cross-border banks. He adds that a single deposit guarantee scheme would help lenders in peripheral countries. 07.55 Fitch has said that eurozone sovereign ratings are under strong downward pressure and that Spain will "significantly" miss its deficit targets in 2012 and 2013. Managing Director Ed Parker said it remains too early to say that Europe has broken its cycle of "muddling through" the debt crisis and the backlash against bailouts is rising in nations such as Germany. Fitch adds that there is huge uncertainty about what will happen in Greece, but a euro exit could lead to downgrades in AAA-rated countries. If there is no light at the end of the tunnel soon then the risk of failure increases. 07.53The small bond yield recovery didn't last long. Italy back above 6pc, Spain also on the rise. 07.50 Efthimia Efthimiou, a Greek journalist: Meanwhile, former Greek Prime Minister Lukas Papademos believes Greece has a better chance of healing its economy from within the eurozone than from the outside. In an op-ed in the German business daily Handelsblatt, Papademos said the consequences of exiting the currency zone were "very negative" and stressed that Greece had already made "clear improvements" in boosting competitiveness and cutting deficits in 2010 and 2011. 07.37 The French Finance Minister believes Italy is a "solid economy" with "strong fundamentals." Pierre Moscovici was asked whether the eurozone focus will turn to the country following the Spanish bailout. He added that the bailout is "decisive" and "convincing." Moscovici said that estimates of a €100bn bailout are too high, and the next few weeks will be "very important" for the future of the euro. 07.34 Matina Stevis, journalist at Dow Jones and Wall Street Journal: 07.30 Spanish and Italian 10-year bond yields have eased slightly this morning. Spain down two basis points to 6.450, Italy back below the 6pc "danger level" after falling 3bps to 5.970. 07.26 The IMF has said that the yen is overvalued and the Bank of Japan should start stimulus measures. 07.10 While most of Europe seems to be heading downwards, at least one country is looking up. Switzerland has raised its 2012 GDP growth forecast to 1.4pc from 0.8pc. 07.07 The Times is reporting that the EU is working on plans for a federal economic union. The blueprint is being drafted at the request of German Chancellor Angela Merkel and the other leaders by a quartet of EU top brass: Herman Van Rompuy, President of the European Council; Mario Draghi, head of the European Central Bank; Jean-Claude Juncker, chairman of the Euro Group council; and José Manuel Barroso, President of the European Commission. They are to present what they call building blocks for integration, including fiscal and banking union and possibly proposals for pooling debt through joint bonds, to a gathering of EU leaders on June 28. One European diplomat said that the significance of the summit would be huge. 07.02 Asian stock markets have slid this morning as enthusiasm for a European plan to rescue Spain's teetering banks turned to skepticism. Benchmarks in Singapore, Taiwan and mainland China fell. FTSE 100 predicted to open down 0.1pc this morning. 07.00 Italian business daily Il Sole 24 Ore has told Angela Merkel that the time for action in the eurozone has come: 06.56 Meanwhile, Jose Manuel Barroso, the president of the European Commission, has urged EU countries to take "a very big step" towards deeper integration by backing a banking union that would hand a single authority the power to wind down ailing banks without the approval of national governments. In an interview with the Financial Times, he said: This is one of the lessons of the crisis. 06.52 Jeremy Warner gives this latest "euro fix" less than a month: Like all the others, the latest fix seems to create as many problems as it solves. The euphoria in markets at Spain's rescue lasted all of a few hours; having bounded away at the opening, they ended broadly flat. But please don't call it a bail-out. It may walk, talk and look like a bail-out, but to the Spanish premier, Mariano Rajoy, Spain's handout is completely different to the three rescues we've already seen, even though at €100bn (£81bn) - or some 10pc of Spanish GDP - it's quite a bit larger than that of Ireland and Portugal. No doubt mindful of the fact that every political leader who has agreed on a bailout to date has been defenestrated soon afterwards, Mr Rajoy has attempted to snatch victory from the jaws of humiliation by proclaiming the €100bn of aid an unparalleled triumph. Don Quixote himself would have struggled to see such majesty in all too self evident defeat. Spanish PM Mariano Rajoy (Photo: Reuters) 06.45 However, the rally proved to be short-lived. Concerns about the country's mushrooming sovereign debt mounted, and the IBEX ended the day down 0.5pc. Emma Rowley reports: ...fears over how the money would be funnelled to banks soon hit sentiment, as questions surrounded the terms of the deal, which will add to Spain's debt burden. Having dropped below the 6pc mark, Spanish yields - or implied interest rates - on its 10-year debt later moved back above 6.5pc. "The government bond market has quickly recognised that the bail-out is adding to pressure on sovereign risk," said Dominic Rossi at Fidelity Worldwide Investment. By close of trading, the Ibex was down 0.5pc at 6516.4 points and Britain's FTSE 100 was essentially flat, having risen by as much as 1.86pc during the day, to close marginally down at 5432.37. 06.33 Those dead cats just keep bouncing. An initial market rally on Monday saw shares in Madrid's benchmark IBEX 35 index climb as much as 5.5pc in early trading, after Spain officially paved the way for a €100bn rescue of its banks.