US President Barack Obama: "The solutions to these [financial] problems are hard, but there are solutions. The decisions required are tough but Europe has the capacity to make them. They have America's support...
The sooner they act and the more decisive their actions the sooner markets will regain confidence."
It is understood finance ministers from across the Eurozone will hold a telephone conference to discuss a bailout for Spanish banks.
Angela Merkel said Europe was ready to act to ensure stability in the euro zone as Spain's credit rating was cut by three notches.
"We are ready to back the use of euro-area instruments" - Did Merkel just hint at a breakthrough for the banks?