FRANKFURT (MNI) - The following is a statement issued Wednesday by the Committee of European Banking Supervisors explaining the disclosure of sovereign debt exposure during the EU-wide stress-testing exercise, the results of which were announced July 23, 2010.

Today's announcement comes in the wake of renewed concerns about banks' exposure to the sovereign debt of some European countries:

CEBS Statement on the disclosure of sovereign exposures in the context of the 2010 EU-wide stress testing exercise.

LONDON (MNI) - UK output rose 0.7% in the three months through August, the National Institute of Economic and Social Research said today.

NIESR said that the estimates for August showed growth has slowed and will decelerate further still over the coming months. The institute left intact its view that the Bank of England would leave Bank Rate unchanged until the summer of 2011.

BRUSSELS (MNI) - Irish bond spreads Wednesday hit their widest level since the start of European Monetary Union as traders speculated that the country won't be able to manage its large budget deficit, exacerbated by the expensive problems of its troubled banking system.

The Irish government is meeting on Wednesday to debate the future of Anglo Irish Bank after saying on Tuesday that it would keep the bank on state funded life-support until the end of the year.

FRANKFURT (MNI) - The Basel Committee has reached a compromise on new capital ratio requirements that should result in higher capital needs, capital increases and retained earnings, Bundesbank Vice-President Franz-Christoph Zeitler said on Wednesday.

"The Committee yesterday prepared key points for an agreement that will offer the basis for consultation and a decision Sunday among central bank governors and heads of supervision," Zeitler said during a press briefing in the Bundesbank.

PARIS (MNI) - The day after mass demonstrations in France against the government's pension reform bill, President Nicolas Sarkozy proposed several minor adjustments to the plan to allow more people to retire early.

However, the "primary axis" of the reform -- which pushes back the minimum retirement age from 60 to 62 and the age for retirement with full pension from 65 to 67 -- is not open to negotiation, Sarkozy said after the weekly cabinet meeting.

"There is no question of revisiting this point," he declared in a written statement.

LONDON, Sep 8 (MNI) - Continued concerns over eurozone sovereign debt acted to weigh further on the euro during European morning trade, with sales reversing an early recovery attempt that saw rate push up to $1.2733 before dropping back to $1.2660.

Late morning saw rate edge back above $1.2700, disregarding a weak release in German industrial production data, as a short squeeze developed ahead of the NY open.

LONDON, Sep 8 (MNI) - M&A-linked sterling demand into early Europe provided the main drive as the pound made general gains, cable pushing up to a high of $1.5495, while euro-sterling was able to extend its corrective pullback from Monday highs of stg0.8390 to stg0.8202.

Release of stronger-than-forecast Halifax house price data and UK industrial production/manufacturing output coming in at expected levels, also aided sterling's recovery. The pound held off best levels ahead of the NY open, though the underlying tone remains buoyant.

FRANKFURT (MNI) - Germany sold E1.981 billion in inflation-linked bonds ("linkers") in a top up of its 1.50%-coupon 10-year linker with 2016 maturity at a real average yield of 0.19%, the Bundesbank announced Wednesday.

The bid/cover ratio (excluding retention) was 1.9, above the 1.8 b/c at this security's last auction on June 11, 2008.

The lowest accepted price was 107.19, while the average weighted price was 107.26. The government accepted 75% of the bids at the lowest accepted price.