Tuesday newspaper round-up: Greece, British American Tobacco, HSBC

Greek banks are at “five minutes to midnight”, Germany’s Bundesbank has warned, raising the prospect of capital controls to stem a haemorrhage of deposits if the government cannot strike a deal with creditors imminently. Andreas Dombret, an executive board member of the German central bank, urged negotiators to thrash out a deal before the Friday deadline for a €310m loan repayment to the International Monetary Fund. – The Times

British American Tobacco has been ordered to pay CAD$10.5bn (£5.5bn) to nearly 1m smokers who claimed they were never warned about the health risks. A Canadian court found Imperial Tobacco Canada, which is owned by London-based BAT, Rothmans Benson & Hedges and JTI-MacDonald liable for moral and punitive damages. – The Daily Telegraph

HSBC is poised to unveil plans to cut thousands more jobs in its international empire as the scandal-hit lender struggles to knock its business back into shape. The global giant, which is reeling from allegations it helped clients dodge tax in Swiss bank accounts, is expected to make the announcement at its investor day on June 9, Sky News reports. – The Daily Mail

US dealmaking hit a monthly record in May, surpassing the highs seen during the peak of the dotcom bubble and the zenith of the debt boom that led to the 2008 crisis. The overall value of deals in US bound mergers and acquisitions activity amounted to $24.3bn in May compared to $226bn during the same month in 2007 and $213bn in January 2000. – Financial Times

Downing Street has reaffirmed its commitment to spend 2% of GDP on defence in 2015-16 but come under fire for fudging the figures so it could spend £1bn less than 2% and still technically hit the target. – Financial Times

The trader accused of masterminding a conspiracy to rig interest rates said that there were “no rules” at UBS and that he received no training from the bank in what he could legally do or not do, a court was told yesterday. Interviewed by the Serious Fraud Office, Tom Hayes, 35, said that there was “no compliance” at UBS, where he earned hundreds of thousands of pounds in bonuses as a trader of Japanese interest rates in Tokyo. – The Times