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Monday Papers: Osborne to cut spending by £4bn

And Angela Merkel suffers dramatic setback in regional elections.

 
Monday Papers: Osborne to cut spending by £4bn

Top stories

  • The Times: George Osborne is poised to announce further cuts of about £4 billion to government spending by the end of the decade in a budget that reflects growing uncertainty over the economic recovery.
  • The Daily Telegraph (Comment): Chancellor must present his vision for the tax system.
  • Financial Times: German Chancellor Angela Merkel has suffered a dramatic setback as voters backed rightwing populist forces in regional elections seen as a referendum on her contentious refugee policies.
  • Financial Times: Chinese insurer Anbang has struck its biggest deal for prime US property, agreeing to buy Strategic Hotels & Resorts for $6.5 billion only three months after private equity group Blackstone took the luxury hotels collection private.
  • The Guardian: More than a quarter of the wealth created in Britain over the past 15 years has ended up in the pockets of the richest 1% of people, according to Oxfam.
  • The Guardian: The government will be putting retail jobs at risk if it does not undertake a fundamental review of business rates, Dave Lewis, the chief executive of Tesco, has warned ahead of the budget on Wednesday.
  • The Daily Telegraph: Britain's biggest companies are facing a £200 billion property debt time bomb thanks to new accounting rules, with Tesco’s lease liability alone set to more than double to £17.6 billion.
  • Financial Times: At least 34 people were killed and 125 injured on Sunday in a car bomb in Ankara’s main transportation hub, the second major attack in Turkey’s capital in less than a month.
  • Financial Times: Anti-government protesters took to the streets en masse across Brazil on Sunday in anger over the country’s growing corruption scandal, as president Dilma Rousseff’s coalition partner threatens to topple her government.
  • The Daily Telegraph: George Osborne has been warned he restricted room to raise taxes or cut spending as he unveils a budget three months before Britain's referendum on EU membership; Faced with an £18 billion black hole in the public finances and a debt overshoot of £50 billion by 2020, leading business groups have urged the Chancellor to refrain from a tax raid on companies.

Business and economics

  • The Times: President Hollande has demanded that France’s state electricity giant presses ahead with an £18 billion reactor in Britain despite growing misgivings at home over the project.
  • Financial Times: Economists expect the US Federal Reserve to leave benchmark interest rates unchanged when policymakers meet this month and next, but believe the uncertain outlook for global growth will not stand in the way of the central bank resuming its path towards normalisation in June.
  • The Guardian: Millions of UK holidaymakers and business travellers face higher air fares and fewer scheduled flights between the UK and the European Union if the UK votes to leave the 28-member bloc in the June referendum, an industry trade body has warned.
  • The Times: Tax revenues from the North Sea are expected to plunge to almost zero this year for the first time since the 1970s, as Britain’s oil industry reels from the collapse in crude prices.
  • Daily Mail: Tax dodgers are cheating the Treasury out of £5 billion and have huge sums stashed in tax havens, a charity report has claimed.
  • Financial Times: The world’s biggest nickel producer, Norilsk Nickel, has warned that prices for the metal are unlikely to rise unless loss-making producers start to shut mines and close production.
  • The Guardian: Shoppers are deserting the high street in favour of purpose-built retail parks, according to figures that underline tough conditions for retailers.
  • Daily Mail: Shop closures have fallen to their lowest level since 2010, and retail parks are faring best with footfall on the up, according to research.
  • Financial Times: BNP Paribas will be naming more investment bank managing directors than any of its rivals this year - even if it does not hire a single person.
  • The Guardian: The Royal Bank of Scotland is preparing to shed 550 jobs as part of a plan to replace staff who offer investment tips with so-called “robo-advisers”.
  • The Times: Small business owners have accused a lender owned by Zurich Insurance of trying to make most of its customers bankrupt as it wound down loans.
  • The Times: Barclays will today give details of the shares awarded to senior executives days after the lender’s deputy chairman said that pay in the banking industry had to be simplified.
  • Financial Times: Brazil and Turkey are rushing to tap international debt markets for the first time this year as rising oil prices and radical central bank stimulus plans create an opening for bonds from emerging markets.
  • Financial Times: An increasingly bitter row between New Delhi and Monsanto, the US chemicals group that revolutionised Indian cotton farming, is fuelling concerns over how foreign companies are treated in the country even as the government seeks to lure international investment.
  • The Daily Telegraph: Computer scientists have devised a digital crypto-currency in league with the Bank of England that could pose a devastating threat to large tranches of the financial industry, and profoundly change the management of monetary policy.

Share tips, comment and bids

  • The Daily Telegraph: German exchange Deutsche Boerse could increase its offer to buy London Stock Exchange this week, potentially hiking its bid for the British institution as soon as today.
  • The Daily Telegraph: Lombok, the upmarket furniture chain known for its Eastern-inspired dark teak beds and tables, is being put up for sale by the private equity buyer which rescued the retailer from near-collapse seven years ago.
  • The Daily Telegraph: Be Heard, the new advertising group founded by former Aegis chief executive Peter Scott, is poised to make its second acquisition as it attempts to build a new digital industry powerhouse.
  • Financial Times (Lex): Wall Street bonuses: big banks are not the only ones suffering.

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