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Sunday Papers: RBS plans cuts to investment bank

Inflation could rise further as an indirect consequence of Moody's downgrade of the British economy, a former member of the Bank’s Monetary Policy Committee has warned.

Sunday Papers: RBS plans cuts to investment bank

Top stories

  • The Sunday Telegraph: The Royal Bank of Scotland is to reduce the size of its investment bank by as much as £30 billion and cut hundreds more jobs as the taxpayer-backed lender attempts to head off growing government pressure to close down the controversial division.
  • The Sunday Telegraph: Inflation could rise further as an indirect consequence of Moody's downgrade of the British economy on Friday, a former member of the Bank of England's Monetary Policy Committee has warned.
  • The Independent on Sunday: Tesco is ramping up its global internet empire by launching an online grocery in Thailand next month and China in the spring.
  • The Observer: The US government and Gulf Coast states are reportedly considering offering BP Plc a deal under which the company will pay $16 billion to settle civil suits stemming from the 2010 Deepwater Horizon disaster.
  • The Sunday Telegraph: Lloyds Banking Group is to cut a further £1 million to £2 million from the bonuses of former directors, including ex-chief executive Eric Daniels, as a result of its spiralling payment protection insurance (PPI) mis-selling provisions.

Business and economics

  • The Sunday Telegraph: RBS is set to announce as much as a twenty-fold increase in the size of its provision against mis-sold interest rate swaps, potentially taking the size of its compensation fund to more than £1 billion from the present £50 million.
  • The Observer: President Barack Obama issued a stark warning on Saturday that the looming sequestration budget cuts will have a devastating impact on the American economy and even threaten national security.
  • The Sunday Telegraph: Thousands of former staff at collapsed retailer Peacocks have been dealt a further blow after the size of the company's pension deficit ballooned to £26.3 million - even though the banks that backed it will receive more than £70 million.
  • The Sunday Telegraph: Barclays will unveil plans within the next few weeks to strengthen its balance sheet by raising billions of pounds in "contingent capital".
  • The Sunday Telegraph: Nick Von Schirnding, chief executive of Bumi, is to lobby the Indonesian coal company's major institutional shareholders in a bid to receive backing for its planned separation from the Bakrie family.
  • The Sunday Telegraph: The British Retail Consortium is planning to review its accreditation process for factories and suppliers following the horse-meat crisis.
  • The Independent on Sunday: Google is promising businesses greater returns on advertising if they sign up to its social network, in a fresh bid to take on rivals Facebook and Twitter.
  • The Sunday Telegraph: Mike Lynch, the former chief executive of Autonomy has said highly skilled immigrants should be welcomed to Britain as they would start new businesses and create jobs.
  • The Sunday Telegraph: Failings identified on a Shell ship drilling in the Arctic have raised questions about the energy giant's plans to extract oil in the region.

Share tips, comment and bids

  • The Independent on Sunday: Insurance tycoon Peter Wood and his fellow directors at Esure are poised to make more than £100 million as the starting gun on a £1 billion flotation is fired this week.
  • The Sunday Telegraph: Telefonica, the telecoms giant which owns O2, is looking to take on Google's and Apple's domination of mobile operating systems by joining up with the Mozilla technology business.
  • The Sunday Telegraph (Comment): When, in the spring of 2010, Nat Rothschild came up with the idea of raising money to take advantage of the continued boom in the mining sector, not even he could have predicted the outcome.
  • The Sunday Telegraph (Comment): As David Cameron vented his frustration earlier this week over the Government's underwater stakes in RBS and Lloyds, he must be looking across the Atlantic with much envy.
  • The Observer (Comment): There are good reasons why sterling has taken such a battering – and why the dollar is in the ascendant.
  • The Observer (Comment): The Faustian pact the coalition made with the Bank of England and the markets has not worked. It's time to end austerity and use fiscal policy to revive Britain.
  • The Observer (Editorial): Britain's loss of its AAA credit rating cannot be simply shrugged off by the chancellor.
  • Mail on Sunday (Comment): Sterling's current slide is taking place at a time when inflation is running 0.7 of a percentage point above its two per cent target, and has not been on target for more than three years.
  • Mail on Sunday (Comment): A lack of coherent thinking and planning in this country - once blessed with self-sufficiency in energy - has now brought us to a crisis.
  • Mail on Sunday (Midas share tip): Buy Paragon

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