Sunday Papers: Warning of 'sharp interest rate rise' in 2012 - other news

The Sunday Telegraph

* The Bank of England is this week set to hold interest rates at 0.5%, with a growing expectation that when rates do start to rise they will do so quickly.

* The safety device that should have helped prevent the Gulf of Mexico oil spill was being raised to the surface late last night, handing investigators the first chance of gaining a better understanding of what caused the disaster.

* National Grid is facing an investigation by US regulators over allegations it is trying to charge more than $26m in excessive costs to American consumers.

* Willie Walsh, the chief executive of British Airways, has warned that fellow business and economic leaders could be on the verge of dragging the UK into recession by talking it down.

The Observer

* Unite anger at alleged BA surveillance of cabin crew; union considers fresh strike ballot over "human rights violation".

* EU ministers edge closer to financial transaction levy amid signs that International Monetary Fund is softening opposition to 'Robin Hood tax'.

* Severn green energy project loses government funding; government pulls plug on funds for 10-mile tidal barrage.

* UN calls special meeting to address food shortages amid predictions of riots; poor harvests and demand from developing countries could push cost of weekly shop up by 10%.

The Independent on Sunday

* Britain's biggest banks will hand over their worst economic case survival plans to the FSA next month ahead of the G20 summit in South Korea.