Sunday summary

A selection of business stories from the Sunday papers:
Economic Outlook
Financial markets are braced for another tumultuous week as fresh evidence emerges that the sub-prime crisis is threatening the health of the UK economy.

Pressure is growing on the Bank of England to cut interest rates this week as gloom over the economy intensifies. Two of Britain’s best-known economists, Patrick Minford and Tim Congdon, say the Bank’s monetary policy committee (MPC) needs to slash rates to get the banking system working and head off a sharp downturn.

Banking

The battle for control of Northern Rock will intensify this week. Olivant, the investment vehicle run by former Abbey National chief executive Luqman Arnold, is expected to submit its offer for the ailing bank in a move to rival a bid submitted by Sir Richard Branson's Virgin Group. Jonathan Bloomer, former boss of British insurance giant Prudential, is spearheading a bid for Northern Rock from US private equity group Cerberus. 
Alliance & Leicester is likely to have to write off a further £50m against the value of its so-called 'toxic loans' in the first half of next year, on top of the £55m charge announced last week.

Close Brothers, the banking group, is understood to be considering a sale of its Winterflood Securities stockbroking business as a possible defence to an unwanted £1.4bn takeover approach from rival Cenkos.

HSBC has caved in to Knight Vinke, the activist shareholder, which questioned the independence of the bank's non-executive directors and accused it of underperformance.

In Other News
One of Malaysia's richest families has bought a secret stake of more than 10 per cent in Rank, the bingo and casino operator. The shareholding, which was amassed in the past few days, could spark a bidding war for Rank. The UK operator has been tipped as a take¬over target ever since a profit warning last month sent its shares crashing to their lowest level in seven years.

Thw pharmaceutical giant Glaxo Smith Kline is to offer £2m retention packages and seats on the board to the two internal candidates who missed out on becoming chief executive.

Allan Leighton is to leave his post as chairman of Sir Philip Green’s retail chain BHS, bringing down the curtain on one of the most high-profile business relationships of the last five years.

From tomorrow, radio listeners will be able to instantly buy the songs they hear by pressing a few buttons on their mobile phone.

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