Tuesday newspaper round-up: Merkel, BCC, Broadbent

27th Sep 2011 06:24

Angela Merkel was battling yesterday against opposing forces at home and abroad urging her to spearhead a multi-trillion "shock and awe" euro rescue package. The world community, headed by the United States, is calling on the German Chancellor to lead the way on setting up a huge financial firewall to protect the euro and measures to bolster European lenders, the Times reports.The British Chambers of Commerce, a leading business body, has written to the Chancellor to urge him to back another £50bn of 'quantitative easing' in a bid to boost the economy. The BCC has said that the extra money should be used to buy private assets, such as small business loans and infrastructure loans, rather than bank bonds, according to the Telegraph.Signs that the Bank of England is gearing up for another round of quantitative easing were reinforced yesterday when one of its senior policymakers said he had come "reasonably close" to backing the policy earlier this month. Ben Broadbent, who sits on the Bank's interest rate-setting Monetary Policy Committee, added that another cash injection into the economy "would help, and it might help the banking system by boosting nominal growth", the Independent reports.US regulators have stepped up their investigation into the role played by Standard & Poor's in the financial crisis, the ratings agency has warned. S&P said it had received notice from the Securities and Exchange Commission (SEC) that the regulator's staff have recommended a lawsuit be brought against the agency over a mortgage-backed security rated in 2007, the Telegraph reports.The business model of the Big Four accounting firms (Deloitte, PwC, Ernst & Young and KPMG) is under attack from the European Commission, which is pushing for tough rules that would force the firms to abandon their consultancy businesses and share audit work with smaller rivals. A draft regulation, seen by the Financial Times, aims to transform the accounting sector in the wake of the financial crisis and restore "trust" in financial reporting, the pink paper says.George Osborne will announce a £100m-plus tax break for entrepreneurs willing to invest in Britain's fastest-growing businesses. Following the green light from the European commission, the chancellor is to go ahead with proposals floated in the budget to expand the Enterprise Investment Scheme, the Guardian reports.Tesco's chief executive Phil Clarke has been given a vote of confidence by America's second richest man, Warren Buffett, who has raised his stake in the retail giant. Buffett, dubbed the Sage of Omaha, has been a critic in the past of the retailer's American strategy. He bought 34m shares worth a chunky £120m in the past month, sources confirmed. Tesco shares rose 2.15% in early trading, before closing 6.2p up at 371.4p, the Daily Mail writes.Global multi-billion pound takeover deals have bounced back from the recession with UK companies proving the most attractive in Europe for Asian and American firms. Figures from data provider Dealogic reveal that despite third quarter global M&A volumes falling 23% to $599bn (£386bn), volumes for the first nine months of the year rose 7% to $2.15trn, the Daily Express reports.