Sunday Round-Up: The main stories from yesterday's City pages

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The Independent Online
Sunday Telegraph

Lloyd's of London underwriters and agents begin talks today that could lead to a new settlement with litigating names. Following the award of pounds 1m damages to the dentist Michael Sword-Daniels, the market might increase the pounds 900m offer, which was rejected in February, to pounds 1.5bn.

SG Warburg is forecasting 4 per cent growth for the UK economy in 1994. The bank said the impact of tax increases had been vastly exaggerated.

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Observer

The Government is expected to sell only between 25 and 49 per cent of the Post Office to allay fears that a conventional privatisation would result in wholesale closures of post offices and higher charges. A BP-style compromise would leave overall control in the public sector under an arm's length relationship.

The Chancellor is unlikely to follow last week's cut in German interest rates with a move on base rates, despite renewed speculation in the City.

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Sunday Times

Employment prospects have improved to pre-recession levels, according to the latest quarterly survey from the British Chambers of Commerce. The brighter picture, to be published on Thursday, is expected to be confirmed by the announcement on the same day of a 25,000 fall in the March jobless figure.

Managers at Midland Global Markets, the treasury operation of Midland Bank, and its parent HSBC, are furious at what they believe is a whispering campaign designed to undermine the bank's credibility. Midland wants to find out who has fuelled market speculation that it has lost up to pounds 1bn in bond markets this year.

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Independent on Sunday

Opportunistic Wall Street investors are circling London International Group, the troubled Durex condom and Marigold glove manufacturer. The hedge fund manager Steinhardt Partners and the junk bond specialist Apollo Advisers are understood to be examining the company.

A survey by KPMG Peat Marwick, the accountancy group, will show that most non-executive directors decide their executive colleagues' pay on little more than a hunch. Fewer than half those who had served on remuneration committees were given performance appraisals on which to base decisions.

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