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

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The Independent Online
Sunday Express

De Beers has developed a synthetic diamond that is expected to generate sales of more than pounds 1bn. US telecoms giant AT&T is in talks about its use in electronic cabling.

Mail on Sunday

Top executives at TSB could boost their 1994 earnings by more than pounds 200,000 each if the bank performs better than its high street rivals.

The Sunday Times

Honda of Japan is in negotiations with British Aerospace to raise its stake in the Rover car group from 20 to 40 per cent, paving the way for an eventual flotation. BAe, meanwhile, is to take a pounds 200m charge against 1993 profits to cover a write- down in the value of its Jetstream turboprop business, pushing it into the red for the third year running.

The CBI's quarterly trends survey, due out today, will reflect increasing worries about the impact on recovery of April's tax rises and the strength of the pound.

Sainsbury is to press ahead with expansion plans.

Share tips: Rolls-Royce, Dixon Motors, Vaux.

The Observer

Auditors of banks, building societies, insurance companies and other financial institutions are to be placed under a statutory duty to report irregularities to industry regulators under new regulations to be laid before Parliament.

Banks and building societies repossessed more than 1,100 homes a week last year, according to industry estimates. Although this would be 12 per cent down on 1992 it is still four times the number in 1989.

Share tips: WH Smith, Etam, Airtours.

The Sunday Telegraph

British Airways is thought to have made a renewed attempt to settle its UK legal action with Richard Branson's Virgin Atlantic over the dirty tricks affair. Meanwhile, Mr Branson is planning a US flotation of his computer games company, Virgin Interactive Entertainment.

Up to 500 jobs losses are expected at Tesco this week following the announcement that it is cutting back on its store opening programme.

There is speculation that Ladbroke Group will appoint Hugh Collum, finance director of Smithkline Beecham, and the Cadbury Schweppes director Derek Williams as non-executive directors.

Share tips: MFI, Cannon Street Investments, Bank of Scotland, Haynes Publishing.

Independent on Sunday

Substantial job losses are expected at the supermarket chain J Sainsbury, following the appointment of consultants to review its operations. The group, which employs 120,000, is under pressure to cut its pounds 1.2bn wages bill as competition from discounters begins to squeeze margins. Jobs are likely to go both at head office and in its stores.

Travel specialists are warning that Air Miles, British Airways' frequent-flyer promotion, is a 'time bomb' that could send the airline's costs spiralling out of control.

The Stock Exchange has launched an investigation into the sharp rise in the volume of British Gas shares last week following comments by the industry regulator, Clare Spottiswoode, at a City lunch.

'Tiny' Rowland has sent his personal head of security, Ken Etheridge, to Germany as part of an investigation into the affairs of Lonrho's joint chief executive, Dieter Bock.

Share tips: Emap, Bank of Scotland, Menzies, Wilton Group.