Monday Papers: Osborne pledges to end City’s dominance - other news

Financial Times

* George Osborne will on Monday vow to break the dominance of the City in the British economy; he will tell Tory activists that investment in high-speed rail, green technologies and medical research will be among areas spared from the £83 billion purge on public spending.

* AIG has been forced to lower its valuation for the Hong Kong initial public offering of AIA, its Asian business, to secure a $1 billion commitment from the Kuwait Investment Authority an other cornerstone investors.

* JPMorgan has reopened an underground gold vault in New York that was mothballed in the 1990s.

* The US and UK have issued stark warnings of the increased potential of a terrorist attack in Europe.

* Three Brazilian and two Chinese banks are among the world’s top 10 credit card issuers, according to data compiled by Lafferty, the research group.

* Emerging market bond and equity funds are set for a record level of inflows in 2010 as investors increasingly abandon those dealing in western shares.

* The first step in the US government’s efforts to extricate itself from General Motors is likely to raise substantially less money than initially expected.

* British business has continued to hire more foreign workers during the downturn even as the number of UK-born people in jobs has dropped sharply.

* China pledged on Sunday to support a stable euro and not reduce its holdings of European government bonds.

* Iain Duncan Smith, work and pensions secretary, has got the go-ahead for his “revolutionary” plan to transform the UK’s welfare system, David Cameron, the prime minister, has confirmed.

* William Hague says he will not nominate David Miliband for the post of European Union foreign minister, nor any other international job in the foreseeable future.