Qatar´s sovereign wealth fund is in the midst of building a consortium to purchase High Street retailer Marks&Spencer. Rumours of this led to the surge in trading seen last week in the outfit´s shares. Big obstacles remain however, not least of which is the question mark around the 'business-case' behind the firm. As well, the deficit in its pension plan means that the company´s trustees would retain a significant say in any hypothetical takeover, The Sunday Times says.

Cyprus has decreed a freeze on all bank payments over the weekend. That comes in anticipation of the levy on bank deposits which the European Union has imposed as a pre-condition for offering €10bn in rescue funds to the Mediterranean island. Germany was opposed to Europe financing a rescue by itself given the strong suspicions that Cyprus is a haven for tax evasion and money laundering. A flight of deposits is possible when the country´s banks re-open come Tuesday morning, according to The Sunday Times.

The Chancellor is expected to use this week´s budget statement to announce new measures to try and buttress economic activity. These are expected to include more funds for new capital spending projects and fast-tracking hundreds of millions of pounds worth of infrastructure projects. As well, Osborne is expected launch a debate regarding the possible convenience and effectiveness of changes to the Bank of England´s inflation remit, so as to help the economy recover. A strengthening of the Funding for Lending Scheme is also expected, writes The Sunday Times.

The outgoing Chairman of Goldman Sachs Asset Management, Jim O´Neill, showed himself to be very critical of the government´s austerity policies in an interview with the Financial Mail on Sunday. More specifically, he believes it was the wrong path to tread given the simultaneous challenges posed by a financial crisis alongside one in the banks. Even so, he conceded that politically Osborne may have little choice given that any failed attempt to change policies could be very difficult for them.

President Obama last week made an offer to Republicans to lower the top corporate tax-rate in a 'revenue-neutral' manner in a bid to secure a wider ranging deficit deal. There are still, however, many obstacles. Hence, Congress will focus on reaching a narrower deal so as to be able to keep federal agencies running past the March 27th deadline for a government shutdown, the FT writes.

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