Merkel set to allow euro zone firewall to increase Germany is poised to bow to international pressure and allow a temporary increase in the euro zone’s financial “firewall” this week, to prevent the crisis in the region’s periphery spreading to other member states. (FT)

NBNK set to bid for Lloyds branches British banking venture NBNK is on Monday expected to launch a bid for 632 Lloyds Banking Group branches in a move that could torpedo the Co-op’s efforts to buy the assets and reopen the sale process. (Telegraph)

Staff face the axe amid efforts to save Game Thousands of Game Group staff face dismissal this week as it plunges into administration, kick-starting the process of closing down its least attractive stores. (Times)

Banks set to cut $1 trillion from balance sheets Investment banks are to shrink their balance sheets by another $1 trillion or up to 7 percent globally within the next two years, says a report that foresees a shake-up of market share in the industry.   (FT)

Oil tanker boss holds firm amid risk of strike by drivers The boss of Wincanton, one of Britain’s biggest haulage companies, has refused to give into the “political” demands of oil tanker drivers, entrenching the stand-off that looks set to lead to strike action and possible petrol shortages. (Telegraph)

Hedge funds face higher trading costs Leading prime brokerages are preparing to hit clients with across-the-board increases in the cost of trading, which could dry up liquidity and cause niche global markets to shut down.  (FT)

Fracking could bring UK 50,000 jobs, says former BP chief Lord Browne, the former BP chief executive, said England has the potential to be the capital of Europe’s emerging shale gas industry, in a scenario he predicted could help to create as many as 50,000 jobs across the UK. (Independent)

BTG takes steps towards listing BTG Pactual has mandated Goldman Sachs and JPMorgan to help manage its initial public offering as it tries to build one of the biggest independent emerging market investment banks. (FT)

Google in EU showdown over privacy rules Google has found itself on a collision course with European regulators after a provisional finding that its new privacy policy breaches European law. (FT)

Don’t threaten us, EU tells Vodafone Vodafone was in head-on conflict with the European Commission on Tuesday after warning that mobile companies would slash investment in new networks if regulators did not ease up on prices. (Times)

Apple joins the $500 billion club Apple has joined an elite group of companies to reach a $500 billion equity valuation amid expectations it is to launch the new version of the iPad next week. (FT)

Osborne drafts new law on tax dodging A new law against corporate tax dodging will be announced in UK finance minister George Osborne’s budget next month in his latest effort to crack down on corporate tax avoidance after the Treasury shut down two schemes this week that Barclays  used to avoid at least 500 million pounds of tax. (Guardian)

Taxpayers face 15-year Northern Rock wait UK taxpayers will have to wait up to 15 years to recoup the money spent on rescuing Northern Rock, according to the first official analysis of potential returns from one of the highest-profile bailouts of the financial crisis. (FT)

Dalio takes hedge crown from Soros Ray Dalio has overtaken George Soros as the world’s most successful hedge fund manager after his Bridgewater Pure Alpha fund made $13.8 billion for investors last year. (FT)

EU corporate defaults set to rise European corporate defaults are widely expected to climb sharply this year despite the recent improvement in credit market sentiment as bank lending cuts and a deteriorating economic backdrop put many smaller or indebted companies under pressure. (FT)

Prices cut, shops shut: still no cheer on the high street British shoppers reverted to a bunker mentality over the new year, according to gloomy sales figures that quash any hope of consumers pulling the economy clear of a double-dip recession. (Times)

BAE considers reducing price of Typhoon jets BAE Systems, Europe’s largest defence contractor, has signalled its willingness to reduce the price of the Eurofighter Typhoon to win back a $20 billion Indian tender from France’s Dassault. (FT)

China says it will ignore EU carbon charge China has banned its airlines from complying with a European scheme to limit carbon emissions, saying that it would infringe its sovereignty. (Times)

Greece bailout funds could be split European officials are insisting any new Greek bailout programme specifically earmark funds to pay off remaining holders of Greek debt, giving lenders the freedom to withhold aid to Athens without risking a messy default that could reignite panic in financial markets. (FT)

Italy’s Ferragamo sets UK retail rent record A record for the most expensive shop rent in the UK has been set with Italian fashion brand Salvatore Ferragamo agreeing to pay nearly 1,000 pounds a  square foot a year for part of its space on Bond Street in a sign of rising demand for a presence on London’s most prestigious shopping thoroughfare. (FT)

Fund aims to link Hollywood films with China Bruno Wu, the Chinese media entrepreneur, and Harvest Fund Management, an investment group backed by Deutsche Bank and China Credit Trust, have set up a new private equity fund aimed at pouring up to $800 million into Hollywood films. (FT)