Sunday newspaper round-up: 'Prolonged war', Asda, IAG

The Prime Minister called on the West's leaders to steel themselves for a prolonged war in Ukraine, saying that if not they risked the "greatest victory for aggression in Europe since the Second World War". He also pushed Britain's allies to hold their nerve and make sure that Kyiv had the "strategic endurance to survive and eventually prevail." According to Boris Johnson, the price of a rushed settlement in Ukraine would not be worth paying. "Imagine for a moment that Vladimir Putin’s visions of glory were to come true. [...] What if no one was willing to lift a finger as he annexed this conquered territory and its fearful people into a greater Russia? Would this bring peace? Would the world be safer? Would you be safer?" - Sunday Times

Concerns about Asda's huge debt pile amid a slump in consumption has left its corporate bonds trading at a discount of about one fifth. Asda's sales shrank by 9.2% when excluding fuel over the three months ending in March. And now, the Institute of Grocery Distribution is forecasting possible food price inflation of as much as 15% this summer. The grocer was acquired less than two years before Mohsin and Zuber Issa together with private equity outfit TDR Capital, who saddled Asda with £4bn of debt. - The Financial Mail on Sunday

Fears of air travel chaos over the summer have led City traders to take out short positions in IAG's shares representing 10% of the group's stock, up from just 1% one year ago. So-called 'short sellers' take out shares of a company on loan in anticipation of being able to repurchase the shares and paying back the loan at a lower price in the future. The company and analysts at Peel Hunt coincided in the role played by higher crude prices but the latter also pointed to the risk of strike action at the British Airways parent and higher costs for IAG's long-haul flights and at Heathrow. - Financial Mail on Sunday

Network Rail's bosses will continue to negotiate with union leaders on Sunday, in a last-ditch attempt to forestall the biggest strike against the railways in over three decades. Over 40,000 workers were set to walk out on Tuesday, Thursday and Saturday, leaving only about half the country's rail network operating on strike days and with very limited service on the lines that remained open. One Network Rail source said there was "some hope" although the chances of an agreement were slim, while Labour leader, Keir Starmer, was set to call for the strikes not to go ahead. - Guardian

A new generation of nuclear power plants will not arrive in time to help stave off the current energy crisis. Hinkley Point C in Somerset is not due to come online until 2025 at the earliest. On top of that, many existing plants are approaching retirement, so that the UK's nuclear power generation is set to decline to its lowest levels since the 1960s in coming years. Hence, some are calling for the existing reactor fleet to be pressed into service for longer. - Sunday Telegraph