Tuesday newspaper round-up: BoJ, Brexit, Budget, VW

The Bank of Japan has downgraded its view of the economy but held interest rates at minus 0.1 per cent, reflecting public confusion over January’s unprecedented move to take rates into negative territory. The BoJ, like peers such as the European Central Bank, is in largely uncharted territory and negative interest rates have had several unintended consequences — not least prompting trade unions to ditch wage demands in the expectation of weaker corporate profitability. – Financial Times

Britain’s biggest business group has called for the UK to remain in the European Union after its members sent a “resounding” message that staying in was better for jobs and growth. The Confederation of British Industry said a “clear majority” believed EU membership was better for business and the economy. However, Carolyn Fairbairn, the CBI’s director general, said the lobby group had “no intention” to register its stance with the Electoral Commission. – Telegraph

Government must lean on banks to keep funding troubled North Sea oil explorers or risk a $250bn hit to the UK economy, Sir Ian Wood has warned. The highly influential industry veteran said a number of oil companies could go under as banks pull back on lending to the heavily indebted sector, which is already shedding around 200 jobs a day. But the “real danger” to the UK economy could come from a loss of investor confidence, which could result in billions of barrels in oil reserves left untapped. – Telegraph

George Osborne will use Wednesday’s budget to set in motion plans for a high-speed railway line from Manchester to Leeds and an 18-mile underground road tunnel beneath the Peak District. The chancellor will also promise to “prioritise” a north-south link through centralLondon as he accepts the final recommendations of the National Infrastructure Commission, led by former Labour peer Lord Adonis, which are being published on Tuesday. – Guardian

Almost 300 institutional investors in Volkswagen have filed a multi-billion dollar suit against the carmaker for what they claim were breaches of its stock market duty in the emissions cheating scandal. The lawsuit, for damages of €3.3bn ($3.6bn), was filed at a regional court in Braunschweig in VW’s home state of Lower Saxony on Monday and is being brought by 278 investors from all over the world, including German insurers and US pension fund Calpers. – Guardian

An LV= insurance executive has scooped one of the biggest pay packets ever awarded to a director of a mutual, receiving £10.7 million last year. John O’Roarke, general insurance chief of the friendly society, which is owned by more than a million of its policyholders, received a 16-fold pay rise. Mr O’Roarke, whose base pay was £616,000, hit the jackpot because of a three-year bonus scheme paying out £10.13 million, according to the insurer’s report and accounts. – The Times

Shares in the London Stock Exchange hit a record high yesterday as expectations grew that it will reveal the details of an agreed merger with Deutsche Börse within days, valuing the combined group at more than £20 billion. The LSE’s share price ended trading more than 1 per cent higher at £29, its highest since the exchange became a public company in 2000. – The Times