Newspaper round-up

LONDON (Reuters) - Here are the business headlines from Wednesday's newspapers.

The Financial Times

DARLING IN NEW ALERT ON DEPTH OF RECESSION

Chancellor of the Exchequer Alistair Darling has issued a new warning over the resilience of the credit crunch, indicating that the government forecast that Britain should now be at the middle of a one-year recession was over optimistic. In an interview with the Financial Times, Darling repeatedly described the current outlook as "difficult" and said that in 2009 "there are going to be some tough calls". Commenting on the anticipated interest rate cuts by the Bank of England, Darling said that if the rates drop close to zero, the central bank and the Treasury would have to work "hand in hand".

MANDELSON SEEKS CAR INDUSTRY TALKS

Business Secretary Lord Mandelson is seeking a new round of talks with the struggling car industry amid increasing pressure to offer a multi-billion pound aid package to lift the sector's financing gloom. No exact date has been set yet but it is understood that Mandelson is keen to involve the Treasury directly in the negotiations. The government is also engaged in separate talks with Tata, Jaguar Land Rover's Indian owner, over its request for a one billion support package. Sources close to the group suggested on Tuesday the Indian company was looking to ministers for loan guarantees and short-term lending to help it relieve its credit pressure and protect Jaguar Land Rover's research and development work.

HIRING OF STAFF HITS LOWEST LEVEL FOR 11 YEARS

Appointments of permanent and temporary staff in December slumped at the fastest rate since 1997, a closely watched survey of recruitment groups has revealed. According to the poll, which was conducted by the Recruitment and Employment Confederation REC.L and KPMG, the rise in the number of people looking for work as well as the drop in job vacancies and salaries have reached record levels. Kevin Green, REC chief executive, described the findings as "deeply worrying". Mike Stevens, head of business services at KPMG, said they confirmed the "most pessimistic projections for the UK jobs market".

ARK LIFTED BY CEREPRO EUROPEAN TRIAL APPROVAL