Newspaper round-up

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

The Financial Times

HALF-POINT RATE CUT EXPECTED

The Bank of England is expected to cut interest rates by at least a half a percentage point, bringing rates down to 1.5 percent or less. Chancellor of the Exchequer Alistair Darling has said the closer the rate comes down to zero, the more likely it will become that the Bank of England will have to work "hand in hand" with the Treasury to prevent deflation. The Bank has long accepted if rates fell close to zero and other measures were insufficient, it would have to pursue a policy of "quantitative easing" and request Treasury approval to print more money, meaning in effect the Bank would lose its independence.

CARMAKERS RENEW APPEAL FOR CREDIT

The motor industry has renewed calls for the government to intervene to boost the availability of credit, as the latest figures show car sales declining to the lowest levels in more than a decade. Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: "Further action to ease access to finance and credit across the economy is essential if long-term damage to valuable industrial capability is to be avoided." New car registrations fell 21.7 percent in December compared with the previous year.

LLOYDS TOPS GAY-FRIENDLY BUSINESS POLL

Lloyds TSB (LLOY.L) has been ranked the most gay-friendly business in the UK. It appears top in an annual index of employers compiled by Stonewall, the gay equality charity. David Shields, director of workplace programmes at the charity, said: "Stonewall research shows that gay people perform much better at work when they can be themselves. This is a time when staff performance is crucial to employers weathering financial difficulties."

BAE TO ENTER INDIAN ARMED FORCES VENTURE