Newspaper round-up

(Reuters) - Imperial Tobacco, Centrica and Sainsbury feature in our round-up of Thursday's business press.

The Financial Times

KING AND DARLING ISSUE BLEAK FORECAST

On Wednesday night, Mervyn King and Alistair Darling delivered the bleakest official assessments of economic prospects for 15 years in what the Bank of England called "the most challenging period" since 1997. In his annual Mansion House speech to City grandees, Mr King predicted that "the squeeze on real income growth is likely to mean that both house prices and consumer spending weaken together." The chancellor, in turn, conceded his Budget forecasts would not be met.

MINIMUM PRICE FOR ALCOHOL ON THE TABLE TO CURB BINGE DRINKERS

Under plans being examined by the government to curb binge drinking, a minimum price could be set for a unit of alcohol in England and Wales. Ministers are waiting for an independent report into the impact of pricing and promoting, which is due to be published in the coming weeks, before deciding on a course of action. However, supermarkets have warned that they cannot work together to set prices because to do so would violate competition laws. Asda also believes that raising prices would not put an end to binge drinking, and that "pricing is a blunt instrument with regards to alcohol; it hits everyone."

STRESSED-OUT BY HOUSING COSTS

According to a survey of nearly 7,000 people by Shelter, the housing charity, roughly a quarter of households say housing costs are causing them "stress or depression." Homeowners have to deal with the pressure brought on by rising arrears and falling prices, just as banks make it harder for them to remortgage. The survey found that a ninth of households, the equivalent of three million people, had sold possessions to help pay housing costs. More than one in ten had also borrowed money from banks, friends and family for mortgage repayments.

LONDON'S BUSINESS EDGE THREATENED, SURVEY SAYS