Tuesday Papers: Tesco plans to take on department store chains

Tesco unveils plans to go head-to-head with department stores, Vale, Brazil's biggest mining group, sizes up a bid for UK rival Xstrata and the cost of insuring corporate debt soars.

From The FT * Tesco plans High Street outlets to take on department store chains (p1) * Vale (Brazil's biggest mining group) flirts with Xstrata move (p19) * The cost of insuring corporate debt soars (p19) * WestLB close to settlement with Natixis over Boxclever collapse (p19) * Deutsche Bank seeks expansion after deal for Chiltern (p22) * More than a case of dj vu for Friends Provident (p22) * Gresham House's board survives after disgruntled Parkwood sells stake (p22) * Discounts by rival hit Sports Direct (p23)

From The Times * Warning of more turmoil as investors flee markets (p40) * City concern at Treasury deficit figures (p45) * Mortgage fall signals bleak outlook for lenders (p45) * Brazilian miner, Vale, in funding talks over $90-billion takeover of Xstrata (p49) * Shareholders set for 1-billion bailout of loss-making German bank, WestLB (p51) * Proventec's deal with the NHS to provide steam-cleaning kit for hospitals should be good news for Oxford Catalysts (p55)

From The Daily Telegraph * Northern Rock to pay £40-million for Darling's private sector solution (B1) * Angry SilverJet boss grounds Mayor Ken after a bust-up (B1) * Grim times for Sports Direct (B2) * Swiss Re eues division of Friends Provident (B3) * FSA looks at funds' marketing as more payouts frozen (B6) * UK insurers seen as targets for Ping An (B6)

From The Independent * Treasury insists on £5-billion Rock asset buffer in bond issue deal (p35).