Weekend Papers: Wait for capital gains tax clarification

FINANCIAL TIMESMoneyThe section led with how the government is considering a U-turn on its recently announced capital gains tax policy. The latest move would see tax breaks on investments into small and start-up companies by changing the tax status of investments like enterprise investment schemes. Advisers suggest investors should wait until the government clarifies the policy.

An article on the housing market looked for signs of optimism after various forecasts predicted slowing property price growth and an easing buy-to-let market. Interest rates may have peaked, rental demand is driving up rents and proposed capital gains tax changes may benefit property investors, it said.

Agents, however, were fearing fallout from the liquidity crisis would cut City bonuses and dampen property sales; this angle also received Companies section page one play.

Columnist Matthew Vincent warned against retirees using home equity release plans for spending money because most pensions won't provide enough for other living expenses. But he says Killik & Co has a Sipp strategy that can double retirement money.

Higher prices for basic agricultural commodities such as wheat, milk, corn and soybeans has seen fund managers offer investors more opportunities to invest a sector that could be entering a 20-year bull market.

A US recession some say it's a 50-50 chance could drag down portfolios unless investors cut all links to its economy, especially consumer spending. Investing in Bric countries Brazil, Russia, India and China could be the answer.

However, on the next page columnist John Arthurs warned that prices for stocks in emerging markets like Brazil are, if not a bubble, no longer rational. The country's previously undervalued average price to earnings ratio now matches the S&P 500, industrial metals prices are 20% off their peak this year, interest rates are 11%, inflation is a concern and growth is estimated at less than 5%.

Columnist John Lee wrote he would be surprised if Darling backed down from the new capital gains tax rate of 18% or the abolition of taper relief, but there could be some tweaking to help new business creation.

The Association of Investment Companies is leading a campaign for the government to lower tax rates on bonds which are charged 30% tax compared with open-ended investment companies and unit trusts which pay 20% on interest received.

The increase of capital gains tax to 18% from a de facto 10% on AIM shares come April means fewer people will invest in that market, prompting more of its companies to seek main index listings, at least one fund manager says. But the inheritance tax benefit will still make AIM attractive and certain sectors like oil services, pawnbrokers and cheque cashers are enjoying success, say others.

David Stevenson, the Adventurous Investor columnist, recommended a Merrill Lynch warrant tied to the DJ Euro Stoxx 50 index.

David Schwartz's Trader's Diary warned investors to avoid the dead cat bounce when judging stocks ready for a rebound after a steep fall.

High net worth investors need to pause for a reality check on their rate of spending because equities are forecast to grow less than 8% over the next seven to 15 years, less than the past 19 years. And inflation hits luxury items disproportionately.

Steve Lodge answered questions on loan notes, pension transfers and gifts to children.

Mike Southon wrote in My Business about growing pains: 'The precise moment when a company goes from a tribe to a corporation is the day a lock appears on the stationery cupboard.'

Jonathan Moules profiled Barefruit, a firm that sells a website to internet service providers to take web surfers who spell URLs incorrectly in searches, instead of giving them the usual 404 error message.

In a separate piece Moules noted two surveys saying Labour's capital gains tax revisions has cost the party votes from the business start-up community.

Headlines from the main section:Investors savage bank stocks; Rise in home repossession orders continues; Vulnerable start to feel the pain; Consumers insulated from true petrol price; Weak dollar masks high street woes, say retailers;

New York defiant as boomtime melts away; US jobs soar past forecasts; Spendthrift Canadians find dollar goes further south of the border; IMF to heed new global players hedge funds and private equity; Bargain hunters gain as Spanish Costas cool; The bears are talking bull on America's long-term decline.

Companies & Markets:BA closes in on bid for Iberia; Northern Rock widens appeal; Mifid: London poised to cement leading position; Fears spread on subprime impact; Barclays dispels bail-out talk but cannot halt decline.

SUNDAY TELEGRAPHBusinessCiti's Chuck Prince will quit: Billion-dollar write-down feared as credit crunch claims its biggest scalp yet, said page one lead. Citigroup meltdown splashed across pages two and three and Sylvia Pfeifer weighs in on page four.

Inventor Sir James Dyson paid himself a £30 million dividend last year after a surge in profit at his vacuum empire, has appointed John Clare, recently departed chief executive of DSG International, as a non-executive director and looks set to enter new product areas.

Tchenguiz may team with Qataris to put the £500 million in equity they need into the £10 billion Sainsbury bid.

Sir Richard Branson's gyms business Virgin Active is being prepared for a stock market floatation that could value the group at £1 billion.

Economics editor Liam Halligan said the Fed will have to eat its words and cut rates again because sub-prime poison continues to seep out of the woodwork. Emerging markets have benefited from the sub-prime crisis in the West, but beware they are now in bubble territory, Halligan warns.

Gerry Murphy, chief executive of Kingfisher, the parent of DIY chain B&Q, is leaving next February because he didn't foresee the rising trend of more personalised service Do-It-For-Me.

Pfeifer looked at soaring oil prices, found market driven by forces beyond Opec and prices approaching $100 a barrel are not entirely tied to demand and tight supply, but to speculators in oil futures.

Viet Dinh, former US deputy attorney general under Bush, argued the administration is using guise of national security against terrorism as dangerous brand of economic protectionism. The architect of the Patriot Act said its anti-money laundering provisions are being used to impose restrictions on foreign business and trade.

The open skies agreement between the EU and the US has sparked a battle for take-off slots at Heathrow.

Singapore Airlines' bid for China Eastern has Beijing's backing but rivals are waiting in the wings.

Richard Northedge profiled Keith Ludeman's plans for improving travel times in the southeast with Go-Ahead using high-speed Japanese trains.

Richard Rivlin said Michael Hall, boss of collectibles firm Stanley Gibbons whose shares have shot up in recent years must invest in expansion.

Share tips: Centrica, Taylor Wimpey, Blinkx, Avocet Mining, DSG International.

Hugh Osmond believes he has comprehensively outmanoeuvred Standard Life in the battle to take over Resolution because his company Pearl either wins the deal or makes a profit on its 25% stake in Resolution.

Money & Jobs: The lead story said make your children millionaires through compound interest by putting money in their pensions when they're toddlers.

Editor Paul Farrow said banks need to give protection to credit card holders shopping abroad.

Britons suffering from cancer who retired in France are being forced to move back because of reforms that block their access to French health care.

A column on how to become mortgage-free suggested making regular overpayments, lump sum overpayments and set up a savings account with the lender so you only pay interest on the difference between the two: if you had a £150,000 mortgage but £20,000 in the account, you would pay interest on £130,000.

Banks are vying for the business of nearly half a million Polish workers in the UK.

The tide is turning on corporate bonds; after years of disappointing returns, corporate debt is looking cheap and seems to offer compelling value of about 5%, their best in five years because of the credit crunch.

Mobile network 3 has added Skype to its latest handsets so users can use the internet to make free calls.

Credit card companies are competing against each other in the percentage of cash they offer users for attaining spending levels. AmEx is offering 5% for the Christmas period.

John Greenwood surveyed pet health insurance policies as more people fork out for cancer treatments and operations on their animals.

More weekend paper summaries are due shortly on Citywire.