Round-up from Thursday's business pages

LONDON (Reuters) - Here is a digest of Friday's business pages.

Financial Times

RISE TAKES EUROZONE RATES TO SEVEN-YEAR HIGH

On Thursday, eurozone interest rates hit a seven-year record high, but the markets were relieved by a less hawkish tone from the European Central Bank that damped fears of further increases to come. In the UK, new data showed service sector activity weakened to its lowest level since 2001, increasing expectations that the Bank of England might keep rates on hold in spite of rising inflation. Oil prices also rocketed to a fresh record on Thursday, and officials have urged for an easing of supply constraints.

PM WARNS OF DIFFICULT TIMES AHEAD

Gordon Brown put the country on notice on Thursday to expect "difficult times" ahead as he urged City leaders to show pay restraint and predicted the public purse would suffer from soaring oil prices. Mr Brown said: "At the top of British business they have to accept their responsibilities as well. In the interests of the country we have to keep inflation low." The prime minister claimed he was preparing the way to cushion the impact of tough times for industry and consumers, hinting strongly that he would scrap a planned two pence rise in fuel duty.

MPS RESIST ATTEMPT TO REFORM EXPENSES SYSTEM

MPs defied the threat of a public backlash on Thursday as they threw out proposals to bring greater transparency and more rigorous audit to their system of expenses. The plans would have meant regular spot-checks by accountants and the need to produce receipts for all expenses. The vote from the House of Commons is likely to spark anger from those who suspect it is run like an old-fashioned gentlemen's club. Tory MP Ann Widdecombe said: " we have the guts to stand up for ourselves and defend the system, we will continue to be vilified, we will continue to be ridiculed."

MPS PLAN HEARING ON FUEL COSTS