LONDON (ShareCast) - BAE Systems has struck a £2bn partnership deal with the Ministry of Defence to provide munitions and explosives, securing the future of its former Royal Ordnance munitions factories.

Britain’s biggest defence contractor is committed to invest more than £120m over the next five years to accelerate the modernisation of its three main munitions sites, many of which date from before the second world war, says the FT.

Marks & Spencer has fuelled further fears over the impact of the economic downturn on its sales after the retailer decided to bring forward the date of its next trading statement by a month. The high street chain, run by executive chairman Sir Stuart Rose, scrapped quarterly reporting in 2006. It is set to perform a U-turn by unveiling second-quarter sales figures on October 2, ahead of half-year results on November 4, reports the Telegraph.

Lehman Brothers, the beleaguered US investment bank, held secret talks to sell up to 50 per cent of its shares to South Korean or Chinese parties in the first week of August but failed to reach agreement with either. The South Koreans and Chinese walked away after concluding that Lehman was asking too high a price, writes the FT.

UK gas and electricity bills are set to rise further after wholesale energy prices soared on Wednesday, following a warning that an important Norwegian gas pipeline could be shut all winter, according to the FT.

Wages are increasing at the weakest rate in five years as the economic downturn takes its toll on families' incomes, official figures have shown. The Office for National Statistics said average weekly earnings in June were only 2.9pc higher than the previous year, the slowest growth since 2003, says the Telegraph.

HBOS has frozen the accounts of Andy Hornby, its chief executive, after a thief stole his identification details and withdrew thousands of pounds in cash, reports the Independent.

America's two largest mortgage finance houses need to raise as much as $100bn ($53.8bn) to cover potential losses as a result of the continued decline in the US mortgage market, a banking analyst has claimed, according to the Telegraph. The staggering suggestion is the largest published to date by any industry analyst as to the size of the possible funding shortfall at Fannie Mae and Freddie Mac, which own or guarantee $5,000bn of American mortgages, some 70pc of the market.

Council chiefs have called for extra powers to allow them to offer competitive mortgages in an attempt to rescue the housing market, writes the Times.

Nearly half a million mortgage or loan customers are having to apply more than four times in order to successfully secure credit, says the Telegraph.

The online auction giant eBay has simplified and slashed its charges on fixed-price items sold on its site, as it seeks to compete more aggressively with its rival Amazon by enticing small businesses and big ticket retailers to its website, reports the Independent.

Professional fees on the administration of Esporta's parent companies passed the £2.6m mark as Grant Thornton asked the courts for up to another year to sell the beleaguered gym chain, writes the Telegraph.

Churchill Insurance has been publicly censured by the Advertising Standards Authority (ASA) for making a false claim in its home insurance adverts broadcast on national television earlier this year, according to the Independent.

Four travel companies are in the running to operate the new South Central railway franchise, with the successful bidder to be named next summer, says the Independent. The Government announced the shortlist for the tender yesterday. The National Express-owned NXSC Trains, Stagecoach's Southern Trains, Dutch Railways' NedRailways South Central and Govia, a joint venture between Go-Ahead and French group Keolis, made the cut.

Thousands of pensioners are set to lose hundreds of pounds in benefits when changes are introduced in October. Charities have warned that the reforms, which will cut the amount of time pensioners have to claim backdated benefits, will mean that some of the most vulnerable pensioners will be left out of pocket, writes the Times.

House of Fraser has delivered a healthy uplift in sales and profits, as the changes made by its new management team bear fruit despite tough trading conditions on the high street, reports the Independent.

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