Morning papers: ECB intervention hopes drive markets higher

European markets rose sharply amid mounting speculation of a dramatic intervention by the European Central Bank (ECB) to arrest the crisis engulfing the region, reports the Daily Telegraph.

Heat rises on central banks

The US Federal Reserve and ECB face critical tests this week amid heightened expectations that they are moving toward new actions to tackle fragility in the global economy, reports the Wall Street Journal.

But doubts linger in financial markets, and even within the central banks themselves, about whether the guardians of US and European money and interest rates have the capacity - or tools - to fix the problems facing their respective economies.

Global scandals hit world’s local bank

HSBC yesterday revealed it parked almost £100bn of spare cash with central banks due to growing fears over the economy and the financial security of rival lenders, reports the Daily Mail.

The staggering amount compares with just £6.5bn three years ago and £43.5bn last year in a damning indictment of the ailing health of Europe’s banking sector.

Libor review to look into scrapping rate

Libor, the London interbank offered rate, could be scrapped altogether and replaced with an interest rate that is set using actual trades, according to a review set up by the UK government, reports the Financial Times.

The terms of reference for the review include considering whether the rate should be set based on transactions made by traders, rather than the estimate of the rate at which their banks are borrowing at any given time.

RBS braces itself for a Libor deal

RBS is negotiating a settlement with authorities investigating attempted interest rate rigging at RBS and other banks, and a deal, including fines, could be announced in the next few months, according to people familiar with the matter, reports the Wall Street Journal.

Metals melt in heat of financial crisis

As expectations for economic growth in Europe, China and the US have been scaled down, prices have fallen to the lowest in years, reports the Financial Times.

Industrial metals such as copper, aluminium and nickel are sensitive to changes in the global economic cycle, because of their uses in construction and manufacturing.

Bounty of the financial crisis: whistle-blowers on tax evasion paid £1m

HMRC has been handing out hundreds of thousands of pounds a year in the little-known bounty payments as public concern about who pays their fair share has grown, reports the Daily Telegraph.

Man United IPO set to land Glazers $141m

Manchester United’s owners stand to pocket $141m (£89.8m) if the English club successfully goes forward with its US initial public offering, reports the Financial Times.

Private equity assets hit record $3trn