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Two of the world's largest mining companies are set to abandon a £70 billion merger of their iron-ore operations after Europe indicated it would block the deal. BHP Billiton and Rio Tinto wanted to put their Australian operations into a joint venture that would have controlled about a third of the world's seaborne iron-ore trade and 40% of China's imports. On Friday, European Commission officials, led by Joaquin Almunia, the competition commissioner, told both the FTSE 100 companies it was likely to demand significant concessions, including the sale of large parts of the combined business, writes the Times.In the same sector, Vedanta Resources, the mining empire headed by Indian billionaire Anil Agarwal, has drawn up secret plans to float its £4bn Zambian copper subsidiary on the London stock exchange. The group's Zambian offshoot, KDC, could seek to raise £500m in a London listing that may bring on board blue-chip British and European investors, according to the Observer.The Government's immigration cap is facing fresh pressure after evidence from one of its own business advisory committees shows the damage it is doing to UK businesses. The evidence reveals that one leading City law firm has been set a cap that is lower than the number of people it needs to hire from outside Europe. The firm says that the employees from Japan and the US are vital if it is to maintain its global competitive edge, says the Sunday Telegraph.Centrica has launched its biggest asset sell-off since 2003 with a £400m auction of North Sea oil and gas fields. The sale is the British Gas owner's most significant since it ended its diversification into consumer businesses, such as Goldfish credit cards and the AA roadside recovery business, and returned to its roots as a pure energy supplier. The company faces big investments in new nuclear power stations and offshore wind farms to meet pollution-reduction targets, according to the Times.Meanwhile, the Independent on Sunday reports that British Gas's 8,000 engineers will get a "landmark" 11.3 per cent wage increase in exchange for working a 45-hour week in the winter to tackle the increase of blackouts. The GMB union and Centrica, British Gas's FTSE-100 parent company, have turned around hostile relations and are close to finalising a remarkable deal to be implemented on 1 November, the paper reports.Rob Templeman, boss of Debenhams department stores, has emerged as a surprise contender to become chief executive of Gala Coral, the gaming giant. He is one of several businessmen shortlisted to replace Dominic Harrison, who resigned from the bingo and casino operator in July. Templeman's presence on the list may prove embarrassing for Debenhams, which presents its financial results this week, says the Times.The British Retail Consortium (BRC) has warned George Osborne that the UK economy risks falling into a "double dip" recession unless he takes urgent action to safeguard its fragile recovery. The BRC has written to the Chancellor ahead of Wednesday's Comprehensive Spending Review with a manifesto for action "as the recovery threatens to flat-line", the Sunday Telegraph writes.Peter Sands, the chief executive of Standard Chartered, has admitted that it is now harder to attract talent to London because of the changing tax and regulatory regime. Mr Sands, who last week announced a £3.3bn rights issue to support the bank's compliance with the new Basel III rules on capital, revealed that the "balance of attractiveness" had moved away from the capital, writes the Sunday Telegraph.Wall Street is braced for mixed results from the big US banks next week as plunging investment volumes hit third-quarter earnings and the furore over illegal housing foreclosure rages. Citigroup will kick off tomorrow, followed by Bank of America and Goldman Sachs on Tuesday and Morgan Stanley on Wednesday, the Independent on Sunday reports.The Government is being urged to help break the stranglehold of the Big Four accounting firms by handing the work of the Audit Commission to a smaller rival. The Commission - the country's fifth biggest auditor, which checks the accounts of local authorities, fire, police and health services - is being scrapped as part of the 'bonfire of the quangos'. The Financial Reporting Council is warning that if the Audit Commission work, worth a total of £213 million last year, is handed to one of the major firms it would further stifle competition, the Mail on Sunday Reports.BSkyB will take a significant step closer to hitting its target of winning ten million subscribers by the end of the year when it reports first-quarter figures this week. The broadcaster has 9.86 million subscribers and is expected to announce that it added a further 53,000 in the three months to September, said investment bank Numis, according to the Mail on Sunday.The party's over for discount supermarkets, such as Aldi and Lidl, according to retail experts. The boost in sales that came from customers worrying about the recession has dropped off as bigger supermarket chains have fought back with special offers, enhanced 'value' ranges and promotions aimed at the home dining market. Offers such as 'Feed your family for a fiver' from Sainsbury's and Marks & Spencer's 'Dinner for Two for £10' - a main course, side dish and bottle of wine - have been popular with customers looking for an alternative to eating out, the Mail on Sunday says.THE coalition government risks making "the greatest macro economic mistake of the century" when it this week forges ahead with plans to axe government spending by more than £30 billion a year, leading economist David Blanchflower will warn tomorrow, according to Scotland on Sunday.