Wednesday newspaper round-up: Oil prices, RBS, Lloyds

The world needs to invest more than 48trn dollars by 2035 to meet global energy demand and prevent oil prices spiralling out of control, according to the International Energy Agency. The IEA, which represents some of the world's largest energy consuming countries, said that current investment to secure new supplies of oil and gas and keep the lights on has to increase by a quarter to hit the target, as the world's population increases. Spending to improve energy efficiency, primarily for cars and buildings, also needs to grow fourfold over the next two decades. - The TimesRoyal Bank of Scotland has become the second bank in the space of two weeks to limit risky mortgage lending amid fears of unsustainable house price inflation. The taxpayer-owned bank, which also runs NatWest, will limit house loans of more than £500,000 to four times a borrowers' income, the same measure introduced by Lloyds Banking Group last month. In addition, RBS - which is 80% owned by the Government after its 2008 bailout - will cap the length of the mortgages at 30 years. The terms, introduced nationwide but intended to cool the London market, will affect 2.6% of RBS's loans in London, and 0.5% of its total. - The Daily TelegraphThe fall-out from the rising tension between the west and Russia over its actions in Crimea and eastern Ukraine struck at the heart of the City last night after Lloyds Banking Group withdrew from a trade finance deal with Rosneft worth up to $2bn. Lloyds, which is still 25% owned by the UK taxpayer, was a lead arranger for the syndicated loan along with Germany's Deutsche Bank, HSBC and Bank of China. The money was to be used to finance BP's purchase of crude oil and refined products from Rosneft, the Russian state-backed oil company, in which the British oil giant has an almost 20% stake. - The TimesTakeover activity between British companies fell to its lowest ever level on record during the first quarter of the year, according to official figures. The Office for National Statistic (ONS) said British businesses bought just 26 other British firms with a value of at least £1m, down from 59 in the last three months of 2013. The ONS blamed relatively slow global economic growth, a lack of confidence within the M&A markets and the length of time involved to complete transactions. - The Daily TelegraphA pro-Russian rebel leader yesterday called on every man in eastern Ukraine to join a guerrilla war against Kiev in revenge for an air attack on his headquarters that killed eight people. In the second-floor conference room of the regional administration building in Luhansk, the table and floor were still strewn with shards of broken chandelier and smashed windows as Valery Bolotov beseeched Russia to impose a no-fly zone and send peacekeeping troops to protect his insurgency. - The Times Discounts on clothing and bank holiday offers on DIY and gardening products resulted in prices in British shops continuing to fall last month, according to the British Retail Consortium. With prices across stores falling 1.4% on the year, it was the 13th straight month of deflation, the trade association said. It was, as usual, non-food items that drove the deflation, with their prices falling for a 14th month running. There was some let-up on food too, where inflation held at 0.7%, the lowest on record for the BRC-Nielsen Shop Price Index.- The GuardianAB