Morrisons is set to reignite the supermarket price war this week when it slashes the cost of 160 everyday essentials. The Bradford-based grocer plans to apply an average 12% cut to the prices of 130 meat and poultry products, such as shoulders of lamb and wafer-thin cooked chicken, and 30 fruit and vegetable lines. (The Times £)

The price cuts will be reassuring for households and the Bank of England amid worries that a weaker pound will stoke inflation by making imports more expensive. Retailers believe that food price inflation is unlikely to arrive until the autumn when the supply of UK-grown fresh produce reduces and they are forced to buy more food from abroad. (The Guardian)

Meanwhile, shop prices fell again last month, providing a boost for consumers but dealing a fresh blow to retailers. Prices on the high street dropped by 2% in August compared with a 1.6% decline in July, according to an index compiled by the British Retail Consortium and Nielsen. (The Times £)

Elsewhere, there is plenty of coverage of the Sky News story that Marks & Spencer will axe 500 jobs at its head office next week as its new chief executive attempts to halt a protracted slump in sales which has left the company facing renewed questions about its strategy. M&S is to cull roughly 15% of the roles at its headquarters in Paddington, London - with more than half of the cuts affecting contractors. (Sky News)

It is thought shop floor staff will not be in the firing line, as Steve Rowe, chief executive and M&S veteran, plans to cull head office staff only. Nevertheless, it could provoke further unrest among employees following a long-running pay row. (The Telegraph, The Times £, The Guardian, The Daily Mail)

Meanwhile, M&S has tabled an improved “final” pay offer to staff - but will press ahead with controversial plans to axe premium rates for Sunday working (The Telegraph). The chain said that the changes to pay, premium payments and pensions will mean that assistants will earn £8.50 an hour, or £9.65 in Greater London, from April 2017 (The Times £). M&S said yesterday its finances will take a hit of up to £150million this year after closing its gold-plated pension scheme (The Daily Mail).

Poundland faces a crucial vote this week on its £610m takeover by Steinhoff but there are concerns a New York hedge fund could scupper the deal (The Daily Mail). The deal is “balanced on a knife edge” amid speculation US hedge fund Elliott Management may scupper the £610m deal at a crunch shareholder vote (The Telegraph).

The owner of the Happy Egg Company and Gü desserts is eyeing a £400m float. Noble Foods last week appointed City heavyweight John Gildersleeve as chairman. It plans to list in London within two years, according its chief executive. (The Times £)

The accountancy group under investigation by its professional watchdog over its audit of Tesco has a new role at the supermarket chain. Tesco has appointed PwC as an independent adviser, despite replacing it as auditor with Deloitte. (The Times £)

Livingbridge, the private equity firm behind Crew Clothing and Thomas J. Fudge’s biscuits, has reported a “massive swing” in interest from US investors in British businesses after raising its biggest-ever £660m fund. (The Telegraph)

Fyffes, the fruit and vegetable importer best known for its bananas, raised its half-year dividend on the back of a robust performance boosted by its acquisition of Canadian mushroom business Highline Produce. (The Times £, The Telegraph)

Manufacturers are more confident after a rebound last month, but they remain wary about the prospects for the rest of the economy after the vote to quit the European Union. (The Times £)

International brewers are sizing up a $2.2bn plan by Vietnam to auction off its two largest state beer makers, in the latest stage of what has been a stop-start opening up of one of Southeast Asia’s leading emerging markets. (The Financial Times £)

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