There was no sign last night that they were being won round to a single UN resolution authorising military strikes against Iraq if it fails to co-operate with the weapons inspectors. France, Russia and China oppose a green light to attack before Iraq has a chance to co-operate.Russia has this week suggested for the first time that it could countenance a fresh Security Council resolution on Iraq to ensure the inspectors’ return. However, it has made plain that it would not support an automatic trigger for military action which could be decided by the US alone, and that Russia’s economic situation would have to be recognised in a resolution.A Russian deputy foreign minister, Yuri Fedotov, said yesterday that Russia was still insisting that “the resolution should not contain provisions on the use of force” and wants inspections to open up the possibility of an end to UN sanctions against Iraq.Mr Blair denied he had flown out to put a “price tag” on winning Russian support for military action, following hints from Moscow that it wanted financial guarantees that money tied up in Iraqi oilfields would not be lost. Russia is also worried that it could lose billions of dollars in export revenues were the oil market to be transformed by President Saddam Hussein’s removal from power.But the Prime Minister acknowledged that Russia had “legitimate interests they want to know we are sensitive to” and confirmed they would form part of the talks with President Putin.Mr Blair also swept aside the publication of a letter from the Central Intelligence Agency suggesting that a US invasion of Iraq could prompt President Saddam to use his chemical or biological weapons in retaliation. He said the CIA statement merely confirmed the fact that Iraq possessed such deadly weapons.He glossed over allegations that the Russians were guilty of human rights abuses in Chechnya. He said: “Russian citizens have been subject to terrorist attacks operating out of Chechnya …

Russia is entitled to protect its own territorial integrity, but in a way that is consistent with human rights.”. Russian president Vladimir Putin told Tony Blair today that he doubted Iraq possessed any weapons of mass destruction. This is the key point upon which we both agreed.”The two leaders agreed they had discussed Russia’s financial interests in Iraqbut Mr Putin pointedly remarked he had not invited Mr Blair to an “orientalbazaar”.Mr Putin said: “We did discuss the economic consequences of the solution to the Iraq question along different tracks and I was pleased to find out that the UK Prime Minister like myself also believed that the political diplomatic track has not been fully exhausted yet.”I would plead to you not to perceive our meeting here as a bargaining place. I have invited the Prime Minister and his spouse here to have these discussions on the whole set of issues. Business and unions stepped up their campaign for a cut in interest rates next month after the Bank of England yesterday opted to leave monetary policy on hold. “It needs to be prepared to cut rates if further signs of weakness emerge,” said Ian McCafferty, the CBI’s chief economic adviser.Roger Lyons, the joint general secretary of Amicus, the trade union, said: “By doing nothing, the MPC has condemned thousands of manufacturing workers to the dole and has helped keep up the pressure that is committing manufacturing to a slow, lingering death.”Although economists in the City were unanimous in expecting no change yesterday, some believe industry’s wishes could be fulfilled as soon as next month.

In November, the Bank publishes its quarterly inflation and growth forecasts, which are often used an opportunity to justify a change in monetary policy.That month will also see a sharp downward revision by the Government of its growth forecasts in the pre-Budget report. On top of that, the US Federal Reserve Board meets a day before the Bank and could launch a round of co-ordinated interest rate cuts.Yesterday, Paul Boateng, the chief secretary to the Treasury, struck a gloomy note at an investors’ conference “Downside risks and uncertainties remain,” he said “We must maintain our vigilance … and avoid the twin temptations of undue pessimism on the one hand, and unacceptable complacency on the other.”George Buckley, a UK economist at Deutsche Bank, said there was a strong chance that the Bank, the Fed and the European Central Bank ­ which also kept rates on hold yesterday ­ would all act in the coming months. “We look for the first move from the Bank in either November or December, followed by another cut in the first quarter of next year,” he said.. Carlton and Granada have reopened merger talks in a move that will bring together Britain’s two largest ITV broadcasters. There was also heavy volume in Granada shares.One person close to the negotiations said: “They are talking again. The whole structure of the merger was signed off in February (when the previous talks failed) and the structure would be the same again.”Carlton and Granada believe they could satisfy the regulators with a deal.

It is understood that the two companies made a combined £300m bid for the television interests of SMG last month. This shows that the two groups are confident they can find a way of getting around regulatory obstacles.But the Scottish media group threw out the deal as it was looking for £350m and knew a good price would not be achieved if the two most likely bidders were working together. SMG decided to auction its Herald newspapers division instead.In February the original Carlton-Granada merger failed when news of the talks leaked and because they could not agree on the relative valuations of the two groups.But Carlton shares have fallen sharply in recent weeks on fears of a dividend cut, a gloomy outlook for advertising sales and receding expectations of a takeover. The current negotiations also hinge on the value attributed to Carlton.One of the triggers for the Carlton-Granada tie-up being back on the agenda is the expected departure of Carlton’s chief executive, Gerry Murphy, to the chief executive position at the Kingfisher retail group. This would severely weaken Carlton’s position.Mr Murphy has voiced concerns over the deal on the grounds that regulators could block a merger that could give the combined company 50 per cent of television advertising.