PRESS DIGEST-Financial Times - May 28

May 28 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines

- UK fraud 'blight' prompts calls for action to protect consumers

- BBVA-Sabadell deal to face scrutiny by Spanish cabinet

- UK bioethanol factories face closure after Trump trade deal

- IMF gives Rachel Reeves political cover to 'refine' UK fiscal rules

- ECB hawk calls for rate cut pause until September amid trade tensions

Overview

- Britain's financial sector saw a record 3.31 million fraud cases in 2024, up 12% on the year before, according to data from industry body UK Finance released on Wednesday, as criminals responded to efforts to combat complex scams by ramping up high-volume, low-value attacks.

- The Spanish government will examine BBVA's BBVA.MC hostile takeover offer for Sabadell SABE.MC, the economy minister said, a rare step that could mean the bank must agree to more conditions before its bid is approved.

- The UK's only two bioethanol production plants are at risk of shutting down after the government agreed to eliminate tariffs on ethanol imports from the United States as part of its new trade deal with America, the industry has warned.

- The International Monetary Fund nudged up its growth forecast for Britain this year in a regular assessment of the country's economy, and it urged finance minister Rachel Reeves to stick to her plans to lower public borrowing.

- The European Central Bank should pause further interest rate cuts until at least September, Austrian central bank governor Robert Holzmann said, warning that "we should keep our powder dry" given the simmering EU-US trade war.