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Monday newspaper round-up: brutal Brexit, soft Brexit, boomer boost, Co-op

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Monday newspaper round-up: brutal Brexit, soft Brexit, boomer boost, Co-op

Mon, 19 June 2017
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Monday newspaper round-up: brutal Brexit, soft Brexit, boomer boost, Co-op

(ShareCast News) - European leaders fear that Theresa May's government is too fragile to negotiate viable terms on which to leave the union, meaning the discussions that officially begin on Monday could end in a "brutal Brexit" - under which talks collapse without any deal. As officials began gathering in Brussels on Sunday night, the long-awaited start of negotiations was overshadowed by political chaos back in Westminster, where chancellor Philip Hammond warned that failing to strike a deal would be "a very, very bad outcome". - Guardian
Germany has offered a soft Brexit with a reduced jurisdiction for EU judges over Britain and continued access to Europe's single market in return for a British concession on free movement. Sigmar Gabriel, the German foreign minister, suggested yesterday that European countries were willing to make trade-offs in advance of negotiations on Britain's withdrawal from the EU. Talks begin in Brussels today. - The Times

Police are investigating a potential terror attack in London after a van ploughed into people near a north London mosque, killing one man and injuring eight others. The prime minister, Theresa May, was woken to be told of the early-morning incident at Finsbury Park and has confirmed that counter-terrorism command is leading an active inquiry. - Guardian

The chancellor, Philip Hammond, hinted on Sunday that the government would ease up on its austerity programme, saying the Conservatives were "not deaf" to the message delivered by the election result. In interviews in which he also criticised Theresa May's team for sidelining him during the election campaign, Hammond said that he accepted that "people are weary of the long slog". - Guardian

Ageing baby boomers are expected to hand over nearly £3trn of their wealth to relatives over the next three decades, providing a major boost to the economy for years, according to research by a leading money manager. About £920bn is expected to be gifted by the over-55s to family by 2047, equivalent to an annual boost of 1.2 percentage points to UK GDP, funding for 3.4m first-time buyers to purchase a home or enough to cover the tuition fees of 24m students. - The Times

The corner shop group Nisa is poised to sign an exclusivity agreement with the supermarket giant J Sainsbury which will temporarily bar the mutually owned group from courting other buyers. Nisa, which buys and distributes on behalf of more than 2,500 independently owned stores around the UK and has a turnover of £1.43bn, has been working with bankers at Lazard on a potential sale since Tesco unveiled plans to acquire its rival wholesaler Booker. - Telegraph

Co-op Bank could announce a deal this week that would lead to the struggling lender's hedge fund owners and the Co-op Group agreeing a £700 million bailout package, averting a wind down that would leave millions of customers and thousands of pensioners facing uncertainty. Representatives of bondholders and the country's largest mutual were in talks over the weekend about how to resolve the cost of pension entitlements for current and former Co-op Bank staff and appeared to be close to a deal. - The Times

Banks, accountants and law firms that facilitate offshore tax schemes face a Europe-wide crackdown, according to a leak of draft legislation. Brussels will publish proposals this Wednesday to force financial intermediaries to automatically disclose any new cross-border tax schemes offered to clients. - Guardian

A squeeze on Britain's defence spending could be starting to crystallise with a smaller than expected order of Apache helicopters from Boeing by the Ministry of Defence. The MoD said last year it would order 50 AH-64E attack helicopters to replace its ageing Army Air Corps Apache fleet on an almost one-for-one basis. - Telegraph

QUEEN'S SPEECH

The four principles on which the Tories and Democratic Unionist Party broadly agree are: "To strengthen the union, combat terrorism, deliver Brexit and deliver prosperity". These will form the bones of Wednesday's Queen's speech, which will comprise the government's to-do list for the next two years. - The Times

Theresa May is being told that she must publish full details of an agreement with the Democratic Unionist Party in return for its ten MPs propping up her minority government as concerns mount over the cost of such a deal. The Treasury has estimated that concessions being demanded by the party in Northern Ireland would cost billions of pounds if granted throughout the UK, according to Whitehall figures. - The Times

David Davis has emerged as the unity candidate to lead the Conservative Party after he was tipped for the post by allies of Boris Johnson. The Brexit secretary is being touted as a candidate to take Britain past the March 2019 date when Britain is expected to leave the EU if the Prime Minister quits suddenly. - Telegraph

Theresa May has told ministers to "pull out all the stops" to ensure that the electric Mini is made in Britain. Losing it to a factory in the Netherlands or Germany would deal a big blow at the start of Brexit talks. - The Times

French president Emmanuel Macron clinched an absolute majority in parliament on Sunday night, but record abstention rates and a lower-than-expected landslide prompted critics to warn he has no blank cheque for far-reaching reform. In the latest chapter in his "democratic revolution", exit polls showed Mr Macron's centrist party, La République en Marche, (Republic on the Move, or REM) - along with its centrist allies - was on course to win between 355 to 365 out of 577 seats in the lower house together with its centre-right MoDem ally. - Telegraph

Britain's biggest business groups have made a joint plea to the government to put the economy first in Brexit talks and to secure a transitional deal that preserves access to the European single market. The five lobby groups, including the British Chambers of Commerce and the CBI, have also called on ministers to prioritise an early deal on guarantees for EU 27 citizens in the UK and for UK citizens in other EU countries. - Guardian

HOUSE PRICES

Momentum in the housing market is stalling amid the unexpected general election result and uncertainty over the outcome of Brexit negotiations, according to research conducted by Rightmove, the property website. Asking prices for homes in England and Wales fell by 0.4 per cent, to £316,109, this month, the first time a decline has been recorded in June since 2009, the height of the financial crisis. - The Times

Global internet advertising is due this year to overtake television finally to become the world's biggest medium, an industry forecast predicted. Online ads will account for 37 per cent of the world's total this year, Zenith the media-buying agency, said. - The Times

The international body that represents the world's central banks has claimed that globalisation has been made a "scapegoat" for rising inequality, as it launched a defence of closer cross-border ties. Against the backdrop of protectionist rhetoric in many countries, including from US president Donald Trump, the Bank for International Settlements used its annual report to argue that globalisation has cut global poverty and will continue to lift living standards around the world. - Guardian

Campaigners have called for restrictions on diesel vehicles in city centres as research showed that increased congestion was leading to a sharp rise in pollution. Analysis found that slower urban speeds, with more cars crawling through city streets, could directly worsen air quality. - The Times

Aviva is preparing for the arrival of driverless vehicles by trying to seal deals with manufacturers. The emergence of driverless cars, which could be common within 15 years, is expected to rattle the motor insurance industry, with many concerned that insurance companies will no longer be needed. - Telegraph

Jaguar Land Rover has unveiled plans to recruit 5,000 new engineers over the next year in a boost for British industry as the Brexit talks begin. The carmaker has just enjoyed a record year of sales bolstered by demand for luxury cars in China and North America, and needs thousands of new recruits, predominantly in the UK, to help develop new models, including electric cars. - Guardian

Theresa May's hopes of driving through laws to smooth Britain's path out of the EU will be dealt a blow this week as Labour lays the ground for a guerrilla campaign against them in the Commons. Mrs May had hoped to trap Labour into supporting legislation, collectively known as the great repeal bill, on the grounds that the main opposition party is also committed to leaving the EU. - The Times

Price comparison websites across Europe are preparing to file for damages against Google in the expectation that European Union antitrust regulators will slap a hefty fine on the internet company over its shopping service. The European Commission's ruling, which could come as early as this week, follows a seven-year investigation and scores of complaints against Google from American and European competitors, who accuse it of taking advantage of its dominance of Europe's internet search market (it has 90 per cent) to distort results in favour of its shopping comparison service. - The Times

The NHS pay cap is unfair, unpopular and dangerous to patient safety, bodies representing 1.3 million health service staff have warned Theresa May, urging her to ditch the policy in the Queen's speech. The plea from doctors, nurses, dentists and other health professionals comes as the prime minister faces intense pressure to scrap the cap, introduced in 2010, which has limited NHS staff to 1% pay rises or below. It is legislated to continue until 2020. - Guardian

Google has introduced four new measures to tackle the spread of terrorist material online, saying the threat poses a serious challenge and that more immediate action needs to be taken. It has pledged better detection of extremist content and faster review, more experts, tougher standards and an expansion of counter-radicalisation work.