Monday newspaper round-up: Hard Brexit, City worries, mobile claim, Tesco

Senior financiers are alarmed at growing political momentum behind a so-called “hard Brexit” that they fear will erode business confidence, trigger corporate departures and damage the City of London. Leading bankers who have held talks with government ministers have told the Financial Times they believe Theresa May, the prime minister, will end up taking Britain out of the EU’s single market and customs union. - Financial Times

Britain’s financial services are becoming increasingly anxious about life after the Brexit vote, according to the latest detailed survey of confidence in the sector. Optimism dropped for the third consecutive quarter in the three months to September, according to the research jointly produced by the CBI business lobby group and the accountancy firm PwC. - Guardian

The UK's decision to leave the EU will not dent growth at all this year, according to economic forecasts compiled by the Treasury, in a complete reversal of the gloomy short term forecasts made after the EU referendum. Panic has faded rapidly among the dozens of independent economists consulted by the Treasury as strong data in the three months since the vote reassured the analysts that any shock from the vote was far less severe than first feared. - Telegraph

Britain's mobile giants face a High Court claim for hundreds of millions of pounds over allegations they colluded and forced Phones 4U out of business. Lawyers for the collapsed retailer’s administrators, PwC, are understood to be preparing to launch the action against EE, O2 and Vodafone over the coming months, having sent mobile operators letters warning them they could face a High Court claim around a year ago, according to sources. - Telegraph

Britain’s manufacturers insisted they have a crucial role to play in a post-Brexit world, contributing $247bn (£190bn) a year to the economy and creating well-paid, high-value jobs. The UK is the world’s ninth-largest industrial nation and manufacturing accounts for 14% of business investment according to a report by the sector’s trade body, called EEF, and Santander. - Guardian

Tesco could be called before the Commons inquiry into workplace pensions amid claims that the hole in its pension fund could be up to £6.5 billion. Exane BNP Paribas suggested that Tesco’s pension deficit may have grown by as much as £3.3 billion since the company’s last stated numbers because of low interest rates and bond yields. Barclays, Tesco’s own broker, put the increase at up to £3.1 billion. A soaring deficit could threaten a resumption of dividend payments. - The Times

Telefonica is rapidly advancing plans for a blockbuster £10bn float of its UK mobile arm O2, in what would be the biggest London stock-market debut since the commodities giant Glencore more than five years ago. The Spanish telecoms company has already lined up its top team of investment banks to sell O2 to investors, and is preparing to appoint half a dozen further float specialists as a second tier, according to senior sources. - Telegraph

No shale gas wells will be drilled in Britain this year, the industry has confirmed, as a key fracking decision nears. Within the next fortnight, the government will decide whether to accept shale company Cuadrilla’s appeal against Lancashire county council’s decision last year to turn down its application for two fracking sites. - Guardian

The consumer-facing side of British banking will be hit by Brexit, with services like credit cards, private banking and digital payments all facing disruption, according to a confidential industry report. While attention has so far focused on the potential damage Brexit could inflict on the investment banking industry, the less exotic areas of lending, savings and payments will also be affected. - Financial Times

The European Commission is expected to respond to competition concerns by launching an inquiry this week into the £22 billion merger between the London Stock Exchange and Deutsche Börse. The commission has until Wednesday to decide whether to opt for a full phase II inquiry, which would give financial institutions 90 days to submit their views. - The Times

The services group that stunned the stock market with a profit warning last week has refused to talk to analysts who take a negative view on their shares, it emerged over the weekend. Baroness McGregor-Smith, the chief executive of Mitie, has cut off contact with City analysts who have published “sell” notes or otherwise criticised the company. The Times

A company chaired by Sir John Ritblat is suing China’s largest property developer over claims that it has reneged on an agreement made as part of a deal in London. Delancey is suing Greenland Group’s UK division over a disputed final payment relating to the Chinese company’s £135.7 million purchase of the historic Ram Brewery site in Wandsworth two years ago. - The Times

BHS is to relaunch in the UK this week as an online retailer just one month after the last of its high street shops shut their doors for the final time. The 88-year-old retailer collapsed into administration in April and was wound up in August after failing to find a buyer for the whole of company. - Telegraph

The ousted boss of Quindell has been forced to take a near-£1 million hit on a delisted broker, about a year after he was talking up the investment. Quob Park Estate, the investment vehicle of Rob Terry, booked an exceptional provision of £927,734 for the full remaining value of Daniel Stewart, annual accounts filed at Companies House show. - The Times

An Australian “challenger” broadband firm has vowed to shake up Britain’s telecoms market when it launches in the UK this week with cheap fibre internet and data services aimed at small businesses. Exetel, the fifth-largest internet provider in its home market, pledged to invest “whatever it takes” in grabbing a share of the BT-dominated small and medium-size business broadband market, in further signs that competition for Britain's 5.4m 'SMEs' is getting increasingly fierce between providers. - Telegraph

Spaniards no longer have the time to enjoy a glass or two of wine followed by a midday siesta, according to one of the country’s leading vintners. Today lunch is a swift, teetotal affair, rather like in Britain, said Carlos Villar Bada, the boss of Protos, the upmarket bodega which produces Ribera del Duero and sells in Harrods, as well as duty-free shops at Heathrow and Gatwick. - The Times