Monday newspaper round-up: New Brexit plans, dividends, supermarkets

Britain would continue to pay billions of pounds into the EU budget after Brexit to maintain cherished single-market access for the City of London and other sectors under plans being discussed by Theresa May’s cabinet. The prime minister’s demand that Britain controls its borders and throws off the jurisdiction of EU judges has led many in London and Brussels to conclude that British-based banks and insurers would inevitably lose the “passporting” rights that allows them to trade freely in Europe. - Financial Times

Britain has become a less desirable place for companies to invest because of uncertainty surrounding Brexit. The country has dropped from second to the seventh most favourable destination for mergers and acquisitions as investors delay deals while its future with mainland Europe remains unclear, a survey by EY has found. - The Times

Banks could start making decisions to move assets out of the UK as early as the end of 2017 if there is no deal in place to maintain their rights to sell services freely across the European Union, a leading thinktank has warned. Open Europe, which took a neutral stance on the referendum, said Britain could risk losing its status as a hub for financial services unless passporting rights are made the top priority in negotiations with the EU. - Guardian

The chancellor has angered Eurosceptic ministers by calling for a delay on migration curbs that would lead to a hard Brexit and dismay business. Philip Hammond suggested that members of the Brexit cabinet committee should continue examining options after Amber Rudd, the home secretary, put forward plans for a visa-entry scheme for skilled migrants that would close the door to low-skilled migrants from the EU. - The Times

The plunging value of sterling has provided a £2.5bn dividend boost to owners of London-listed shares, with the drop in the pound making global firms’ payments more valuable, according to new figures. Despite several industries including mining and retail cutting billions from their payments to shareholders this year, the boost from currency changes meant that overall dividends rose 1.6pc to £24.9bn in the third quarter of 2016, research from Capita Asset Services said. - Telegraph

Britain’s biggest supermarkets have been accused of treating suppliers unfairly by demanding savings when the pound was strong but refusing to share the burden of higher costs now that sterling has collapsed. Concerns have been raised with the Groceries Code Adjudicator, the supermarket watchdog, that retailers who requested price reductions when suppliers gained from the stronger currency were stonewalling the same suppliers as they struggled to deal with the fall in sterling since the European Union referendum. - The Times

Retailers are poised to impose a wave of price rises that could add 5 per cent to shopping bills in the new year after the pound plunged by more than the worst forecast of so-called ‘Project Fear’. The hikes, expected to hit soon after Christmas, will cost consumers an estimated £15billion next year. - Mail

Britain should brace itself for a growth slowdown in the coming years, as falling consumer spending and business investment applies the brakes to the UK economy, a report has said. Influential thinktank EY Item Club said the UK economy will produce GDP growth of 1.9% this year, fuelled by a 2.5% rise in consumer spending on the back of low inflation. - Guardian

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned. "One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB's first chief economist and a towering figure in the construction of the single currency. - The Times

The Treasury is facing demands to strengthen the independence of the Office for Budget Responsibility after being criticised for meddling in its affairs. Officials had pledged to redraft the so-called memorandum of understanding to protect the watchdog from interference from Whitehall and to put an end to political interference in economic and fiscal forecasting. - The Times

The property rental market is booming at the expense of the sales market, making it look as if house-buying will be outstripped for the first time in eight decades next year, as home-buyers face a continued struggle to find properties they can afford. Activity in the sales market has cooled since June’s Brexit vote and a lack of property for sale combined with rising prices are set to lead to more new lets than purchases, the UK’s largest estate agency chain, Countrywide, said. - Guardian

A system set up by bookmakers to address problem gambling is in disarray, according to campaigners, after a report exposed vast differences in how firms apply the measures. The report, produced by accountancy group PwC and seen by the Guardian, found flaws in how betting shops use “player awareness systems”, which are meant to curb addiction to fixed-odds betting terminals (FOBTs). - Guardian

Ladbrokes and Coral have agreed to sell more than 350 betting shops as part of their £2.3billion merger. Rivals Betfred will buy 322 shops for £55million and Stan James will purchase 37 sites for £500,000. - Mail

Companies should remove candidates’ names from job applications and offer flexible working from the outset of the recruitment process to create a more dynamic and diverse workforce, according to employers’ body the CBI. In a new report, published on Monday, the CBI will highlight the economic and social challenges facing the UK that have been “thrown into sharp relief by Brexit” and focus on issues of productivity and inclusion. - Guardian