Monday newspaper round-up: Rate sensitivity, manufacturers, cars, sugar war

One in 25 businesses, or nearly 80,000 enterprises, would struggle to handle an increase in interest rates of as little as a quarter of a percentage point, according to research by the insolvency trade body, in the clearest sign yet of the fragile state of corporate balance sheets. It is thought that some 79,000 businesses would be unable to repay their debts if rates were to rise, four times as many as in September when the Association of Business Recovery Professionals, or R3 as it is known, conducted a similar survey. - The Times

Britain’s manufacturing industry is getting a boost from the weaker pound which is strengthening export demand, offsetting concerns about the election and prospect of Brexit. Trade body EEF’s quarterly survey, which takes the temperature of industry, has revealed continued positive sentiment in the sector in the second quarter of the year, building on
momentum of the first three months. - Telegraph

Punitive taxes on new cars, which sent vehicle sales into freefall in their first month, are still putting the brakes on the industry, new registration data are likely to show this week. The number of new cars being driven off dealers’ forecourts plunged 20pc in April as changes in vehicle tax rates took their toll on demand. - Telegraph

The opening shots have been fired in what is likely to be one of the first and fiercest battles to shape post-Brexit trade policy. British Sugar has embarked on a Back British Sugar campaign, in opposition to Tate & Lyle Sugars, which campaigned to leave the EU. British Sugar, part of Associated British Foods, produces its Silver Spoon brand from British beet, but Tate & Lyle’s sugar is refined from imported cane. - The Times

Despite overwhelmingly being in support of leaving the European Union at the Brexit referendum, farmers are increasingly gloomy now that they are staring down the reality of what leaving will entail. In two years, confidence levels on the outlook for the next three years, as measured by the National Farmers’ Union (NFU), have plummeted to just above zero from a high of 19 points on the positive side, in the wake of the general election being called and Brexit being set. - Guardian

The video game and film industries have become the latest to warn about the impact of a shortage of European workers after Brexit. The Creative Industries Federation said that most of its members believed that restricting immigration would hinder their businesses. - The Times

Amazon is to deliver food to another 42 postcodes in the south east of England as its aggressive assault on the online grocery market continues. As it approaches the first anniversary of its UK launch, Amazon Fresh will announce this week it is extending food deliveries to new areas in Hertfordshire and Bedfordshire. - The Times

Lawyers representing Noel Edmonds have hit out at Lloyds Banking Group’s proposed compensation scheme for victims of a fraud at the bank’s HBOS Reading arm. The TV presenter’s lawyers have written a lengthy letter to Prof Russel Griggs, appointed by Lloyds in March to review the level of compensation it intends to award to 64 victims of the fraud from a £100m pot it has set aside, calling the scheme a “sham”. - Guardian

Royal Dutch Shell has cut operating costs for some of its North Sea fields by 70 per cent since the price of crude crashed, the oil company said. Andy Brown, Shell’s head of upstream, said it was able to make “significant money in the North Sea at $50 [a barrel oil prices]” thanks to the reductions, which analysts said were among the steepest by any company. - The Times

The World Bank has upgraded its forecasts for UK growth over the next three years against a stronger global backdrop that will boost the British economy despite its weak start to the year. Economists at the Bank expect the UK economy to grow by 1.7pc this year. This is only slightly below last year’s expansion of 1.8pc, and up from a forecast of 1.2pc in January. - Telegraph

Italy faces a “horror” scenario when the European Central Bank winds down its bond buying programme in a move that risks sparking a surge in the country’s borrowing costs, according to one of the world’s largest bond managers. The Pacific Investment Management Company (Pimco) said the ECB’s €60bn (£53bn)-a-month quantitative easing (QE) programme was “very supportive” for countries such as Italy and Portugal and had helped to limit volatility in these countries. - Telegraph

Two American activist investors have taken short positions in Micro Focus ahead of an $8.8 billion acquisition of Hewlett Packard Enterprise’s software business. Third Point, the hedge fund of Dan Loeb, has joined Starboard Value, another New York-based fund, in shorting the company in recent weeks, regulatory filings show. - The Times

Britain’s biggest nightclub operator has put a stock-market listing on ice until next year because of challenging trading conditions and pending completion of a refurbishment of some venues. A year ago Deltic Group, created from the ashes of Luminar, had indicated that it was preparing to appoint advisers to consider strategic options, including an initial public offering or private equity sale, within 18 months.- The Times

The UK could be a green business powerhouse in the next three decades, but only if given proper support by government, a group representing more than 30 low-carbon companies has said. The low-carbon economy in the UK employs at least 432,000 people, with a turnover of more than £77bn in 2015. This is larger than industries such as car-making and steelmaking, which are frequently given the spotlight when politicians discuss industry and jobs. - Guardian

SEGRO is set to launch a major new programme of development across the South East as it looks to take advantage of new rail and air links. The company has submitted plans for four new industrial buildings at the Slough Trading Estate, as well as a new 200,000 sq ft building in Slough’s industrial centre. - Telegraph

The restaurant company that has the Domino’s Pizza franchise in Turkey, Russia, Azerbaijan and Georgia will announce plans today to float on the London Stock Exchange. DP Eurasia, which has 571 stores, hopes to raise £20 million to support expansion in Russia, while current shareholders plan to sell almost half their holdings. - The Times

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain have broken off diplomatic relations and all land sea and air contacts with fellow Gulf Arab state Qatar, in the region’s most serious diplomatic crisis in years. Saudi Arabia on Monday said the move was necessary to protect the kingdom from what it described as terrorism and extremism. The kingdom also pulled all Qatari troops from the coalition fighting the ongoing war in Yemen. - Guardian