Newspaper round-up: More Brexit worries, pension schemes, BT, sugar tax

The pound dropped close to its lowest levels since the Brexit vote as markets braced themselves for hard evidence this week that the UK economy has been knocked off course by the decision to leave the EU. Sterling dropped half a per cent to $1.2874 against the dollar, dipping to its July 11 low and close to the $1.2798 it reached on July 6, which was the lowest since 1985. Bearish sentiment intensified as markets prepared for a blizzard of official UK economic news on inflation, employment, retail sales and the health of the public finances, offering the first indication of the state of the economy since the referendum vote. - The Times

Damage to the economy caused by Brexit will more than offset the modest wage gains for British-born workers in low-paid jobs caused by cutting net migration to the tens of thousands a year, a study has found. A report by the Resolution Foundation thinktank said there would be a small pay increase to native-born employees in sectors such as security and cleaning if there was a big cut in the number of workers arriving in Britain from overseas. - Guardian

British ministers are stepping up efforts to reassure Scotland that its interests will be defended during Brexit negotiations and to damp calls for Scottish independence. Andrew Dunlop, Scotland minister, arrived in Inverness on Monday to discuss Brexit with sectors including tourism, energy and food and drink, while David Mundell, Scotland secretary, met local governments last week and will visit Borders farmers on Wednesday. - Financial Times

Britain’s blue-chip companies handed their shareholders five times more cash than they paid into their own pension schemes last year despite the fund deficits ballooning on the back of falling interest rates. FTSE 100 businesses paid dividends worth £71.8bn for 2015, sharply higher than the previous year and close to £30bn more than the collective shortfall in their pension schemes of £42.3bn, according to actuary Lane Clark & Peacock. At the same time, the UK’s biggest listed businesses made contributions to their defined-benefit pension schemes of £13.3bn, less than a fifth of what their shareholders received. - The Times

Thousands of Sports Direct warehouse workers are set to receive back pay totalling about £1m after the retailer admitted breaking the law by not paying the national minimum wage. The sportswear chain and its employment agencies are also facing fines of up to £2m imposed by the Department for Business, Energy and Industrial Strategy (BEIS) after they were found to have been underpaying some of the country’s lowest-paid workers for four years. - Guardian

Gavin Patterson, chief executive of BT, has written to his counterparts at rival broadband providers Sky, Vodafone and TalkTalk to complain that their ‘Fix Britain’s Internet’ campaign is misleading consumers and “talking down” Britain. Mr Patterson’s personal intervention comes amid a fractious debate about the state of Britain’s broadband that has seen BT’s rivals and MPs call for the break-up of BT and its Openreach division. - Financial Times

The FTSE 100 conglomerate behind fashion chain Primark has joined forces with a host of business groups to fight the mooted sugar tax on soft drinks, amid growing fears the controversial levy will lead to job losses. British Sugar, a subsidiary of Primark owner Associated British Foods, has teamed up with a number of industry associations, including the British Soft Drinks Association, the British Beer & Pub Association, and the Federation of Wholesale Distributors, to call on the Government to scrap the tax. - Telegraph

A controversial proposal to water down final salary pensions could save large British firms £30bn from their retirement bills, according to new research. Eroding the amount paid to pension savers by tying them to a lower rate of inflation could act as a “safety valve” for companies struggling to meet their commitments, said consultancy LCP. - Telegraph

The activist hedge fund ValueAct has disclosed a $1.1bn investment in Morgan Stanley, giving it a powerful voice at a bank still trying to come to terms with the radically changed regulatory landscape. Disclosure of the stake, which amounts to almost 2 per cent of the company, comes as Morgan Stanley’s chief executive, James Gorman, cuts costs and lays off staff in the company’s shrinking debt-trading business. - Financial Times

Google is set to launch its answer to Apple’s FaceTime video calling app on Tuesday as it tries to make up lost ground in the critical market for mobile communications apps. The release of Duo, a simple app for placing video calls between smartphones, comes ahead of the promised release this summer of Allo, a separate mobile messaging app that is set to play an even more important role in Google’s efforts to catch up with users’ rapidly changing smartphone habits. - Financial Times

Warren Buffett's Berkshire Hathaway has increased its stake in Apple by 55pc, despite other prominent investors including George Soros and Carl Icahn slashing their investments. Berkshire Hathaway, which has typically avoided technology companies, increased its position in the iPhone maker from 9.8m shares to just over 15.3m shares, according to a securities filing. - Telegraph

Historical links between ministers and former businesses will be hidden from the public if the government goes ahead with changes to Companies House, Labour has said. Proposals to reduce the amount of time records of dissolved companies are retained could mean that the former directorships of 24 current Conservative ministers would no longer be accessible, research from the party suggests. - Guardian

US gas company Praxair is in talks to acquire Linde, a German rival, according to people briefed on the matter. A deal — which would create the world’s largest supplier of industrial gas with a combined market capitalisation of more than $60bn — is still being negotiated and the two sides are at least a few weeks away from reaching an agreement, said those briefed. - Financial Times

Rival opticians might have seen it coming but high street glasses chain Specsavers has applied to trademark the words “should’ve” and “shouldve” in an attempt to protect its slogan. The company’s advertising features topical events or people finding themselves in embarrassing situations because they have forgotten their glasses accompanied by the words “Should’ve gone to Specsavers”. - Telegraph