Sunday newspaper round-up: Bank of England, Water companies, Nationwide
Updated : 18:58
Hopes that the Bank of England will cut interest rates again just before Christmas have been all but expunged due to concerns that Labour's tax-and-spend Budget will stoke inflation. Traders are assigning a chance of just one-in-eight that rates will be cut when policymakers at Bank meet this week. In particular, rate-setters worry that the £25bn rise in companies' National Insurance contributions will be passed onto customers. - The Financial Mail on Sunday
Water companies need to spend more to help out vulnerable customers, consumer groups argue. The warning comes ahead of a steep rise in bills expected to be announced during the coming week. Ofwat is expected to unveil the increase for the next five years, starting from April, on Friday. The Consumer Council for Water is arguing that Ofwat should make companies boost their support. - Guardian
Nationwide has had to inject £650m into Clydesdale Bank, owned by Virgin Money, in order to maintain its financial strength. It follows the £2.8bn takeover of Virgin Money which will turn it into Britain's second-largest savings and loans group. The purchase saw Nationwide book a £2.8bn gain, leading to criticism that Virgin Money was sold on the cheap. However, it has now become known that it had to funnel £650m into Clydesdale Bank in order to allow Clydesdale's accounting methods to be brought into line with its own. - Financial Mail on Sunday
Port Talbot has inked is first "green steel" deal with JCB, the company that manufactures diggers. JCB will receive steel made with a newly installed electric arc furnace. Output of the steel is scheduled to begin in 2027. The new furnace means that the UK will be less reliant on importing millions of tonnes of iron ore and coal from around the globe. Carbon emissions linked to steel production meanwhile will be slashed by 75-90%. However, critics say it is a threat to national security as the UK will be left with no capability to produce so-called "virgin steel". - The Sunday Times