Sunday newspaper round-up: HS2, FirstGroup, Babcock, Astra, Easyjet, Stobart

Brexit chaos is set to halt the Bank of England’s rate rise plans, investors are betting. Markets have scaled back their bets and are not pricing in the next increase in interest rates until January 2020, following sharp moves in derivatives contracts linked to future borrowing costs. - Sunday Times

POLITICS CORNER

Asia-Pacific leaders failed to bridge gaping divisions over trade at a summit dominated by a war of words between the US and China as they vie for regional influence. For the first time, Apec leaders were unable to agree on a formal written declaration, amid sharp differences between the world’s top two economies over the rules of global trade. - Observer

...Australian prime minister Scott Morrison said the US and China are getting closer to resolving a trade war that threatens economic growth in the region, downplaying tensions on display during the Apec summit about Beijing’s expansionist ambitions in the Pacific, and the impact of globalisation. Morrison said the US and China were aware that other Apec countries wanted to see an end to the tit-for-tat trade spat that has played out since July, and he said “there is a lot more progress being made here than is probably being acknowledged”. - Observer

Dominic Raab today warns that Theresa May has allowed Britain to be “blackmailed and bullied” by Brussels and that she should toughen her stance on Brexit or face disaster. In an interview with The Sunday Times the former Brexit secretary called on the prime minister to show greater “political will” and made a veiled pitch for her job, saying Britain would not look like it is — “frightened of its own shadow” — if he was running the negotiations.

Sir Graham Brady suggested his colleagues should not try to oust Theresa May because doing so could undermine Brexit negotiations as he revealed some Tory MPs had lied about submitting no confidence letters. The chairman of the 1922 Committee of backbench Conservative MPs confirmed on Sunday the threshold for a ballot on the Prime Minister’s leadership had not yet been crossed. - Sunday Telegraph

Theresa May said replacing her would not help deliver Brexit. The prime minister is facing open calls for her resignation from Brexiter MPs after she released a much-criticised draft agreement for leaving the EU. - Observer

Labour is planning to force a Commons vote within weeks that would make it impossible for Britain to crash out of the European Union without a deal, as fears grow about a disastrous hard Brexit if parliament rejects Theresa May’s agreement. Keir Starmer, the shadow Brexit secretary, is working on plans to amend key elements of Brexit legislation that still have to pass through the Commons, in order to prevent parliament ever approving the option. - Observer

Jeremy Corbyn has declined to support calls for a second referendum, insisting that it is an option that can only be considered in the long term. The Labour leader also said that if there was another referendum, he did not know how he would vote. - Observer

A team of army planners has started drawing up emergency measures for deploying troops to respond to any chaos caused by the UK crashing out of the EU without a deal. About 20 officers who normally oversee Operation Temperer, the plan to provide soldiers to help police following acts of terrorism, were ordered last week to step up no-deal Brexit planning, according to a well-placed army source. - Sunday Times

Some of the world's biggest insurers and banks will start moving £253 billion of assets out of the UK in just two weeks' time as they attempt to avert Brexit chaos, legal papers reveal. As Prime Minister Theresa May this weekend fights to win backing for her Brexit deal, documents seen by The Mail on Sunday reveal that at least 15 major financial firms have already set court dates to approve transfers of parts of their businesses abroad. - Mail on Sunday

More than £21bn was wiped off the value of Britain’s Brexit-exposed stocks this week after the City was gripped by fears that a no-deal scenario would unleash economic chaos. The crisis in Westminster triggered a sudden withdrawal of money from blue-chip companies tied to the fate of the UK economy as markets started to price in a cliff-edge Brexit or a Jeremy Corbyn-led Government. - Sunday Telegraph

HS2, KINGFISHER, JOHNSTON PRESS

The £56bn HS2 rail line is expected to be delayed by more than a year after it emerged in contract talks that the building project was at risk of soaring over budget. Sources said costs for the “main works civil contracts” on the London-to-Birmingham stretch — including bridges, tunnels and embankments — had come in “several billion pounds” over the official budget of £6.6bn and HS2 is now locked in talks with contractors Balfour Beatty, Kier and Laing O’Rourke to cut costs. - Sunday Times

FTSE 100 retailer Kingfisher is seeking to sell six B&Q stores in an effort to raise cash to fund chief executive Veronique Laury’s costly turnaround plan. Kingfisher is understood to be attempting to raise £125m by selling and leasing back B&Q stores in Birmingham, Croydon, Southampton and Cardiff, plus two in the northeast of England. - Sunday Times

The newspaper publisher Johnston Press has fallen into the hands of its lenders after heavy debts forced it into administration. A new company, JPI Media, controlled by a consortium of debt investors led by New York hedge fund GoldenTree Asset Management, today [Saturday] took control of more than 200 titles including The i, The Scotsman and The Yorkshire Post. - Sunday Telegraph

...A row has broken out over the collapse of Johnston Press after its largest shareholder vowed to fight a sale to a New York hedge fund. The publisher of The Scotsman, The Yorkshire Post, and the i newspaper entered administration after failing to find a buyer. - Mail on Sunday

Facebook is in talks with three local newspaper publishers in Britain over a radical plan to help fund journalism in an attempt to clean up its toxic reputation. The US social media giant is understood to be working with Johnston Press, Newsquest and Reach, owner of the Daily Mirror, on a scheme that would see it invest in training reporters. - Sunday Times

ENERGY PRICES, BONDS, BABCOCK, FIRSTGROUP

Electricity prices could double after the government suspended the UK’s system for ensuring there is a back-up power supply, experts have warned. The wholesale power price could hit £121 per megawatt hour (MWh) by next winter unless the so-called capacity market is reinstated, according to a report — risking higher energy bills for millions. - Sunday Times

A probe by the City watchdog into a suspected cartel among big investment banks is targeting London’s multibillion-pound bond trading industry. The Competition and Markets Authority (CMA) revealed in a statement that it had launched an investigation into anti-competitive arrangements involving “certain types of financial product”. - Sunday Times

Babcock will try to ease City fears about it holding back negative information from investors by taking a ­major writedown on its largest-ever ­acquisition. The outsourcer, which has faced ­allegations that it “systematically misled” shareholders, is expected to take a £100m hit on the Avincis helicopter business it bought for £1.6bn four years ago. - Sunday Telegraph

Defence giant Babcock has considered breaking itself up, The Sunday Times understands. The FTSE 250 engineer, the second-biggest supplier to the Ministry of Defence, is understood to have held discussions about strategic options, including a break-up, but decided against it.

A Wall Street hedge fund is threatening an audacious boardroom coup at FirstGroup after accusing bosses of “driving the bus off the cliff”. “If they are deadly intent on continuing to do that then they must be ejected from their seats,” said James Rasteh, chief investment officer of Coast Capital Management. - Sunday Telegraph

ASTRA, EASYJET, STOBART, PETRA

The FTSE 100 drugs giant AstraZeneca has begun succession planning for Pascal Soriot, its chief executive of six years, after pressure from shareholders. The Cambridge-based company, which suffered the failure of a big lung cancer trial last week, is understood to have engaged headhunters to assess internal candidates. - Sunday Times

EasyJet is set to report surging profits after benefiting from the demise of rivals, including Monarch. The budget carrier’s boss, Johan Lundgren, is expected to set new growth targets when he reports results for the year to the end of September on Tuesday. - Sunday Times

Hotel Chocolat bosses launched a passionate defence of their chairman last night amid concerns of a shareholder revolt. City adviser Glass Lewis has told investors to vote against Andrew Gerrie at the chocolatier's AGM, saying he is not independent enough to be chair because he co-owns a joint venture. - Mail on Sunday

Stobart Group has lost one High Court clash against its controversial former chief executive Andrew Tinkler — but a second case continues. Stobart took Tinkler to court over £4m of tax liabilities related to WA Developments, a company bought by Stobart from Tinkler and his business partner William Stobart in 2008, when Tinkler was about to become boss. - Sunday Times

...The boss of Stobart Group has been forced to admit he spent company money on a helicopter trip to Royal Ascot with his wife, despite previously accusing his predecessor of 'unnecessary and excessive' spending. Warwick Brady admitted charging for helicopter flights and acknowledged flying to the races last year was 'excessive'. - Mail on Sunday

The head of London’s largest listed diamond miner faces a bruising showdown with investors at the annual meeting on Friday. Investor advisory group Pirc has recommended a vote against the re-election of Adonis Pouroulis, 48, as non-executive chairman at Petra Diamonds. It says he is not independent enough, as he founded Petra and also held executive roles until 2011. - Sunday Times

Billionaire Mike Ashley has cut hundreds of Evans Cycles jobs despite advice from the chain’s ­administrator that “almost all” of its stores are ­profitable. Sports Direct, which snapped up the remnants of the bicycle retailer last month, has warned that only half its stores can be kept open. An administrators’ proposals document revealed that PwC concluded ­“almost all the stores were profitable” but the company was “burdened” by fixed costs at its head office. - Sunday Telegraph

BSI, WHITBREAD, ASTON MARTIN, BA

The UK regulatory body responsible for checking the safety of medical devices such as pacemakers, orthopaedic pins and EpiPens has agreed to open a subsidiary in Holland, in a move it claims could save lives after Brexit. The BSI has agreed with the Dutch health ministry that it will become a “notified body” in Holland, allowing makers of the products to choose in which of the two countries they will be certified. - Sunday Times

The £3.9bn sale of Costa Coffee to Coca-Cola could hit baristas’ retirement savings, potentially leading to a class action against trustees. The Pensions Regulator has been warned that thousands of low-paid staff at Costa owner Whitbread have lost out on hundreds of pounds in tax breaks because of the type of pension they are enrolled in. - Sunday Times

Billionaire financier George Soros has placed a £20m bet that the share price of Aston Martin will struggle to recover following its atrocious stock market debut. Mr Soros, the legendary Hungarian-American investor who “broke the Bank of England”, has shorted the James Bond carmaker’s shares after they shed a quarter of their value. - Sunday Telegraph

Britain’s richest man is in talks over an audacious deal to expand his growing oil and gas empire. Sir Jim Ratcliffe’s company, Ineos, is understood to be in exclusive talks to buy $3bn (£2.3bn) of North Sea oil and gas fields being sold by the US giant Conoco Phillips. - Sunday Times

British Airways has launched a legal battle with a US outsourcing giant that bosses blame for a £58 million IT meltdown which left tens of thousands of passengers stranded. The Mail on Sunday has learned that BA is suing CBRE in London's High Court over the Heathrow computer crash which forced the airline to cancel 672 flights over three days.

A gas producer focused on Turkey is exploring plans for a secondary listing on the London Stock Exchange. Valeura Energy’s bosses have been been talking to banks and advisers in the capital ahead of a potential float in March. - Sunday Times

Business publisher Centaur Media has hoisted a “for sale” sign over The Lawyer magazine, in a move that could fetch up to £45m. Centaur has appointed advisers at the corporate finance firm Livingstone Partners to find a buyer for its legal division, which also includes data and analytics business VB Research. - Sunday Times

American fashion group Urban Outfitters has defied Britain's high street gloom by reversing losses and increasing sales. The business, whose brands include the eponymous chain and its sister brand Anthropologie, said both businesses reported 'good growth' in the UK after they opened new stores and increased online sales. - Mail on Sunday

Government ministers are braced for blistering criticism from the ­National Audit Office this week over its shambolic handling of the £11bn smart meter roll-out. The public spending watchdog is finalising the details of a scathing report into the heavily delayed project, which is set to be made public this week. - Sunday Telegraph

Bosses at Primark, Marks & Spencer and Topshop owner Arcadia have been called to give evidence to Parliament over fashion industry practices, with online retailers Amazon, Missguided, Boohoo and Asos asked to give written evidence. The Environmental Audit Committee has launched an inquiry into the impact of fast fashion and use of microplastics. The three fashion giants will appear before MPs on November 27. - Mail on Sunday

TVR has blamed Brussels bureaucracy for delays to the sports carmaker’s ambitious revival plans and dismissed speculation that its vehicles may never hit the road. A consortium of investors led by millionaire chairman Les Edgar is attempting to bring the carmaker back to life with taxpayer backing. - Sunday Telegraph

Swedish firm Klarna has taken online shopping by storm over the past couple of years. Millennials no longer pay for clothes and gadgets with old-fashioned money – they “Klarna” it. If you’re over 30, you’ve probably never heard of Klarna. It’s a new form of digital payment pitched at people who “wanna cop some new gear but can’t wait until payday”, as JD Sports puts it. - Observer

Banks are “pickpocketing” bereaved families caught in a catch-22 between Byzantine inheritance tax and probate rules. Families are increasingly being forced to fund huge death duty bills themselves, or take out expensive loans, to gain access to their inheritance. - Sunday Telegraph

Amazon has embarked on a major hiring push for a secretive new device, in a move that will increase speculation the company plans to release a robot for the home. Job adverts show the company is looking for experts in mechanical engineering and robotics as well as software developers to work on a “completely new best in class consumer product”. - Sunday Telegraph

Business leaders and unions have called for mental health to be given the same weight as physical first aid in workplace legislation. An open letter urging Theresa May to prioritise manifesto pledges to act on mental health has been signed by some of Britain’s biggest employers, including Royal Mail, WH Smith, Mace, Channel 4 and Ford, as well as the Unite union. - Observer

Goldman Sachs’s London staff have been told that they can now have free sex-change surgery and fertility treatments in the latest step to encourage more women to stay with the firm. The Wall Street bank, nicknamed the “great vampire squid” for its powerful grip on the world’s banking ­industry, told London staff last week that sex-reassignment surgery and IVF treatment had been added to its ­employee benefits plan. - Sunday Telegraph

The former chairman of Hovis and Thorntons is on the cusp of keeping production of Colman’s mustard in Britain, in a move that will save scores of local jobs. Food industry veteran Paul Wilkinson has secured funding to build a mustard mill in Norfolk that sources said would remove the threat of the manufacture of the famous condiment moving overseas. - Sunday Telegraph

A bridal fashion firm that went into administration last week, leaving hundreds of women across the UK without their wedding dresses, ignored normal accounting rules and kept trading despite being millions of pounds in debt. Some brides were reportedly left up to £2,000 out of pocket when all 15 retail outlets of Bridal Fashions Ltd, trading as Berketex Bride, a company which has operated for more than half a century, ceased business. Many had paid up front, leaving them with little hope of getting their money back. - Observer

Persimmon's new boss has spent the first of his £40 million winnings from the housebuilder's notorious bonus scheme on a pub. Dave Jenkinson, who last week was confirmed as interim chief executive to take over from Jeff Fairburn, has bought a pub called Shambles in his hometown, Morpeth, in Northumberland. - Mail on Sunday