Thursday newspaper round-up: Osborne, World Bank, Sainsbury's

George Osborne is warning that 2016 could mark “the beginning of the decline” for Britain unless the country sticks to tough economic reforms, citing the Chinese slowdown and plummeting oil prices among “a dangerous cocktail of new threats”. The pace of China’s falling currency, now at its lowest level in nearly five years, has put investors on notice that the Chinese economy, an engine of global growth, may be slowing at a faster pace than previously forecast. – Financial Times

A record number of cars rolled off the forecourts at British dealerships last year as rising consumer confidence, low fuel prices and easy credit helped crown the market’s recovery from the financial crisis. UK car sales have staged a remarkable run over the past four years, with 43 consecutive months of growth only broken in October, when sales dipped about 1 per cent versus the same month a year ago. – Financial Times

The world’s emerging economies will no longer drive global growth as they battle against low commodity prices, weak international trade and falling investment, the World Bank has warned. In its latest health check on the global economy, the World Bank expects growth to reach a modest 2.9pc in 2016, after another disappointing year where GDP rose by just 2.4pc in 2015. – Telegraph

McLaren is doubling the number of production workers at its Surrey base on the back of strong demand for its 200mph super cars. The sports car maker is set to announce that it is adding a second shift to its manufacturing line and recruiting 250 new staff members who will start immediately as it races to build more cars to cope with surging demand. – Telegraph

Sainsbury’s largest shareholder, the Qatari Investment Authority, has expressed unease about the retailer’s £1bn bid for Home Retail Group and may be prepared to block a deal. On Tuesday, Sainsbury’s revealed that it had approached the Argos and Homebase owner with a cash-and-shares takeover bid in November. The offer was rejected last month, but Sainsbury’s has until 2 February to consider whether it will make a new offer or walk away. – Guardian

The City regulator is investigating whether traders at Lloyds Banking Groupmanipulated the price of government bonds, in a sign that the authorities are continuing to seek out rigging of key markets. Following a series of fines across the industry for rigging interest rates and foreign exchange markets, the Financial Conduct Authority has been asking Lloyds for information about trading in gilts. – Guardian

Sir Terry Leahy and Clayton Dubilier & Rice are mulling a possible bid for Home Retail Group which would pitch the former boss of Tesco against his old arch rival J Sainsbury. The Times understands that Sir Terry, who is one of the best known names in British retail and a consultant with Clayton Dubilier & Rice (CD&R), “ran the numbers” over the owner of Argos and Homebase late last year. It is not clear if Sir Terry and the US private equity group will enter the fray for Home Retail Group (HRG). – The Times