Tuesday newspaper round-up: BoE, BHS, Wall St bonuses, Hinkley Point

The Bank of England is preparing to protect British banks from running out of funds in the event of a Brexit vote by flooding them with a wall of money in the latest sign of the authorities’ nervousness surrounding the EU referendum. The central bank has announced it will give commercial banks three exceptional opportunities just before and after the June 23 poll on Britain’s membership of the EU to borrow as much money as they like to offset any threat of a run on banks and prevent a repeat of the chaos of the financial crisis in 2007 and 2008. – Financial Times

The average bonus paid on Wall Street slipped 9 per cent last year to $146,200, as banks hired more staff and tried to cap pay amid a surge in compliance costs and volatile trading activity. The much-watched figure, published annually by the office of the New York State Comptroller, reflects the mood of the securities divisions of New York Stock Exchange member firms, which generate almost one-fifth of the state’s total tax receipts. – Financial Times

BHS has warned its creditors that they stand to lose as much as £1.3bn if they do not agree to a drastic turnaround plan this month. The beleaguered retailer’s proposed Company Voluntary Arrangement (CVA), filed at the High Court, has revealed that it the black hole in its pension fund now stands at £571m, on a buyout basis. The figure has ballooned by nearly £120m since the last triennial valuation in 2012. Landlords, the creditors BHS is attempting convince to give it a chance of survival, are owed nearly £517m. - Telegraph

Philips is pushing ahead with plans for a bumper stockmarket float of its 125-year old lighting arm, dealing a potential blow to UK industrial firm Melrose and its attempts to buy the historic company. The Dutch conglomerate has recently appointed Goldman Sachs and JP Morgan as so-called global co-ordinators to lead an Amsterdam listing of the division, The Daily Telegraph understands. - Telegraph

The British and French governments have insisted the Hinkley Point nuclear plant is on track, despite fresh doubts emerging over the £18bn project after an executive row at its main backer, EDF Energy. EDF confirmed that finance chief Thomas Piquemal had resigned, amid reports he wanted the French state-owned company to delay a final decision on building the UK’s first new nuclear power station in a generation. – Guardian

Employers are preparing to cut overtime pay and reduce rates paid for weekend working to claw back the extra cost of the new “national living wage”, according to a report by the recruitment group Manpower. A survey of employers showed that workers who qualify for the wage, which is 50p an hour higher than the £6.70 minimum wage, will see little difference in their pay packets after businesses have made savings in other areas. – Guardian

Burberry is trying to find out the identity of a mystery investor who has built up a stake of about 5 per cent in the luxury retail group. The British brand, known for its check scarves and trenchcoats, is understood to have asked HSBC, which is listed as the custodian for the position, to disclose the identity of the investor. Analysts speculated that the mystery shareholder could be a rival retailer trying to build up a stake before a potential takeover offer, with Macquarie analysts stating that a bad of £17 a share would value Burberry at £8bn. – The Times

Competition watchdog to call for a radical reform of Britain’s railways, with the scrapping of the system of intercity rail franchises. The competition watchdog will call today for a radical reform of Britain’s railways, with the scrapping of the present system of intercity rail franchises and a switch to several different train companies offering rival services on the same lines. – The Times