Tuesday newspaper round-up: Deficit, energy warning, Glencore, FCA
The chancellor’s plans to reduce the deficit are unlikely to get back on track this year, an internal briefing document for ministers has revealed. The Treasury document, which was marked “sensitive”, also revealed the UK faced a £700m bill after the EU referendum result, with Britain’s contribution to the EU growing by 25.9% compared with the same period last year. - Guardian
Britain risks “sleepwalking into brownouts and blackouts” because of a proposed overhaul of energy regulation that could lead to the closure of many small power plants, former energy secretary Sir Ed Davey has claimed. The warning from Sir Ed, who was in charge of UK energy policy from 2012 to 2015, is the starkest intervention yet into a fierce industry debate over plans by regulator Ofgem to change the way Britain’s power grids are paid for. - Telegraph
Glencore has secured a price of almost $100 a tonne for high-quality thermal coal in its latest contract negotiations with a key Japanese buyer, highlighting the dramatic change in fortunes for one of the most unloved commodities in mining. The agreement between the Swiss-based miner and Tohoku Electric was struck at $94.75 a tonne, up nearly 50 per cent from a year ago, and follows a dramatic surge in coal prices brought about by China’s surprise decision to curb domestic output in a desperate attempt to improve the profitability of its miners. - Financial Times
The winner of the next franchise to run the West Coast main line will be offered the chance to operate the country’s first 250mph trains on the HS2 line. The process for the retendering of the West Coast line from London to Glasgow is expected to start next month with the aim of an operator taking over a new franchise from 2018. - The Times
The new head of the Financial Conduct Authority is being urged to remain independent from politicians and instigate change at the City regulator amid fears that rules introduced since the 2008 crisis are being watered down. The call to Andrew Bailey – who took the helm of the FCA in July after a long career at the Bank of England – is made in a report published on Tuesday which says there should be an overhaul of the way financial regulators are run. - Guardian
The Treasury has promoted its top expert on international banking to head its financial services department, putting one of its most experienced industry negotiators into a senior role as officials gear up for Brexit. Katharine Braddick has become director-general of financial services, making her one of Philip Hammond’s most important aides. - The Times
Sweden has warned that it would be a serious mistake to chastise Britain for voting to leave the EU, appealing instead for an amicable settlement to minimise damage for both sides. “The softer the Brexit, the better. We’re an open country and we are in favour of free trade, and we want to see a solution that is as beneficial as possible for everybody,” said Magdalena Andersson, the Swedish finance minister. - Telegraph
Tobacconists, estate agents and jewellers are taking over high streets across Britain as the number of shops in the country falls at its fastest rate for four years. There were 15 shop closures a day across the UK in the first half of 2016 and the number of new openings has fallen to the lowest level for five years, according to a report that highlights the pressure on the retail sector. - Guardian
The British Chambers of Commerce's longest-serving chief executive has quit its board amid a row over the appointment of its new director general. Dr Ian Kelly, chief executive of the Hull and Humber Chamber of Commerce, has resigned as a non-executive director of the BCC board. - Mail
More than 850,000 public sector jobs could be lost by 2030 through automation, according to a study that comes as a further blow after hundreds of thousands of jobs disappeared following the government’s austerity cuts. The research conducted by Oxford University and Deloitte, the business advisory firm, found that the 1.3m administrative jobs across the public sector had the highest chance of being automated.- Guardian
Australia could face a growing number of expensive legal claims from foreign corporations if the Trans-Pacific Partnership (TPP) comes into force, a new report has warned. Dr Kyla Tienhaara, from the Australian National University, said Australia ought to learn from Canada’s experience after it signed the North America Free Trade Agreement (Nafta), which came into force in 1994 and led to dozens of legal cases against Canada by US corporations. - Guardian
Health officials are to update dozens of out-of-date cancer machines. NHS England has announced it will be ploughing £130 million to update radiotherapy machines that have passed their sell-by date. - Mail
A group of Australian farming families have launched an eleventh-hour bid to keep the world’s largest parcel of privately owned land, a string of cattle stations, out of Chinese hands. The four families bidding against the iron-ore mining magnate Gina Rinehart and her Chinese partners for the historic Kidman cattle empire say they have been treated unfairly by the Kidman board and will appeal directly to the shareholders to back their bid. - The Times