Tuesday newspaper round-up: Hammond, Barclaycard, Williams & Glyn, Airbnb

Britain’s leading tax and spending experts have warned Philip Hammond that his options are limited in this month’s autumn statement after predicting that slower growth and higher inflation will punch a £25bn hole in the public finances by the end of the current parliament. The Institute for Fiscal Studies said that if economic forecasters were right about the impact of Brexit, the new chancellor would have to extend austerity after the next election in order to finally eradicate the budget deficit built up during the financial crisis of 2008-09. - Guardian

Philip Hammond must focus on “targeted, timely and temporary” tax cuts and spending increases to deal with the economic squeeze of leaving the EU, according to the Institute for Fiscal Studies. The think-tank said an infrastructure spending boost would provide the Government with the most “bang for their buck” in the forthcoming Autumn Statement as it warned that the Chancellor faced £25bn in extra public borrowing following the Brexit vote, even if the UK stopped its EU budget contributions. - Telegraph

Bumper box office takings, strong trade in pubs and a rush for winter clothes drove a solid rise in consumer spending last month, according to new figures. Barclaycard said spending rose 5.5% on a year earlier in October, the strongest growth since it started publishing monthly health checks on consumer finances in 2011. But it warned the trend of solid spending growth could soon fizzle out as households worry about inflation. - Guardian

Britain's jobs market is “thriving” again after a summer dip following the Brexit vote, according to a survey by the Recruitment and Employment Confederation. The monthly REC/Markit barometer showed the number of people finding permanent roles climbed at the fastest pace in eight months in October, marking the third consecutive month of increases. - Telegraph

The dollar value of China’s exports and imports shrank for the second month running in October, indicating continued deterioration for the country’s external trade at the start of the fourth quarter. Outbound shipments valued in dollars fell 7.3 per cent year on year in October, according to China’s General Administration of Customs, versus a fall of 6 per cent predicted by economists. - Financial Times

Santander has launched another bid to buy branches owned by Royal Bank of Scotland, bringing hope that the state-controlled bank will finally be able to divest the business. The move represents another change of direction by the Spanish bank, which walked away from the negotiating table two months ago after making a lowball offer for the 314-branch business that RBS had named Williams & Glyn. - The Times

Royal Bank of Scotland is set to announce a compensation scheme worth hundreds of millions of pounds for small and medium-sized companies mistreated by its restructuring division. After years of controversy over the activities of its Global Restructuring Group, RBS will admit today that it failed some business customers and it will outline plans to offer them redress. - The Times

Airbnb’s market share in London nearly tripled last year, according to a study, piling more pressure on the market for residential lettings. Research by Colliers, a property services company, found that 7.6 per cent of overnight stays in London were in Airbnb homes in December last year, up from 2.8 per cent in January. - Financial Times

The taps have been turned on at one of the biggest new gasfields for years in the North Sea. Gas has started flowing from the high-pressure Alder field 100 miles off the Scottish coast, Chevron, the American oil major, said. It will be piped via the Forties pipeline to the Grangemouth terminal on the Firth of Forth. - The Times

France’s Total and China National Petroleum Corp are set to sign the first major agreement with Iran for the development of its gasfields since the loosening of international sanctions in January. Iran’s oil ministry said on Monday it expected to finalise the preliminary deal, involving development of a new phase of the giant South Pars gasfield, on Tuesday. - Financial Times

Liberty Media’s takeover of Formula One could be stopped in its tracks after competition authorities launched an inquiry yesterday. The Competition and Markets Authority wants to find out whether the £600 million takeover breaches laws on sporting cartels. Liberty’s buyout, expected to be completed next year, would give the American media conglomerate control of Formula One, as well as broadcasting contracts covering the sport around the world. - The Times

McDonald’s has filed a $20m lawsuit against Florence for blocking a proposed outlet in the city’s most revered square. The US fast-food chain said on Monday that it was claiming €17.8m ($19.65m) in damages after the city rejected an application to open an outlet in the historic Piazza del Duomo, one of the most visited places in Europe. - Guardian

Sainsbury’s is stepping up its drive to tackle the UK’s food waste epidemic by announcing a further £1m to help towns and cities reduce the number of items thrown away by consumers. In the second phase of the retailer’s “waste less, save more” programme, which aims to reduce food waste by 50% and save the average household £350 a year, funding is being extended to regions keen to replicate the lessons learned from an ongoing trial in Swadlincote, Derbyshire. - Guardian