Tuesday newspaper round-up: Hammond, Carney, Nato, HS2, Glencore

A slowdown in the UK economy will hit tax receipts and leave the chancellor with little wriggle room for giveaways at next week’s autumn statement, a new report warns. Publishing new forecasts for GDP growth to slow next year as the Brexit vote bites, the consultancy firm PwC said Philip Hammond could afford some spending on big projects such as housing and roads if he changed the government’s fiscal rules. - Guardian

Mark Carney will face a volley of questions from MPs on everything from the Bank of England’s latest post-Brexit forecasts to his decision to remain governor for an extra year when he appears before the Treasury select committee today. In what is likely to be an eventful session, the governor is also likely to be asked about the implications of Donald Trump’s election victory for the UK amid a rapidly changing economic outlook. - The Times

President Barack Obama will reassure European leaders during a visit to Germany and Greece this week that Donald Trump, his successor, plans to maintain the US commitment to Nato and other core American alliances. In his first press conference since Mr Trump’s victory over Hillary Clinton, Mr Obama said the president-elect told him when they met last week that he was committed to maintaining US alliances. - FT

In the midst of all the market turmoil following Donald Trump’s US election victory last week, the UK’s Office for National Statistics announced an important change in how it publishes inflation numbers – and not everyone is happy. From March next year, statisticians will drop their focus on the consumer prices index (CPI) in favour of CPIH, which seeks to measure the housing costs of owner-occupiers. - Guardian

The government has confirmed that it will go ahead with building the entire £56bn HS2 high-speed train line. There will be one key change to the original plan: there will now be a spur taking trains into the centre of Sheffield, after heavy lobbying by local businesses. - FT

Boards should be forced to justify chief executive pay rises in a letter written every year to all company employees, according to an influential institutional fund manager. Hermes Investment Management yesterday called for a fundamental rethink in the way that top executives are rewarded as their pay continues to spiral higher in spite of often indifferent performance. - The Times

The Greek economy emerged from recession for the first time since 2014, managing two straight quarters of GDP growth, figures show. Greece’s gross domestic product (GDP) increased by 0.5% in the three months to September from the previous quarter and by 1.5% from the third quarter of 2015, statistics bureau Elstat said. - Guardian

Expectation that Donald Trump’s victory in the US election will result in less intense regulation on the financial sector was a major driver behind two of Britain’s biggest banks leaping to the top of the FTSE 100 yesterday. Barclays took the top spot on the blue-chip leaderboard, rising 5.2pc or 10.6p to 212.3p, closely followed by RBS, up 4.4pc or 8.8p to 210.4p. - Telegraph

A global bond sell-off escalated on Monday as expectations that Donald Trump will unleash a massive fiscal stimulus sparked a worldwide jump in borrowing costs. Benchmark UK 10-year gilt yields jumped to a near six-month high, rising to 1.49pc in early trading, while 10-year US Treasury yields rose to their highest since January, climbing 12 basis points to 2.27pc. - Telegraph

Construction work in central London has reached the highest level for eight years, demonstrating the resilience of the city’s key business districts despite warnings that companies will leave because of Brexit. The amount of office space being built in central London stands at 14.8m sq ft across 120 projects, up more than 4% compared with six months ago and before the EU referendum. - Guardian

Glencore signed off on a deal that passed potentially lucrative mining royalties from an African state mining company to a business partner who was accused of corruption by US authorities, according to an investigation by the Global Witness campaign group. The arrangement will raise further questions over Glencore’s partnership with Dan Gertler in the Democratic Republic of Congo (DRC). - The Times

Merlin Entertainments is poised to cut almost a tenth of its workforce at Alton Towers as the theme park continues to reel from a rollercoaster accident that led to two young women having legs amputated. The FTSE 100 company, which employs about 800 permanent staff at Alton Towers, is starting a redundancy consultation on 70 roles. - Telegraph

BGF, the bank-owned investment firm, has passed the landmark £1 billion investment mark with a deal intended to create a rival to Center Parcs. In its latest investment, BGF has provided Coppergreen Developments, owner and operator of the Woodland Lakes Lodges holiday park in North Yorkshire, with £11 million to help it to open more of its chalets and capitalise on a possible “staycation” boom following the Brexit vote. - The Times

British road hauliers are being encouraged to claim more than £10 billion in compensation after leading European lorry manufacturers were found guilty of running an illegal cartel for 14 years. It is alleged that some 30,000 UK businesses bought 1.2 million over-priced trucks from a five-strong cartel that the European Commission ruled operated between 1997 and 2011. - The Times