Friday newspaper round-up: Brexit, debt warning, Halfords, LSE
Britain’s economic growth will slow to its lowest rate in a decade if it leaves the European Union without a trading deal in place, the National Institute of Economic and Social Research has warned. The institute, which uses the Treasury’s forecasting model, said that a no-deal Brexit would push growth down to 0.3 per cent in 2019, a slowdown not seen since the aftermath of the global financial crisis in 2009 when the economy shrank by 4.2 per cent. - The Times
Britain is preparing for trade negotiations with almost two dozen nations after they objected to the terms it proposed for its World Trade Organisation membership after Brexit. Liam Fox confirmed yesterday that countries have “expressed reservations” over the draft text put forward by the UK before its departure from the European Union. - The Times
Young people will be financial losers under all Brexit outcomes facing losses of up to £108,000 over their lifetime under the worst-case no-deal scenario, according to a report which also included a warning from former prime minister John Major about the deep implications for millennials. The report, commissioned by the campaign group Our Future, Our Choice, projected the loss of earnings between now and 2050 – accounting for a 30-year career for most young people. - Guardian
Argentina would exploit the fallout from a no-deal Brexit to further its efforts to bring the Falklands under its control, the country’s foreign minister has said. Jorge Faurie said that Argentina would use the situation to “enhance” its own diplomatic push to pull the islands away from the UK and towards Buenos Aires. - Telegraph
Billionaires made more money in 2017 than in any year in recorded history. The richest people on Earth increased their wealth by a fifth to $8.9tn (£6.9tn), according to a report by Swiss bank UBS. The fortunes of today’s super-wealthy have risen at a far greater rate than at the turn of the 20th century, when families such as the Rothschilds, Rockefellers and Vanderbilts controlled vast wealth. - Guardian
The former head of the US Federal Reserve has warned of a “huge deterioration” in corporate lending standards that is creating “systemic risks” to the economy. Janet Yellen said that the lessons of the financial crisis appeared to be on the verge of being forgotten amid a push for deregulation in the US. - The Times
Halfords is understood to have pulled out of plans to buy Evans Cycles, leaving the way clear for Mike Ashley’s Sports Direct to buy the chain. Halfords decision casts doubt over the future of Evans which needs to raise millions of pounds in funding to secure its future. - The Times
Developers are sitting on land for more than 130,000 homes in England that have never been built – the worst gap on record, according to new analysis. The record gap between planning permissions granted and new homes being built has led to calls for tough new penalties to be enforced against developers that sit on land rather than build. - Guardian
Deutsche Börse has announced plans to intensify competition with the rival London Stock Exchange before Brexit, saying that it would expand a profit-sharing scheme. The Frankfurt-based exchange’s Eurex Clearing said it would expand its “partnership” programme to include repurchase or repo agreements and foreign exchange traded among banks from the first quarter of next year. - The Times
An influential group of MPs has called for a drastic overhaul of Britain’s approach to small business lending after the “scandalous” treatment of companies at the hands of big banks. The Treasury select committee said commercial loans must be urgently regulated to prevent a repeat of the abuse of thousands of small and medium-sized businesses after the financial crisis. - The Times
Oil-dependent nations such as Saudi Arabia face “unprecedented challenges” and it is more essential than ever that they diversify their economy, the International Energy Agency warns. The rise of shale oil, the growth of electric cars and population growth threaten to erode the finances of countries that rely on income from exporting oil, the Paris-based agency said. - The Times
BT has come under fire for handing its new chief executive a “stratospheric” pay and bonus package potentially worth more than £8 million a year. He will receive a basic salary of £1.1 million and a pension top-up of £165,000. In addition, he will be entitled to an annual bonus of as much as 240 per cent of salary, as well as long-term share awards worth four times his base pay. - The Times
America’s most valuable car manufacturer has said the hugely successful, cheaper model of its electric car should be coming to the UK by the middle of next year as the chief executive added that it will soon launch a rival to Uber. Responding on Twitter to queries from customers, Elon Musk said that Tesla’s Model 3 should be taking to Europe’s roads by the middle of 2019. - The Times
The rising oil price and the cost of compensating passengers affected by planes being taken out of commission because of faulty engines has cut profits at Norwegian Air Shuttle. However, shares in the transatlantic low-fares airline surged 16 per cent on the Oslo market to NKr211.80 as Norwegian revealed plans for a sale and leaseback joint venture for its 158-strong fleet. - The Times