Monday newspaper round-up: Pay, Brexit, manufacturers, IAG, FOBTs

Downing Street was hoping last night for a deal with Brussels in the next 48 hours amid signs that cabinet unhappiness with the eventual package is growing. British and EU negotiators are closing in on a draft withdrawal agreement as early as tomorrow, possibly giving the green light to a leaders’ summit before the end of this month, but two crucial issues remain outstanding. - The Times

Confidence among manufacturing firms has slumped to its lowest level for more than a year, a new study suggests. Research by business advisers BDO LLP indicated a “concerning turnaround” in the fortunes of the sector. - Guardian

The owner of British Airways is seeking the support of the Spanish government as it steps up its preparations for a no-deal Brexit. International Airlines Group has asked for Madrid’s help in its campaign to retain its operating rights should Britain crash out of the European Union without a deal, according to reports in Spain. - The Times

The government’s controversial decision not to cut stakes on fixed-odds betting terminals (FOBTs) from £100 to £2 until October 2019 was influenced by a “discredited” secret report commissioned by bookmakers, it has emerged. The chancellor, Philip Hammond, last week cited the need to mitigate job losses as a key factor in delaying the stake reduction, a decision that sparked outcry among campaigners and triggered the resignation of sports minister Tracey Crouch. - Guardian

MPs have launched a new probe into the “broken” audit market over concerns that “fiction” produced by the Big Four accountants was at the heart of major failures such as BHS, Carillion and Patisserie Valerie. Rachel Reeves, chairman of the Business Select Committee, said the collapse of Carillion implicated the entire industry and undermined public trust in business. - Telegraph

Ministers are poised to reject calls from MPs and the City regulator for a tribunal system to level the playing field between businesses and banks. The Treasury has concluded that a tribunal to settle disputes between companies and lenders would be too expensive and could restrict access to credit. - The Times

A pair of British technology “unicorns” could be the next investments for Softbank’s $100 billion Vision Fund, providing a significant vote of confidence in the UK’s growing band of online-only challenger banks. Revolut and Oaknorth have held talks with the Softbank fund about a potential investment at their next fundraisings, in what would mark the Mayfair-based vehicle’s first investments in the British financial technology sector. - The Times

The Conservative party is failing business in the pursuit of pushing through a Brexit deal, the head of one of Germany’s largest industrial firms in the UK has said. Terry Sargeant, the chairman and CEO of ThyssenKrupp in the UK, said the party was putting its own survival ahead of industry. - Guardian

Hedge funds have amassed a £1.4bn bet against high street stores as economists warn that a crucial Christmas ­period will hinge on a Brexit deal. Pets at Home, Marks & Spencer and Debenhams have become top short seller targets on London’s stock market after struggling to cope with subdued consumer spending and more nimble online competition. - Telegraph

The owner of the i and The Scotsman newspapers is struggling to attract a saviour a month after putting itself up for auction. The lack of interest has led Johnston Press to ask a restructuring firm to handle a potential administration. - The Times

The Bank of England’s standing has been damaged since Mark Carney took over as governor, a former ratesetter has claimed. Andrew Sentance, who sat on the Bank’s monetary policy committee between 2006 and 2011, has accused the governor of allowing the Bank’s independence to be “diluted in various ways”, most recently by his “shambolic” reappointment. - The Times

Arm will ease up its investment in research and development after two years of rapid growth even as it pushes to meet ambitious targets of doubling its UK headcount by 2021. The Cambridge chip designer, which was brought by Japanese conglomerate SoftBank in 2016, said it expected investments to “increase at a slower pace” after adding more than 2,000 employees in two years. - Telegraph

Paris has vaulting ambitions to capture a share of the world gold trade from London, reviving its historic role as a top-tier power in the international bullion market. The Banque de France has teamed up with JP Morgan to offer a full range of swaps, leases, and gold deposits for global central banks and sovereign wealth funds. - Telegraph

"Climate change has got to be one of the top risks to companies, particularly the majors,” says Adam Matthews of the Church of England. “If they are not engaging with this subject at a strategic level as an existential threat to their operations, then I think they’re failing in their duties.” - Telegraph

The 10th annual Chinese shopping bonanza Singles’ Day has generated a record $30.7bn (£23.6bn) in sales for internet giant Alibaba. The first $1bn of transactions were completed in one minute and 25 seconds, Alibaba, which is often compared to Amazon, said on Sunday. - Telegraph

Beefed-up European Union data protection laws are crippling merger deals, a report has warned, as specialists blame the rules for an increase in failed transactions. Complying with the EU’s General Data Protection Regulation, which came into effect in May, is a significant fetter on mergers and acquisitions, according to more than half of the experts polled by Merrill Corporation, a data consultancy. - The Times