Sunday newspaper round-up: Brexit, BoE, LSE, housebuilders, Rio Tinto, Go-Ahead

The Bank of England is set to warn of the dangers facing the financial system following the Brexit vote as it steps up oversight of the country’s biggest lenders and prepares for a sharp economic downturn. Governor Mark Carney is expected to outline measures to encourage banks to lend, including lowering capital buffer requirements, according to a senior source in one of the largest banks. - Sunday Times

The Chancellor could be forced to borrow an extra £19bn this year to fill a black hole created by Brexit chaos, economists have warned. City watchers slashed their forecasts for Britain’s economy almost immediately after the vote to leave the European Union. - Mail on Sunday

The new chief executive of Rio Tinto has warned there is no end in sight to the commodities downturn, saying a supply glut will continue to put pressure on prices for the mining company and its rivals. Jean-Sébastien Jacques, who became chief executive of the Anglo-Australian company this weekend, said in an interview with the Financial Times that supply was still outstripping demand for most major raw materials that Rio mines. - Financial Times

Royal Dutch Shell could “absolutely” cut more jobs despite already slashing 12,500 positions since last year, chief executive Ben van Beurden has warned. The Dutchman, who also confirmed Shell is considering selling the more mature of its assets in the North Sea, said future cuts could stem from the “continuous improvement drive” for efficiency. - Sunday Telegraph

The Government may have to look far and wide to find the legions of staff it needs for post-Brexit trade talks, as the civil service faces its greatest manpower crisis since the Second World War, experts have warned. Locating the necessary expertise will be critical to the UK’s success, after the country’s unexpected decision to leave the European Union. - Sunday Telegraph

Housebuilders are preparing to ask the government for a package of short-term stimulus measures to underpin confidence in the property market. Pete Redfern, chief executive of Taylor Wimpey, said a “short, sharp bunch of incentives” would help keep transactions moving amid a lack of clarity over the direction of the economy, adding that stimulus measures “shouldn’t wait until September”. - Sunday Times

Shareholders are expected to approve the London Stock Exchange’s £21bn merger with Deutsche Börse on Monday — despite growing fears the deal could be blocked by German regulators. City sources expect an overwhelming majority of LSE investors to give the green light to a tie-up with Frankfurt. - Sunday Times

The head of the strike-hit operator that runs Southern train routes has insisted he will force through controversial staffing changes this summer despite a union dispute that has crippled services. Charles Horton, chief executive of Go-Ahead's majority owned Govia Thameslink Railway said the union’s decision “to step away from representing their members in a reasonable way” has left the company “with little choice than to proceed with doing it directly”. - Financial Times

Virgin Media is to expand into programme making five years after it sold off its television channels, as it seeks to shore up its pay-TV business and mount a stronger challenge to Sky. Not only will it soon reveal a tie-up with the production company All3media to joint-commission four original drama series over the next two years, industry sources also said it was in advanced talks to acquire UTV Ireland from ITV. - Sunday Telegraph

Record-low gilt yields have sparked fresh concerns over BT Group’s pensions shortfall, which analysts say has jumped to more than £12bn as the decision to leave the EU hits the retirement schemes of UK companies, putting its dividend payment at risk. Analysts at investment bank Macquarie believe the telecoms giant’s pension deficit may have widened by as much as £1.6bn to £12.2bn in the space of just a few weeks, largely as a result of Brexit. - Sunday Telegraph

Network Rail’s spending squeeze could slash the £3.3bn due to the taxpayer from the east coast mainline. Virgin and 90% owner Stagecoach won the franchise in 2014 with a bid far beyond the reach of rivals, but revenues have grown far more slowly than hoped, at 5.2% a year, compared with a forecast of 8%-12%. - Sunday Times

Marks & Spencer is poised to report a new sales slump this week as it struggles to get a grip on its clothing business. The retailer is expected to blame poor weather and a weak consumer environment in the three months to the end of June in a trading statement due on Thursday. - Mail on Sunday

Customers of mobile network O2 could be offered the chance to buy shares in the company as current Spanish owner Telefonica plans a £10bn stock market float that is expected at the end of the year. However, the UK's second largest mobile operator could still be sold to a private equity buyer after the acquisition attempt by CK Hutchison, the owner of rival Three, was blocked in May by the European competition authorities. - Sunday Telegraph

Boeing has shrugged off the impact of the EU referendum, saying it does not expect the result to hurt air travel or its operations in the UK. The American aerospace giant, which together with its European rival Airbus builds most of the world’s passenger planes, said demand remained strong despite growing concern about a bubble in orders. - Sunday Times

Fines imposed by the Financial Conduct Authority in the first half of 2016 have fallen more than 90% to £7.2m, the lowest half-year total since a regulatory clampdown during the financial crisis. The plunge in fines from £819m in the same period last year follows a period of turbulence for the FCA and coincides with the arrival of Andrew Bailey from the Bank of England as the watchdog’s chief executive. - The Observer

One-time stock market darling Gulf Keystone Petroleum is haggling over the final details of a rescue deal with creditors that will wipe out its investors but allow the stricken producer to survive. Creditors have agreed to write off most of the $575m (£430m) due next year as part of a debt-for-equity swap that will leave them as majority owners of the shares. - Sunday Times

HMRC is to move the heart of its oil and gas division from London to Glasgow — just days after the Brexit referendum vote threw into doubt Scotland’s future in the UK - as part of HMRC’s wider effort to slash £100m in costs. Oil executives were told last Thursday of the decision to relocate the operation that collects petroleum revenues and pays out rebates. - Sunday Times

Banks in Singapore are collaborating on a new service that would allow customers to make payments using Facebook IDs or Twitter username. The system will allow electronic transfers between account holders who have registered their social media identities with their banks, allowing users to make payments by selecting the payee’s Facebook ID instead of typing in an account number and sort code. - Financial Times

Tata is set to freeze its auction of Port Talbot steelworks while it assesses the fallout of the Brexit vote. The Indian giant will “pause” the sale amid uncertainty over the impact of the decision to leave the EU, sources said. - Sunday Times

Britain's leading supermarkets from Tesco, Sainsbury and Morrison to Co-Op, Lidl and Waitrose are being urged by consumer group Which to help stamp out a potentially lethal food-poisoning bug present in chickens by regularly publishing the results of their own internal tests. On the eve of national food safety week, Which? has written to the largest chains calling on them to shoulder “greater responsibility” for testing of campylobacter levels in chicken. - The Observer

Leon, the healthy fast food chain, is in talks to bring City grandee Alan Parker on as an adviser to oversee its US expansion drive. The restaurant chain, co-founded by chef Allegra McEvedy, John Vincent and Henry Dimbleby, is planning an aggressive trans-Atlantic push amid ambitious plans to appeal to fast food-loving Americans. - Sunday Telegraph

Three doctors are suing Barclays for £4m, alleging the bank mis-sold them a complex financial product that ended up costing their practice millions of pounds. The bank sold the interest rate swap as part of a £5.2m loan to expand Pinn Medical Centre in northwest London, with the derivative meant to protect them against a rise in rates. - Sunday Times

Britain’s biggest beds store chain is being lined up for a £400m sale, three years after it collapsed into administration. Dreams could be sold later this year after its owner, the buyout firm Sun European Partners, opened talks with advisers about cashing in on its stake. - Sunday Times