Monday newspaper round-up: Russian oligarchs, Hermes, T-Mobile, Sainsburys/Asda
Labour has called on ministers to toughen the scrutiny and regulation of City flotations as a matter of urgency following the controversial $7bn (£5bn) London flotation of En+, a Russian metals group controlled by oligarch Oleg Deripaska. The shadow chancellor, John McDonnell, called on the chancellor, Philip Hammond, to introduce serious measures against oligarchs and consider “tightening initial considerations around listings” after the US said it would introduce economic sanctions against the Russian billionaire. – Guardian
The delivery company Hermes faces a legal battle with a group of its own drivers today, in the latest case promising to have major ramifications on labour rights in the growing gig economy. The move follows similar recent hearings on how companies, including the ride-hailing firm Uber, engage gig economy workers, so-called because employees are paid in return for the “gigs” they perform. – Guardian
British and European steel makers are bracing for a fresh crisis in the industry unless the US backs down from its protectionist stance and extends an exemption on import tariffs. The US granted temporary relief to European producers from 25pc tariffs on steel and 10pc levies on aluminium as Donald Trump, the US president, introduced the measure in a move widely seen as targeting imports from China. - Telegraph
T-Mobile has announced it will buy rival Sprint and form a new company valued at $146bn, taking the spot as the third largest carried in the US. The carrier will pay $26bn (£18.9bn) to take over Sprint, clinching a nine-year courtship between the pair in a move that will up its customer base to 127m. - Telegraph
Councils are missing out on cheap government loans because of a decade-old rule change that means they face a bill of nearly £30 billion to refinance their borrowings. Some local governments are paying 9 per cent interest rates to the Treasury because of the “exorbitant” penalties they face for early repayment. An analysis of councils’ £62 billion debts by Risky Finance, a specialist financial website, found that the cost to authorities if they were to repay the money today would be £29 billion. – The Times
City investment banks, lawyers and other professional services firms could share more than £100 million in fees from the merger of Sainsbury’s and Asda, with the two grocery chains set to face more than a year of complex negotiations to seal their deal. Morgan Stanley and UBS, the Sainsbury’s advisers that also worked on the takeover of Home Retail Group, Argos’s owner, have been drafted in to work on the combination, while Rothschild is said to be working for Asda, which is owned by Walmart, of the United States. – The Times
As Andrew Tyrie prepares to take up his post as chairman of the Competition and Markets Authority, the watchdog is preparing for what could be its biggest challenge since its formation five years ago. As a former Conservative MP, Mr Tyrie will not need to be reminded that the potential merger of Sainsbury’s and Asda, respectively the UK’s second and third largest grocers, will be hugely political. More than 340,000 workers will be affected, as will the daily shopping habits of tens of millions of Britons. - Telegraph