Tuesday newspaper round-up: No-deal Brexit, Equiti Capital, Debenhams
The governor of the Bank of England, Andrew Bailey, has warned that the economic cost of a no-deal Brexit would be bigger in the long term than the damage caused by Covid-19. Bailey said failure to agree to a deal before the Brexit transition expires at the end of December would cause disruption to cross-border trade and damage the goodwill between London and Brussels needed to build a future economic partnership. - Guardian
A stricter system of tiers to be introduced at the end of England’s lockdown will “ruin Christmas” for struggling restaurants, hotels and pubs, the hospitality industry has warned. The retail industry expressed relief that all shops will reopen on 2 December during the crucial Christmas trading weeks, alongside gyms and personal care services such as hairdressers and barbers. However, the hospitality industry bore the brunt of toughened rules. - Guardian
A London foreign exchange broker is facing a multimillion pound legal claim over its alleged links to a suspected $125m (£93m) Ponzi-like fraud being investigated by the US Securities and Exchange Commission (SEC). Equiti Capital, which denies wrongdoing, is facing a demand from investors in the scheme to repay part of the $13m in commissions it received as prime broker for complex investment products offered by a firm controlled by Mediatrix Capital. - Telegraph
Debenhams is in exclusive talks with JD Sports about a rescue takeover of the department stores chain that could secure the futures of thousands of retail workers before Christmas. It is understood that JD Sports, the FTSE 100 sportswear business, is interested in acquiring the whole of Debenhams and yesterday it entered exclusive talks with Lazard, its adviser, and administrators at FRP. - The Times
A restaurant chain co-founded by the prime minister’s adviser on food issues is considering using a controversial insolvency procedure to cut its rent bill. Leon, the self-styled “naturally fast food” chain, was launched in 2004 by Henry Dimbleby, an adviser to Boris Johnson and former Bain & Company consultant, in partnership with John Vincent, who remains chief executive, and the chef Allegra McEvedy. - The Times