Monday newspaper round-up: BoE groupthink, corporate governanace, BT, Diageo, Tesla
A former Bank of England economist has called for an overhaul of the central bank’s approach to decision making and for the power of the governor to be curtailed, as the first interest rate cut since 2009 is considered in response to the economic turbulence that has followed the Brexit vote. Richard Barwell, now a senior economist at BNP Paribas, warned that too little challenge was being provided to Mark Carney and that there was evidence of “group think” at the Bank. - The Times
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The UK economy is already showing early signs of stress in the wake of the Brexit vote with a consumer spending and productivity slipping to multi-year lows last month. Business activity in the second quarter of the year fell to three-year lows, according to Lloyds Bank’s tracker for manufacturing and services, with London emerging as a key casualty of the political and economic uncertainty caused by the referendum. - Telegraph
Theresa May will promise to ensure that workers are represented on company boards and that shareholders get a binding vote on corporate pay as the favourite in the UK prime ministerial race launches her national campaign to become Conservative leader. The home secretary will say that the rules on pay and board membership need to change because big business is too unaccountable. - Guardian
The UK’s decision to leave the EU will not have a “significant credit impact” for the ratings of states across Asia Pacific, according to Moody’s Investors Service. The relatively limited direct trade countries across the region have with the UK shields them from any British economic downturn, the ratings agency said, with Cambodia judged as being the most exposed. - Financial Times
Diageo is pursuing drinks tycoon Vijay Mallya to recover an estimate 12bn rupees (£138m) in funds it alleges were diverted from its Indian subsidiary into his associate companies. The Smirnoff and Guinness owner said that it had discovered "improper transactions" involving its Indian spirits arm, United Spirits Limited (USL), and their subsidiaries. - Financial Times
BT has crowded the penalty box in anticipation of Sky’s move into the mobile market by offering free Premier League and Champions League football to EE’s huge customer base. In the first significant move made by BT since it paid £12.5 bn to re-enter the mobile market by buying EE, the offer of six months of free football to EE’s users via the BT Sport app will also return the BT brand to the high street as the offer will be promoted heavily in EE’s stores. - The Times
A US private equity firm is preparing to spend more than £1bn on discounted UK real estate in the next six to 18 months including buildings from a series of property funds that suspended trading this week. The plan by New York-based Madison International Realty is an early sign of how opportunistic investors might seek to take advantage of any downturn in the market triggered by the UK’s vote to leave the EU. - Financial Times
Boeing is to double its workforce in the UK to 4,000 within a decade as it increases its presence in a country that is awarding the American aerospace company two of its most important defence contracts. As final details emerge at the Farnborough airshow in Hampshire of Ministry of Defence orders for nine Poseidon P8 maritime surveillance aircraft in a $2bn (£1.5bn) deal to replace the Nimrod fleet and a further $3bn for 50 Apache attack helicopters, Boeing is going on the offensive to persuade people that it is not just a friend of Britain but part of British industry. - The Times
The UK food and drink industry is calling for the sugar tax to be mothballed as manufacturers face a shortage of workers, cost inflation and weak consumer confidence since the Brexit vote. “The whole thing should be paused,” said Ian Wright, the director general of industry lobby group the Food and Drink Federation (FDF), whose members include the makers of Coca-Cola, Pepsi and Tango. “Confidence in the consumer goods market is very fragile and the government has promised not to impose any new burden on industry.” - Guardian
The chancellor, George Osborne, will urge US investors not to turn their backs on Britain as he begins a world tour aimed at building new trade ties outside the European Union. Osborne will meet senior figures from Wall Street in New York on Monday during the first of several missions to major economies to discuss the ramifications of Brexit on trade links. - Guardian
A Russian meerkat and some French ferrets are heading for a listing on the London Stock Exchange. BGL, the owner of CompareTheMarket and the French comparison website LesFurets, is preparing to hold a beauty parade of investment banks to handle an initial public offering tipped to value the company at up to £2bn. - The Times
Tesla Motors CEO Elon Musk, under pressure after a fatal crash involving one of his electric cars, went on Twitter Sunday to say he’s working on another “Top Secret Tesla Masterplan”. He said he hoped to publish details this week. The tantalizing message echoes an August 2006 blog post, titled “The Secret Tesla Motors Master Plan (just between you and me)”, in which Musk unveiled the cars that became the Tesla Model S four-door family car and the Tesla 3 sports sedan. - Guardian
Top companies are poised to slash graduate recruitment in the wake of Brexit as the famed “milk round” turns sour. Law firms, banks and other major businesses are expected to cancel or cut back jobs for graduates as an easy way of saving money as they fret about the short-term future, recruitment experts have warned. - The Times
Waitrose is to slash its payment terms to seven days for all small food producers in a move to enhance its credentials as an ethical grocer. All suppliers whose business with Waitrose is worth less than £100,000 annually will be paid within seven days of receipt of a valid electronic invoice, the retailer will announce this week. - The Times