Monday newspaper round-up: Brexit warning, Rosengren, BT, Reckitt
Britain will be plunged into a year-long recession if it votes to leave the EU, according to a bleak analysis of the short-term economic shock of a Brexit vote published on Monday by the Treasury. The Treasury analysis suggests that growth could be 3.6% lower after two years if Britain votes to leave the EU, compared with the forecast for continued growth after a vote to remain - Financial Times
BT Group
105.40p
16:40 19/04/24
Fixed Line Telecommunications
1,784.13
17:09 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
Household Goods & Home Construction
12,287.29
17:10 19/04/24
Reckitt Benckiser Group
4,167.00p
17:15 19/04/24
Tobacco
26,231.59
17:10 19/04/24
The US is on the verge of meeting most of the economic conditions the Federal Reserve has set to increase interest rates next month, according to a member of the rate-setting Federal Open Market Committee. Eric Rosengren, the president of the Federal Reserve Bank of Boston, told the Financial Times he was getting ready to back tighter monetary policy after financial and economic indicators swung in a positive direction after the Fed’s policy meeting in March. - Financial Times
The company that owns the Three mobile phone network has hit EE, its longterm network sharing partner, with an unexpected lawsuit to demand almost £160 million in lost profit. Hutchison 3G UK filed proceedings against EE, its larger rival now owned by BT Group, after accusing it of failing to install 3G equipment for Three to use as was agreed. - The Times
The first fracking operation in Britain in five years could be approved today despite fierce opposition from the community. North Yorkshire county council’s planning committee in Northallerton will decide at the end of a second day of hearings whether to allow a UK company to frack for shale gas close to North York Moors National Park. - The Times
The fate of more than 11,000 British steelworkers is hanging in the balance as potential buyers of Tata Steel’s troubled UK business put the final touches to bids ahead of a deadline today. As up to seven possible buyers scrambled to finalise their proposals, the business secretary, Sajid Javid, was preparing to travel to Mumbai for talks with senior executives at Tata before a board meeting on Wednesday. - The Times
Sterling’s fall against the dollar has sparked a nosedive in company dividends as the Brexit vote takes its toll on UK investment portfolios. UK dividends dropped 5 per cent year on year in the first quarter, to $16.4bn, largely because of the weakness of the pound, according to data compiled by Henderson Global Investors. - Financial Times
The former owner of BHS is facing legal action after allegedly failing to co- operate with the administrator of the failed department store. Only two weeks before Dominic Chappell is due to give evidence to a parliamentary inquiry into the collapse of BHS, which begins in earnest today, Duff & Phelps is preparing a High Court claim against him. - The Times
Saudi Arabia faces a vicious liquidity squeeze as capital continues to leak out the country, with a sharp contraction of the money supply and mounting stress in the banking system. Three-month interbank offered rates in Riyadh have suddenly begun to spiral upwards, reaching the highest since the Lehman crisis in 2008. - Telegraph
Axa is to ditch its tobacco investments, arguing that owning them clashes with its position as a health insurer. The move is a timely boost to anti-tobacco campaigners, coming as other big investors consider going back into the sector. - Financial Times
The Australian consumer watchdog is appealing what it says is an inadequate fine imposed by the federal court against the makers of Nurofen over misplaced claims of targeted pain relief. The Australian Competition and Consumer Commission says Reckitt Benckiser should have been fined at least $6m, rather than the $1.7m imposed, because the company made millions from products it misleadingly claimed were tailored to treat specific pain. - The Guardian
Britain has passed another milestone on the path to a cashless society, with 2015 the first year that cash was used for less than half of all payments by consumers. Cash usage will be eclipsed by debit cards and contactless payments by 2021, said Payments UK, which represents the major banks, building societies and payment providers. - The Guardian
Greek MPs at the weekend approved fresh austerity measures that will pave the way for new eurozone rescue loans and an agreement to reduce the country’s massive debt burden. The ruling coalition, led by prime minister Alexis Tsipras’s Syriza party, backed the last part of a €5.4bn austerity package that includes further tax hikes as well as automatic spending cuts if budget targets are missed. - Telegraph
Gym chain Virgin Active is investing £150m opening up to 30 new clubs in South East Asia. Over the next six years the company expects to create close to 2,000 jobs in the region as it massively expands its presence there. - Telegraph