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Monday Papers: Brexit gloom lifted again as UK growth is upgraded

And Bank of England deputy warns against ‘bonfire of the regulations’ after Brexit.

 
Monday Papers: Brexit gloom lifted again as UK growth is upgraded

Top stories

  • The Daily Telegraph: EY bItem Club, one of Britain’s top think tanks, has upgraded its growth forecasts for the UK economy, in a move that threatens to deal another blow to widespread predictions that Brexit would deliver a serious shock to Britain.
  • Financial Times: The UK’s top banking supervisor has warned against a “bonfire of the regulations” after Brexit, despite Eurosceptics calling for a more competitive regime when Britain leaves the EU.
  • The Times: The Bank of England is expected to raise interest rates twice this year after a surprisingly strong showing from the economy at the end of last year and a brightening outlook in 2018, leading economists say.
  • Financial Times: Neil Woodford’s flagship fund has lost almost a fifth of its assets since May as investors dumped the renowned British investment manager following a series of bad bets and disappointing performance.
  • Financial Times: Google’s DeepMind has developed artificial intelligence to diagnose diseases by analysing medical images, in what could be the first significant application of AI in healthcare.
  • Financial Times: Big Tech’s move into banking is threatening financial stability and the biggest US and Chinese technology groups should be subject to some of the same regulation as big banks, according to top European finance chiefs.

Business and economics

  • The Daily Telegraph: Amazon, Google and Apple are all in the running to become the first ever company to be valued at one trillion dollars, with analysts believing we could see history being made as early as this year.
  • The Guardian: British Airways’ owner IAG has called on government to break up Heathrow’s “monopoly” of infrastructure, suggesting that other companies could run the different terminals to create competition and cheaper flights for consumers.
  • The Times: The world’s largest hedge fund Bridgewater has trebled its bet against Italian companies before next month’s election in a move which some think is one of the biggest short positions in its history.
  • Financial Times: North Sea oil will bring in about £1 billion in tax this financial year, a startling reverse from the previous 12 months when it failed to generate any revenues for the Treasury.
  • Financial Times: China’s ecommerce giant JD.com plans to challenge Amazon in Europe as early as 2019, aiming to be ubiquitous across the continent within “a few years”, says the company’s chief.
  • The Daily Telegraph: Swiss banking giant UBS is joining the rush of City firms looking to grab business with the growing ranks of wealthy individuals in the UK regions.
  • Financial Times: Wells Fargo is expected to turn away billions of dollars of deposits as the US bank grapples with the effects of an asset freeze imposed by the Federal Reserve after years of wrongdoing.
  • The Daily Telegraph: Artec, a German-led consortium leading the race for a multi-billion contract to supply armoured vehicles for the Army, has pledged to build the bulk of them in Britain in a move expected to create 1000 UK jobs.
  • The Daily Telegraph: Britain's biggest drugmaker GlaxoSmithKline is poised to post record sales of over £30 billion for the first time, in chief executive Emma Walmsley’s first set of full-year results this week.
  • The Times: Virgin Media has connected more than a million homes to its ultrafast broadband network, in the latest sign that the roll-out of high-speed internet services is gathering momentum in Britain after years of slow progress.
  • The Guardian: The collapse of Carillion is expected to trigger a rise in the number of construction companies going bust as subcontractors in its supply chain miss out on payment, a leading accountancy firm has warned.
  • The Times: Bondholders of New Look have appointed the Rothschild investment bank to protect their interests in the event of a financial overhaul at the struggling fashion retailer.
  • Financial Times: The European steel industry must be prepared to close factories given a capacity surplus of as much as a fifth or risk being outflanked by lower-cost overseas rivals, says one of the continent’s largest producers, Wolfgang Eder, chief executive of Austria’s Voestalpine.

Share tips, comment and bids

  • Daily Mail (Trader tips): BUY Keywords Studios but SELL Britvic.
  • The Daily Telegraph: A sale of Richard Desmond’s Express and Star tabloid newspaper business to rival publisher Trinity Mirror could come as soon as this week despite concerns among some investors about the tie-up.
  • Financial Times: Some of the largest private equity groups are jockeying to buy a large chunk of Dutch paint maker Akzo Nobel for as much as €10 billion, the latest sign buyout funds are itching to deploy large sums of cash.
  • Financial Times: Greybull Capital will be among the bidders interested in buying parts of Carillion that might be ringfenced following its liquidation as an auction takes shape.
  • The Daily Telegraph (Comment): Janet Yellen's Fed tenure may be the calm before the storm.
  • The Daily Telegraph (Comment): Google's spat with the EU looks to be open-ended.
  • The Times (Comment): Inequality in wealth, not income, is the most economically damaging.

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