Monday newspaper round-up: Consumer spending, factory outlook, drug deals

Shoppers and business owners have signalled confidence in spending more, suggesting the credit-fuelled growth seen in late 2016 is showing few signs of flagging. Consumer spending on credit and debt cards rose 2.6pc during last year, with higher spending both online and in bricks-and-mortar retailers, according to figures from Visa. - Telegraph

The war chest to protect the pound in the face of a sterling crisis has shrunk since June’s referendum to leave the European Union. Official figures show that the government’s stock of foreign currency reserves has declined by $5 billion in five months, or about 5 per cent, the largest and most sustained fall this decade. - The Times

British factory bosses are downbeat about the outlook for the economy after last year's Brexit vote even though they expect their sales both at home and abroad to improve in 2017, an industry survey showed on Monday. An annual survey by manufacturing association EEF showed 47 percent of executives in the sector predicted a decline in Britain's economic fortunes this year, up from 28 percent in the same survey in 2016. - Daily Mail

British companies are grappling with higher costs and bracing for further pressure in the months ahead as the start of Brexit talks threatens to drag the pound down further and ramp up the price of imports to the UK. Reports from the manufacturing and construction sectors on Monday point to a sharp rise in the prices paid for materials by firms in Britain and worries that their profit margins will be squeezed as they decide how much of those higher costs they can pass on to customers.

The pharmaceuticals industry is set for a surge in deal-making this year, as companies under pressure from weak drugs pricing and higher costs take advantage of low valuations and a tax-friendly political climate in the US to bolster faltering sales growth. Even those with solid growth prospects may pursue M&A, leading to a sharp rise in the value of deals this year, according to a report from EY. - Telegraph

Aviva is in talks with LinkedIn about a partnership that could help millions of savers to locate forgotten pension pots. Chris Wei, global chairman of Aviva UK digital, said that in 2017 “we’d like to partner with LinkedIn to create a scheme which could be called the UK’s biggest treasure hunt”. - The Times

The internet is fast becoming the destination of choice for shoppers, heaping pressure on traditional bricks and mortar retailers who are struggling to keep up with their online-only rivals, analysts have warned ahead of week in which a string of some of the UK’s most prominent shops will report crucial Christmas trading figures. Sales growth at online-only fashion seller Boohoo is expected to total nearly 40pc, while City analysts have pencilled in an increase of more than a quarter at Asos, as more consumers turned to the internet, and away from the high street, for their Christmas shopping. - Telegraph

Bankers’ bonuses may be cut by 10 per cent in the next few weeks, with employees of some struggling European banks set for no rewards at all in this year’s pay round. Many investment banks are expected to clamp down on pay amid anxiety about eurozone economies, Brexit and possible fallout from the trade policies of America’s president-elect Donald Trump. - The Times

Britain's biggest carmaker Jaguar Land Rover (JLR) sold a record 583,312 cars last year as the Indian-owned firm continues its rapid expansion with the aim of building 1 million vehicles a year at the turn of the decade. Sales were up 20 percent from the previous year, although sales growth slowed to 12 percent year-on-year in December, the carmaker said. - Daily Mail

Half of today’s car owners will not want to own a vehicle and more and more will want self-driving and electric cars in future, a survey of car manufacturing bosses has found. As fewer people see the need to buy a car, a majority of automotive executives believe the industry will increasingly focus on making money from peripheral digital services to be used with their vehicles. - Guardian

Crispin Odey has begun to shed staff after the billionaire hedge fund manager’s investments suffered the worst year in his firm’s history, losing nearly half their value as bets on a market collapse failed to come good. He said that Odey Asset Management had made redundancies after a torrid 12 months in which its main investment fund fell by 49.5 per cent. - Times