Monday newspaper round-up: Defence budgets, trade deal, house prices, LSE

Growing global tensions mean ­defence spending is about to hit its highest level since the Cold War peak of the Eighties. Data from IHS Markit Jane’s defence analysts forecast that arms spending will hit $1.67 trillion in the coming year – overtaking the recent high seen in 2010 of $1.63  trillion. - Telegraph

Theresa May will face a Cabinet row over Brexit after the EU warned that there is “no way” that the Prime Minister will be able to strike a bespoke trade deal with Brussels. Michel Barnier, the EU’s chief Brexit negotiator, said that Britain must “face the consequences” of Brexit and cannot “cherry pick” and still enjoy the benefits of the Single Market after Brexit. - Telegraph

Price cutting by homeowners desperate to shift their property in a slowing market has reached the highest levels in six years, according to an analysis by website Zoopla. Just over 35% of the homes marketed on the site have marked down their price in the hope of achieving a sale, with the biggest discounts in the London property market. - Guardian

Investment in commercial property in the City of London is nearing record highs this year, as overseas investors continue to dominate the market. Turnover for 2017 in the Square Mile is anticipated to hit £12.5bn – twice the 10-year average of £6.26bn and in line with the previous high of £12.6bn in 2014, according to research from Savills. - Telegraph

Banks and building societies face fines and public sanction by the City regulator if they fail to conduct thorough immigration checks on current account holders from January. From the start of 2018, banks will be required to scrutinise the immigration status of their 76 million current account customers against a government database of individuals without leave to remain in the UK. - Guardian

The Children’s Investment Fund (TCI) is facing defeat in its attempt to unseat the London Stock Exchange’s chairman despite a month-long campaign to force change at the top of the 446-year-old exchange. Before a shareholder vote tomorrow at noon, sources said that Donald Brydon was likely to muster enough support to retain his job as chairman of the LSE, the third biggest exchange in the world, despite speculation at the weekend that a second major investor would vote for his removal. - The Times

British Steel workers are suffering from bad financial advice which can encourage them to quit their valuable final salary pension schemes in favour of worse arrangements, MPs have warned. Advice is too often “shoddy or just plain crooked”, Frank Field, chairman of the influential Commons work and pensions select committee, said in a letter to the Financial Conduct Authority’s (FCA) top supervisor Megan Butler, with the FCA’s action to help British Steel Pension Scheme members “remains grossly inadequate”. - Telegraph

Concerns have been raised about Poundland’s ability to continue sourcing goods after credit insurers reduced their cover for the retailer. The budget retailer said yesterday that it was well stocked for Christmas and that trading was good after Atradius, one of its credit insurers, reduced its insurance cover. - The Times

The government is to allow Britain’s £2tn workplace pension schemes to dump their shares in oil, gas and coal companies more easily, empowering them to take investment decisions to fight climate change. Until now, pension schemes have been hamstrung by “fiduciary duties” that effectively require schemes to seek the best returns irrespective of the threat of climate change. Many have rebuffed calls by members for fossil fuel divestment, citing legal obligations. - Guardian

Heathrow is planning to build a mini version of Terminal 5 as part of slimmed-down proposals to expand Europe’s biggest airport. The airport is considering building a new terminal a few hundred metres west of T5 to handle 25 million passengers a year as part of updated plans for a third runway. - The Times

Medicine shortages cost the NHS another £38 million last month, as officials say they are largely powerless to solve a problem that leaves patients struggling to obtain essential drugs. Attempts to force down prices have led pharmacists to warn that they cannot carry on supplying patients with drugs that lose them money. A total of 91 emergency price increases have been approved for November, but pharmacists have said that these are not enough to cover the cost of crucial cancer and anti-psychotic medicines. - The Times