Monday newspaper round-up: Financial crisis, Cobham, Metro Bank

The world is sleepwalking towards a fresh economic and financial crisis that will have devastating consequences for the democratic market system, according to the former Bank of England governor Mervyn King. Lord King, who was in charge at Threadneedle Street during the near-death of the global banking system and deep economic slump a decade ago, said the resistance to new thinking meant a repeat of the chaos of the 2008-09 period was looming. - Guardian.

Britain’s cheapest “virtual battery” could be created by hoisting and dropping 12,000-tonne weights – half the weight of the Statue of Liberty – down disused mine shafts, according to Imperial College London. The surprising new source of “gravity energy” is being developed by Gravitricity, an Edinburgh-based startup, which hopes to use Britain’s old mines to make better use of clean electricity at half the cost of lithium-ion batteries. - Guardian.

Metro Bank is debating whether to continue funding chairman Vernon Hill’s £120,000-a-year expense allowance into 2020, meaning the troubled firm could carry on paying for the multi-millionaire’s lifestyle even after he leaves. The Telegraph has learnt that the bank is choosing whether to cut off Mr Hill’s £10,000-a-month expense budget in December when he steps down as chairman and quits Metro’s board, or to hold off until March when his contract officially ends. A decision has not yet been made. - Telegraph

The American private equity giant attempting to buy Cobham is ready to commit to protect British jobs and investment as it seeks to allay concerns over its £4bn takeover of the defence and aerospace company. Amid fears that a sale to private equity runs the risk of a further sale and possible break-up of a key British industrial asset in a few years’ time, it is understood that Advent International will promise the government that it will maintain UK employment at current levels at least, invest in research and development in Britain and keep the Cobham brand. - The Times.

Britain should have more influence at the World Bank in return for the billions of pounds it provides to help the world’s poorest countries, the head of Europe’s development bank has said. Sir Suma Chakrabarti, president of the European Bank for Reconstruction and Development, said the UK was “naive” in not demanding more senior roles in return for the financial support it provides. - The Times.