Sunday newspaper round-up: Customs union, PFI fallout, GKN, Dixons, banks
Britain's lobbying group for business leaders is on a collision course with the government as its chief prepares to call for the UK to remain in “a customs union” with the European Union after Brexit. In a major speech on Monday, Carolyn Fairbairn, the Confederation of British Industry’s director general, is expected to claim that “remaining in a customs union for as long as it serves us to do so” is “consistent” with the Leave vote in the EU referendum and “would be good for EU firms”. - Sunday Telegraph
Bosses of top construction and outsourcing companies have warned ministers they will no longer accept fixed-price PFI deals after the collapse of Carillion. The threat is a blow to the government’s £600bn infrastructure programme, which is already struggling to attract bidders. Last week the National Audit Office said there was little evidence that private finance initiative deals offered value for money for taxpayers. - Sunday Times
The prime minister has threatened punitive fines and pledged “tough new rules” to deal with company bosses who put pension schemes at risk while lining “their own pockets” in the wake of the collapse of Carillion last week. Theresa May promised to take action against “top executives reaping big bonuses for recklessly putting short-term profit ahead of long-term success”. - Sunday Times
The Government faces the first acid test of an ambitious plan to spread the risk of public services contracts, as it launches a £12bn tender to carry out cleaning and maintenance at schools, hospitals and other public buildings. The Crown Commercial Service, which administers work on behalf of Government departments, local authorities and the NHS, wants the new framework to give more jobs to regional companies as part of a Government drive to give a third of public sector work to SMEs by 2020. - Sunday Telegraph
BREXIT, TRADE, POLITICS
Emmanuel Macron has said it would be possible for Britain to secure a bespoke trade deal but only if the UK accepts certain “preconditions”. The French president said that while a special solution could be secured, full access to the single market without accepting its rules was “not feasible”.- Observer
Donald Trump and Theresa May will meet at the World Economic Forum in Davos next week after the White House appeared to cave under pressure from Downing Street. White House officials had initially indicated the US president would not meet Mrs May in the Swiss resort, despite agreeing to talks with Emmanuel Macron, the French president. - Sunday Telegraph
On Sunday, political novice Kevin Kühnert will lead a grassroots rebellion in Germany's centre-left Social Democrat Party to oppose forming a new coalition with Angela Merkel. If Mr Kühnert wins, it will plunge Germany into political chaos, giving Mrs Merkel nowhere left to look for a majority and be left with a choice between new elections or trying to form a minority government. - Sunday Telegraph
Donald Trump is expected to slap new tariffs on America’s aluminium imports as a nine-month inquiry into the industry concludes this week. The US Department of Commerce has been investigating whether cheap foreign imports, largely from China, are damaging US producers severely enough to threaten national security. - Sunday Times
Nigel Farage is in talks about returning to frontline British politics with the launch of a new pro-Brexit movement if Ukip’s leader Henry Bolton is forced to resign. Farage has spoken to friends, including his financial backer Arron Banks, about forming a breakaway party if Bolton, 54, loses a vote of confidence today at a special meeting of Ukip’s national executive committee. - Sunday Times
M&A, BOARD RESUFFLE, BANK WARNINGS
A hostile takeover bid for FTSE-100 engineer GKN is set to face intense government scrutiny on both sides of the Atlantic amid concerns over national security and the prospect of politically sensitive job losses due to Melrose's track record of boosting profits through heavy streamlining. The company, which is involved in a number of major defence projects, was the subject of an uninvited £7.4bn approach from Melrose, the listed turnaround specialist, a fortnight ago. - Sunday Telegraph
The owner of the Mirror newspapers is closing in on a takeover of the Express, valuing the rival publisher at more than £130m. The deal will see Richard Desmond — the billionaire owner of the Express and Star titles — become one of Trinity Mirror’s largest shareholders. - Sunday Times
Ivan Glasenberg’s plans to expand his Glencore commodities empire further into agricultural trading were thrown into doubt this weekend after a rival made a takeover approach for Bunge, the American grain trader he has been pursuing since last summer. Archer Daniels Midland, the Chicago-based food trading colossus, submitted a takeover approach for Bunge. - Sunday Times
The chief executive of Dixons Carphone, Sebastian James, will step down after six years to run high street chemist Boots, in a surprise move days before it updates the City on its Christmas trading performance. James will be replaced at the end of the financial year in April by Alex Baldock, currently group chief executive of online retailer Shop Direct. - Observer
Short-sellers who cashed in on Carillion's collapse are now targeting its rival Interserve and other Government contractors. Their bets against firms in the building and outsourcing sector now total £500 million. The Cabinet was forced to allay fears about the financial position of construction firm Interserve after reports suggested it was monitoring the firm. - Mail on Sunday
Britain's big banks have been accused of “scaremongering” about changes designed to boost online competition by predicting it could spark a crime wave. Fast-growing digital bank Monzo told The Telegraph high street lenders were “digging their heels in” by not embracing so-called “Open Banking” reforms that came into force last weekend, with big banks including RBS brand NatWest have been communicating with customers in recent weeks about the potential risks of Open Banking. - Sunday Telegraph
Private equity firms have begun circling Poundland amid expectations that its scandal-ridden South African owner could be forced to sell the high street chain. It is understood that Advent, Apax, Bain, Clayton Dubillier & Rice, CVC and KKR are monitoring the situation closely in case Steinhoff’s financial woes mean it suddenly has to raise further cash. - Sunday Telegraph
Brutal restaurant trading conditions could lead to a cut in shareholder payouts at the owner of Frankie & Benny’s as it braces for another steep fall in profits. It has been a torrid few months for the restaurant chains after a flurry of profit warnings, while rescue bids have been launched at burger chain Byron and Jamie Oliver’s Italian. - Sunday Telegraph
Selfridges & Co has put its struggling department store rivals to shame by toasting a 10pc jump in sales over the festive period. The company, best known for its historic Oxford Street shop, has shrugged off the wider retail gloom by unveiling that its sales accelerated the week before Christmas to rise by 15pc on the year before. - Sunday Telegraph
The gulf between men and women at work – in both pay and status – is likely to widen unless action is taken to tackle inequality in high-growth sectors such as technology, say researchers at this week’s World Economic Forum summit in Davos. A new WEF report on the future of jobs finds the dominance of men in industries such as information and biotechnology, coupled with the enduring failure of women to rise to the top even in the health and education sectors, is helping to reverse gender equality after years of improvements. - Observer
Four bosses at corporate raider Melrose are in line to share £285million in bonuses if they make a success of their takeover bid for engineering giant GKN, The Mail on Sunday can reveal. That would make it one of the biggest ever pay bonanzas in corporate Britain, along with the controversial scheme at housebuilder Persimmon, which is dishing out hundreds of millions of pounds to its senior staff. - Mail on Sunday
Telegram, a “hack-proof” messaging app created by a Russian coder, is planning a $2bn cryptocurrency fundraising that will set a record for a so-called initial coin offering. The fundraising will test the enthusiasm for digital currencies after a market rout that has wiped out hundreds of billions of pounds in notional paper wealth. - Sunday Times
The government is to establish a new product safety office to stop future Whirlpool-style faulty goods disasters. In a bid to offer further protection to consumers, the creation of the Office for Product Safety and Standards is set to ensure large-scale product recalls are dealt with more swiftly. - Sunday Telegraph
The publisher of magazines for airlines ranging from easyJet to Etihad has been put up for sale amid predictions it will fetch £70 million. Ink – owned by private equity firm Endless – produces 28 magazines in ten languages for 21 airlines and travel groups including Thomas Cook, American Airlines, Qatar Airways and United. - Mail on Sunday