Thursday newspaper round-up: Banks, Rolls-Royce, fossil fuels, Dixons fines

Banks have been warned that they are set to face tougher penalties for online failures as they continue to shut branches and push customers towards digital services. Regulators will be “less tolerant” if customers endure technical glitches, Nicky Morgan, chairwoman of the Treasury select committee, said yesterday. - The Times

The Trump administration is urging Britain to contribute more towards Nato even though it already meets the alliance’s defence spending target. The American president appears keen for his closest ally to increase expenditure above 2 per cent of GDP as part of a wider effort to make Europe contribute more towards the alliance, according to a senior source. - The Times

A British scientist who held a senior position at Rolls-Royce has been arrested amid fears that the Chinese government tried to steal secrets about the RAF’s new £100 million stealth fighter jet. Bryn Jones, the company’s former chief combustion technologist, was held after MI5 learnt that classified defence information may have been leaked to Beijing. - The Sun/The Times

Comcast has offered $65bn (£47bn) for 21st Century Fox's global entertainment assets, throwing down a challenge to Disney's $60bn bid in a move likely to prompt a fierce bidding war between the US giants. Cable TV provider Comcast had been widely expected to make its formal all-cash offer, equal to $35 a share, today, after having last month said it was in the advanced stages of preparing the bid and given recent speculation that chairman and chief executive Brian Roberts was lining up financing for the deal. - Telegraph

Dixons Carphone took nearly a year to discover a huge data breach despite promising regulators it had bolstered its IT systems, it has emerged. The breach is believed to have been caused by an advanced computer virus – or malware – which penetrated processing systems of Currys PC World and Dixons Travel stores. - Telegraph

...Dixons Carphone could face a fine of more than £400m if it turns out that there was unauthorised access on or after 25 May, when general data protection regulation (GDPR) rules came into force. The Information Commissioner’s Office (ICO) said that it was investigating whether the newly disclosed breach should be treated under the new general data protection regulation (GDPR), which carries fines of up to 4% of turnover, or the previous regime, which would cap any penalty at £500,000. - The Times

The world’s reliance on burning fossil fuels for electricity has barely changed in two decades and global carbon emissions rose last year despite efforts to tackle climate change, BP has warned. Spencer Dale, the oil major’s chief economist and a former member of the Bank of England’s rate-setting monetary policy committee, said that the analysis of the global power mix was “really worrying” and was a “wake-up call” for action on generating green electricity. - The Times

President Trump has increased the pressure on Opec to boost oil production, blaming the cartel for prices being “too high”. Iran hit back by accusing the US president of causing higher oil prices himself through his plans to reimpose sanctions on the country, as well as taking measures against Venezuela, its fellow Opec member. - The Times

The Trump administration has extended its trade assault on European exports, announcing plans for steep tariffs on Spanish olives. American officials have proposed import duties of up to 27 per cent after concluding that Spanish growers have been distorting the market with artificially low prices. Brussels attacked the plan as “simply unacceptable”. - The Times

The NHS is being forced to pick up the pieces of a childhood mental health epidemic driven by social media, its chief executive warned yesterday. Companies such as Google and Facebook should face tough scrutiny, Simon Stevens indicated. - The Times

An influential group of MPs have called on the accountancy watchdog to consider widening its investigation into PwC’s auditing practices after slapping the firm with a record fine. The work and pensions select committee has written to the Financial Reporting Council (FRC) demanding an explanation as to why it imposed sanctions on PwC over the auditing of BHS accounts before it was sold by Sir Philip Green for £1. - Telegraph

Volkswagen has been fined €1bn (£880m) over diesel emissions cheating in what amounts to one of the highest ever fines imposed by German authorities against a company. The fine follows a US plea agreement from January 2017 when VW agreed to pay $4.3bn to resolve criminal and civil penalties for installing illegal software in diesel engines to cheat strict US anti-pollution tests. - Guardian

A City firm co-founded by the influential Conservative backbencher, Jacob Rees-Mogg, has set up an investment fund in Ireland and is warning prospective clients about the financial dangers of the sort of hard Brexit favoured by the Tory MP. London-based Somerset Capital Management (SCM) described Brexit as a risk in a prospectus to a new fund it launched in March, which has been marketed to international investors who want to keep their money in the EU long-term. - Guardian

A fresh row over the UK’s involvement with the Galileo satellite programme, to which the country’s taxpayers have already paid £1bn, threatens to poison the Brexit talks after the EU shut Britain out of the project. A majority of member states have turned against the UK and voted in favour of pushing forward on the next round of contracts for the £8bn project, despite requests for a delay to allow negotiations over British involvement to progress. UK firms are being blocked from bidding for contracts. - Guardian

Foie gras imports to the UK could be banned after Brexit, according to an environment minister. Conservative frontbencher George Eustice said the UK is required to observe law which restricts the introduction of measures which hinder the movement of goods within the EU market. - Telegraph

Elon Musk has bought $25m (£19m) worth of stock in Tesla, as the electric car company announced it was slashing 9pc of jobs due to “duplication of roles”. The move, seen by many as a strategic manoeuvre by Mr Musk to show his optimism over Tesla's future, prompted shares to push higher in after-hours trading. - Telegraph

Royal Mail has banned patriotic postal workers from flying England flags during the World Cup on their delivery vehicles. Staff branded the decision as "bonkers" but bosses at the company say flags and stickers could blow off and become "hazards" or obscure drivers' vision. - Telegraph