Thursday newspaper round-up: HS2, US budget deficit, UK car production

Sajid Javid is expected to throw his weight behind the controversial HS2 rail project at a key meeting on Thursday, after the Treasury concluded it will still deliver economic benefits despite spiralling costs. The chancellor is poised to tell Boris Johnson and Grant Shapps, the transport secretary, that he believes the sums still add up despite the price tag having risen to an estimated £88bn. - Guardian

Electric van maker Arrival has secured a €400m (£339m) order for 10,000 vehicles from United Parcel Service (UPS), the US delivery company, in the latest sign of the rapid growth of the UK-based manufacturer. The purpose-built electric vans will be rolled out in the UK, Europe and North America starting this year and continuing until 2024, with UPS retaining the option to purchase another 10,000. – Guardian

The US budget deficit will break above the $1 trillion milestone in 2020 as Donald Trump’s corporate tax cuts and spending splurge add to an “unsustainable” debt mountain. The Congressional Budget Office (CBO) warned that federal debt will rise to just under 100pc of GDP by 2030, levels not seen since the Second World War. Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said public debt was entering “uncharted waters” ahead of an election that will likely see candidates pledge to ramp up spending or slash taxes further. – Telegraph

A drop in assembly volumes at Britain’s largest carmakers, Jaguar Land Rover and Nissan, has sent annual production down by 14 per cent to a decade low of 1.3 million. Industry data revealed that production at Nissan’s factory near Sunderland fell by 21 per cent to 346,000 units last year. Production at the Range Rover, Land Rover and Jaguar plants at Solihull, Castle Bromwich and Halewood fell by 14 per cent to 385,000. – The Times

The Swedish company seeking to complete the £505 million takeover of Consort Medical has said its latest offer is final, prompting its British target to confirm that it was not in talks with other potential acquirers. Recipharm’s £10.10-a-share cash bid was recommended by Consort’s shareholders in November but has been criticised by JO Hambro Capital Management, a top shareholder, as “galling” and “low ball”. – The Times