Tuesday newspaper round-up: IMF, Brexit, taxes, BT, Unilever

Clouds are gathering over the world economy because of a burgeoning international trade war, while Brexit fears are taking an unexpected toll on Europe, the world’s lender of last resort has warned. The International Monetary Fund has downgraded its forecast for global growth from by 0.2 percentage points this year and next, in its World Economic Outlook. - Telegraph

Italy is on the brink of a dangerous banking crisis as the red-blooded showdown between Brussels and Rome pushes the country’s borrowing costs to a five-year high. Yields on Italy’s 10-year debt spiked to 3.62pc after the Lega strongman and vice-premier, Matteo Salvini, vowed to sweep away the existing European order. - Telegraph

The EU’s lead negotiator is expected to delay publishing the union’s blueprint for a post-Brexit relationship with Britain after signals of new concessions from Downing Street. Michel Barnier had intended to publish an “annotated” draft political declaration tomorrow setting out red lines on a future trade deal. - The Times

The youngest worker today would need to wait until they were almost 100 years old to see the average wage in Britain double from its current levels, according to a study that highlights the UK’s struggle to boost wages since the credit crunch. The Resolution Foundation said failure to improve on recent levels of pay growth would condemn Britain to a wait until 2099 before the current average pay packet has doubled after inflation – much longer than was required before the financial crisis for a twofold increase in real wages. - Guardian

Apple is in talks with BT over a ­partnership designed to boost the push of both companies into pay-TV. It is understood that the two sides are in early discussions over a deal that would make BT’s mobile brand EE a major distributor of Apple TV set-top boxes. - Telegraph

Unilever faces a backlash over fat cat pay just days after it was forced to abandon plans to axe its British headquarters. The consumer goods group, whose brands include Marmite, Domestos and PG Tips, handed £10million to chief executive Paul Polman last year. MPs on the business select committee have summoned executives to Parliament to explain its pay policy amid mounting concerns over boardroom excess. - Mail

TAX CORNER

Philip Hammond is under mounting pressure to introduce a digital tax in the budget this month after it emerged that Facebook paid a “paltry” £7.4 million in corporation tax last year. The release of the internet giant’s UK results was met with anger yesterday and prompted a cross-party call for reform of the way in which Silicon Valley companies are taxed. - The Times

A coalition of Britain’s biggest restaurant and pub owners has urged the Chancellor to tackle the “crisis in hospitality and the high street” with “root-and-branch reform” of the tax system, including a freeze on business rates and a levy on tech giants. In a letter to Philip Hammond, hospitality companies including Slug and Lettuce owner Stonegate, Pizza Express and Wagamama call for a tax on internet giants to be included in his Budget. - Telegraph

The CBI has demanded that Philip Hammond use the budget on 29 October to prepare companies for a post-Brexit future with a £2bn package of measures to bolster investment, raise skills and ease the burden of business rates. The employers’ organisation said action was needed to lift Britain from the bottom of the G7 league table and it was time for the chancellor to “put warm words for business into action – no ifs, no buts.” - Guardian

Britain’s biggest companies have called on the government to legislate even tougher climate change goals in the wake of the International Panel on Climate Change’s (IPCC) special report this week. The alliance of major companies including John Lewis Partnership, Marks & Spencer and BT together with City giants Aviva Investors and Legal & General said the UK should accelerate its drive to cut emissions to “unlock a significant innovation and investment opportunity”. - Telegraph

Households may face higher energy bills under proposals being considered by the government to meet a far tougher greenhouse gas emissions reduction target. Ministers will order the Committee on Climate Change to examine how Britain should respond to the dire warnings published yesterday by the Intergovernmental Panel on Climate Change (IPCC) about the impact of exceeding 1.5C of global warming. - The Times

Jaguar Land Rover has ordered a two-week shutdown at its main assembly plant at Solihull in the West Midlands. Britain’s largest motor manufacturer reported a 12 per cent drop in global sales in September, with a 46 per cent fall in its biggest market, China, amid fears over trade tariffs and a regulatory crackdown by Beijing. - The Times

Hundreds of thousands of small investors in property funds will have their holdings temporarily frozen in the event of a shock to the market that leads to material uncertainty about the value of shops and office blocks, regulators have ruled. The Financial Conduct Authority proposed new rules yesterday designed to strike a fairer balance between investors wanting to redeem their holdings and those wanting to stick out a sharp downturn in the commercial property market. - The Times

Wall Street is donating more to Democratic election candidates than to Republicans for the first time in a decade before what is set to be a fiercely contested midterm election battle. To the end of August banks, hedge funds, private equity firms and other companies in the finance, insurance and property sectors donated nearly $111 million to Democrats and $106 million to Republicans, the Center for Responsive Politics, a non-partisan lobbying research group, found. - The Times

Workers’ rights are at risk once the UK leaves the EU even if a Brexit deal is struck, research by a leading thinktank has concluded. The UK and the EU are both expected to agree common minimum standards for working conditions as part of the post-Brexit deal, but the Institute for Public Policy Research warns that the non-regression clauses being proposed to ensure there will be no roll-back of rights will not be a strong enough protection for workers. - Guardian