Tuesday newspaper round-up: Rates, cars, Sports Direct, Vodafone

Central bankers around the world may be about to knock stock markets off course by raising interest rates just as “storm clouds are gathering” over the global economy, analysts at a leading Wall Street bank have warned. Markets are at risk of becoming “too complacent” around signs that global trade tensions may be easing, Citigroup analysts declared, at a time when significant geopolitical risks remain and three central banks look set to raise rates. - The Times

UK carmakers are not ready for Brexit, the head of the automotive trade body has warned, as concerns about cross-border trade were underlined by fresh figures showing nearly nine in 10 cars built in the UK last month were destined for export. Output of vehicles for the UK market plunged by 47% in June, compared with a 6% rise in exports, amid a “perfect storm” of factors, the Society of Motor Manufacturers and Traders (SMMT) said. - Guardian

UK negotiators have told their counterparts in Brussels that about 7,000 European-based investment funds that rely on British clients for their cash and profits will be hit by regulators unless the EU changes its position on the City of London after Brexit. As frustration grows within Whitehall at what is seen as a dogmatic position taken by the EU’s chief negotiator, Michel Barnier, the British side has upped the ante by making an implicit threat to EU interests. - Guardian

Mike Ashley has offered to buy a majority stake in House of Fraser, putting forward what he considers “better terms” than those offered by Hamleys owner C.Banner, which last week revealed it was delaying its deal. Mr Ashley, the founder of Sports Direct, wrote a letter to House of Fraser's finance advisers around four weeks ago to lay out his offer, sources with knowledge of the matter said. - Telegraph

The casino industry donated thousands of pounds to the Institute of Economic Affairs (IEA) after the thinktank published a report on gambling policy that called for restrictions on the number of casinos to be lifted. The National Casino Industry Forum (NCIF) confirmed it donated £8,000 to the IEA having fact-checked a draft of the report. - Guardian.

Shares in Vodafone rallied yesterday after reports that Elliott Advisors, the American activist investor, has built a stake in the FTSE 100 telecoms group and could shake it up. Elliott has spoken with management and at least one board member, according to Dealreporter, the financial website. - The Times

Ryanair is facing fresh strikes after German pilots voted overwhelmingly in favour of industrial action. Some 96pc of the Vereinigung Cockpit pilot union today backed a walk-out after exploratory talks broke down last Friday. The union wants working conditions similar to those found at comparable airlines such as German carrier TUIfly. - Telegraph

One of Britain’s biggest quoted infrastructure funds could face a shareholder rebellion over plans to sell itself to two unlisted rivals for £1.4 billion. Leading shareholders in John Laing Infrastructure Fund have told the board that a 142.5p-a-share offer from Dalmore Capital and Equitix Investment Management is too low. Baillie Gifford, the second largest shareholder, is one of the investors to have expressed concerns. - The Times

Vivendi is considering selling up to half of the shares in Universal Music Group, in a move which could provide the French media giant with a cash bonanza of more than €10bn (£9bn). The company said it was planning to sell the shares to one or more strategic partners "in order to extract the highest value", and said it would soon engage banks to help identify these partners. - Telegraph

Multibillion-pound plans to build a nuclear plant at Moorside in Cumbria are likely to be abandoned within months unless a buyer is found. The Nugen venture, owned by Toshiba, is considering plans to shut down with the loss of 100 jobs after a sale to Kepco stalled. - The Times

The days of calling up the boss to cough down the line and weakly say you are too ill to come into work before lying in bed with daytime television are over. The Office for National Statistics said that the number of sickness days had almost halved over the past two decades to reach a record low. It dropped from an average of 7.2 days in 1993 to 4.1 days in 2017, and had been steadily falling since 1999. - The Times

A “universal” influenza vaccine has been constructed out of nanoparticles by scientists using a technique which it is hoped could at last lead to effective winter flu jabs. The vaccine, which has been successfully tested on mice, is designed to protect against a broad range of variants of the disease, by training the immune system to spot core and unchanging features of the virus. - The Times

The home secretary, Sajid Javid, is being urged to intervene to stop a housing provider from locking hundred of asylum seekers out of their homes, leaving them destitute. Glasgow city council and MPs expressed “deep concern” that an imminent mass eviction of asylum seekers by Serco would trigger a humanitarian crisis in the city. - Guardian

England’s strong showing in the World Cup and the warm weather contributed to a 3.6 per cent rise in beer volumes sold in the three months to the end of June, with the British Beer and Pub Association finding volumes in the off-trade rose by 7.7 per cent compared with last year. Experts said that the impact of wilting harvests on the price of malting barley used in beer production could cause trouble for brewers down the line. - The Times

More than 150 constituency Labour parties (CLPs) have been considering mounting a challenge to Jeremy Corbyn’s Brexit policy at conference this autumn, with an apparent rise in support for a referendum on a final deal among some of his key allies. A handful of the local parties, some of them in leave-voting constituencies, have already agreed to adopt a motion for a public vote on Theresa May’s deal with an option to remain in the European Union. Others were expected to decide in the coming weeks. - Guardian