Wednesday newspaper round-up: Heathrow, FCA chair, banks, Tesco

The true cost of Heathrow expansion is likely to be “grossly” higher than the £14.3bn the airport has cited, airlines have told MPs, adding that transparency and guarantees should be supplied ahead of a crucial vote. Willie Walsh, chief executive of IAG, British Airways’ parent company and the main operator at Heathrow, said parliament should not trust Heathrow and said he had “zero confidence” that a third runway would be delivered on time and budget. - Guardian

The incoming chairman of the Financial Conduct Authority has admitted to an “error of judgment” after investing in a controversial tax avoidance scheme that resulted in him repaying more than £100,000 to the taxman. Charles Randell, a former City lawyer and government adviser at the time of the financial crisis, told the Treasury select committee that he had failed to see a “warning signal” about Ingenious Film Partners 2 LLP, an investment product that promised members tax reliefs but was subsequently challenged by HM Revenue & Customs. – Guardian

Banks need to start preparing for the death of Libor in 2021 or a smooth transition away from the scandal-hit benchmark will be "highly unlikely" and pose considerable risks, a consultancy has warned. Libor, or the London interbank offered rate, is used to price $240 trillion (£170 trillion) worth of financial products globally but is being slowly phased out as regulators transition to an alternative. All twenty banks which submit quotes for Libor, including HSBC, Credit Suisse, JP Morgan and Lloyds, have promised to support the rateuntil then. -Telegraph

The operator of the Southern rail franchise has moved to add a new line to its business, with its first investment beyond trains and buses into a German car sharing company. Go-Ahead, the FTSE 250 company which runs the Govia Thameslink franchise that includes Southern, has taken a 10pc stake in Frankfurt-based Mobileeee for €300,000 (£264,900). – Telegraph

Investors in Booker Group have been told by a second shareholder advisory group to vote against a planned £3.7 billion takeover by Tesco as doubts about the deal continue to mount. Glass Lewis said that the premium offered by Tesco “clearly lags regional trends”, adding: “We see little cause for Booker investors to support what appears to be a less-than-compelling control transaction.” – The Times

BHP Billiton said yesterday that it was willing to listen to investors over proposals to drop its dual listing structure. As the group unveiled its biggest half-year profit since 2014, Andrew Mackenzie, chief executive, acknowledged that there was “a potential prize around unification . . . but the risks are high”. He said that he would discuss the proposals, which were put forward by Elliott Advisors, tomorrow. – The Times