Sunday newspaper round-up: Tesco, fracking, RBS, GKN, Persimmon
Tesco is working on a secret plan for a new discount grocery chain to take on Aldi and Lidl, senior industry insiders have told The Sunday Times. Britain’s biggest supermarket is understood to be developing a separate brand that would match the German insurgents on price, and offer a far more limited range of products than the average Tesco store. - The Sunday Times
A hidden report for Britain’s most senior ministers has revealed that the promise of a UK shale gas boom has been dramatically exaggerated by government and fracking companies. Government has known for almost two years that the number of wells likely to flow shale gas from fractures deep beneath the earth will be just a fraction of the 4,000 wells quoted publicly by ministers in support of the divisive industry. - Sunday Telegraph
Labour launched a full-frontal attack on the privatised water industry last night, accusing companies of paying out the “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up prices for millions of customers. The assault by shadow chancellor John McDonnell came as he pledged total, “permanent” and cost-free renationalisation of water, energy and rail if Labour won power at the next election. - Observer
Top City regulator the Financial Conduct Authority was in disarray last night after the leak of a damning report into the activities of a notorious business banking division of RBS. The 350-page document, seen by The Mail on Sunday, reveals the full extent of the abuse heaped on small firms that fell into the hands of the state-backed lender's Global Restructuring Group. - Mail on Sunday
Besieged engineering giant GKN is expected to offer a mammoth cash return to shareholders this week in an effort to repel a hostile takeover approach. The FTSE 100 company will also promise cost cuts in its defence document urging investors to reject the £7.4bn cash and shares bid from the buyout firm Melrose. - The Sunday Times
French chef Raymond Blanc’s restaurant venture Brasserie Bar has bemoaned a business rates hike for adding to an “increasingly hostile” trading environment as it posted a near £3.2m pre-tax loss. A 12pc spike in its business rates bill alongside higher debt payments pushed it further into the red. - Sunday Telegraph
The world’s financial markets are braced for more volatility this week amid predictions that stocks could fall further before stabilising. Last week saw $4trn wiped off the value of shares around the world and the most important market, the United States, entered into an official correction after falling more than 10% from its record level in January. - Observer
If Persimmon boss Jeff Fairburn was praying for a respite from the criticism he has received over his controversial bonus, currently worth £115 million, his hopes are dashed today. Both the Church of England and the Methodist Church, which have shareholdings in the housebuilder, have told the Mail on Sunday of their deep dismay over the size of the company's 'fat cat' incentive scheme. - Mail on Sunday
Businesses spent as much as £7.7bn less on new factories and equipment in the year after the EU referendum because of Brexit uncertainty, according to analysis by the Bank of England. The survey of 1,200 companies, published with the Bank’s quarterly inflation report last week, suggests corporate investment was about 3%-4% lower in the 12 months to June 2017 than it would have been - a loss of between £5.7bn and £7.7bn. - The Sunday Times
The UK’s space industry has called on the Government to set up a national programme under its industrial strategy to boost business. Companies in Britain’s £14bn a year space industry are pushing hard for the programme to form a key plank of the sector deal, which could be announced as soon as next month. - Sunday Telegraph
One of the biggest growers of berries in the UK is moving part of its business to China because it cannot guarantee it will find enough fruit pickers available to work. Up to 200 seasonal jobs have gone at Haygrove’s farm in Ledbury, Herefordshire, and some of the company’s raspberry and blueberry-growing will be relocated to Yunnan province in China because of uncertainty over migrant labour due to Brexit. - Observer
Regulators are monitoring retail chain Toys R Us amid fears its pension deficit could be jettisoned into the Pension Protection Fund. The concerns arose following the revelation that the British arm of the US-owned group has launched an emergency sale process and is being circled by restructuring firms. Sources said it needs to settle a ‘multi-million pound’ bill by the end of the month or face administration. - Mail on Sunday
A former public schoolboy has been accused of being the mastermind of a multimillion-pound international cryptocurrency fraud, which netted him $30m and saw one investor commit suicide. Daniel Harrison, who is the son of a senior City financier, is alleged to have lured American investors with an initial coin offering (ICO), used to fund the creation of a cryptocurrency. - The Sunday Times
The 'Big Six' energy suppliers will be forced to sacrifice thousands of customers who are stuck on poor value deals to an auction where rival suppliers can make a better offer. The radical shake-up will be outlined by the regulator this week in its latest bid to dismantle the two-tier market which ignited political calls for a cap on standard energy prices across 11 million homes. - Sunday Telegraph
The lack of women in energy companies is holding back the sector’s efforts to tackle climate change, a leading industry watcher has warned. Catherine Mitchell, a professor of energy policy at the University of Exeter, said poor gender diversity meant the industry was less open to new ideas, in particular the move to a lower-carbon energy system. - Observer
The three founders of a London-headquartered SIM card firm made £90 million each from the sale of the company, dwarfing the amount of tax it paid in 15 years. Lebara, best known for selling cheap international airtime, was founded by British entrepreneur Yoganathan Ratheesan, along with two colleagues, when he was in his 20s. - Mail on Sunday