Monday newspaper round-up: BoE rates, Brexit compromise, bitcoin, Heathrow
The Bank of England is expected to raise interest rates twice this year after a surprisingly strong showing from the economy at the end of last year and a brightening outlook in 2018, leading economists say. Although the Bank’s rate-setting monetary policy committee seems almost certain to keep its rate at 0.5 per cent when it meets on Thursday, it is widely expected to display a hawkish shift in outlook by leaving the door open to a rise in May. Many economists expect a further rise in November. - The Times
Ministers are preparing a Brexit compromise aimed at ending the increasingly acrimonious row in the Conservative Party over whether Britain stays in the EU’s customs union. The 11-strong Brexit “war cabinet” will meet on Wednesday and Thursday to try to break the 19-month deadlock over the country’s relationship with the European Union after it leaves the bloc. - The Times
Theresa May has categorically ruled out keeping Britain in any form of customs union with the EU in a significant victory for Brexiteers ahead of two crucial Cabinet meetings this week. Downing Street said it wanted to “put to rest” arguments that have raged for weeks about whether the UK would join a customs union after Brexit. - Telegraph
Britain's biggest bank has become the first to announce a ban on customers using credit cards to buy Bitcoin amid fears they could run up huge losses. Lloyds Banking Group will on Monday tell its 9 million credit card customers that it will block any attempts to buy bitcoin after the digital currency lost more than half its value in just two months. - Telegraph
Private members’ club Soho House is lining up a stock market listing that could value the chain at £1.4 billion. The business founded by chief executive Nick Jones, has 18 outlets including Soho and Mayfair in London and further afield in Barcelona, Berlin, Malibu and New York. - Mail
Italian banks are selling off their domestic sovereign debt at unprecedented rates, leading to concerns that they will be hit hard when the European Central Bank ceases quantitative easing. Italian banks reduced their holdings of sovereign debt by €12.6bn in December, and by €40bn in the final three months of 2017, equivalent to 10.5pc of stock, according to analysis by investment advisory firm Jeffries. - Telegraph
Britain's pensions industry has backed Mark Carney’s call to abandon the old measure of inflation, which wrongly gives some savers extra income at the Government’s expense. The industry and two former ministers agree with the Bank of England governor’s claim that the Retail Price Index (RPI) is outdated and unreliable, and should be replaced with the Consumer Price Index (CPI) on new index-linked bonds. - Telegraph
The High Street has been plunged into fresh turmoil amid debt worries and falling sales at New Look and House of Fraser. The retailers’ troubles come as hundreds of restaurants and shops prepare to close stores and axe jobs as more people choose to stay and home and shop online. In the latest blow for the High Street, one of House of Fraser’s leading credit insurers has pulled the plug on cover for suppliers that provide the department store with its stock. - Mail
Department store John Lewis has clashed with fashion brands it has hit with a charge for each item sold on its website – and slapped on another fee if the item is later returned by shoppers. The ‘double whammy’ charge could raise millions for John Lewis, which prides itself on it ethical approach, if it were applied across the firm’s ranges, suppliers revealed. Several, who wished to remain anonymous for fear of reprisals, said the firm has demanded a £1.50 per item charge on each sale and an extra £1.50 ‘processing fee’ if it is returned. Up to a third of clothing purchased online is sent back. - Mail
British Airways’ owner has called on government to break up Heathrow’s “monopoly” of infrastructure, suggesting that other companies could run the different terminals to create competition and cheaper flights for consumers. IAG said the airport’s planned expansion could allow independent firms to create and run new terminals more effectively than Heathrow’s current owners, with lower costs to airlines. - Guardian
The aviation watchdog is threatening legal action against airlines amid fears they are splitting up groups to force passengers to pay for a particular seat. The Civil Aviation Authority (CAA) said that a little more than half of passengers questioned in a survey were told by airlines that they would have to pay to ensure that their group could sit together. - The Times
The Ryanair chief executive, Michael O‘Leary, has warned the company will not bow to “laughable” demands from pilots and would rather see strike or disruptions than undermine the airline’s productivity. The Irish airline, Europe’s largest budget carrier, has been in talks with pilots since December, when it agreed to recognise trade unions for the first time in its history to avoid Christmas strikes. - Guardian
Rail workers are to take further industrial action over the role of train guards later this month. Members of the Rail, Maritime and Transport union on South Western Railway will refuse to work any rest days from 16 to 19 February. - Guardian
A German-led consortium leading the race for a multi-billion contract to supply armoured vehicles for the Army has pledged to build the bulk of them in Britain in a move expected to create 1000 UK jobs. Artec – which is headed by Germany’s Krauss-Maffei Wegmann and Rheinmetall – is seen as the leading contender to supply its Boxer eight-wheeled Mechanised Infantry Vehicles (MIVs) to Britain’s military. - Telegraph
A sale of Richard Desmond’s Express and Star tabloid newspaper business to rival publisher Trinity Mirror could come as soon as this week despite concerns among some investors about the tie-up. The deal would see the publisher of the Mirror newspapers take on the Daily Express and Daily Star and their Sunday titles, as well as celebrity magazine OK!. - Telegraph
The number of foreign students applying to British universities has hit a high, despite warnings about the impact of the Brexit vote on higher education. More than 100,000 EU and overseas candidates have applied to take up places this autumn, the first official figures for the year show today. - The Times
The health risks from mobile phone radiation appear to be either small or non-existent, scientists have said. Two studies by the US government are the most extensive yet on the impact of microwave signals, a topic that researchers have studied for decades. - The Times
One of the world’s biggest law firms is under investigation over claims that it forced a junior female lawyer to sign a gagging order after she accused a male partner of sexual assault. The alleged assault is said to have happened at a business social event when the partner from Baker McKenzie invited several junior lawyers to his hotel room for drinks. - The Times