Monday newspaper round-up: Brexit, fracking, airlines, RBS
The slow-burn impact of Brexit on the British economy will be a drag on growth for the rest of 2019, blocking the Bank of England from raising interest rates, a leading economics forecaster has warned. Ahead of the first major policy decision from Threadneedle Street since Theresa May agreed to delay Brexit until the end of October, the EY Item Club said uncertainty over the country’s future would cut the UK’s growth rate. – Guardian
Anti-fracking campaigners have welcomed the resignation of the government’s shale gas commissioner, who quit in frustration at “ridiculous” regulations limiting drillers from causing earth tremors, which she claimed were hobbling the industry. Natascha Engel stood down at the weekend after just six months in the post and accused ministers of being too heavily influenced by climate change campaigners such as the Swedish 16-year-old Greta Thunberg and anti-fracking protesters. – Guardian
Soaring fuel prices are buffeting Europe’s biggest airlines, which are on course to suffer a near-€1bn (£900m) profit squeeze in the first three months of the year alone. Analysis by The Daily Telegraph of investment banking projections reveals fuel hedging has failed to insulate the notoriously precarious finances of airlines. – Telegraph
Ross McEwan, the outgoing chief executive of RBS, will have earned around £20m by the time he leaves the taxpayer-controlled lender, but risks losing almost £2m in unvested bonuses if he joins a rival. The New Zealander, who took on the top job in 2013 and four years later led RBS to its first profit after almost a decade of losses, quit last week but will stay in the role for up to 12 months while the board searches for a replacement. – Telegraph
The rail industry is to call for the present train franchise system to be scrapped, that long-distance routes are opened up to competition between multiple operators and that commuter services into London and around leading cities come under the control of local authorities. This week the Rail Delivery Group, which represents the privately owned train operators as well as Network Rail, the state-controlled track, signalling and station company, will make the most significant intervention in the government’s root-and-branch review of the railways. – The Times
Sir Philip Green’s Arcadia has secured help from HSBC in an attempt to reassure suppliers as the retailer looks to get a rescue deal over the line. HSBC has agreed to stand behind Arcadia’s debts to suppliers, which have asked for advance payments since credit insurers withdrew some support this year. This has meant HSBC taking security over Arcadia’s cash deposits, Companies House records show. In return it is understood that the bank will underwrite letters of credit to Arcadia’s suppliers if required. – The Times