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Monday NewsBack

BBC.co.uk

 

UK economy ‘faces prolonged weakness’, Item Club report says economy

Britain’s economy faces a “prolonged period” of weaker growth as consumer spending slows and business curbs investment, according to a report. Although the EY Item Club think tank predicts the economy will grow 1.9% this year, it expects that performance to fizzle out as inflation rises. The economy’s stability since June’s Brexit vote was “deceptive”, EY said.

Meanwhile, a senior Bank of England official told the BBC that inflation may surpass its 2% target.

 

Philip Hammond: Chancellor Brexit delay claims denied p hammond

Reports that the chancellor is attempting to slow down progress towards Brexit have been dismissed as “rubbish” by Treasury sources. Philip Hammond discussed plans for controlling immigration after the UK quits the EU with colleagues last week.

Some newspapers say colleagues believe he is attempting to “undermine Brexit” by delaying decisions on migrant curbs. But Health Secretary Jeremy Hunt said the cabinet was “absolutely united” in wanting to get its decision right.

 

 

The Financial Times

 

Aggressive drivers see autonomous cars as easy prey 

Aggressive drivers are looking forward to sharing the road with autonomous cars as they believe they can cut in front of them easily, research suggests. Drivers who are more “combative” tend to “see autonomous vehicles as easier agents to deal with on the road” than humans, because they think they will be able to “bully” them, according to a study by the London School of Economics and Goodyear. On the other side, “more co-operative road users tend to be less open” to cars that drive themselves, it adds, but will be happy to give way to them. The study is one of the most comprehensive pieces of research into international social attitudes to self-driving technology; 12,000 drivers in 11 countries were polled and dozens of focus groups were held.

 

 

The Times

 

Charge! Electric cars get priority status on roads electric lane

Lanes could be created exclusively for electric cars giving them priority at traffic lights and the right to go against the flow on one-way streets. The proposals are part of a drive to create “clean-air zones” in five cities to combat air pollution, which has been linked to 40,000 deaths per year. The Department for Environment, Food and Rural Affairs (Defra) has begun a consultation on the zones in Birmingham, Derby, Leeds, Nottingham and Southampton, where high levels of nitrogen dioxide are associated with diesel vehicles. The zones are due to be in place by 2020.

 

 

The Daily Telegraph

 

Inflation could double as oil price pushes up petrol costs

Inflation is set to accelerate sharply as the rising oil price pushes up costs at the petrol pump, economists believe, with the fall in the value of the pound hitting shoppers in the wallet over the coming months. Consumer prices could have climbed by 1.3pc in the 12 months to September, according to Andrew Goodwin at Oxford Economics – more than double the 0.6pc inflation recorded in August. The fall in the pound is likely to start pushing up the prices of imported goods.

 

 

The Guardian

 

UK borrowing costs hit highest level since Brexit vote stock exchange

This morning’s selloff in UK government debt is gathering pace, as the City ponders the tensions in the Ten-year gilts (bonds that mature in a decade’s time) are dropping in value, to levels not seen since the aftermath of the Brexit vote. As prices fall, borrowing costs rise. And the interest rate (yield) on 10-year gilts has now jumped to 1.2%, from 1.1% on Friday night. That indicates that it will cost the government more to issue new debt to cover the gap between tax revenues and spending.

 

 

Nissan chief executive ‘confident’ after meeting with Theresa Maycarlos ghosn

The chief executive of Nissan has said he was confident Britain would remain a competitive place to do business after meeting Theresa May in the wake of his warning that his company could halt investment in its car plant after Brexit. Speaking at the Paris motor show last month, Carlos Ghosn told reporters future spending on Britain’s biggest car factory would depend on a guarantee of compensation if the UK struck a deal with European allies that led to tariffs on car exports. Ghosn said on Friday: “Following our productive meeting, I am confident the government will continue to ensure the UK remains a competitive place to do business.”

 

The Daily Mail

 

How could they axe our cherry trees – to build a bicycle lane! Routes (and taxis and vans) blamed for 25% rise in time drivers are stuck in traffic

  • Cycle lanes take precious space from traffic, Mail investigation reveals
  • New report cyclists and delivery drivers are making congestion worse
  • Scheme promoting cycling in Cambridge could cut down Cherry Trees

 

Automotive News

 

German car industry warns UK that ‘hard Brexit’ could trigger shift east vw manufacturing

Parts of the UK’s car industry could move to central and eastern Europe if the country loses access to the single market in its divorce negotiations with the European Union, according to Matthias Wissmann, president of Germany’s VDA auto industry association. UK Prime Minister Theresa May has set a March deadline to begin the formal process to quit the EU and carmakers are concerned that Britain is heading towards a “hard Brexit,” which would leave it outside the European single market and facing tariffs of up to 10 percent on car exports.

“If there’s a ‘hard Brexit’ then we will see a shift to central and South eastern Europe,” Wissmann was quoted as saying in Monday’s Financial Times.

Posted by Paul Carpenter on 17/10/2016