Unsurprisingly, the papers are dominated by the vote for Brexit and the fallout of EU referendum. The Mail, which backed the Leave campaign, carries a warning from City economists that Brexit vote will plunge UK into a new recession, with growth figures slashed for next two years. Moody’s has downgraded the UK’s credit outlook from ‘stable’ to ‘negative’ in the wake of the vote (The Independent). The credit agency warns Britain’s economic growth will be weaker, its economic policymaking may be diminished and the government’s fiscal strength reduced.
Dealmakers have also warned of chaos in completing UK tie-ups (The Financial Times). However, analysts told the paper that the £71bn mega-merger of AB InBev and SABMiller looked “reasonably safe”. The Sunday Times suggests that Brexit will not be so good for AB InBev as the world’s biggest beer company will have to swallow a gigantic paper loss due to the plunging value of sterling.
Next chief executive Lord Wolfson has said that there would be dire consequences if Britain “pulls up the drawbridge” and adopts protectionist trade policies following the vote to leave the EU (The Mail). The Guardian adds that Wolfson also signalled that clothing prices could rise next year as the impact of Brexit boosts inflation, amid warnings that food prices could also climb. The Sunday Telegraph said leading business figures from the chairman of Tesco and the chief executive of Next, to the country’s top banks and the City’s influential fund managers, have told paper what they will demand to ensure the economy, their interests and financial markets are not fatally damaged by Brexit.
Farmers are set to ask for UK handouts from the post-Brexit Government as they face up to losing EU subsidies, according to The Mail on Sunday. The National Farmers’ Union (NFU) has called an extraordinary meeting of its council to start drawing up its demands for subsidies from the post-Brexit Government. Another article in The Mail on Sunday says that trawlermen are rejoicing at end of “hated” quotas and the return of the great British fishing fleet. The paper says fishermen are looking forward to the end of “shackling” Brussels regulations.
Away from Brexit, The Sunday Times looks ahead to the Ocado interims on Tuesday, writing that the online grocer is likely to face questions over Amazon’s entry into the fresh food market and its failure to strike an international deal.
The Sunday Times follows up on The Grocer’s exclusive of Innocent’s latest accounts. The paper says Innocent Drinks enjoyed a sales surge as customers lapped up its new products, including coconut water.
The Guardian asks if Walmart’s food labels can make a dent in America’s $29bn food waste problem? The retail giant now requires its suppliers to use a new date label designed to ease safety worries and prevent food from being tossed away too early.
The boss B&M Bargains Simon Arora has had a 300% salary rise to £575,000, taking his total package to £601,638, The Mail reports.
Skinny bagels and gluten-free bread helped Warburtons to a slight 0.7% rise in sales last year to £551.5m, despite UK shoppers spending less on sliced bread, according to The Telegraph.
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