Thursday newspaper round-up: UK banks, outsourcers, Microsoft, debt
UK banks are strong enough to survive a disorderly Brexit that could leave the country worse off than the 2008 financial crisis, according to the Bank of England. For a second straight year, none of the high street lenders have been told to raise billions of pounds in capital to strengthen their finances, under the Bank’s latest financial sector health check. – Guardian
John McDonnell has said Labour will “inevitably” back a second referendum if the party is unable to force a general election, in comments widely regarded as marking a shift in Labour’s position. The shadow chancellor repeated that a general election remained a preference but admitted it was “very difficult to do” because of the Fixed-term Parliaments Act.- Guardian
Public sector outsourcers who take months to pay their own suppliers face being blocked from bidding for new contracts under new Government plans to crack down on late payments. From next autumn procurement bosses will be expected to assess whether or not suppliers on contracts worth more than £5m per year have “robust measures” to ensure subcontractors are paid on time and are settling 95pc of their invoices within 60 days of receipt. – Telegraph
Microsoft has overtaken Apple as the world’s most valuable publicly-listed company, 16 years after the software giant lost its crown in the wake of the dotcom crash. On Wednesday, Microsoft’s market value reached $850bn (£664bn), seeing it surpass its old rival for the first time since 2010 following a prolonged decline in Apple’s share price. – Telegraph
Households are still sitting on historically large piles of debt, the Bank of England has warned. Although people’s debt is lower than it was during the financial crisis a decade ago, falling from 144 per cent of incomes to 125 per cent today, the central bank said that consumers could stop spending abruptly if they came under more financial strain. This, in turn, would amplify an economic downturn. – The Times
Britain will not replicate all the European Union’s trade deals in time for a no-deal Brexit next March, the trade minister has said. George Hollingbery told MPs that UK officials would “roll over” the majority of the bloc’s 40 or so trade agreements with about 70 countries before leaving. – The Times