Sunday newspaper round-up: Rolls-Royce, Minimum wage, Metro Bank

26th Nov 2023 20:42

(Sharecast News) - Rolls-Royce chief Tufan Erginbilgic is expected to push for government backing for the company's small modular reactors. The engineer has already received approximately £200m in government funding and has a lead on its domestic and foreign rivals, but Erginbligic is worried that they might catch up. The government's lukewarm attitude may also make potential foreign buyers hesitate. - The Financial Mail on Sunday

Business leaders have sounded the alarm over a 10% increase in the minimum wage announced by the Chancellor last week. They argue that it will push their costs higher and undermine attempts to lower inflation. The 102p increase to £11.44 an hour from next April will be the third-largest ever. Business leaders did recognise the moral case for the increase but were concerned by the economic impact. - The Sunday Times

Hedge funds have piled on bets against Metro Bank before a crunch vote by the lender's shareholders on a £925m rescue plan. If the funding package is rejected then the Bank of England might deem it no longer viable and place it into resolution. Short-sellers on the other hand stand to reap considerable profits. Under the terms of the plan, one of its shareholders, Jaime Gilinski, will inject £102m into the lender and raise his stake to 52.9%. With 6.4% of its shares out on loan, Metro had become the most shorted stock on the London market after Asos. - The Financial Mail on Sunday

Council leaders have warned that the new wave of austerity hinted at in the Chancellor's autumn statement will set off a fire sale of public assets and put the most vulnerable at risk. When settlements for Scotland, Wales and Northern Ireland were factored in, non-protected government departments in England were left facing an annual reduction of 3.4% for five years. Indeed, several "flagship blue counties" may be forced into bankruptcy as the 2024 elections are called. -Guardian