Sunday newspaper round-up: US recession, Housing policy, RBS

5th Feb 2017 16:37

(ShareCast News) - Donald Trump's economic honeymoon could come to an end as soon as next year, senior City fund managers have forecast, with the US at risk of plunging into recession. Nine years on from the start of the financial crisis, the US recovery may be overheating, Legal & General Investment Management economist James Carrick has warned. He has predicted a series of interest rate hikes will tip the US into a 2018 recession. - The Sunday TelegraphA major shift in Tory housing policy in favour of people who rent will be announced by ministers this week as Theresa May's government admits that home ownership is now out of reach for millions of families. In a departure from her predecessor David Cameron, who focused on advancing Margaret Thatcher's ambition for a "home-owning democracy", a white paper will aim to deliver more affordable and secure rental deals, and threaten tougher action against rogue landlords, for the millions of families unable to buy because of sky-high property prices. - The GuardianRoss McEwan, chief executive of Royal Bank of Scotland, is preparing to unveil further cost cutting measures after receiving pay of around £3m in 2016. The cost-reduction measures - which will be unveiled alongside the bank's ninth consecutive annual loss later this month - are expected to coincide with confirmation of his pay deal for the 2016 financial year. McEwan could be paid more than £3.0m after £2.7m of salary and allowances are topped up with bonuses. - The GuardianThe boss of holiday giant Thomas Cook is the latest chief executive to come under attack over excessive pay. A long-term incentive plan that would award Peter Fankhauser up to £1.6m a year was slammed by shareholder advisory groups for failing to give enough information on performance criteria. Institutional Shareholder Services (ISS), which represents about 20% of the investors in the FTSE All-Share index, has recommended they vote against the proposal at Thomas Cook's annual meeting on Thursday. - The Sunday TimesAldi is poised to overtake the Co-op this week to become Britain's fifth largest grocer. It is a big step for the German discount retailer, putting it next in size to the so-called 'Big Four' supermarkets. Figures due this week from leading market analyst Kantar are expected to show that Aldi attracts six per cent of the UK's spending on food, behind only Tesco, Asda, Sainsbury and Morrisons. - The Mail on SundayLow-paid cabin crew at British Airways have begun six days of industrial action, as the airline takes an increasingly hard line on strikes by employees. Members of the mixed fleet at Heathrow were set to walk out for most of this week from Sunday in a dispute over what the union, Unite, describes as poverty pay. - The GuardianAnnette Court, the former boss of Direct Line, has been tipped as a frontrunner to become the new chairman of insurance giant Admiral. Court, 54, has been a non-executive director of the Cardiff-based motor and homes insurer for almost five years. The opportunity to become chairman emerged last week after Alastair Lyons, 63, said he would step down on April 26. - The Sunday TimesNew figures published by the think tank Centre for Cities have shown just how vital the EU single market is for Scotland's four largest cities - with total exports to the EU from Aberdeen, Dundee, Edinburgh and Glasgow totalling nearly £7bn. The report said 61% of Aberdeen's exports go to the EU, showing the importance of the European market to Scotland - a market now under threat from the most reckless of Tory hard Brexits, which is set to have such a damaging impact on Scotland. - The GuardianThe Government's "cloak and dagger" approach to the public finances has masked an "alarming" rise in debt obligations that puts future investment at risk, one of the country's leading accountancy bodies will warn this week. The Institute of Chartered Accountants in England and Wales (ICAEW) will highlight that the current system, where the UK's total liabilities are published more than a year after each fiscal year, "hinders transparency and reduces scrutiny". - The Sunday Telegraph