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Monday newspaper round-up: Fracking, Jaguar Land Rover, City pay

Your Money
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Your Money
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05/12/2014

Cameron promises ‘fracking’ tax boost for councils; Jaguar Land Rover posts record car sales figures; city pay debate set to reignite.

Oil and gas fracking in the UK will receive a major boost on Monday when Prime Minister David Cameron says that local communities will be allowed to keep millions of pounds of tax generated by the industry. The announcement comes after it emerged that French energy giant Total will become the first oil and gas major to back UK fracking, a move that could be a catalyst for the sector. Total is expected to invest close to 30m pounds in shale exploration in the East Midlands. – The Telegraph

Britain’s largest car manufacturer, Jaguar Land Rover, owned by India’s biggest carmaker, Tata Motors, has reported record-breaking global sales for 2013, the company has said. Together the British brands sold 425,006 vehicles in 2013 – up 19% on 2012 – setting new sales records in 38 international markets. – The Guardian

Controversy over City pay is likely to be reignited this week when the major US banks – including JP Morgan and Goldman Sachs – release their results for 2013. The publication of the profitability of banks will clear the way for their staff to be told the size of their annual bonuses and signal a round of job moves around the financial sector as well as a wave of outcry about the payouts for thousands of staff in London. – The Guardian

A controversial ruling by the Indonesian government that bans miners from exporting unprocessed minerals has prompted fears of a supply squeeze, propelling share prices in nickel and bauxite producers. Indonesia is the world’s biggest supplier of nickel ore, and shares in nickel miners jumped on Monday morning on expectations of higher global prices. However, savvy Chinese users have cushioned themselves by heavy stockpiling ahead of the move, analysts say, limiting price gains. – Financial Times

One of Britain’s biggest shareholders in Amazon, Google, Facebook and Apple has warned them not to be so aggressive in avoiding UK corporation tax in the wake of parliamentary and public anger last year. James Anderson, manager of the £2.6 billion Scottish Mortgage Investment Trust, said the American companies were taking risks by so aggressively seeking to minimise their tax bills. “We say to these companies, don’t overplay it,” he told The Times. – The Times

Britain’s banks are more ­optimistic about the prospects of an economic recovery than their European counterparts, ­according to a new study that also shows lending is predicted to rise across all sectors of the economy. […] EY’s European banking barometer found that 74% of senior bankers in the UK expect economic conditions to improve this year, compared with a Europe-wide figure of 56%. – The Scotsman

The Treasury will on Monday pledge to guarantee all of Britain’s debt even if Scotland votes to leave the UK, in an attempt to prevent creditors from pushing up the cost of government borrowing. In a memorandum being sent to members of the financial community this morning, the Treasury will commit to holding all of the UK’s £1.2 trillion in debt, whether or not the Scottish people vote for independence this September. – The Telegraph

Business must brace itself for a wave of “catch-up” pay demands in the private sector after five years of pay freezes or below-inflation raises. The warning has come from the outgoing head of Acas, the industrial dispute mediation agency, who has also cautioned that private sector pay claims could fuel unrest over wages in the public sector. – The Times


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