Monday 4 June 2018

Britain has hinted it will stay in the
European VAT area after Brexit, says the Financial Times. One
minister says the Treasury is taking an “active role” in shaping
new EU value added tax regulations for the 2020s. In a letter
from the Treasury to Charlie
Elphicke MP, the minister also reveals: “The government aims to
keep VAT processes after EU exit as close as possible to what they
are now.”

The Big Four’s grip on the audit sector is
pricing rivals out of the market, reports The Times. The fifth
biggest player in the market, BDO, is demanding a rethink on how
auditors compete for contracts at Britain’s biggest companies. The
company’s proposals have won widespread backing, including the
approval of the Big Four themselves: PWC, KPMG, Deloitte and
EY.

Wagamama has appointed Goldman Sachs to
review “strategic growth options” for the business, reports The
Times. Preferred bidders for the Japanese noodle chain are likely
to be big American private equity firms. Meanwhile, rivals such as
Jamie’s Italian, Byron, Carluccio’s and Prezzo are being forced to
resort to company voluntary arrangements to survive.

The business community has largely welcomed
the new Home Secretary’s promise to take “a fresh look” at the
immigration system, notes the Daily Telegraph. Sajid Javid’s move
to review visa systems and remove students from annual migration
figures means more skilled workers could be allowed to move to the
UK. The British Chambers of Commerce says the news “will be cheered
by employers all across the UK”.

CYBG has been in talks with Virgin Money
about an improved all-share offer to create a £4bn challenger
lender, reports Sky News. The owner of the Clydesdale and Yorkshire
banks has tabled a revised bid in recent days which values Virgin
Money at around £1.7bn. Sir Richard Branson’s Virgin ‎Group holds a
30% stake in Virgin Money.

“If you put us the Bank of England and the Treasury into a room
you would not find differences of view on basic planks of this. Do
we believe in open markets? Yes. Do we think it is to the benefit
of everybody, including the EU, that we have open markets? Yes. Are
we concerned about what we could call ‘narrow’ rule-taking? Well,
it would be a problem.” The FCA’s Andrew Bailey says mutual
recognition would suit everyone after Brexit.

FTSE 100: up +0.31 to 7,701.77
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US dollar: buys €0.8551 and £0.7479
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Oil: $76.48 down -0.31