15 October 2013 Last updated at 10:03

As it happened: Royal Mail began trading and morning news

Key Points

  • UK unveiled regulatory changes to help Chinese banks grow, and direct investment in China to begin from London.
  • Burberry chief executive Angela Ahrendts announced she would join Apple as senior vice-president for retail and online stores.
  • Royal Mail began official trading after an oversubscribed share sale.
  1.  
    0600: Pia Gadkari Business reporter, BBC News

    Good morning and welcome. We'll be bringing you the day's business headlines, as well as company results, economic data and the best of the BBC's business stories as they happen. You can get in touch by emailing bizlivepage@bbc.co.uk or tweeting @BBCBusiness.

     
  2.  
    0600: Anthony Reuben Business reporter, BBC News

    Good morning. Royal Mail shares begin official trading on the London Stock Exchange in two hours and there'll be plenty of other news to keep us busy, so stay with us until 10:00.

     
  3.  
    ROYAL MAIL 0603:

    Royal Mail begins trading officially on the London Stock Exchange at 08:00 BST. Here's a recap of what's been going on in the last few days: its shares were priced at 330p each, and rocketed to as much as 456p in unofficial trading on Friday. It reportedly made some further gains on Monday, so we'll be keeping a close eye on where the shares go next.

     
  4.  
    COMING UP 0609:

    At 07:00 there will be a report coming out from the UK's Competition Commission into whether there are problems with having four dominant accountancy firms. At 08:00 Royal Mail shares begin official trading. And at 09:30 we'll have the latest official inflation figures.

     
  5.  
    OSBORNE IN CHINA 0611:
    British and Chinese flags

    All this week we're reporting on UK Chancellor George Osborne's trip to China as he attempts to drum up trade. But do you know who led the first British trade mission to China in 1793? To find out, read this short history of Anglo-Chinese relations, by BBC News Channel presenter Carrie Gracie, who was the BBC's China correspondent in the 1990s.

     
  6.  
    TOP STORIES
     
  7.  
    US BUDGET CRISIS 0615: World Business Report

    The BBC's Rico Hizon in Singapore says Asian markets are currently betting that US law makers will soon strike a deal to reopen the government and avoid a default. Both the Nikkei in Tokyo and the Hang Seng in Hong Kong are up.

     
  8.  
    US DEBT CEILING 0616:

    In Washington DC there are signs of progress on the debt ceiling. Outlines of a deal under discussion are said to include funding the government until 15 January while raising the debt ceiling until early to mid-February. Harry Reid, the top US Senator, said "tremendous progress" had been made.

     
  9.  
    DANONE IN CHINA 0619:
    A Chinese consumer looking at baby milk formula in a store in China

    Dumex, a baby food brand owned by Danone, has said it will appoint new management following allegations of bribery in China. Last month, a report carried by China Central Television alleged the firm paid doctors to promote its products. Dumex said the claims were related to its sponsored programme on nutritional awareness in China, which it has suspended.

     
  10.  
    US DEBT CEILING 0621: Radio 4

    Lena Komileva, chief economist at G+ Economics, is discussing the US debt ceiling on the Today programme. Any deal agreed by the senators will have to be sent to the House of Representatives for a vote. "I don't think this is going to happen over the next two days. Markets will start to realise a short-term debt deal is politically impossible," she says.

     
  11.  
    BLACKBERRY 0622: World Business Report
    Blackberry

    There are renewed questions about the future of mobile maker Blackberry this morning. Silicon Vally analyst Larry Magid tells World Business Report that Blackberry "will survive for the foreseeable future. It's a question of when Blackberry will no longer be with us, but I think that's a few years from now."

     
  12.  
    ACCOUNTING INQUIRY 0623:

    At 07:00 the UK Competition Commission will be releasing a report on the accounting industry, looking specifically at why and how the four main firms failed to notice the mountains of liabilities banks were amassing on their balance sheets in the years leading up to the financial crisis. We'll unpick that report for you and bring you the best bits.

     
  13.  
    US DEBT CEILING 0624: Radio 4

    Also discussing the debt ceiling, Ewen Cameron Watt, chief investment strategist at the BlackRock Investment Institute says: "I think a bill would pass, there are 20-25 moderate Republicans who have said they would back such a measure. The question is whether the Speaker will allow the vote and that's a matter of political calculus."

     
  14.  
    US DEBT CEILING 0625:
    capitol hill

    As US lawmakers continue to try to hammer out a deal on raising the country's debt limit, the BBC's Mariko Oi takes a look in video at how a failure to do so may hurt millions of Americans who receive benefits such as social security and Medicare.

     
  15.  
    NOBEL PRIZE 0631:

    As we predicted yesterday, the Nobel Prize for economics did indeed go to Robert Shiller. He shared it with Eugene Fama and Lars Peter Hansen. Between the three of them, they worked on the theory that markets always behave efficiently, taking everything into account, and conversely that they don't!

     
  16.  
    IRISH BUDGET 0632: Radio 4

    Ireland will be unveiling its budget later today, and analysts are expecting to see about 2.5bn euros (£2.1bn; $3.4bn) of tax increases and spending cuts. Speaking on Radio 4, Conall MacCoille from Davy Asset Management, says these measures are needed to keep Ireland's debt level in check, because otherwise it could tip back to dangerous levels.

     
  17.  
    BLACKBERRY 0633:
    BlackBerry phones

    The embattled smartphone maker Blackberry has written an open letter to customers to reassure them about its future. The letter, due to be published on Tuesday, admits the firm is facing "challenging times", but adds that it is taking measures to tackle them.

     
  18.  
    ACCOUNTING INQUIRY 0647:

    About those big accounting firms - in July the UK Competition Commission suggested that auditors would have to bid against each other for business from major companies listed on UK stock markets every five years. Just so they don't get too cosy with each other.

     
  19.  
    ANOTHER TABLET 0648:
    Argos MyTablet

    UK retailer Argos has announced the launch of its own tablet computer, called the MyTablet, which it says it will sell for £100. It will be Bush-branded. It follows Tesco, which last month released its own budget tablet, called the Hudl.

     
  20.  
    ANOTHER TABLET 0652: Radio 5 Live

    On Wake up to Money on Radio 5 Live, Joanne Savage, head of Argos Own Brand, was asked if all tablets are basically the same. She said they weren't, but that the new Argos tablet reminded her of the iPhone 5. Way to sell the product!

     
  21.  
    UK / CHINA TRADING 0701: Breaking News

    Britain and China have announced that it will soon become easier to invest in Chinese stocks and bonds from London. Right now, foreign investors have to use middle men, based mostly in Hong Kong, to execute transactions but now up to 80bn RMB ($13bn, £8bn) will be able to be traded directly from London. We'll have more on this as the morning progresses.

     
  22.  
    ANGRY BIRDS 0703: Radio 5 Live

    Naz Cuevas from Rovio - makers of Angry Birds - has just been on Radio 5 Live Breakfast. She gave a rather terse no comment when asked about much-rumoured plans for a $4bn (£2.5bn) float. She also admitted that while she does have the game on her phone, she's not very good at it…

     
  23.  
    UK / CHINA TRADING 0707:

    It was also announced that the UK would remove regulatory barriers for Chinese state-owned banks to establish a business presence in the UK. The Financial Times reports that Beijing has long felt that regulators had made it hard for Chinese banks to grow in the UK.

     
  24.  
    ACCOUNTING INQUIRY 0708:

    The Competition Commission has published its final report on the accounting industry. It now says auditors only have to bid for major contracts every ten years, rather than every five years as originally proposed. Something of a victory for the big four auditing firms?

     
  25.  
    UK / CHINA TRADING 0711:
    UK Chancellor George Osborne and Chinese Vice-Premier Ma Kai

    UK Chancellor George Osborne said in a statement: "A great nation like China should have a great global currency. Today we agreed the next big step in making London - already the global centre for finance - a major global centre for trading and now investing the Chinese currency too."

     
  26.  
    ROYAL MAIL SHARES 0714:

    The stockbroker Hargreaves Lansdown has put out results this morning. It was heavily involved in the Royal Mail share offer. "The rules of the offer prevent us from immediately disclosing details of participation through Hargreaves Lansdown, but suffice to say it was immense," the statement says.

     
  27.  
    BURBERRY 0716:
    Angela Ahrendts

    Burberry has announced that Angela Ahrendts will step down as its chief executive by mid-2014 to take up a new position with Apple.

     
  28.  
    Via Twitter Sally Bundock Presenter, World Business Report

    #Eurostar continues to see healthy growth. Y-on-Y sales up 10% and passenger nos up 5%. I'll be talking to its CEO in 15 mins @BBCWorld TV.

     
  29.  
    BURBERRY 0725:

    Apple has said Angela Ahrendts will join them as the senior vice-president of retail and online stores. Apple chief executive Tim Cook said: "She places the same strong emphasis as we do on the customer experience. She has shown herself to be an extraordinary leader throughout her career and has a proven track record."

     
  30.  
    Via Twitter Adam Parsons Business Correspondent

    Have only just thought of Ahrendts: "From Burberry Mac to Apple Mac".

     
  31.  
    SO FAR THIS MORNING 0730:

    Good morning, folks. If you're just joining us, it's a maelstrom of news out there. The UK is making regulatory changes to help Chinese banks establish themselves in the UK, while China will allow traders in London to invest directly from here. A Competition report has recommended that accounting firms bid for work with major companies every 10 years, and the head of Burberry is heading to Apple.

     
  32.  
    BURBERRY 0737:
    Christopher Bailey

    Burberry has also announced Christopher Bailey, the label's chief creative officer, will succeed Angela Ahrendts as the next chief executive while still keeping his current position.

     
  33.  
    ACCOUNTING INQUIRY 0738:

    Laura Carstensen from the Competition Commission says forcing auditors to bid for contracts every 10 years is an important reform. "Currently a major company putting its audit out to tender remains unusual enough to be a news story," she says.

     
  34.  
    UK / CHINA TRADING 0739: Via Blog Robert Peston Business editor

    blogs that the agreement between the UK and China today should reduce the costs of investing in China via London - although the sums involved in this initial pilot are small.

     
  35.  
    Douglas Fraser Business and economy editor, Scotland

    tweets: OFT to investigate IT supply to public sector, to find ways to open up more effective competition in £13.8bn pa market

     
  36.  
    ROYAL MAIL SHARES 0743:

    Hargreaves Lansdown's statement says: "A minority of clients experienced a reduction in service around the Royal Mail Share Offer period primarily because of the sheer demand. We do not underestimate the inconvenience caused to some clients, and have apologised to clients who experienced delays."

     
  37.  
    SCOTTISH REFINERY STRIKE 0744:
    Grangemouth

    The Grangemouth refinery, the only one in Scotland, has started shutting down some of its processes ahead of a strike planned for this weekend. Talks are going on between the union and refinery operator Ineos, and are expected to resume this afternoon.

     
  38.  
    BURBERRY Adam Parsons Business Correspondent

    tweets: FTSE100 now has 98 male chief execs, and just two women.

     
  39.  
    BURBERRY 0750: Radio 5 Live

    Isabel Cavill from Planet Retail says on Radio 5 Live that Angela Ahrendts "has been at the heart of the turnaround at Burberry", that she embraced online sales and had taken control of the company's stores in China instead of using franchises.

     
  40.  
    ROYAL MAIL SHARES 0754: BBC Breakfast
    Steph McGovern

    BBC1 Breakfast's Steph McGovern is on a trading floor in Manchester for the official launch of Royal Mail shares. She got there pretty swiftly - she was doing the newspaper review on the sofa not long ago.

     
  41.  
    BURBERRY Via Twitter

    Reader @philballen tweets: @Burberry check wallpaper and screen savers here we come

     
  42.  
    ROYAL MAIL SHARES 0801: Stephanie McGovern Breakfast business reporter

    Royal Mail trading has begun! BBC1 Breakfast's Steph McGovern says the shares are rising.

     
  43.  
    ROYAL MAIL SHARES 0809:

    The Royal Mail shares are bouncing about a bit in early trading, but seem to be up at about £4.78 a share.

     
  44.  
    UK / CHINA TRADING 0816: Robert Peston Business editor

    blogs: The initial licence to invest directly in Chinese shares and bonds from London is likely to go to a bank, rather than a fund management group. I hear HSBC is in the frame to get the first licence.

     
  45.  
    US DEBT CEILING 0817:

    Investors have been selling their short-term US bond holdings by the billion, the Wall Street Journal reports. Apparently banks have also been selling their holdings, trimming by 50% over the last two weeks.

     
  46.  
    FEMALE CORPORATE LEADERS 0820:

    While we're on the topic of Angela Ahrendts and her move from Burberry to Apple, here's a roundup of a couple of other stories about female corporate leaders. Marissa Mayer at Yahoo has wooed advertisers, Reuters reports, while Stacy Snider, chief executive of Hollywood studio DreamWorks offers career advice at The Atlantic.

     
  47.  
    ROYAL MAIL SHARES 0820:
    Royal Mail logo

    You can check the Royal Mail share price on our market data pages by clicking here.

     
  48.  
    MARKETS UPDATE 0822:

    Time for a quick markets update: European markets have risen in early trading. The FTSE 100 is up about 0.25%, and the Dax in Frankfurt and the Cac 40 in Paris are both up about 0.4%. They have followed rises in the Asian markets overnight.

     
  49.  
    ROYAL MAIL SHARES 0824:
    Royal Mail share price graph

    Royal Mail shares are up to £4.82 in early trading on their first official day.

     
  50.  
    Via Twitter Brian Milligan Personal Finance Reporter, BBC News

    Have UK house prices reached a record high? We will find out today when the ONS releases figures at 0930

     
  51.  
    ROYAL MAIL SHARES Via Twitter Victoria Fritz Business reporter, BBC News
    Stock exchange screenshot

    tweets about the number of people selling their entire £750 Royal Mail stock allocation: "Popular capitalism in action. The public is dumping their entire stake this morning. Look at all those 227 trades"

     
  52.  
    BURBERRY Via Twitter Adam Parsons Business Correspondent

    tweets: Burberry shares down 5.5%. #Ahrendts

     
  53.  
    SO FAR THIS MORNING 0845:

    If you're joining us now, Royal Mail is up in early trading. Meanwhile, Burberry announced its chief executive was moving to Apple - triggering a bit of a tumble for that stock. And in China, Chancellor George Osborne said he will open the doors for Chinese banks to expand their footprints in the UK, and ease rules for investing in China.

     
  54.  
    BURBERRY 0852:
    Burberry executives interviewing each other on YouTube

    Burberry not giving any interviews today, but there is a slightly odd interview with Angela Ahrendts and the man who will replace her, conducted by the chairman of Burberry on YouTube. "I have such peace being able to exit stage left at this point," she says. No difficult questions there...

     
  55.  
    ALITALIA 0853:

    Shareholders of the troubled Italian airline, Alitalia, have unanimously agreed to a capital increase of 300m euros ($407m, £255m). They now have 30 days from 16 October to decide if they want to buy the new shares.

     
  56.  
    WHO NEEDS MONEY? 0855: World Service

    On Business Daily on the World Service, the BBC's Stephen Evans in Berlin has been speaking to a man called Rapael Fellmer who is trying to live without money. How does he do it? (A clue: it involves eating out-of-date biscuits).

     
  57.  
    ALITALIA 0901:
    An Alitalia plane preparing to land

    Alitalia shareholders also approved a plan for Poste Italiane to stump up 75m euros ($102m; £64m) - a proposal that has attracted accusations of protectionism - and Italian banks Unicredit and Intesa Sanpaolo could give about 100m euros between them. The airline said its senior management plans to resign once this goes through.

     
  58.  
    ROYAL MAIL SHARES Victoria Fritz Business reporter, BBC News

    tweets: "8 million shares traded in the 1st hour of public trading. Compared to over 100 million in conditional trade on Friday."

     
  59.  
    UK / CHINA TRADING 0910:
    HM Treasury infographic about UK China trading

    HM Treasury tweets: "INFOGRAPHIC: The UK as the global centre for investment in China - London & the #renminbi explained in 3 steps"

     
  60.  
    US RESULTS 0915:

    Looking ahead to the rest of the day, we're expecting a plethora of Q3 results from the US this afternoon. You can expect to hear from consumer goods firm Johnson and Johnson, beverage giant Coca Cola, as well as US bank Citigroup and tech titan Yahoo.

     
  61.  
    ROYAL MAIL SHARES 0921:

    Reader Natalie Ruggins from Sevenoaks emails: "I'm a first time investor! How exciting! A lot of people were talking about these shares and we are in the process of moving house so could do with a bit extra for the fees etc, so I thought why not? Sure bet isn't it? So now I'm just watching the market to see when to sell them!"

     
  62.  
    MALAYSIA'S MOBILE CLINICS 0925:
    A patient being looked after

    Over in Asia, the BBC's Jennifer Pak in Malaysia goes on the road to tell us how the country is responding to a growing need for elderly care.

     
  63.  
    ROYAL MAIL SHARES 0926:

    We've had a few messages like this one from Pete Rowe in Chester. He said in an email: "I applied for £2,000 of Royal Mail shares via the Government website. I got, like most people, £750 worth. I still haven't had any official confirmation of my allocation yet so I cannot sell them." We've asked the Treasury - they say they'll get back to us.

     
  64.  
    BROOKLYN NETS 09:29:
    Brooklyn Nets power forward Mason Plumlee

    Don't worry, BBC Sport hasn't hijacked our feed. Our latest Business of Sport story features an interview with Brett Yormark, chief executive of the Brooklyn Nets. A year ago the team moved home from New Jersey to New York. Has the move paid off?

     
  65.  
    UK INFLATION 0932:

    We've just had the latest inflation figures for the UK. CPI inflation was 2.7% in September, that's unchanged from the figure in August. The September inflation figures are the ones normally used to adjust benefits and some regulated prices.

     
  66.  
    ONS HOUSE PRICES 0934:

    UK house prices are up 3.8% over 12 months to August, according to the Office for National Statistics. Prices are rising faster in London than elsewhere.

     
  67.  
    UK INFLATION 0936:

    Excellent final question asked by the BBC's Simon McCoy to Philip Gooding from the Office for National Statistics on the BBC News Channel. "I know you have all the answers - is there anything I haven't asked you?"

     
  68.  
    ONS HOUSE PRICES 0938:

    In London, annual house prices went up by 8.7%. Prices were also driven up in the East Midlands (3.8%) and the West Midlands (3.5%), the Office for National Statistics said.

     
  69.  
    UK INFLATION Via Blog Paul Lewis Presenter, Money Box

    tweets: So basic state pension will be up £2.95 to £113.10 from April 2014 and other bits of it up 2.7%; married woman's class B up £1.80 to £67.80

     
  70.  
    ONS HOUSE PRICES 0943: Hugh Pym Chief economics correspondent, BBC News

    tweets: "ONS - Excluding London and the South East, UK house prices increased by 2.1% in the 12 months to August 2013."

     
  71.  
    UK INFLATION 0946:

    RPI inflation was 3.2% in September, down from 3.3% in August - it's way down the ONS release, but it's used to adjust some things like private pensions and index-linked bonds.

     
  72.  
    AMAZON TURNS 15 0955:

    On its 15th birthday, Amazon.co.uk has released a list of its most popular products. It turns out 8GB memory cards and HDMI cables are what keeps the multi-billion dollar company ticking over.

     
  73.  
    ROYAL MAIL SHARES

    Reader Dan Gee @geebus316 tweets: "Would love to be doing #business but I haven't received my #RoyalMail shareholder ref number! What do I do?" Still no answer from the Treasury.

     
  74.  
    1000:

    That's it for our Tuesday live page, and my, it has been busy. We've seen the opening hours of Royal Mail trading, heard the boss of Burberry is moving to Apple, and had news that Chinese banks will be expanding their UK presence thanks to regulatory changes in the pipeline. And, US senators reportedly moved forward in talks about a debt ceiling deal. Join us from 06:00 tomorrow for more action. Thanks for staying with us.

     

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