23 January 2014 Last updated at 05:57

Business Live: Day two in Davos, plus headlines

    0600: Edwin Lane Business reporter, BBC News

    Morning all. More Davos today, plus Manchester United might be ready to splash the cash on Juan Mata, but they've fallen down the pecking order of the world's richest clubs. Get in touch with us on that and the rest of the business stories on bizlivepage@bbc.co.uk or tweet us @BBCBusiness.

    0600: Ben Morris Business Reporter

    We have an impressive line up of chief executives from Davos today - we'll bring you the highlights of what they have to say. Plus there's been some weak data on the Chinese economy. Stay with the Business Live page.

    DAVOS 06:02: Radio 5 live

    On Wake Up to Money from Davos, eminent economist Professor Ken Rogoff says Europe has "sacrificed a generation" to maintain the stability of the euro. He is referring to the very high rates of youth unemployment in Europe. He says unemployment rates in Greece, Spain and Italy are reminiscent of the Great Depression in the United States.

    PLATINUM 06:03: BBC World News

    South Africa's platinum mines are braced for strikes today. Unions are staging a walk out at the three biggest mines as part of demands for higher pay. World Business Report says South Africa supplies nearly 75% of the world's platinum, and the strikes will cut production by half.

    BANK LENDING 06:07: Radio 5 live

    According to the banking industry group the BBA, seven out of 10 companies say they are getting the bank finance they need. On Wake Up to Money the BBA's Irene Graham says that firms need "more confidence" to approach banks for loans. She says that thousand of companies "think" about getting a loan but don't talk to their bank.

    DAVOS 06:10: BBC World News
    Richard Solomons

    Richard Solomons, the boss of InterContinental Hotels, is up early in Davos for interviews with the BBC. He tells World Business Report that China is the chain's second biggest market, with 200 hotels already and 200 more under construction. The growth of Chinese tourism is about "understanding their needs on the ground", he says.

    Mini production line

    Car production in the UK in 2013 rose to its highest level since 2007, according to the trade body the Society of Motor Manufacturers and Traders. The SMMT says production rose 3.1% from 2012. More than 1.5 million cars were made - that's one every 20 seconds.

    BANK LENDING 06:26: Radio 4

    Anthony Browne, chief executive of the British Bankers' Association, tells the Today programme that more businesses should appeal if their bank denies them a loan first time. He says banks will often overturn their decision, but businesses aren't appealing enough.

    FOOTBALL FINANCE 06:28: Radio 4

    Dan Jones from accountants Deloitte is on Today talking about their latest report into the finances of football clubs. Revenues are up at the richest clubs. Mr Jones says commercial revenues from things like shirt sales and sponsorship deals are outstripping money made from match day tickets and television revenues.

    CHINA ECONOMY 06:30:
    China steel plant

    China's manufacturing sector has contracted for the first time in six months according to a survey by HSBC. The bank's Purchasing Managers' Index (PMI) fell to 49.6 in January from 50.5 in December. A reading below 50 shows contraction.

    FOOTBALL FINANCE Via Twitter Adam Parsons Business Correspondent

    tweets: "Deloitte figures: football ticket prices are DOWN in real terms over the past five years. @bbc5live"


    Microsoft will allow foreign users to store data on servers outside the United States, according to the Financial Times. It says Microsoft considers the move necessary following revelations that US authorities have been monitoring data of foreign citizens. The software company would be the first big tech firm to make such a move.

    DAVOS 06:43: BBC World News

    At Davos the OECD is focusing on mental health in the workplace. Angel Gurria, its secretary general, tells World Business Report that managers sometimes "dismiss" mental health issues and such problems have been made worse by the financial crisis and the recession that followed.

    DAVOS 06:49:
    Matt Damon

    You can see our special coverage of Davos 2014 here. See articles from our reporters in Switzerland, picture galleries and, of course, the Business Live page.

    Manchester United

    Manchester United aren't just out of the Capital One Cup, they have also dropped out of the top three in Deloitte's football rich list. Real Madrid, Barcelona and Bayern Munich are the three biggest earners in world football. Big spenders Paris Saint Germain have risen to fifth.


    A US judge has recommended that Chinese units of the world's "Big Four" accounting firms should be suspended from auditing firms publicly traded in the US. It follows a ruling that the Chinese affiliates acted improperly when they withheld documents from fraud investigators. The suspension will not go into affect immediately and the accounting firms are appealing against the decisions.

    DAVOS Via Twitter Linda Yueh Chief business correspondent

    tweets: "Michael Spence Bob Shiller Ken Rogoff Jeffrey Sachs David Daokui Li - my hotel is a hotbed for Nobel Laureates & top economists #AM14 #Davos"

    Via Twitter Adam Parsons Business Correspondent

    tweets: "SSE CEO Alistair Phillips-Davies: "We have a clear appetite for reform..despite a difficult business environment...performance has bn solid""


    Five star hotels in China have asked to be downgraded to four stars in an effort to retain the business of Communist Party officials who have been told to appear more austere, the Financial Times reports. "The newfound humility of the hotel sector is the latest sign of Beijing's running battle with bling," the paper says.


    Markets in Asia have reacted badly to figures suggesting China's manufacturing sector contracted in the last month. Tokyo's Nikkei index fell into the red following the figures, and is now down 0.8%. The Hang Seng in Hong Kong is down 1.5%.


    A trading update from Easyjet. It expects to report a loss of between £70m and £90m for the six months to 31 March. That's a bigger loss than last year, but Easyjet says that's because Easter falls in April rather than March this year.

    DAVOS Via Twitter Sally Bundock Presenter, World Business Report

    tweets: "We'll have more from #Davos2014 in 5 mins. I'll be speaking to Rich Gelfond, CEO of IMAX, about their big push into China."

    DAVOS 07:35: Radio 4

    The BBC's Linda Yueh is in Davos and has been talking to delegates about the territorial dispute between China and Japan. Carlos Ghosn, the boss of carmaker Renault-Nissan, tells her the business community wants the two countries to sort it out. "The present situation is a waste of opportunity for both countries," he says.

    Premier League badge

    The Premier League has told the BBC it's taking legal action against up to 100 pubs across England and Wales that it suspects are illegally showing matches using foreign satellite channels. The first prosecution will be against a pub in Swansea in the next few weeks.

    CINEMAS 07:48: BBC World News
    Richard Gelfond

    Richard Gelfond, the boss of the cinema company Imax, is speaking from Davos about the amazing growth he's seeing in China's cinema market. "We pretty much didn't have any presence in China until 2005, and now we have 130 cinemas open and will have about 400 in five years," he says. "That will make it our largest market in the world."

    UK RATES 07:50:

    Citigroup forecasts that the Bank of England will raise interest rates in the final three months of this year. Previously it was forecasting a rise for the second quarter of 2015. In a research note Citigroup cites "high economic growth, the rapid drop in unemployment and less likelihood that guidance will be reset with a lower threshold".

    UK RATES 08:01: Radio 4

    If the economy continues to strengthen there is a "reasonable chance" that interest rates could rise by the end of the year. So says Sir John Gieve, former deputy governor of the Bank of England on the Today programme.

    PREMIER LEAGUE 08:19: Radio 5 live

    Dan Johnson from the Premier League is on 5 live. He says that pubs and clubs who pay to broadcast premier league football are "fed up" with rivals who are buying cheaper foreign services.

    DAVOS 08:19:

    The BBC's Davos studio, complete with decorative trees, has been busy with world leaders and policy wonks over the first day of the World Economic Forum. Catch up with what they have been saying with this video.

    PREMIER LEAGUE 08:25: Radio 5 live

    On 5 live a pub landlord complains that big pub chains can buy licences to broadcast Premier League football at cheaper rates than independent pubs. He says landlords are forced to buy foreign football feeds just to compete.


    Pearson - the publisher that owns Penguin Random House and the Financial Times - has seen its shares fall 6.5% in London this morning after it issued a profits warning. It says 2013 earnings will be lower because of higher-than-expected restructuring costs.

    DAVOS Via Twitter

    From Davos, economics professor Nouriel Roubini tweets: "The UK is open for business...as usual? As it goes back to the old broken growth model based on housing, consumption, debt & finance #wef14"

    MOBILE CONTRACTS 08:42: BBC Breakfast

    The BBC's Moneybox presenter Paul Lewis is on the Breakfast sofa talking about mobile phone and internet contracts. Consumers now have new rights allowing them to switch away from companies who put their prices up midway through a "fixed" contract. He explains "fixed" means fixed-term, not necessarily fixed-price.


    The FTSE 100 fell a bit at the open this morning, but is now back in positive territory, up 0.1%. The Dax in Frankfurt is flat and the Cac 40 is up 0.3%. In Asia the Nikkei has closed down 0.8% and the Hang Seng in Hong Kong ended 1.5% lower.

    DAVOS Via Twitter Linda Yueh Chief business correspondent

    tweets: "Spoke to Russia Deputy PM Arkady Dvorkovich who says given $5bn in aid to Ukraine so far, eased gas transport payments, commercial loans too"

    DAVOS Via Twitter Linda Yueh Chief business correspondent

    tweets: "Russian deputy PM also says long-term #oil prices at $90-100 per barrel, budget set using $90 (vs Nigeria FinMin who sets benchmark $77.50)"

    CAR PRODUCTION 09:01: BBC News Channel

    Mike Hawes from the Society of Motor Manufacturers and Traders tells Ben Thompson that strong car production figures show that the UK is still seen as a "very competitive place to build cars". He says car makers committed £2.5bn for investment in car production last year.

    UK RATES 09:11:

    Bank of England MPC member Paul Fisher has poured cold water on suggestions that interest rates could rise soon. "Even if the 7% unemployment rate threshold were to be reached in the near future, I see no immediate need for a tightening of policy," he said in a speech, the text of which has just been released.

    DAVOS 09:18:

    Iranian President Hassan Rouhani is addressing the World Economic Forum at Davos right now. You can watch it live here.

    SPAIN ECONOMY 09:22:
    Spanish flag

    The Bank of Spain said the economy grew by 0.3% in the fourth quarter of 2013. That is the second quarter of expansion after more than two years of recession. But unemployment edged higher to above 26%.


    Some encouraging news from the eurozone this morning - flash PMI data just released suggests the private sector grew for a seventh consecutive month in January. Markit, which compiled the data, said the rate of growth was the fastest since June 2011.

    DAVOS 09:36: BBC World News

    Colin Dyer, boss of global real estate firm Jones Lang La Salle, tells the BBC in Davos that the atmosphere at the conference is one of "calm confidence". He says talk of a property bubble is overstated. He says we are only three to four years into a seven-year upswing in the property cycle.

    UK RATES Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "Paul Fisher, Bank of England official: altho close to unemployment target "some way from start to base rate rise". Then "only gradually""


    The world's richest football clubs are bringing in more money than ever, but where does it all come from? Deloitte's football finance expert Dan Jones explains all to the Today programme's Simon Jack.

    BANK LENDING 10:01:

    Business people are contacting the BBC, rejecting the banking industry's claim that loans are freely available. Paul Webb from Cardiff emails: "Any discussions on loans for expansion spark tedious, condescending discussions which ultimately result in no finance being provided."

    DAVOS 10:10:
    Luis Alberto Moreno

    At Davos, the boss of the Inter-American Development Bank, Luis Alberto Moreno, says we should expect more mass protests in Brazil ahead of World Cup in June.

    TOYOTA SALES 10:21:
    Corolla production line

    Toyota confirmed its position as the world's biggest car maker after announcing sales of 9.98 million vehicles last year. GM takes second place with sales of 9.71 million. For 2014, Toyota forecasts sales of 10.3 million vehicles.

    DAVOS 10:29:
    Better decisions

    In Davos, the BBC's Emily Young has been to a session called "'Making Better Decisions". Apparently "meetings with self" are important, as is allowing time before and after meetings for "bandwidth space". Got that?

    LENOVO DEAL 10:42:

    It is being described as the biggest ever technology acquisition by a Chinese company. PC maker Lenovo is paying $2.3bn (£1.4bn) for an IBM business that makes data storage equipment. In 2005, Lenovo became the world's biggest PC maker after buying IBM's computer division.

    Via Twitter Emma Simpson Business correspondent, BBC News

    tweets: "Gov to investigate claims that some of Britain's top Employment Agencies have been mis-selling insurance to thousands of workers."

    DAVOS 10:51:
    Graduates in 1936

    Is higher education a waste of money? Anthony Reuben looks for an answer in this feature from Davos.

    DAVOS 11:00: Via Email Anthony Reuben Business reporter, BBC News

    writes from Davos: "I've just had the refugee experience for rich businessfolk. Watch this space..."

    DAVOS 11:09: BBC World News

    Russia has issues with transparency and efficiency. That's according to Kirill Dmitriev, chief executive of the Russian Direct Investment Fund, speaking to World Business Report from Davos. Nevertheless he says his fund has been able to invest $3.6bn into the Russian economy over the last two years.


    It's a mixed day on the financial markets. The FTSE 100 has fallen back again, and is now 0.1% lower. The Dax in Frankfurt is up 0.2% while the Cac 40 in Paris is down 0.2%. In Asia the Nikkei has closed down 0.8% and the Hang Seng in Hong Kong ended 1.5% lower, after worrying economic data out of China.

    NOKIA RESULTS 11:38:

    Nokia has just reported a 22% fall in sales at its network equipment unit - that's the part of the business that will still be left after it sells its mobile handset business to Microsoft.


    Shadow Business Secretary Chuka Umunna has named six employment agencies accused of mis-selling insurance to low-paid workers: Blue Arrow, Acorn, Taskmaster, Randstad, Meridian and Staffline.

    LISTEN AGAIN 11:51: World Service

    Today's Business Daily from the World Service speaks to the man who manages the Palestine Stock Exchange, asks why Scotland needs Bangladeshi-style microfinance, and profiles the dying profession of the cinema projectionist. Download the podcast now.

    BUSINESS LENDING 11:56: Via Email

    We've had plenty more correspondence on the subject of business lending by banks. Mike in Huntingdon emails: "The banks are willing to lend but what is not discussed is the cost of that lending. As a small business I can get a loan but will be paying some 9-10% interest costs. It's the extortionate rates they are charging that is putting small businesses off."

    DAVOS 12:01: Via Blog Robert Peston Business editor

    blogs from Davos: "The other thing which really worries all the spectacularly wealthy people here is how they are becoming so much wealthier, minute by minute, than the world's poor."

    DAVOS 12:08: Anthony Reuben Business reporter, BBC News
    Azerbaijan-sponsored bus

    writes from Davos: "Every year at the World Economic Forum there is a country trying really, really hard to raise it's profile. This year it's Azerbaijan, which has sponsored the local buses. Yesterday evening, I'm afraid I missed the reception held by SOCAR - Energy of Azerbaijan, so I can't tell you anything more about it. Sorry."

    NASHVILLE 12:21:
    Music venues in downtown Nashville

    Better known for music, Nashville is reinventing itself as a technology hub. Find out how and why in this feature from Jill Martin.

    Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "Newspaper websites: Mailonline +41% to 161m unique monthly users in Dec: Guardian +24% to 85m: Telegraph +8% to 61m"

    CADBURY 12:31: BBC News Channel

    Chocolate maker Cadbury has announced a £75m investment in its main Bournville site. The BBC's Bob Hockenhull says unions seem happy that the factory is going to be updated and hope it will secure its long-term future. Quite a turnaround from 2010, when there were fears of large-scale job losses after the takeover by US food giant Kraft.


    Pearson shares are leading the market in London lower. Shares are down almost 8% after it warned over profits. Overall the FTSE 100 is down 0.2%. The Dax in Frankfurt is down 0.3% and the Cac 40 is flat.

    NEWSPAPERS Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "Newspaper websites: Mailonline +41% to 161m unique monthly users in Dec: Guardian +24% to 85m: Telegraph +8% to 61m"

    DAVOS 12:51: BBC World News
    Robert Shiller

    From Davos Nobel prize winning economist, Robert Shiller, says that house prices bubbles "make no sense". At the moment he says house prices in Brazil and New Zealand look "bubbly".

    PENSIONS 12:59:

    The pensions minister Steve Webb has retreated somewhat from his planned "full frontal assault" on pensions charges. He's now said any cap on charges won't come in for at least a year.

    13:09: Pia Gadkari Business reporter, BBC News

    Good afternoon everyone. I'll be your live page host until 18:00, so Ben and Edwin can give their fingers a rest. There's plenty more coming out of Davos, so stay with us. And do get in touch at bizlivepage@bbc.co.uk or tweet @BBCBusiness.

    REFUGEE RUN 13:22:
    Refugee Run

    Earlier this morning Anthony Reuben, our man in Davos, went through a "refugee simulation experience". Organised by the Crossroads Foundation and actually run by aid workers and former refugees, the Refugee Run is supposed to give the well-heeled guests at Davos a flavour of what it's like to be penniless and powerless. Here's his report of the unsettling experience.

    INCOME INEQUALITY Via Blog Robert Peston Business editor

    blogs from Davos about income inequality: "Part of the prescription to roll back the tide of inequality would be... better education for all, better access to affordable finance for all. Which is neither controversial or desperately original, although that somehow doesn't mean we are galloping towards an egalitarian future."

    DAVOS 13:49:
    Greenpeace symbolic killing of polar bears

    Greenpeace has brought its fight against Arctic oil drilling to Davos. In a symbolic move, campaigners wearing polar bear costumes were "killed" in a fake oil spill, in an effort to raise awareness about the environmental hazards of exploiting the far north.

    DAVOS Via Twitter
    Iranian President Hassan Rouhani with interpreter at a press briefing in Davos

    BBC presenter Mishal Husain tweets from Davos about a press briefing with Iranian President Rouhani: "He doesn't tweet himself, says his friends do it (Picture via @KaiDiekmann) #wef14"

    DAVOS 14:14:
    Screengrab from Newsnight Davos statistics video

    BBC's Newsnight has got a fantastic video on key statistics the intellectual elite attending Davos should know. I really recommend watching it. This stat really jumped out at me: in 1980, Africa accounted for 7.5% of world output, and Asia 7.6%. Today that's changed to 7.6% for Africa and 26% for Asia.

    DAVOS Via Twitter

    The BBC's Emily Young in Davos tweets: "Sitting down to work with Goldie Hawn in the office and the WTO DG. Only in #Davos"

    DAVOS 14:39:
    Goldie Hawn at Davos

    Here's Goldie Hawn as she arrived for her interview with the BBC World. We'll bring you snippets of what she said through the afternoon.

    DAVOS 14:59:

    We're listening to an address from Enrique Pena Nieto, president of Mexico. He opens with an affirmation of Mexico's democratic principles, and its place as the second economy in Latin America (after Brazil). He says Mexico's debt is 38% of GDP, and it is a young country with favourable demographics.

    DAVOS 15:10: BBC World News
    Roberto Azavedo on BBC World

    Roberto Azavedo, director general of the World Trade Organization, has told the BBC that bilateral trade agreements do not undermine the relevance of the WTO, in fact, they can make it easier for the countries that form the "core group of decision-makers" to agree with each other. "Whatever they discuss, at the end of the day, will have to be harmonised somewhere," he says.

    DAVOS 15:20: BBC World News

    Roberto Azavedo, director general of the World Trade Organization, dismisses concerns that member countries of the World Trade Organization should fear any challenge to their sovereignty. All members have a voice, because anyone can block the process. "That makes the process a lot more difficult, no doubt, but it also makes it a lot more legitimate," he says.

    DAVOS Via Twitter

    BBC cameraman John Boon tweets: "Not often you come to get your camera kit, bump into Ban Ki Moon on the stairwell and find Goldie Horn perched on your flight case. #davos"

    Mobile phone with earphones

    Telecoms advice group Cable.co.uk has released some figures charting the decline of the British landline telephone. They say more than 60% of landline users are over 65 years old, and that 62% of people aged 16-45 say they never use their landlines at home. Mobile call volumes overtook landlines in 2010.

    IRAN AT DAVOS 16:02:
    Iranian President Hassan Rohani addresses Davos World Economic Forum

    Iranian President Hassan Rohani is sending a message simply by being at Davos - it's the first time an Iranian leader has attended the forum in a decade. Correspondents say he's predicted Iran could join the world's top 10 economies in about 30 years if sanctions were lifted and economic relations with the rest of the world became normal. The FT's Gideon Rachman has more details about the leader's visit.

    INTEREST RATES 16:15: Anthony Reuben Business reporter, BBC News
    Mark Carney

    Bank of England governor Mark Carney has told BBC Newsnight that even though unemployment has dropped to nearly 7% there is "no immediate need to increase interest rates". Joblessness has come down about two years faster than the Bank predicted it would, but Mr Carney said, "If our forecast is going to be wrong it's better to be wrong in that direction."

    DAVOS 16:33:
    Matt Damon

    Matt Damon is speaking to Jon Sopel on BBC World - he's discussing his initiative Water.org. The actor says water scarcity is overhyped. With agriculture, "if you could make it 2% more efficient, that would cover these 780 million people who lack access" to safe drinking water, he says.

    DAVOS Via Twitter

    BBC presenter Mishal Husain tweets from Davos about her interview with Ban Ki Moon: "UN SG in BBC intv: 'Pres Rouhani made v positive statement on nuclear issue, wld have been great to have similarly positive one on Syria'"

    DAVOS 16:54:

    US Treasury Secretary Jack Lew is on the couch at the World Economic Forum. He's talking about economic sanctions against Iran. "The reason for the sanctions was to bring Iran to the table," he says, adding that it was an appropriate action to take. He reminds businesses about getting friendly with Iran since those sanctions are still in place.

    DAVOS 16:59: Anthony Reuben Business reporter, BBC News
    World Economic Forum's cow bell

    writes from Davos: "I keep seeing a man wandering round the Congress Centre ringing a cow bell. I finally asked why he was doing it. It turns out he does it to announce that a plenary session is about to start. Glad that's clear now."

    DAVOS 17:11:

    Today's plenary session at Davos is about the US economic outlook. Panellists include US Treasury Secretary Jack Lew, US Trade Representative Michael Froman and Penny Pritzker, the US Secretary of Commerce. She says: "The US is in a pretty terrific position, relatively speaking." She adds, "Innovation is abounding in the United States."

    DAVOS 17:14: Anthony Reuben Business reporter, BBC News
    Matt Damon

    Matt Damon has just walked into the BBC office in Davos, which is causing a certain amount of excitement. Professionalism is being maintained...

    Kofi Annan

    Former UN Secretary General Kofi Annan is speaking to the BBC from Davos about migration policy. "Above all we must... not accept some of the scenes we have seen in Lampedusa or Malta where people die in hundreds in the sea. And when we send out officers they must have clear instructions to save those at risk, not instructions to prevent them from landing."

    DAVOS 17:41: Anthony Reuben Business reporter, BBC News

    writes from Davos: "I've been wondering where the World Economic Forum finds all the people to staff its annual meeting. I found out where some of them come from. Twenty-six of the ushers are stewards and stewardesses on loan for the week from the national airline Swiss."


    The Economist, which makes fantastic charts every day, has an especially insightful Davos-by-numbers graphic today. According to their analysis, the Davos "hobnobbers" are overwhelmingly middle-aged, European men. And Harvard graduates.

    DAVOS Via Twitter Norman Smith Chief political correspondent, BBC News Channel

    tweets: "PM tells my colleague Robert @Peston - "we need to be patient" over recovery and people feeling they are better off #Davos"


    That's all for tonight from the live page. We're back at 06:00 tomorrow, when the forum at Davos continues with an address from Bank of England governor Mark Carney. See you then.


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