28 January 2014 Last updated at 05:46

Business Live: UK GDP figures plus headlines

  1.  
    0600: Edwin Lane Business reporter, BBC News

    Good morning everyone. It looks like a busy day this morning. Those growth numbers from the UK are expected to be pretty positive. Get in touch with us at bizlivepage@bbc.co.uk or tweet us @BBCBusiness.

     
  2.  
    0600: Ben Morris Business Reporter

    We'll find out how the UK economy performed in the final months of last year with the latest GDP figures at 09:30. Also there were some disappointing results from Apple. Stay with the Business Live page.

     
  3.  
    UK GROWTH 06:04: Radio 5 live

    Ahead of this morning's UK growth figures, Wake Up to Money holds a discussion on the economy. Business investment is a concern - Katja Hall from the CBI says it's not high enough, but she thinks it will pick up. Lesley Batchelor from the Institute of Export says a lack of investment is becoming a real issue, particularly for exporters because going into a new market requires time and money.

     
  4.  
    APPLE RESULTS 06:07:
    iPhone

    Apple has disappointed some analysts with its iPhone sales and reported no growth in profits for the three months between October and January. Apple said it sold a record 51 million iPhones, but set a lower sales outlook for 2014. It's shares fell in after-hours trading in the US last night.

     
  5.  
    APPLE RESULTS 06:10: BBC World News

    The BBC's North America technology correspondent Richard Taylor tells World Business Report that questions are being asked about the sustainability of growth at Apple. Analysts say the company needs to innovate and produce real game changing products if they are going to stay on top of their game and products like an Apple watch or television are being rumoured, he says.

     
  6.  
    RBS LOSSES 06:11: Radio 5 live
    RBS HQ

    Wake Up to Money discusses the further losses at RBS with Alex Potter, banking analyst at Mirabaud Securities. He says the idea of selling off RBS any time soon sounds like "pie in the sky". But he thinks there is a good bank hiding in the middle of RBS and at some stage the "little diamond" will be revealed.

     
  7.  
    RBS LOSSES 06:21: Radio 4

    Colin McLean from SVM Asset Management tells the Today programme that we still haven't drawn a line under the problems at RBS, following the losses announced last night. But he says we shouldn't give up on getting our big taxpayer investment back. "Once things start going right it could happen quicker than you think," he says.

     
  8.  
    ROYAL FINANCES 06:27:
    Queen Elizabeth II

    "Queen down to her last million" reads a headline on the front page of today's Daily Telegraph. It picks up on a report by the Commons Public Accounts Committee which found that the Queen's advisers were failing to control her finances. Royal palaces are "crumbling" the Telegraph report says.

     
  9.  
    UK GROWTH 06:30: Radio 4

    More discussion of the economy ahead of growth figures later. Economist Ruth Lea says it's "an old-fashioned consumer-lead recovery", backed by the housing market. She says we shouldn't be too worried that investment has yet to pick up. "Investment always does lag on growth," she says. "I always thought it was bizarre that the government thought it could have an investment-led recovery."

     
  10.  
    UK GROWTH 06:36:

    For those that like numbers, analysts are expecting growth of 0.7-0.8% in the final three months of last year. That would mean annual growth in 2013 was 1.9-2%, the strongest since 2007.

     
  11.  
    BITCOIN 06:41: BBC World News
    Benjamin Lawsky

    Could this be a game-changing moment for virtual currencies? Later, New York's department of financial services is holding hearings on the regulating the use of Bitcoin. Samira Hussain speaks to head regulator Benjamin Lawsky, who sees Bitcoin's potential in things like remittances. "Bitcoin has the potential of bringing the cost [of sending money abroad] way down," he says.

     
  12.  
    CHINA 06:50: Radio 4
    China flag

    The Chinese are building cities that no one lives in and roads to the Gobi Desert that no one drives on, according to Charles Dumas from Lombard Street Research. He tells Today that China is facing an economic crisis, with wage inflation rising, increasingly uncompetitive exports and high debt levels. He says the Chinese need to sort it out now or it could "blow up very nastily".

     
  13.  
    SNOOPING 06:55:

    US and UK security services are trying to exploit weaknesses in smartphone apps (like Angry Birds) to gather data, according to the Guardian. It has seen top secret papers documenting agencies' efforts to "scoop-up" data from such software.

     
  14.  
    UK GROWTH 07:03: BBC Breakfast
    Jeremy Cook

    Steph McGovern is reporting from a cold Smithfield market in Manchester, where they are selling wholesale fish, fruit and vegetables. Jeremy Cook, economist at World First, is standing amid the pak choi, and says inflation is low at 2% but wages are only going up by half that, so until that changes "people won't be feeling the benefit of the recovery in their back pocket".

     
  15.  
    EASTENDERS 07:14:
    Actors Danny Dyer and Kellie Bright

    Albert Square could be in for a little gentrification according to the Guardian. It quotes EastEnders producer Dominic Treadwell-Collins who says the programme has been "frozen in aspic for too long". The article says that the influence of east London hipster hangout Shoreditch could be seen in the show in the future.

     
  16.  
    ACCOUNTANTS 07:16:

    The merry-go-round of the "big four" accountancy firms continues this morning. British Land has announced it has appointed PricewaterhouseCoopers as its auditors, replacing Deloitte. Last month Deloitte replaced PwC as Marks & Spencer's auditor of choice. The switches come amid greater scrutiny of the relationships between firms and their accountants.

     
  17.  
    UK GROWTH 07:20: Radio 5 live

    There is a "new normal" of relatively disappointing growth in the UK, Andrew Sentance, former member of Bank of England's Monetary Policy Committee, tells 5 live. He says growth is unlikely to return to rates seen before the 2008 financial crisis of 3% and above. He says that the "rebalancing" of the economy towards manufacturing is not coming through.

     
  18.  
    INDIA RATES 07:28:
    Rupees

    In a move that surprised many analysts India's central bank raised its main interest rate by 0.25% to 8%. The central bank said it was concerned over rising prices, particularly for services. "The central bank continues to confound markets," said Dariusz Kowalczyk from Credit Agricole in Hong Kong.

     
  19.  
    TOP STORIES
     
  20.  
    GM CHIEF 07:37:
    Mary Barra

    Mary Barra, the first female chief executive of General Motors, has been given the honour of sitting next to Michelle Obama when the Barack Obama delivers his State of the Union Address later. Yesterday Ms Barra was in Germany visiting GM's Opel division. She stressed her support for the struggling unit.

     
  21.  
    BRITISH LAND 07:40:

    British Land, which invests in commercial property, has also reported a strong rise in occupancy, particularly in London's financial district. "We saw increased interest in our office space in London, notably in the City," said Chris Grigg, chief executive.

     
  22.  
    SMARTPHONES 07:52:
    iphone sales

    Research firm IDC says more than a billion smartphones were shipped last year, but Apple's rival Samsung extended its lead as the world's biggest vendor. Apple is second, and then there's a big gap before China's Huawei in third.

     
  23.  
    RBS LOSSES 07:55: Radio 4

    Business editor Robert Peston tells the Today programme that taxpayers are probably heading for a loss of around £10bn on their stake in RBS. Chief executive Ross McEwan told him that the priority was making RBS a "very good bank" rather than turning a profit for taxpayers.

     
  24.  
    F&C TAKEOVER 08:01:

    F&C Asset Management has agreed to a takeover offer from Bank of Montreal. It is offering £708m for F&C which operates the world's oldest investment trust.

     
  25.  
    RBS LOSSES 08:06: Radio 4

    Robert Peston says the losses at RBS are "definitely not over". He cites the ongoing investigation into alleged foreign exchange manipulation as well as further potential fines related to the Libor scandal.

     
  26.  
    ROYAL FINANCES 08:08: Radio 5 live
    Queen Elizabeth

    More on the Queen's finances: Jenny Bond, former BBC royal correspondent, tells 5 live she's heard the "Queen's broke" story countless times over the years. Jenny says there is "plenty of money knocking around" and notes the sovereign grant is heading towards £40m a year. She also says the Queen is "pretty frugal".

     
  27.  
    IKEA RESULTS 08:20:
    IKEA store Paris

    The world's biggest furniture retailer, IKEA has posted a 3.1% rise in full-year net profit to 3.3bn euros (£2.7bn). "Consumer spending is improving in many countries," IKEA chief executive Peter Agnefjall said in a statement. IKEA plans to double sales by 2020.

     
  28.  
    MARKETS UPDATE 08:25:

    A quick check on the markets. The FTSE 100 is currently 0.3% higher. Germany's Dax is up 0.7% and the Cac 40 in Paris is up 0.6%. The Nikkei in Tokyo has closed down 0.2% and Hong Kong's Hang Seng ended 0.1% lower.

     
  29.  
    CARPETRIGHT WARNING 08:34:

    Carpetright has issued its second profits warning in four months. It blamed poor trading in the Netherlands. Analysts had been expecting pre-tax profits of about £9-10m for the year.

     
  30.  
    INDIA RATES 08:46:
    Sameer Hashmi

    More on India's surprise rise in interest rates. BBC business reporter Sameer Hashmi says food prices have been falling, which is why economists were not expecting the increase. But he says the move shows that India's central bank will tackle inflation - even at the cost of growth.

     
  31.  
    STATE OF THE UNION 08:55: BBC Breakfast

    Rajini Vaidyanathan reports from Washington ahead of US President Barack Obama's State of the Union address later. She says dealing with income inequality is set to be a major theme. The rate of child poverty has gone up since the president came to power, she says.

     
  32.  
    FRENCH PLUMBERS 09:05:

    One plumbing firm in west London is advertising for two French-speaking plumbers to deal with an increasing number of people moving to London from France to escape higher taxes, according to the Telegraph. Francois Hollande's government won approval for a 75% "millionaire" tax rate late last year.

     
  33.  
    UK ECONOMY 09:13: Radio 4

    Rob Marshall, a director at web design company Purpose Media in Derby tells Today business does not feel better than a year ago - although his company has been hiring staff. Meanwhile James Ramsbotham, chief executive of the North East Chamber of Commerce, says manufacturing is doing well. Both want to see better and cheaper broadband connections.

     
  34.  
    WIND TURBINES 09:23: Radio 4

    Simon Jack temporarily forgets the phrase "wind turbines" and calls them "windmills" on Today. He was interviewing the boss of Scottish Power Renewables, which is opening one of the UK's biggest off-shore wind farms of the coast of Barrow-in-Furness. Keith Anderson admits the project is expensive, but costs are coming down.

     
  35.  
    UK GROWTH Via Twitter Ben Thompson Business correspondent, BBC News Channel

    tweets: "What is GDP and why does it matter? Great explainer from the @BBCBusiness team here - http://www.bbc.co.uk/news/10613201"

     
  36.  
    UK GROWTH 09:30: Breaking News

    UK economy grew 0.7% in fourth quarter as expected. 2013 growth rate 1.9%.

     
  37.  
    UK GROWTH 09:35:

    Output increased in three of the four main sectors of the economy in the last three months of the year, the Office for National Statistics says. But the worst performer was construction, which shrank 0.3%.

     
  38.  
    UK GROWTH 09:38:
    Joe Grice

    "For the last year or so, the economy does seem to have a better tone than in previous years", says Joe Grice from the ONS. But he won't be drawn on where the economy might be going. "We find it hard enough to predict the present," he tells the BBC's Emma Simpson at the press conference.

     
  39.  
    UK GROWTH 09:43: BBC News Channel

    The BBC's Ben Thompson points out that the economy is still 1.3% smaller than it was before the recession despite this morning's positive figures.

     
  40.  
    UK GROWTH 09:48:

    Deputy Prime Minister Nick Clegg has responded to the GDP figures. "Our economy is moving in the right direction," he says "But we must finish the job fairly, with further investment in jobs outside London and by cutting taxes for working people."

     
  41.  
    UK GROWTH Via Twitter Hugh Pym Chief economics correspondent, BBC News

    tweets: "Services sector 1.3% above previous peak, but manufacturing 8.2% lower than peak, construction 11.2% lower"

     
  42.  
    UK GROWTH 09:53:

    Following the growth figures Chief Secretary to the Treasury, Danny Alexander said: "To ensure the recovery is long term and sustainable, we need business to invest now. UK Plc is sat on over £500bn of cash. 2014 needs to be the year of 'Invest in Britain'."

     
  43.  
    STERLING 10:01:
    Sterling

    The pound slipped immediately after the growth figures came out, but recovered. It is currently trading 0.1% higher at $1.6596.

     
  44.  
    MARKETS UPDATE 10:09:

    The FTSE 100 jumped slightly in response to the GDP figures at 09:30. It's now up 0.4%. Germany's Dax and the Cac 40 in Paris are both up 0.7%. Earlier the Nikkei in Tokyo closed down 0.2% and Hong Kong's Hang Seng ended 0.1% lower.

     
  45.  
    UK GROWTH 10:15: BBC News Channel

    Economist Chris Williamson from Markit says he wouldn't be surprised if the ONS eventually revises up its growth figure for 2013 to closer to 2%. He says the construction sector probably did a lot better in reality than the 0.3% contraction reported today. He says the ONS doesn't have a lot of hard data on December's economic activity yet, so revisions are likely.

     
  46.  
    UK GROWTH 10:21: BBC News Channel

    "This is only sustainable if we see business investment," says Nick Pearce from the Institute of Public Policy Research. Meanwhile BBC reporter Dave Harvey in Cheltenham at a factory making high-tech bits of machinary. They are investing in a new production line and creating half a dozen new jobs.

     
  47.  
    NAZI APOLOGY 10:36:
    Perkins

    81-year-old Silicon Valley venture capitalist Tom Perkins has apologised after he appeared to compare the current backlash against the rich "1%" to the persecution of the Jews in Nazi Germany. His complaints about "the progressive war on the American 1%" appeared in the Wall Street Journal over the weekend.

     
  48.  
    LISTEN AGAIN 10:45: World Service

    Big fat Indian weddings are on the menu on the Business Daily podcast today. No one spends proportionally more on a marriage than an Indian. But with spiralling inflation and falling growth, how big and fat can they get? And what does all this expenditure, on gold especially, mean for the nation's troubled finances? Download the podcast here.

     
  49.  
    UK GROWTH 10:54:
    Ed Balls

    Shadow chancellor Ed Balls says it's good to have some growth back after three years of flat-lining. But he says for many people this isn't a recovery at all because the standards of living are continuing to fall. "We've got a lot more work to do to ensure we've got a recovery that is built to last," he says.

     
  50.  
    UK GROWTH 11:14: BBC News Channel

    Norman Smith, chief political correspondent says there is cautious mood music coming from the government over the latest economic growth figures. Speaking on News Channel, he says the government is aware that many people are not feeling the recovery and he says it is also conscious that further budget cuts ahead could create difficulties.

     
  51.  
    UK GROWTH 11:25: Via Blog Robert Peston Business editor

    blogs: "Although most would say that after the long years of contraction and stagnation since the Crash, any recovery will do, we cannot yet bank on the durability of this one."

     
  52.  
    FLOOD COSTS 11:35:
    Devon and Somerset Fire and Rescue Service

    Floods over Christmas and New Year have resulted in £426m worth of insurance claims. The Association of British Insurers says it had 174,000 claims for damage to homes, businesses and cars. Councils have already estimated that they will have to spend £400m on mending roads.

     
  53.  
    MINIMUM WAGE 11:44:
    The President at work

    In his State of the Union address President Obama will announce an increase in the minimum wage for workers under new federal contracts to $10.10 an hour. The President will also renew his call for Congress to increase the national minimum wage to the same level and tie future increases to inflation. The current minimum wage is $7.25 an hour.

     
  54.  
    UK GROWTH 11:59: BBC News Channel

    On the News Channel, Duncan Weldon, senior economist at the TUC says: "Normal growth for the UK is 2.5% and there's not much evidence that wages and standard of living are improving." He adds: "Productivity is very weak, because the service sector is bigger and there are more people in lower productivity work." He describes that as "quite worrying".

     
  55.  
    UK GROWTH Via Twitter Emma Simpson Business correspondent, BBC News
    ONS press conference

    tweets this picture: "Just back after fighting my way into ONS presser on GDP. pic.twitter.com/WFi4uYaYGX"

     
  56.  
    LLOYDS JOBS 12:19:

    Lloyds Banking Group is going to cut more than 1,000 jobs and outsource more than 300 roles, the Unite union says. We're getting a statement from the bank in a moment.

     
  57.  
    LLOYDS JOBS 12:25:

    Lloyds Banking Group have confirmed that about 1,080 jobs are going in its retail, risk, operations and commercial banking divisions as part of 15,000 job cuts it announced in June 2011 as part of a strategic review. A further 310 roles are being outsourced, and 90 new roles are being created, the bank said.

     
  58.  
    FORD PROFITS 12:33:
    Ford sign

    Ford has reported stronger than expected results for the fourth quarter. It reported a net income of $3bn (£1.8bn). Strength in the North American market offset losses in Europe and South America.

     
  59.  
    Via Twitter Kevin Peachey Personal finance reporter, BBC News

    tweets: "Deadline for tax returns is the end of Friday. HMRC says that 2.5 million forms are not in yet http://ow.ly/t1CmY "

     

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