11 February 2014 Last updated at 05:28

Business Live: 11 February 2014

    06:00: Joe Miller Business Reporter

    Good morning, and welcome to Tuesday's business live page. I'll be here until 13:00 with news about plans to launch an independent banking standards body, the cost of cleaning up the nuclear waste at Sellafield and more. You can get in touch by emailing us at bizlivepage@bbc.co.uk or tweeting @bbcbusiness.

    0600: Ben Morris Business Reporter

    Good morning. We should get more detail about Barclays results today, including the size of the bonus pool. Also more from the Singapore Air Show.

    BANK BONUSES 06:00: BBC World News

    "There is a a completely different attitude towards bonuses in the UK compared to the United States," says Christopher Wheeler, Banking Analyst at Mediobanca on World Business Report. He says US investment banks are free to pay what they like, without the media and political outcry that surrounds big payouts in the UK. Later today he expects Barclays to reduce the total size of its bonus pool because revenue at its investment bank is, in his opinion, likely to fall by 9%.

    BANKING STANDARDS 06:05: Radio 5 live

    On Wake up to Money, Sir Richard Lambert, head of the Banking Standards Review and former editor of the Financial Times, explains his proposals for a new independent body to oversee the industry. "I don't think this is going to change the universe overnight, but it's part of the bigger picture". He says he wants to drive out incentives that tempt bankers to make "short-term, dodgy deals".

    SINGAPORE AIR SHOW 06:07: BBC World News
    Sinagpore Air Show

    "The duopoly of Boeing and Airbus is over," says Randy Tinseth from Boeing Commercial planes at the Singapore Air Show. He says there's enough growth in the industry for Airbus, Boeing and one or two other competitors. "The question is - who will be successful," he says on World Business Report.

    ONLINE POUND SHOPS 06:09: Radio 5 live

    On Wake up to Money, Donna Baker talks about her online pound shop, Hereforapound.com, launched last week. Discount stores have been big winners recently, with one survey suggesting that almost half of us have shopped at a one this year. The best-selling product? "Definitely batteries," says Donna.

    BANKING STANDARDS 06:13: Via Blog Robert Peston Business editor

    blogs: "There is growing political pressure for much more active engagement by regulators in approving all products they (banks) sell and in setting prices."

    BANKING STANDARDS 06:15: Via Twitter Simon Jack Business correspondent, BBC News

    tweets: "Here is consultation paper with 19 questions on how to build review body that will improve banking: http://www.bankingstandardsreview.org.uk/assets/docs/consultation-paper.pdf … "

    UK GROWTH 06:28:

    The CBI, which represents some 240,000 businesses, says the UK economy is starting to see the right kind of growth. "Our forecast shows encouraging signs that business investment and net trade are starting to play their part," says CBI boss John Cridland, adding that there is not a "debt-fuelled, housing bubble-led recovery".

    BANKING STANDARDS 06:31: Radio 4

    Richard Lambert, Interim Chair of the Banking Standards Review Body is back, this time on the Today Programme. He says the idea of the new organisation is to collectively set standards. He does not want a "cosy comfort blanket", instead it needs to be run by "serious people" who have the public's trust. He has not yet asked the investment banking industry to sign up, but is talking to them.

    NEW DIAMOND 06:36:

    Former Barclays boss Bob Diamond, who resigned after the Libor scandal, is now looking to invest in Africa, Bloomberg reports. His firm aims to make a number of acquisitions in financial-services companies within a year. "My interest in Africa is long standing," Diamond says.

    INTEREST RATES 06:42: Radio 4

    "Ending Help-to-Buy is a no-brainer," says Danny Gabay, co-director Fathom Consulting on the Today Programme. He was discussing how authorities, including the Bank of England, should respond to the economic recovery. He says forward guidance needs to be manipulated so people expect rising interest rates.

    NUCLEAR WASTE 06:46:

    The cost of decommissioning and reprocessing at the Sellafield nuclear site are soaring to £70 billion. That's according to the Public Accounts Committee, which says the Nuclear Management Partners (NMP) consortium, which runs the site, has overseen huge cost overruns and delays on projects. Sellafield was the site of Britain's worst nuclear accident in 1957.


    The FT leads with the story that British and Dutch authorities are filing a lawsuit to recover losses made after the collapse of Icesave. Savers at the Icelandic bank lost their money at the height of the financial crisis in 2008. The two countries want Iceland's bank guarantee fund to come up with £5.6bn in compensation, after their respective governments reimbursed savers through their own domestic deposit schemes.

    BARCLAYS BONUSES 07:17: Breaking News
    Barclays sign

    Barclays total bonus pool increased by 10% to £2.38bn in 2013. At the investment bank, the bonus pool rose even more - by 13% to £1.57bn. And that was despite income at the investment bank falling by 9% to £10.7bn.

    BARCLAYS BONUSES 07:33: Via Twitter Robert Peston Business editor

    tweets: "Barclays' profits down 32% to £5.2bn, but bonuses and incentive awards are up 10% to £2.4bn. So incentives to do what exactly?"

    BARCLAYS BOSS 07:37:
    Antony Jenkins

    Antony Jenkins, Group Chief Executive of Barclays, is on the Today Programme and is asked to justify a rising bonus pool while income is falling. He says the bank is competing for talent worldwide and the bonuses reflect that. He says it's in the best interest of shareholders for Barclays to compete for the best people.

    L'OREAL BUYBACK 07:46:

    There was speculation yesterday about what Nestle would do with its more than 30% stake in the world's biggest cosmetics firm, L'Oreal. Well today L'Oreal has confirmed that it will buy some of those shares, equivalent to an 8% stake at a cost of $9bn.

    BARCLAYS BONUSES 07:48: Via Twitter Adam Parsons Business Correspondent

    tweets: "Would love to know how much Barclays would boost bonus pot if profits and income actually increased"

    BARCLAYS BONUSES 07:57: Radio 4

    Listen to Antony Jenkins on the Today programme defending Barclays' bonus increases. "We pay for performance," he said.

    Janet Yellen

    The new head of the US Federal Reserve, Janet Yellen, will testify before the House Financial Services Committee later today. It will be her first public remarks since taking on the role. Investors will want to know how committed she is to winding down the Fed's monetary stimulus programme.

    ALIBABA DEAL 08:10:

    China's biggest e-commerce firm, Alibaba, is looking to takeover map company AutoNavi in a bid to expand its business ahead of an expected listing in the US. Alibaba has offered to buy 72% of the company, in an all-cash deal valued at about $1.6bn (£1bn). If it goes ahead, the purchase would be one of the company's biggest acquisitions so far.

    TUBE STRIKES 08:21:

    The Federation of Small Businesses (FSB) is warning that the Tube strike in London, due to start later today, will cost businesses millions of pounds. The FSB says the industrial action, which will last 48 hours, threatens economic growth. Jon Allan, the FSB's chairman, said "the ripples could be felt outside London".


    French cosmetics company L'Oreal is the top winner on the Cac-40 index in Paris this morning. Its shares are up by more than 2% after an announcement that it is buying back an 8% stake in the company from Nestle. Overall, the FTSE 100 is up nearly 0.4%, the Dax in Frankfurt is up 0.5% and in Paris the Cac-40 is up 0.3%.

    BARCLAYS JOB LOSSES 08:33: Breaking News
    Barclays sign

    Barclays has confirmed it is cutting 10,000 to 12,000 jobs this year. Its UK operations will account for 7,000 of those losses.

    LEGO MOVIE 08:40:
    Character from The Lego Movie

    In 2003 the Danish toy maker Lego was close to collapse, but now it's booming. "The Lego Movie" has become a huge success in the US box office. Dan Lin, producer of the film, tells the Today Programme: "At a cultural level it has taken the country by storm. Kids are singing the theme song of the movie." He also says that the movie is appealing to girls, who have not traditionally been as keen on Lego sets as boys.

    BARCLAYS JOB LOSSES Via Twitter Ben Thompson Business correspondent, BBC News Channel

    tweets: "More detail on 12,000 Barclays job cuts: 820 are senior manager roles, 400 of which are at investment bank."

    Nathan Fielder

    The mystery surrounding a spoof Starbucks cafe in Los Angeles appears to have been lifted. Comedian Nathan Fielder is behind the "Dumb Starbucks" stunt. Mr Fielder appeared in person at the store where he said there are plans to open a second outlet in Brooklyn, New York. The cafe was reportedly shut down by authorities on Monday for "operating without a valid public health permit".

    THOMAS COOK 09:03:
    Thomas Cook

    British holiday operator Thomas Cook cut its losses by £10m in the last quarter of 2013. That's despite losing many bookings for Egyptian holidays due to unrest there. The company is in the midst of an overhaul and has sold off Preston-based Gold Medal, a supplier of long-haul flights, hotels and car hire for £45m.


    Barclays' shares have slipped by 1.2% this morning, following the announcement of its full-year results. The bank's pre-tax profits fell to £5.2bn, and it is cutting up to 12,000 of its staff in the coming year.

    Via Twitter Paul Lewis Presenter, Money Box

    tweets: "If you have strong views on banks why not respond to Sir Richard Lambert's consultation on raising standards? http://goo.gl/fEa6Kw"

    BARCLAYS BONUSES 09:23: Via Blog Robert Peston Business editor

    blogs: "I lost count of the number of times Antony Jenkins said he wanted Barclays to be the 'go-to' bank"


    Northern Ireland suffered the steepest fall in living standards during the recession. That's according to a new report by the Resolution Foundation, a left-wing think tank. It found that between 2008 and 2013, those in Northern Ireland were worse off by as much as 10%, while the UK average was just 5.8%.

    NUCLEAR WASTE 09:41:

    The Public Accounts Committee (PAC) has described clean-up costs at Sellafield nuclear site in Cumbria as "astonishing". The amount spent on cleaning up the facility has risen from £67.5bn to £70bn. Margaret Hodge, who chairs the committee, said the cost is likely to continue to rise.

    Michelin HQ, Clermont Ferrand

    French tyre maker, Michelin has reported a 28% fall in net profit in 2013 to 1.13bn euros (£940m). Chief executive Jean-Dominique Senard blamed "an uneven market environment". During 2014 Michelin expects demand to expand quickly in emerging markets and is forecasting a continued recovery in mature regions. Michelin shares are up almost 2% in Paris.

    News Channel

    "From the outside it simply looks wrong", says William Wright, Investment Banking Columnist at Financial News on News Channel. He was responding to the expansion of Barclays' bonus pool, made while profits are falling. William also said it's significant that 400 senior executives from the investment bank are losing their jobs. He says the investment bank has been "mis-firing" badly and this is a "desperate attempt" to boost profitability.


    Barclays shares are the biggest losers on the FTSE-100 this morning, down 3%. But overall the FTSE-100 is making healthy gains, up 0.8%. In Paris the Cac-40 is up almost 0.8% and in Frankfurt the Dax is up more than 1%. Daimler shares are the big winners there, up 2.4%.

    FRANCE'S WOES 10:30:

    France's national auditors are warning that the country must do more to cut spending. The public accounts court said the country runs a "significant risk" of overshooting its budget deficit target for 2013. The target was set at 3.6% of GDP this year.

    FLAPPY BIRD 10:49:
    Flappy Bird

    More on the demise of the Flappy Bird app. The designer of the wildly popular game decided to withdraw it, saying that the huge attention it received was ruining his simple life. Now Forbes is reporting that he also felt the game was "addictive". Dong Nguyen told Forbes: "Flappy Bird was designed to play in a few minutes when you are relaxed."

    Via Twitter Richard Westcott BBC transport correspondent

    tweets: "Net Rail tell me..storm damage since Dec over £100m and 4000 rail staff have worked on flood problems in past month #ukstorm"


    The Institute of Directors has made some strong comments about Barclays results. "It cannot be right in any business for the executive bonus pool to be nearly three times bigger than the total dividend pay out to the company's owners," said Roger Barker, Director of Corporate Governance at the IOD. "The question must be asked - for whom is this institution being run?", he added.

    RBS BOSS 11:21:
    Les Matheson

    Les Matheson will keep his position as head of RBS' retail bank, after an internal reshuffle. He has been the acting head since September 2013, taking over the role on an interim basis after Ross McEwan became the group's chief executive.

    GREEK BONDS 11:36:

    Greece is looking to return to international bond markets. The country, whose default in 2012 prompted the eurozone crisis, says re-entry would highlight its economic health. Greece has yet to exit its international bailout programme.

    WOMEN LEADERS 11:44: World Service
    Sheryl Sandberg

    Would the world be a more productive place if women were in charge? Business Daily features a debate on this issue, chaired by the BBC's Linda Yueh. Panellists include IMF boss Christine Lagarde, Facebook's Sheryl Sandberg and Carlos Ghosn of Renault-Nissan.

    Britannia Building Society

    Britannia Building Society would have failed had it not been taken over by the Co-operative Bank in 2009. That's what Andrew Bailey, the Bank of England's deputy governor, has been telling a Treasury Select Committee. The Britannia deal has been identified as a major factor in Co-op Bank's subsequent problems.


    Tesco and Morrisons saw declining sales in the 12 weeks to 2 February, according to a new report. Kantar Worldpanel says Morrisons dropped 2.5% on the same period last year, while Tesco dropped by 0.4%. However discount retailers Aldi and Lidl soared, with the former increasing its sales by 32% on the year before.


    Barclays' shares continue to head lower, now they are down almost 7%. Banking analyst Alex Potter, told the Business Live page that if you add up all Barclays' proposed cost savings, it is still "a long way shy" of a decent return. To make that up Barclays will have to boost its revenues and according to Alex it's not clear how that is going to happen either.

    YELLEN EFFECT 12:41:

    Gold has hit a three-month high and global shares have been rising in anticipation of Janet Yellen's first speech to US Congress. The newly appointed head of the Federal Reserve will layout the central bank's latest thinking. It appears the markets are not expecting any nasty shocks.

    Barclays, Canary Wharf

    Could this be a first? Banking bonuses criticised by other bankers? Market analyst Louise Cooper said that analysts listening to the conference call with the Barclays boss were "perplexed" and "disappointed" by pay rises at the investment bank. In a research note she said: "There was much scepticism that the investment banking unit could ever achieve decent returns for shareholders given so much of the profits were given to staff!"

    SCOTTISH INDEPENDENCE Via Twitter Robert Peston Business editor

    tweets: "Barclays boss Jenkins tells me his bank can live perfectly well with independence, and won't take a view on whether good or bad for UK"

    13:00: Joe Miller Business Reporter

    That's it from the Business Live page today. Join us from 06:00 tomorrow when we'll be looking at the Bank of England's quarterly inflation report, and Manchester United's results.


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