11 April 2014 Last updated at 05:58

Business Live: Friday 11 April 2014

    06:02: Rebecca Marston Business reporter, BBC News

    Good morning. Another Co-op fest awaits. Oh dear.

    06:02: Joe Miller Business Reporter

    We'll try and bring you some other business news too, not least some of the analysis behind yesterday's US stock market slide. Get in touch on bizlive@bbc.co.uk and @bbcbusiness.

    CO-OP BANK 06:03: Radio 5 live

    Chris Wheeler, banking analyst at Mediobanca, is talking to Wake Up to Money about the Co-op bank results, which we expect at 7am. He expects £1.2bn - £1.4bn loss, attributable to bad assets, like Britannia.

    CO-OP BANK 06:07: Radio 5 live

    The FT's headline is that the Co-op Bank will "refuse to pay bonuses to former executives", namely Neville Richardson and the recently departed Euan Sutherland. "I'm not sure they have the legal right to do that," says Chris Wheeler. I'm sure we'll hear more on that as the morning unfolds.

    BANK SWITCH 06:20: Radio 5 live

    Teach a man to switch... and hundreds of thousands follow. A new scheme to make switching easier has encouraged more than 600,000 people to change their banks. David Black, a banking expert at research group Consumer Intelligence, tells Wake Up to Money that switching "shouldn't affect" your credit score, but occasionally does.


    Shares in Japan are on the slide again this morning. The Nikkei is down 2.3% at just under 14,000. The prompt for this is the fall in share values in the US last night. Fears that tech stocks are overpriced are again haunting the market. Last night the Nasdaq finished down 3.1%.

    NFL IN LONDON 06:48: Radio 5 live

    The US's most popular sport is in the midst of an export drive, as it tries to tempt "soccer" fans to what the Yanks call "football" (see picture). Chris Parsons, senior vice president of NFL International, says "international markets offer us a tremendous opportunity for new revenue". With all three London games sold out, we're inclined to agree.

    CO-OP BANK 07:00: Breaking News

    Co-op Bank has just reported it made a £1.3bn loss last year.

    CO-OP BANK 07:00: Breaking News

    The Co-op Bank also announced it will not pay out £5m to former executives who left when the bank faced collapse. Niall Booker, the Co-op's chief executive, will receive a £2.9m pay package and long term incentive payments of £1.2m - dependent on the performance of the bank.

    UKRAINE GAS 07:12:
    Jack Lew

    Russia's finance minister has been talking to US Treasury secretary Jack Lew. Anton Siluanov told Mr Lew Moscow was concerned about Ukraine's unpaid gas bill. He added that he was ready to work with international partners on securing financial aid for Kiev.

    CO-OP BANK 07:18: Radio 4

    "It's bad news, but all bad news is relative," says the BBC's business editor Kamal Ahmed on Today. Most of the losses are down to the bank's bad assets, but "the core bank, the bit on the high street... they claim that is operating well".

    CO-OP BANK Via Twitter Adam Parsons Business Correspondent

    tweets: "Richard Pym, Co-op bank chairman: 'I apologise that customers, investors and colleagues were let down so severely.'"

    FRIDAY BOSS 07:33: Radio 4

    The owner of the San Francisco 49ers, one of the most successful American football teams, is speaking to Simon Jack on Today. Dr John York's team have won the Super Bowl five times. He explains there is a salary cap in the NFL, to "ensure a level playing field" - and the previous season's worst team always get to pick players first. "Not very American," as Simon comments.

    CO-OP BANK 07:42:

    The Co-op has a long history. Read all about it in the BBC's comprehensive guide.

    LOW FLYING 07:56:

    Almost six million passengers passed through Heathrow in March 2014, down 2.8% on the same month last year. This is partially due to the fact that Easter falls in April this year.

    DEAR GEORGE 08:08:

    The chairman of the Treasury select committee, Andrew Tyrie, has written to George Osborne. He asks the chancellor to clarify what contact he and other Treasury officials had with interested parties during the bungled sale of 600 Lloyds branches in 2012. He complains a previous response by Mr Osborne "lacked detail". Unlike his succinct letter.

    Via Twitter Adam Parsons Business Correspondent

    tweets: "Number of people with Co-op accounts is actually up. But the value of deposits is notably down, as it the loan income"


    Slightly scary stuff from Gillian Tett in the Financial Times. Sub-prime loans - lending to people with poor or no credit worthiness - that proved so toxic in 2007 are back and being used to fund car buying in the US. Car loans have jumped by a quarter in three years, she says, with sub-prime quality now accounting for a third. Should we be worried? Perhaps.


    And they're down - again. The FTSE 100 is lower by 0.75% at 6591.9. The Dax in Frankfurt is down 1% at 9359.25. In Paris, the Cac 40 is down 0.9% at 4373.49. Earlier Japan's Nikkei closed down 2.4% - perhaps because of the Japanese recovery which means an end to easy and cheap money.

    FRIDAY BOSS 08:47: Radio 4

    For those interested... the 49ers (the boss of which was on the Today programme earlier) are named after those who came to San Francisco in the gold rush of 1849.

    CO-OP BANK 09:00: Radio 4

    Peter Hunt, chief executive of Mutuo - a consultancy for mutuals and co-operatives - is on Today. He says despite Co-op Bank's announcement that it would withhold bonuses to former executives, the bank is still awarding "pretty boggling" pay to the incumbents. Co-op members will expects results soon, he says. Mr Hunt should know - he was general secretary of the Co-operative Party for ten years.

    CO-OP BANK Via Twitter Adam Parsons Business Correspondent

    tweets: "Notable that Niall Booker gets £140k PER MONTH as a "fixed role allowance". Presumably to avoid the bonus cap."

    CO-OP BANK 09:06: Radio 4

    Lord McFall, a Labour Co-operative peer, tells Today he thinks the Co-op Group should still invest in the beleaguered bank. "If you break it you own it," he says, blaming bad management and a lack of leadership at the top of the group for the bank's misfortunes. "Not only did they sell the crown jewels, but they vandalised them," he adds.

    BOTTLE UP 09:15:

    The Scotch Whisky Association has given us its latest health check on exports. They are up 3% to 1.3 billion bottles, with a total value of £4.3bn. That's a quarter of Britain's food and drink exports. The Chinese are losing their thirst for a wee dram though - exports to the country are considerably down.

    UK CONSTRUCTION FALLS 09:33: Breaking News

    Construction output in the UK fell by 2.8% in February - down by £270m compared with the month before. There were falls in both sub-sectors with new work falling 2.6% (£160 million) and repair & maintenance falling 3.1% (£110 million).


    Those figures are from the Office for National Statistics, and are seasonally adjusted. However the industry's long term growth is slightly better, with a 0.3% increase in work over the three months to the end of February. You can read the full report here.

    Finance Minister

    In a rare interview, the German finance minister Wolfgang Schaeuble told the BBC's Tanya Beckett Europe is on the path to recovery, but it would be wrong to assume the crisis is over. The "average deficit of all EU member states has halved," he said. But, he warned, "the most risk is always complacency".


    More from Mr Schaeuble on Europe's economy. "Nobody sees any real signs for deflation," in either the eurozone or Germany, he says. He doesn't think investors are waiting for prices to go down.

    THE ECONOMIST 10:12:
    The Economist

    Well this is really something. Those reading the print edition of the Economist this week will be missing out on a all-singing, all-dancing online story on "the slumps that shaped modern finance". If this is the future of online journalism, we're excited.

    SCANIA TRUCKS 10:27:
    Scania truck

    Swedish truck maker Scania reports healthy first quarter earnings. Scania is majority owned by Volkswagen, which wants to take over the whole company. Operating earnings were about 12% higher, rising to 2.26bn Swedish crowns (£206m).

    UKRAINE GAS 10:40:
    Ukraine gas pipes

    Ukraine's energy minister says the country needs to buy gas from Europe. Yuri Prodan says he hopes they will be able to strike a deal with Germany's RWE and a French gas company. He says they need it urgently. This week Russia threatened to cut off gas supplies to the country. Ukraine gets almost all its gas from Russia.

    UKRAINE GAS 10:50:

    If Russia shuts down gas supplies to Ukraine, that will mean an interruption to supply to Europe, too. Warwick Business School's Professor of Global Energy, Michael Bradshaw, says this could backfire on Russia: "The Russian government can ill afford the long-term loss of market share and the associated revenues from gas sales to Europe that would follow."

    CO-OP BANK 11:01:

    The Unite union is asking the Co-op Bank not to make deep jobs cuts. Unite's national officer, Rob MacGregor said: "Staff are being asked to make sacrifices and over 1,000 staff have already lost their jobs. In order to give the bank a sustainable recovery the Co-op is going to need motivated and loyal staff, so we urge the bank to protect jobs for the long-term".


    Europe's share markets have finally decided on a direction after two weeks of barely any movement. Unfortunately the direction is down. All markets are well over 1% lower. The FTSE 100 is down 1.35% at 6552.35. The Dax in Frankfurt is down 1.67% at 9297.12. In Paris, the Cac 40 is down 1.35% at 4353.84. Earlier Japan's Nikkei closed down 2.4%.

    SAMSUNG RELEASES S5 11:25: BBC World News

    Samsung's Galaxy S5 smartphone goes on sale globally today. The company's profits are declining as it competes in an increasingly crowded market. Luke Mansfield, Samsung's head of innovation for Europe, told the BBC "at every price point we need to have the best phone". But, he says, "looking at competition is the wrong approach" - Samsung are more customer focused, apparently.

    CO-OP BANK 11:37:

    The Co-operative Bank has apologised to customers: "We appreciate that customers and other stakeholders continue to feel angry about how past failings placed the future of the business so seriously at risk. I would like to apologise to them, to thank them for their continued loyalty and to thank colleagues for their commitment during such difficult times," said chief executive Niall Booker.

    BANG & OLUFSEN 11:51:
    Bang and Olufsen heaven

    Super luxury audio equipment and television maker Bang & Olufsen reports third-quarter results. It has narrowed operating losses and says it thinks it will break even this year. The stylish firm promises "a strong pipeline of new products in the coming quarters". Sounds good.


    Athens may be unusually quiet for the German chancellor Angela Merkel's visit to the Greek capital today. Police have banned protests across most of the city. Protestors are making their presence felt as best they can from outside the cordon, accompanied by 5,000 police.

    Via Twitter James Cook Scotland Correspondent, BBC News

    tweets: "Alex Salmond says the SNP can build a prosperous & just society. 'What a year! What an opportunity!'"

    JP MORGAN 12:15: Breaking News

    The US's biggest bank, JP Morgan Chase, reports a 19% drop in first-quarter profit. A fall in securities trading is partly responsible. Net income fell to $5.3bn.

    CHINA PRICES 12:23:

    China's consumer price index, which measures the cost of products, was up 2.4% in March, compared with the same period last year. This is also an increase on the 2.0% in February. The government says the rise is driven by higher food prices.


    An unlikely partnership announcement hits our inbox. Insurers AXA are joining forces with Facebook to "to further develop its digital, social and mobile footprint in France and globally". Quite what this means in practice, we are left to guess.

    LISTEN AGAIN 12:42: World Service

    Business Daily features more of that exclusive interview with German finance minister Wolfgang Schaeuble, who talks about Europe's blighted economies. And Tanya Beckett reports from Poland - 25 years after communism's fall.


    Half of the world's population now lives in cities - and that's set to rise to two-thirds by 2050. Yet cities are vulnerable to the worst impacts of climate change because their locations are fixed. As the UN's climate panel meets in Berlin, our science editor, Paul Rincon, asks what might be done to protect them.

    Via Twitter Aaron Heslehurst Presenter, World Business Report

    tweets: "1/3 Price of US cheese has hits record high! Why? 1 big reason - Sth Korean's love for #pizzz. Korean's imported 25% more in 2013 than 2012" Spotted, Aaron.

    12:57: Rebecca Marston Business reporter, BBC News

    It's tatty bye from Business Live. See ya. Next week. From 06:00.

    12:58: Joe Miller Business Reporter

    Thanks for sticking with us on this Co-op heavy week. Come back on Monday, please.


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