16 May 2014 Last updated at 05:17

Business Live: Friday 16 May 2014

  1.  
    06:00: Ben Morris Business Reporter

    Good morning. Co-op Group's annual general meeting is on Saturday, but you can expect programmes to look ahead to it today. And Google is already receiving requests to have outdated information removed from search results. Much more on that on the Business live page.

     
  2.  
    06:00: Howard Mustoe Business Reporter

    Morning! Get in touch with us via Bizlivepage@bbc.co.uk or on twitter @BBCBusiness

     
  3.  
    CO-OP GROUP 06:06: Radio 5 live

    Co-op Group holds its annual general meeting on Saturday. There is due to be a vote on reforming the group. It follows a scathing report by Lord Myners, who said Co-op Group's board is "manifestly dysfunctional". On Wake Up to Money Patrick Gray, president of Midcounties Cooperative says there needs to be a new management team at the top of the group. It should be small, experienced, and be able to make "some very difficult decisions".

     
  4.  
    CO-OP GROUP 06:11: Radio 5 live

    More from Patrick Gray, president of Midcounties Co-operative. He thinks reforms will be passed at Saturday's AGM. Members of the Co-op Group's board are ready to take "radical action", he says. Co-op Group needs to pay off its debt and form a smaller board, that can convince banks that it's now being run in an "efficient way", says Mr Gray.

     
  5.  
    GOOGLE RULING 06:17: Radio 5 live
    google logo

    Google has received requests from people who want their personal information removed from its search engine, following a ruling by the European Court of Justice earlier this week. On Wake Up to Money Rob Enderle, a technology analyst in San Francisco, says Americans would like to have the same kind of power to remove outdated information. At the moment they pay for "reputation management" firms to "clean-up messes" on the internet.

     
  6.  
    NEW FA CUP 06:24: Radio 5 live
    FA CUP

    Kevin Baker, chief executive of Thomas Lyte, is on 5 live talking about the new FA cup. His silver smithing company has been appointed to make it. Is it a frightening prospect? "It's not frightening, it's a great honour," he says. His company has been restoring the current trophy for the last 18 years. A new trophy is needed because of the rough and tumble it has to endure when it's won, he says.

     
  7.  
    DIXONS DEAL 06:36: Radio 5 live

    Shares in Dixons and Carphone Warehouse fell sharply on Thursday after they announced details of their merger plan. On Wake Up to Money James Bevan, chief investment officer at CCLA Investment, says the market has got that wrong. There are "huge opportunities" for the combined business to do well, he says. He highlights cost savings and says the combined companies should be able to get better deals from suppliers like Samsung and Sony.

     
  8.  
    EU TRADE DEAL 06:46: BBC Radio 4

    Karel De Gucht, the European Commissioner for Trade, talked to Today about plans for a free trade agreement between Europe and the US. "I believe it will really give a boost to both our economies because you are going to establish a real level playing field. This gives a tremendously big home market to all small and medium sized companies in the US and the EU," he said.

     
  9.  
    06:52: Simon Atkinson Editor, India Business Report
    Mumbai

    Emails from outside the stock exchange in Mumbai: Crowds gathering here on election results day. Cheering as the markets gallop higher, the Sensex up more than 4%, but more loudly for every seat it looks like the opposition BJP will win.

     
  10.  
    E.ON PENALTY 07:05: Breaking News
    eon logo

    Energy giant E.On is to pay a £12m penalty following an investigation into mis-selling by the industry regulator, Ofgem. Ofgem describes it as the biggest supplier payout to consumers, as the £12m will flow back to customers. The regulator has carried out a series of mis-selling probes, and in December imposed a £3.5m penalty on Npower.

     
  11.  
    E.ON PENALTY 07:17:

    Some heavy criticism from Ofgem for E.On's mis-selling. The regulator says E.On failed to train sales staff properly. Management also paid "insufficient attention" to rules around selling. As a result a third of million of E.On's most vulnerable customers will receive £35 each.

     
  12.  
    KENYA TOURISM 07:24:
    Tourists queuing at Moi airport check-in

    Tour operators, Thomson and First Choice have cancelled all flights to Mombasa until October. Customers already on holiday in Kenya are being flown back. It follows a warning from the Foreign Office that there was a "high threat" from terrorists in the country.

     
  13.  
    HEADLINES
     
  14.  
    KENYA TOURISM 07:30: Radio 5 live

    "This is a very strange one," says Simon Calder, travel editor of the Independent, speaking on 5 live. He is referring to those tour operators flying tourists home from Kenya. Mr Calder says the Foreign Office did not include Mombassa airport or tourist areas of the coastline when it raised its risk alert for Kenya. He says that Kenyan authorities are "extremely upset".

     
  15.  
    INDIA ELECTION Via Blog Linda Yueh Chief business correspondent

    "The more important factor in raising India's growth isn't the change in government, but the implementation of reforms. That will likely to be the true test of a Modi government as a country isn't nearly the same thing as running a state."

     
  16.  
    SWISS VOTE 07:45: BBC Radio 4

    Switzerland votes this weekend on whether to introduce an minimum wage worth more than £32,000 a year. "There are pockets of poverty" in the country, which is usually considered to be a wealthy one, said freelance journalist Haig Simonian, who lives in Zurich. He was speaking on Today. The cost of living is very high in Swiss cities, he says.

     
  17.  
    E.ON PENALTY 07:54: BBC Radio 4

    Sarah Harrison, in charge of enforcement at Ofgem is on Today, talking about E.On's penalty. "The incentives were completely in the wrong place," she says. Sales team leaders were auditing their own team's work, she added. Customers who think they have been mis-sold should contact the company, Ofgem recommends.

     
  18.  
    E.ON PENALTY 07:55:

    E.On responds to today's penalty. Tony Cocker, chief executive of E.ON UK, said: "We are really sorry and want to make it absolutely clear that we're putting this right." They have stopped cold calling peoples homes and selling face-to-face, he says.

     
  19.  
    INDIA ELECTION 08:02:
    Indian supporter, Bharatiya Janata Party

    Shares in Mumbai are up almost 4%. The market has been hitting record highs on confidence that the Bharatiya Janata Party and its allies were set to sweep the country's elections with a clear majority. "The to-do list is long" and the new government will have to "walk the talk on reviving growth" said Radhika Rao, an economist for DBS in Singapore.

     
  20.  
    E.ON PENALTY 08:07: BBC Radio 4

    Tony Cocker, chief executive of E.ON UK, is on the Today programme. He says sorry. "We were not fast enough and did not make sufficient change initially" to sales practices, he said. "We overhauled our sales activity," he adds. Door-to-door selling has stopped. "We will get the right information" from customers to work out compensation, he says.

     
  21.  
    E.ON PENALTY 08:14: Radio 5 live

    Sarah Harrison, head of enforcement at Ofgem, is back on Radio 5 live. She says E.On sales agents were making comparisons that weren't fair. An improvement plan was "wholly inadequate". It's really important that leaders in the energy industry use this "as a turning point", she says.

     
  22.  
    E.ON PENALTY 08:18: Radio 5 live

    "Why were you lying to your customers?" asks Nicky Campbell of E.On boss Tony Cocker on Radio 5 live. He says the company used information "based on estimates that wasn't necessarily correct" to sell to customers. "I am personally absolutely devastated by this," Mr Cocker added. E.On says compensation could cost them up to £8m.

     
  23.  
    INDIA ELECTION Via Email Simon Atkinson Editor, India Business Report

    emails: "With surely no doubt that Narendra Modi is to be the new prime minister - one analyst from a think tank here just told us that winning was the easy bit. Modi needs big announcements in his first hundred days, he reckoned. Restarting infrastructure projects, currently tied up in red tape, is a priority, he says.

     
  24.  
    MILLIONAIRES 08:40:
    millionaire

    Almost a tenth of British adults now own assets, including their homes, pensions, savings and cars, worth £1m or more, the Daily Telegraph notes, after digesting data from the Office of National Statistics released yesterday. About 20% of adults with a degree are millionaires too, it reports.

     
  25.  
    E.ON PENALTY Via Twitter Dominic Laurie Reporter for Five Live

    tweets: "E.ON chief executive on @BBCBreakfast has admitted he knew about mis-selling in Apr 2012. But mis-selling continued until Dec 2013."

     
  26.  
    ROSNEFT 09:02:
    Rosneft

    Russia may sell a stake in Rosneft, the world's largest oil producer, Reuters says, citing a report in Russian business newspaper Vedomosti. The government, which owns 69.5% of the firm, may sell a stake of 19.5%, it says. Rosneft shares rose 0.4% on the news.

     
  27.  
    CO-OP AGM 09:11:
    co-operative store

    Vivian Woodell, chief executive of the Phone Co-op is on Radio 5 live. He explains that the vote at the Co-op Group AGM on Saturday will be on four "broad enabling points" for reform. It will not vote directly on the reforms suggested by Lord Myners in early May.

     
  28.  
    CO-OP AGM 09:14:

    More from Vivian Woodell. When asked about who should be the next chief executive of Co-op Group, he says you can't take a manager from any other regular business. At mutually run firms "people come together to solve problems", Mr Woodell says. You need a chief executive who "gets that"; he says "it's a special kind of person".

     
  29.  
    KENYA TOURISM 09:30:
    Thomson jet

    TUI, owner of holiday firms Thomson and First Choice, says it has been been "continuously monitoring the situation" in Kenya and has cancelled its flights to Mombasa as a result of the "change" in advice from the Foreign and Commonwealth Office. It is bringing all holidaymakers in Kenya back to the UK "as a precautionary measure," it said in an email.

     
  30.  
    CREDIT SUISSE 09:44:
    Credit Suisse, Bern

    Credit Suisse will soon agree a deal with US regulators to pay about £2.5bn (£1.49bn) to conclude an investigation into tax evasion, Bloomberg News reports. It will pay the Justice Department $1.7bn, $600m to the New York Department of Financial Services and $100m to the Fed, Bloomberg says, citing unnamed sources. The lender won't have to name US account holders, it said.

     
  31.  
    PFIZER BID 09:57:
    pfizer, astrazeneca drugs

    In an opinion piece in the Wall Street Journal, Sweden's Finance, Enterprise and Education ministers say AstraZeneca should reject a takeover from Pfizer, unless the consequences are clearly mapped out. AstraZeneca employs 5,900 staff in Sweden. There's speculation that Pfizer will soon raise its offer for the firm.

     
  32.  
    MARKET UPDATE 10:12:
    FTSE-100

    As the chart above shows, it's been a bumpy session so far the FTSE-100. It's now trading a 0.2% higher. Morrison Supermarkets is the biggest winner so far on Friday, up almost 4%. There is speculation that Morrisons might be a target of a takeover approach. Sports Direct is one of the biggest losers, down 4%.

     
  33.  
    Via Twitter Rory Cellan-Jones Technology correspondent

    tweets: "It's @BBCTechTent day - live from London's @TechHub at 3pm - the right to be forgotten, Motorola's Chinese future and 1980s console wars."

     
  34.  
    HOPS 10:24: Radio 5 live
    Brewing using hops

    The price of hops is at a five-year high in the US. That's partly because of the rising demand from brewers of craft beers. Sales of craft beers - known as real ale over here - are also expanding in the UK. Andrew Whalley from Charles Faram and Co says on Radio 5 live: "The trend is for more flavoursome, more intense beers," says. "The hop is like a grape, different types give different flavours," he adds.

     
  35.  
    INDIA ELECTION 10:43: BBC World News
    Supporters of India"s Bharatiya Janata Party (BJP) celebrate

    "Even if he achieves 25% of what's he's promised, GDP growth should rise to 7.5%," says Hemen Kapadia, chief executive of chartpundit, in Mumbai on BBC World News. He is reacting to the apparent landslide victory for the Hindu nationalist BJP and its leader Narendra Modi in India's election.

     
  36.  
    CAR SALES 10:58:
    new cars, Sheerness, Kent

    New car sales in Europe were up 4.6% in April, compared to a year earlier, according to the European Automobile Manufacturers Association. Spain saw a particularly dramatic jump. Demand there rose 28.7% in April. Germany was the only major market to record a fall, with demand down 3.6%.

     
  37.  
    BOVIS RESULTS 11:12:
    builders

    Homebuilder Bovis says it built 80% more homes in the first four months of this year compared with the same period in 2013. It also said: "Sales prices continue to increase ahead of management expectations".

     
  38.  
    CHINA LOANS 11:29:

    Bad loans at Chinese banks spiked, according to official data. Non-performing loans at Chinese banks were 646.1bn yuan (£61.7bn, $103.6bn) at the end of March, up 54.1bn yuan from three months prior, the China Banking Regulatory Commission said. The authority said the ratio of bad loans remained low and that banks' capital strength - the ability to absorb losses - was good.

     
  39.  
    OIL, COAL, GAS 11:45:
    miners

    In just over five years Britain will have run out of oil, coal and gas, a report by the Global Sustainability Institute said. The report says shortages would increase dependency on Norway, Qatar and Russia. Russia has more than 50 years of oil, more than 100 years of gas and more than 500 years of coal left, at current rates of consumption.

     
  40.  
    MARKET UPDATE 11:59:

    Intertek Group, which tests products before they are sold, is one of the biggest losers on the FTSE 100 today, dropping 4.6% after it said the first four months of the year brought "weaker than anticipated activity in the energy infrastructure market." The FTSE 100 itself is down 0.32%, wiping out earlier gains. Frankfurt's Dax is down 0.7%, while the Cac 40 in Paris fell 0.5%.

     
  41.  
    AIRBUS ORDER 12:13:
    Airbus A320

    China Southern Airlines has the biggest fleet of aircraft in China and that fleet is about to get bigger. It has ordered 80 of the Airbus A320 model. Without discounts that order has a value of $7.9bn. Airbus will start delivering the planes from 2016. The wings are made in Broughton, here in the UK.

     
  42.  
    INDIA ELECTION Via Twitter Yogita Limaye Business reporter, BBC News

    tweets: "Stock expert - no quick fix for Indian economy. Even if Modi govt takes right decisions will take a year for effect to show."

     
  43.  
    MALAYSIA AIRLINES 12:36:
    Boeing 777

    Malaysia Airlines has seen its losses widen by 59% to 443m ringgit ($138m; £82m) in the January-to-March period. It's the fifth quarterly loss in a row. The firm has lost more than 40% of its market value this year. Two months ago its flight MH370 vanished - presumed to have crashed in the Indian Ocean.

     
  44.  
    US EXECUTIVE PAY 12:44:
    Chipotle Grill

    Shareholders of the US restaurant chain, Chipotle Mexican Grill, overwhelmingly rejected an executive pay plan at Thursday's annual meeting. The company has two chief executives and this year their combined pay packet would have been almost $50m. Only 23% of shareholders supported the "say-on-pay" proposal. According to CtW Investment Group, the latest pay award would have taken their compensation close to $300m in three years. That's a lot of burritos.

     
  45.  
    E.ON PENALTY Via Twitter Brian Milligan Personal Finance Reporter, BBC News

    tweets: "Tony Cocker of E.On will still get 75% of his bonus, although company has declined to specify how much that will be."

     
  46.  
    ENERGY SECURITY 12:57:

    Europe needs an energy union to safeguard its independence, said Michel Barnier, European Commissioner for Internal Market and Services and Industry. "We need a European Energy Union to regain our energy independence and security, as well as our industrial competitiveness," he said at a banking conference in Warsaw. Russian energy company Gazprom has threatened to cut off supplies to Ukraine from June after switching to up-front payments.

     
  47.  
    12:59: Ben Morris Business Reporter

    That's it from the Business live page this week. We're back on Monday at 06:00. Have a great weekend.

     

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