Business Live: Tesco launches bank account

Live text

Reporting:

  • Ben Morris 
  • Rebecca Marston 

Last updated 10 June 2014

STANDARD 06:39

Rebecca Marston, Business reporter, BBC News

Good morning. We're a bit later this morning as the website was having under-the-bonnet checks. From now though, stay on this page for the pick of the business news and the BBC's output.

STANDARD 06:39

Ben Morris, Business Reporter

You can expect to hear more about personal debt this morning and Tesco's new current account this morning. Stay with us.

STANDARD 06:42 TESCO BANK

BBC Radio 4

Tesco's launch of a current account is one of the lead stories on the Today Programme. In a report BBC Business Editor Kamal Ahmed says that Tesco believes that consumers are getting a "raw deal" from existing banks. Tesco's current account will pay 3% interest on credit balances.

STANDARD 06:49 TESCO BANK

Radio 5 live

Tesco has had a financial services arm for some time - but did not offer a full current account. On Radio 5 live the boss of Tesco's bank, Benny Higgins, said he is not expecting a sudden rush of customers: "I don't think it's likely that it's an impulse buy and that we would have high levels of switching overnight. But I hope, in time, this will become a very good product for very many Tesco customers and beyond."

STANDARD 06:55 PERSONAL DEBT

BBC Radio 4
hand coins

More people are falling into debt because they can't afford basic household bills, according to the Money Advice Trust. Its chief executive, Joanna Elson tells Today that many people are not feeling the recovery because basic costs have been rising above the rate of inflation. She is "worried" about future rises in interest rates.

STANDARD 07:08 PERSONAL DEBT

BBC Radio 4

Two thirds of UK household debt is on some kind of variable rate according to Ross Walker, senior UK economist at RBS on Today. As a result a rise in interest rates will "exert a squeeze on households", he says. Over the next two years debt-to-income levels could rise above the pre-crisis levels, he warns.

STANDARD 07:16 BP GULF PAYOUTS

BP logo

The fall out from the Gulf of Mexico oil spill continues for BP. The US Supreme Court has refused to allow BP to stop paying compensation claims while it waits for a review of its settlements with businesses over the 2010 disaster. BP is unhappy it must pay some firms economic damages, whether or not they can prove the spill caused the losses.

TWEET Via Twitter

Adam Parsons, Business Correspondent

tweets : "Buccellati boss Thierry Andretta joins board of Mulberry as independent non-exec"

STANDARD 07:33 MARKETS

BBC Radio 4
New York Stock Exchange

Investment banks, hedge funds and other investors like volatile markets because "they can benefit from other people's greed or fear", says Holly Cook, editor of the investment website Morning Star on Today. She is commenting on the lead story on the Financial Times. It says volatility has been "extinguished" by the action by central banks. But some analysts think it could be the "calm before the storm", the FT says.