8 July 2014 Last updated at 06:00

Business Live: Tuesday 8 July 2014

    06:00: Howard Mustoe Business reporter

    Good morning everyone. Today we'll be bringing you Marks & Spencer's first-quarter results, among the usual mix of business and economic news. Stay with us.

    06:00: Matthew West Business reporter

    Good morning everyone. Stay in touch via twitter @BBCBusiness or email bizlivepage@bbc.co.uk

    MARKET UPDATE 06:00:

    Tokyo stocks fell 0.46% after a Wall Street sell-off, while exporters were hit by a stronger yen. The benchmark Nikkei 225 index eased 70.98 points to 15,308.46. US stocks fell Monday, retreating from last week's records as analysts pointed to investors booking profits by selling their investments.

    FUTURE OF BANKING 06:13: Radio 5 live

    Anthony Browne, chief executive of the British Bankers' Association (BBA) has been chatting to Radio 5 Live's Wake up to Money. The banking lobby has published a report into the future of the industry called the Way We Bank Now. One of its main findings is that bank customers now make £1bn worth of mobile and internet banking transactions a day.

    FUTURE OF BANKING 06:25: Radio 5 live
    Computer keyboard, padlock and bank card

    More on banking. Mr Browne tells Wake up to Money that footfall in bank branches up and down the country is falling at a rate of 10% a year. He says people are increasingly turning to mobile or internet banking for everyday banking transactions. Asked how many bank branches there are likely to be in a few years' time he says: "I don't want to get into estimates but there are clearly going to be less [branches] than there are now."

    FUTURE OF BANKING 06:34: Radio 5 live

    One more from Anthony Browne on banking on 5 live. He says mobile banking is far more secure than it was and the banking industry is working hard to ensure it stays that way. He says digital banking is largely being driven by customers rather than the banks themselves." They want to do it because they can do it at any time of day," he adds.

    FUTURE OF BANKING 06:44: BBC Radio 4

    Anthony Browne of the BBA is now on the Today Programme. How come people like mobile banking so much? "It's so much more convenient," he says, even compared to regular online banking. "When people got into online banking, they got over the fear of it," making it a smaller leap, he says

    FUTURE OF BANKING 06:58: Radio 5 live

    The BBA banking report prompted the biggest ever text response on Wake up to Money. Some support the report's assertions about branch banking. Sally Moore in Reading texted the show to say: "29 years without using a bank branch Opened NatWest account on Stoke in 1985 when I got married then moved to Reading and haven't changed branch. Do it all online thanks to husband Chris. Can't say I miss it."


    Marks & Spencer says comparable sales of clothing in the 13 weeks to 28 June fell 0.6%. Food, though, rose 1.7%. The worst news is reserved for the website: sales down 8.1%. "As anticipated the settling-in of the new M&S.com site has had an impact on sales," says CEO Marc Bolland.

    LEGALLY HIGH 07:16: Radio 5 live
    A cloned marijuana plant

    With Washington state in the US set to become the second state to legalise the personal use of marijuana, 5Live have been talking to Michael Elliott of the Marijuana Industry Group (MIG), in Colorado - the first state to legalise the drug. Mr Elliott claims legalisation has seen Colorado enjoy its biggest ever year for tourism and its biggest ski season.

    LEGALLY HIGH 07:31: Radio 5 live
    A map showing where in the US it is legal to use marijuana in some way

    Just while we're on the subject. It seems the whole of the US has gone slightly potty for marijuana, as this map shows.


    Tweet: From David Buik of Panmure Gordon: "The old M&S PR bandwagon keeps rolling in to town! Initially investors have been hooked with the schmoozing - UP 1% at opening"

    FUTURE OF BANKING 07:52: Radio 5 live

    Here are a couple more listeners to Wake up to Money on bank branches showing just how polarised opinion still is. Chris in Oxford contacts the show to say: "I go to a bank 3/4 times a week and would be lost without that service . Since building societies became banks they are a lot more user friendly." Meanwhile Tony Brown from Warrington says: "I go into my bank every week. I don't trust my money on the internet."

    BOVIS HOMES 08:09:

    Bovis Homes completed the most homes in its history in the first half of the year, it said. The average sale price rose 11% to £210,000. It expects a "material increase in profit for the first half year compared to the prior year."


    The British Chambers of Commerce (BCC) has published its latest quarterly UK economic report, which shows that manufacturers enjoyed their biggest rise in domestic sales since the survey started in 1989. That said, the survey's overall measure - which is calculated by surveying nearly 7,000 companies - showed most of its key measures for manufacturing and services companies fell in the second quarter of 2014. Exports and business investment both weakened, the survey showed.

    MARKET UPDATE 08:32:

    So the markets are open and 30 minutes into the trading day it's, well, its all a bit flat-looking. The FTSE is marginally higher by 0.01%, or 0.05 points, to 6824.01. Germany's Dax is up 0.07%, or 6.89 points, to 9912.96 and France's Cac-40 is up 0.28%, or 12.19 points, to 4417.45

    EUROTUNNEL Via Email Richard Westcott BBC transport correspondent

    From Eurotunnel: "Still completing the repairs. Should be back to double line working mid-morning. Delays of up to an hour for passengers at present, but traffic lower than yesterday."

    HOLY ORDERS 09:07:
    Pope Francis celebrates the Angelus noon prayer from his studio window overlooking St. Peter"s square

    The FT has an interesting report on the Vatican bank. It quotes insiders who say the Pope is planning to scale back the bank's operations to focus on the "poor and the needy." It follows a series of scandals that the bank has been linked to and a significant plunge in 2013 profits. The move is intended to help he bank can shake off its pariah status, which has seen it placed on some European money-laundering blacklists and probed by the Italian banking regulator.

    GERMAN BANKS Via Email Sally Bundock Presenter, World Business Report

    Worth watching this: Reuters is reporting Commerzbank and Deutsche Bank have started settlement talks with US state and federal authorities "over their dealings with countries blacklisted by the United States" Shares in both banks are down. Commerzbank shares are down 2% in London and around 3% in Frankfurt. Meanwhile Deutsche shares are down nearly 1% in Frankfurt.

    FUTURE OF BANKING 09:37: Via Email
    Undated Barclays handout photo of a smartphone

    Robert Stockwell from Rustington, West Sussex has emailed us regarding the BBA report on the future of banking. He says: "The banks did their research and concluded that we didn't want cheques. They had to back down as they got it wrong. They have got it wrong again this time. There must be a demand for bank branches as I almost always have to queue to get to the counter."


    The latest official data for production output in the UK for May - which is largely dominated by manufacturing - has just been released. The data also shows output declined 0.7% between April and May 2014 and manufacturing by 1.3%. The drop in manufacturing output is the biggest since January last year. Economists had expected output to continue expanding by about 0.4%.


    Production overall saw annual growth of 2.3% in May compared with a year earlier, the Office of National Statistics (ONS) says. Manufacturing was 3.7% higher in May compared with the same time last year. The UK manufacturing figures come after a sharp fall in production output in Germany on Monday. The ONS has given no specific reason for the decline beyond saying it has occurred across a whole swathe of manufacturing sectors.

    FUTURE OF BANKING 10:26: Via Email

    The BBA report on the banking industry has really caught the attention of some our readers today. Winston Collinge from Carlisle in Cumbria, writes in: "The problem with big bank branches is that they are mostly on the high streets of our market towns. If you live in a rural area it costs a fortune to drive to them and park your car. For my business I use the local village Post Office with the Co-op Bank and the service is excellent"

    A sterling v dollar graph

    The pound fell sharply after those industrial and manufacturing numbers came out from the ONS. The above shows sterling falling against the dollar. It had been trading at $1.7135 before the latest release at 09:30 but fell 0.3% to a session low of $1.7089. That's its lowest point in five days.

    INTEREST RATES 11:02: BBC Radio 4

    "Hold off as long as possible" from raising rates, says John Longworth, director general of the British Chambers of Commerce on the Today Programme. That's his advice for Bank of England Governor Mark Carney. He says wage rises and inflation - the things which normally lead to a rate rise - aren't happening, and manufacturing may suffer from the stronger pound a rate rise would bring.


    Shares in Franco-Dutch airline group Air France-KLM are down 5% after it issued a profit warning this morning. It has revised its yearly earnings forecast down from 2.5bn euros to between 2.2 and 2.3bn euros. The airline is blaming increasing competition on long-haul flights, weak cargo demand, and currency restrictions in Venezuela.

    The bonnet emblem of a classic Rolls Royce

    Sales at luxury car manufacturer Rolls Royce have hit a record high in the six months to the end of June, it has said. A total of 1,968 Rolls-Royce cars were sold worldwide - that's up 33.4% on the same period last year and the best half-yearly total yet. European sales were up by more than 60%, with Asia Pacific rising by nearly 40% and the Middle East up by more than 30%.

    Brompton Bicycle factory

    Just in case anyone needs clarification on this, production covers manufacturing and heavy industry. So, the mining and quarrying, energy, water supply and waste management sectors. When the ONS says production and manufacturing are 11.3% and 7.2% respectively below their pre-recession peaks in 2008, the first number includes manufacturing and other industrial sectors but the second number is manufacturing on its own. Hope that's clear.

    PRODUCTION OUTPUT 11:58: Via Email

    Howard Archer, chief UK and European economist at IHS Global Insight, calls the latest UK production figures a "nasty jolt for the economy". He says one explanation for the fall in output could be that it was a case of manufacturers "pausing for breath", after output had risen for five consecutive months. He also suggests more recent surveys including one from the Confederation of British Industry point to manufacturing bouncing back in June.

    TAX COLLECTION Via Twitter Simon Jack Business correspondent, BBC News

    is listening to HM Revenue & Customs being grilled by MPs. He tweets: HMRC trying to revive the idea that it should have ability to take money directly from bank accounts of "recalcitrant debtors"

    MARKS AND SPENCER TRADING Via Twitter Kamal Ahmed BBC Business editor

    The BBC's business editor is at Marks & Spencer's AGM. He tTweets: BREAKING FACT Belinda Earl, M&S style director: one in five men wear an M&S slipper #marksandspencer

    A Marks and Spencer sign

    Marks & Spencer may be correct in its dominance of male slipper-wear, but it seems many of its customers aren't particularly impressed with the new website. Claire from Warwickshire writes in to say the website is "dreadful." She adds: "Could not believe I had to re-register! Eventually when that hurdle was overcome (not easily), I then found that it added multiple items to my basket when I only wanted a single item."


    Rita Fogarty has emailed in on Marks & Spencer to say: "I'm glad I'm not the only one to find the new website almost impossible to negotiate, I did report it but it doesn't seem any better. The previous site was relatively easy to deal with and understand, but the new one, it feels like we have lost the ability to shop online at M&S."


    We'll show you one more email on the Marks & Spencer website debacle, although we have received many more. Heather, from Edinburgh writes in to say: "The new website has been good for my bank account, as I really do not like it and do not find it user-friendly."

     A close-up view of a woman talking on a mobile phone

    The Daily Telegraph has an interesting new report on the Post Office, which is getting back into the telecoms game for the first time since 1980. The Post Office is teaming up with mobile phone operator EE. EE will provide the network, while the Post Office will provide the handsets and customer services. The newspaper says the services will begin this Autumn.


    Abu Dhabi's Etihad Airways posted a 28% surge in sales in the first half of 2014, hitting $3.2bn, with passenger numbers and cargo volumes both up. The company is turning Abu Dhabi into a major travel hub on the route between the West, and Asia and Australasia.

    13:00: Matthew West Business reporter

    Right, as they say on Looney Tunes: "That's all folks!!" Join us again tomorrow from 06:00.


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