Business Live: Monday 28 July 2014

Live text

Reporting:

  • Matthew West 
  • Rebecca Marston 

Last updated 28 July 2014

STANDARD 06:00

Rebecca Marston, Business reporter, BBC News

Monday morning. Here we are. Fracking is under the spotlight as companies start to bid for licences to drill for shale gas. Stay with us for the pick of the business news from the BBC and elsewhere.

STANDARD 06:03 FRACKING LICENCES

Radio 5 live
Barton Moss Results from test drilling for shale gas at Barton Moss, Salford are being analysed

Energy companies are being invited to bid for licences to extract oil and gas from large areas of Britain, using the controversial process known as fracking. The technique will be all but banned from national parks and other environmentally sensitive areas. Mike Bradshaw, professor of Global Energy at Warwick Business School, tells Radio 5 live people are concerned: "We've got very limited experience of fracking in the UK. So we don't know the answer to many of the questions that people have about what fracking will look like under UK and EU regulations which are very different from those that exist in the United States."

STANDARD 06:09 FRACKING LICENCES

BBC World News
Brenda Kelly

Brenda Kelly from IG Index is reviewing the newspapers on World News. "It is interesting to compare the Guardian's coverage with the Telegraph. The Guardian says there will be drilling but the Telegraph says it won't. There are a huge amount of environmental issues - the amount of water used, the risk of small earthquakes, for example. All energy firms will have to provide an environmental statement if they are going to drill near sites of natural beauty."

STANDARD 06:23 ARGENTINA DEBT

Radio 5 live

It is more than 10 years since Argentina announced it couldn't pay back its debts. Most bondholders accepted a deal to get back a small percentage in exchange for writing off those debt. But some bonds are owned by US hedge funds who want full repayment. Argentina says no, but there's a court deadline on Wednesday. Deborah Zandstra, a specialist in debt restructuring at Clifford Chance, tells Wake Up to Money the move will have wider repercussions: "Essentially Argentina is being put into a position of defaulting on its bonds. That will trigger cross defaults on its other debts."

STANDARD 06:32 ARGENTINA DEBT

BBC Radio 4

More on Argentina's debt woes. It is risking falling into default for the second time in 12 years, says Carlos Caicedo, senior principal analyst on country risk at IHS Global Insight. In fact, this looks like the most likely outcome after the Argentine economic minister failed to arrive in New York for talks on Friday. Leading Hedge Fund NML Capital believes Argentina will definitely default on its loans, he adds, and the government's refusal to meet and talk with its creditors isn't helping matters.

STANDARD 06:40 GSK BREAK-UP?

Horlicks jars

The Financial Times goes with the boss of drugs giant GSK is considering breaking up the company, should its consumer healthcare division be worth more as a standalone company. And yes, that division owns Horlicks, as well as mega-brands like Aquafresh and Corsodyl.

STANDARD 06:49 FRACKING LICENCES

Radio 5 live

Fracking will not necessarily lead to lower energy prices, David Hunter from Schneider Electric tells Wake Up to Money. It is important that the UK assess the potential of fracking, especially given Europe's currently fractious [a-hem] relationship with Russia. It's more about energy security than lower prices, Mr Hunter says.

STANDARD 07:02 RYANAIR TRADING

Ryanair plane landing

Irish airline Ryanair reports better than expected first quarter earnings. Pre-tax profits rose to 223.6m euros (I£176.8m) in the three months to 30 June up from 88.5m euros a year earlier. Full-year profit guidance is up, too, to between 620m euros and 650m euros for the full year.

STANDARD 07:13 OVERPRICED HEALTHCARE

Radio 5 live
Bupa sign

Private healthcare is overpriced, says ... private healthcare provider Bupa. Damien Marmion, its managing director of UK Insurance. He says the whole industry is to blame, especially the price charged by hospitals. He says prices need to go down by about 15%.