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Summary

  1. Lowcost Travelgroup goes into administration
  2. Pound falls against the dollar and the euro
  3. FTSE rises 0.2%; Wall Street flat
  4. Shares in IAG, Easyjet, Flybe and Thomas Cook all finish lower

Live Reporting

By Dan Macadam

All times stated are UK

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  1. Good night!

    That's all from me. Join us on Monday for live news and analysis as we'll get a snapshot of the UK economy from retail figures, house prices and confidence among finance directors.

  2. Pound down 1.2% against the dollar

    It looks like the pound is going to miss out on achieving the biggest weekly gains against the dollar since 2009.

    Sterling has surged this week following the swift installation of Theresa May as Prime Minister and the Bank of England's decision to keep rates unchanged.

    However, it dropped sharply this afternoon and was down more than a cent and a half against the dollar a short while ago at $1.3182. It needed to stay above $1.3290 to match the weekly gains last seen seven years ago.

    Against the euro, the pound was 0.5% lower at €1.1939.

  3. Wall Street finishes flat after week of record highs

    US stock markets were mostly unchanged at the closing bell as strong economic data was offset by global fears over the terror attack in Nice.

    The Dow Jones Industrial Average edged higher to a fresh record, but the S&P 500 dipped slightly after its own record-setting week. 

    "We've had an incredible run," said JJ Kinahan, chief strategist at TD Ameritrade. "Things don't continue to go straight up."

    The Dow Jones rose 10 points to 18,516.55. 

    The S&P 500 ended a week of record highs by slipping 2 points to 2161.74.

    The Nasdaq dipped by about 4 points to 5,023.57. 

  4. Pensions Minister Ros Altmann also out

    David Cameron and Ros Altmann

    In another part of Theresa May's reshuffle, pensions minister Ros Altmann is also no longer in the government. 

    In a letter to the new Prime Minister, Dr Altmann urged Mrs May to pursue:

    - Long overdue reform of pensions tax relief

    - A major review of Defined Benefit pension scheme funding

    - Fair treatment of women

  5. Major gas storage site shuts for winter

    Gas ring

    Wholesale gas prices have jumped after British Gas owner Centrica said it had been forced to shut a major gas storage facility for the winter.

    The store accounts for 64% of all UK gas storage, according to price reporting agency ICIS.

    Tom Marzec-Manser, a gas analyst at ICIS, said the gas price "rocketed" to 12-month highs after Centrica's announcement.

    He said: "To ensure security of supply is maintained, gas companies are going to have to pay a premium and will be reliant on storage on the European mainland. 

    "Technical problems have been ongoing at Rough for a while, but the market clearly did not anticipate this.”

    A Centrica spokesman said it is working to return a third of the capacity to operation by November, in time for colder months when gas demand by energy companies climbs. 

  6. Why King wants youngsters to bank on cricket

    Mervyn King ran the Bank of England for ten years and was in charge during the financial crisis of the late 2000s.

    His new project is encouraging state schools to get their school children playing cricket.

    He puts the case in a Daily Politics film, and reveals he would rather have captained Worcestershire Cricket Club than have run the UK's finances.  

    Video content

    Video caption: A former Bank of England governor wants young people to learn how to win and lose.
  7. What has Brexit meant for the economy?

    Business editor Simon Jack talks about where the economic pain might be felt following the EU referendum result.

    Video content

    Video caption: What has Brexit meant for the economy?
  8. Civil Aviation Authority responds to Lowcost demise

    A spokesperson for the UK Civil Aviation Authority said:

    “We understand the Spanish travel company Lowcostholidays has ceased trading. The company was based in Mallorca and was registered with the Balearic Islands authorities.

    “The company was therefore not part of the UK’s ATOL scheme and the Balearic Islands authorities are responsible for the holiday protection arrangements for the company’s customers.

    “We believe the company may have had a large number of British customers and many of these are likely to be overseas. Our understanding is these customers should have valid flight tickets to use to return home to the UK. We advise customers to check the status of their bookings with their airline and accommodation provider."

  9. 'Margins are negligible'

    Joe Lynam

    Business correspondent

    The mass holidays business and especially selling hotels beds all over the world is a tough one. The margins are negligible. Often - as appears to be the case with LowCostHolidays - the cash earned for future holidays was used to pay for people that were already away. 

    So if there's a relatively sudden dip in confidence leading up to the Brexit referendum and then the pound plunges against the euro after the vote, that can be enough to tip the financial house of cards that some holiday companies have erected. 

    Tighter EU rules mean that airlines have responsibility for their customers and must get them home. Also many credit card providers include free travel insurance cover. 

    But the longed for trip away will not now be happening for thousands of LowCostHolidays customers.

  10. Pressures on Lowcost Holidays

    Lowcost Holidays, which made about £500m in turnover last year, was already under pressure before the Brexit vote, according to administrators called in after the company's demise.

    Increased competition and negative effects on travel from the threat of terror contributed to the group's demise, administrators Smith and Williamson said.  

    The EU referendum had a twofold impact, they said.

    1) Uncertainty prior to the referendum caused some customers to delay holiday decisions; and 

    2) A more expensive euro since the outcome of the vote has dissuaded the British public, which represents 60% of the group’s customers, from booking holidays.

  11. 'No Atol protection'

    Atol logo

    Lowcost Holidays did not have Atol protection - the UK scheme that protects holidaymakers if a travel company ceases trading, a company spokesperson told the BBC.

    The hotel and flight booking firm, which has thousands of UK customers, was registered in the UK but regulated in the Balearic Islands.

    Of the 110,000 customers yet to travel, all of them have paid, and 99% will have valid flights, the spokesperson said. 

  12. Lowcost Holiday customers

    Lowcost Holidays has some advice for customers - 60% of which typically are from the UK - following the firm's collapse into administration.

    The company runs the lowcostholidays.com website as well as hoteling.com and lowcostbeds.com. 

    Details of what to do for the 27,000 customers currently on holiday through the company, and for the 110,000 customers who have booked with the firm, can be found here: http://www.lowcosttravelgroup.com/.

  13. Brexit vote 'compounded' travel group's difficulties

    Administrators appointed to handle Low Cost Travel Group said difficult trading conditions in the run-up to the EU referendum and after the UK's vote to leave contributed to the firm's collapse.

    Quote Message: The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound. Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcosttravelgroup Limited into administration." from Finbarr O’Connell Administrators Smith & Williamson
    Finbarr O’ConnellAdministrators Smith & Williamson
  14. 120 UK job losses at Lowcost Travelgroup

    Lowcost Travelgroup, which said it has ceased trading today, announced there have been 120 redundancies at its Gatwick office.

    There have also been 264 job losses in Krakow, 60 in Majorca and 7 in Switzerland, the company said.

    "The majority of staff in the group have been made redundant with some remaining to assist the administrators in the potential sale of any parts of the group’s business," the company said.

  15. BreakingBudget holiday firm goes into administration

    Budget travel company, Lowcost Travelgroup, has gone into administration, leaving thousands of customers at risk of their holidays being disrupted.

    The UK firm said it has about 27,000 customers currently in resorts and 110,000 customers who have booked travel or holidays through the group who have not travelled yet.

    "Unfortunately, as regards customers who have not travelled as yet a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for," the company said.