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Summary

  1. Yahoo sells core business to Verizon for almost $5bn
  2. FTSE 100 closes 0.3% lower
  3. Sir Philip Green threatens to sue Frank Field
  4. Scathing critique of Sir Philip Green in 66-page report by MPs
  5. Renewed calls for Green's knighthood to be stripped
  6. MPs urge Green to fill £571m hole in BHS pension fund

Live Reporting

By Ben Morris

All times stated are UK

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US shares ease lower

The Dow Jones Industrial Average closed 0.4% lower at 18,493.

A falling oil price hit shares in oil companies. Chevron was the biggest faller on the Dow with a 2.5% decline. Exxon Mobil dropped 2%.

The S&P 500 fell 0.3% at 2,168, energy firms were the big losers on that index.

Retailers performed well, Nordstrom added 4.5%, Gap closed 3.3% higher, Macy's rose by 3%.

NYT: Fed prepares new action against Goldman Sachs

The New York Times reports that the Federal Reserve s preparing an enforcement action against Goldman Sachs. It relates to a case dating back two years, when an employee of the Fed in New York leaked confidential government information to a banker at Goldman.

It's a surprising move as the case appeared to have been settled two years ago when Goldman paid a $50m settlement.

Markets: Events to watch this week

Apple logo
Getty Images

Traders in the US have some big events to react to this week.

The US Federal Reserve begins a two-day meeting on Tuesday and will announce its decision at 14:00 EST/19:00 BST on Wednesday, with a news conference half an hour later.

The Fed is not expected to raise interest rates, but analysts will be picking through the Fed's comments for hints on when a rate increase might come.

Also on Tuesday Apple reports results, analysts will be keen to see how sales of the iPhone are faring.

In the UK BP reports results on Tuesday and on Wednesday economic growth figures for the second quarter are released.

End of the Yahoo brand?

Yahoo office
Yahoo

The sale of Yahoo to US mobile network Verizon raises questions about the future of the internet firm’s brand, according to one analyst.

Verizon will merge Yahoo with AOL, which it bought last year. Michael Goodman, of Strategy Analytics, said it would be expensive to keep all three.

“That’s the big open-ended question: What are they going to do with the Yahoo brand,” he told the BBC. “There’s something to be said for having just one brand.”

Verizon bought Yahoo for its audience – not its brand value – as it looks to transition from a telecoms firm to a media company, he said.

Deutsche Bank sued over pre-financial crisis prodcuts

Zoe Thomas

US business reporter

Deutsche Bank
Getty Images

A US court has ruled that Deutsche Bank can be sued for allegedly defrauding investors who purchased $5.4bn (£4.11bn) of the bank's preferred mortgage-backed-securities.

Investors accuse Deutsche Bank of concealing important information about the products' exposure to the quickly deteriorating subprime mortgage market, in the lead up to the financial crisis. 

Investors who bought these mortgage-backed-securities in November 2007 and February 2008 are eligible to sue.  

Sir Philip 'feels let down'

Sir Philip said he feels "let down" by Dominic Chappell, who bought BHS from him.

Luke Tugby news editor at Retail Week tweets:

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Lord Myners calls on Sir Philip to 'pay up'

Former City minister, Lord Myners, who fought off Sir Philip's attempted takeover of Marks & Spencer in 2004, has been appointed by the MPs committee to lead a panel of financial assessors.

Lord Myners calls for Sir Philip to "be honourable" and "pay up."

Lord Myners on Sir Philip Green

Sir Philip Green's statement

“I have now carefully read the select committees’ report and note their findings. I believe that the report is the predetermined and inaccurate output of a biased and unfair process."

“With the benefit of hindsight, clearly Retail Acquisitions and Mr Chappell were a very bad choice as purchaser on many fronts and I feel badly let down.

"Sadly, one cannot turn the clock back. The disposal of Bhs was made 100% in good faith and I still believe that we provided Retail Acquisitions and Mr Chappell with the appropriate finance (c. £200m of cash and assets) to take the business forward.

“As I told the committees, I am trying to find a solution for the Bhs pension and am continuing to work with the Regulator to achieve an outcome.

“I am sad and sorry for all the Bhs people caught up in this horrid story, but I do not believe that this story is being in any way fairly portrayed.”

Frank Field: 'He needs to stop messing around'

Simon Jack

BBC Business Editor

Frank Field tells me he will not apologise. Describes Sir Philip Green’s conduct as “displacement therapy”.

“He needs to stop messing around and write a big cheque.”

Frank Field is not going to apologise

Frank Field, Labour MP
BBC

Frank Field has told the BBC that he is not going to apologise to Sir Philip Green over comments Mr Field made about the former owner of BHS on the Today Programme this morning.

Philip Green's case against Frank Field

Sir Philip Green has said he will sue Frank Field, the co-chair of an inquiry into collapse of BHS, for remarks he made on the BBC's Today Programme earlier today in which he compared Sir Philip unfavourably to media magnate, Robert Maxwell.

Sir Philip Green to sue Treasury chair Frank Field

Oil prices slide as stockpiles rise

Oil prices have fallen sharply today as the focus has shifted back to a heavy global glut in the market. 

Brent oil is currently down 2.3% at $44.6 a barrel, marking its lowest level since 10 May.

US crude is down 2.5% at $43.08 a barrel, its lowest level since late April.

Prices have been depressed by data showing a jump in stockpiles in the world’s biggest oil consumer, the US. 

The prospect of recovering shale oil production in the US also helped to push prices lower, as the number of oil rigs rose for a fourth week, according to Baker Hughes data.

The slump in prices from as high as $115 per barrel in 2014 led many shale oil producers to cut the number of rigs as producing oil was no longer profitable.

Fresh delay for Hinkley Point?

Hinkley Point
PA

The final nod for Britain's first nuclear power plant in decades could be delayed again, due to union action.

EDF is due to consider a final investment decision on the Hinkley Point nuclear reactor at a board meeting on Thursday. 

Unions have long criticised the cost of the project. And the secretary of the EDF works council told Reuters it had now filed a complaint with a Paris court, due to be heard on 2 August.

"We demand a suspension of the decision," says Jean-Luc Magnaval.

Yahoo: Has Mayer been worth $200m?

Barry Ritholtz is a respected US money manager and market commentator. He argues that Yahoo boss Marissa Mayer will "walk away with more than $200m for doing little more than keeping the seat warm for the past four years".

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'BHS bullied trustees of the pension scheme'

BBC Radio 4

"I think BHS bullied the trustees of the pension scheme and that needs to be looked at," said Steve Webb, formerly Liberal Democrat Minister for Pensions in the coalition government, now Director of Policy at the insurance and pensions company, Royal London.

"Basically the trustees were told by the company, 'this is how much we are allocating to the pension fund, take it or leave it'. There was no negotiation," he said on BBC Radio 4's PM.

He thinks that the Pensions Regulator should have had more power to block the sale of BHS to Dominic Chappell.

The regulator may be able to find money that went out of the business that they can claw back, he said.

Air France facing cabin crew strike

Air France logo
Reuters

Two cabin crew unions for Air France are seeking to strike from 27 July to 2 August.

The company thinks the majority of its long-haul flights will be unaffected, but "there may be more disruption on the short and medium-haul networks," the airline said.

FTSE 100 closes lower

The FTSE 100 closed 20 points or 0.3% lower at 6,710.13.

Randgold Resources was the biggest loser with a 4% fall, after it lowered its production forecast for its Tongon gold mine in the Ivory Coast.

Both Royal Dutch Shell and BP fell almost 3% - tracking a fall in oil prices.

William Hill was the second biggest winner on the FTSE 250 with a 5% gain. Shares jumped after it confirmed an approach by 888 and Rank Group.

The FTSE 250 closed 0.5% higher.

Yahoo's profits and losses over the years

The chart below show's Yahoo's net income (a measure of profits) over the last 15 years.

You can see that in 2015 it made a whopping $4.3bn loss, partly due to the write down in the value of its Tumblr business.

Yahoo net income
bbc

P&O ferries: Delays 'must never happen again'

Traffic at the Port of Dover
PA

The delays experienced by motorists going to Dover "must never be allowed to happen again", P&O Ferries has said.

The French authorities' "failure" to provide adequate staffing for increased checks at the Port of Dover was the "primary cause" of delays of up to 14 hours this weekend, it said.

The firm said it would talk to British and French authorities to ensure there is "no repetition of this disruption".

Audio: Managing a maverick

Managing the ego of the office maverick is tough work, but necessary to get truly innovative products, says Ryan Holiday, author of Ego is the Enemy. He talks to Business Daily about the importance of humility in business, and his life as former director of marketing at American Apparel.  

Managing the ego of the office maverick is tough work, but 'necessary for innovation'.

When Yahoo was the future...

Company timeline

1994 Yahoo - which stands for Yet Another Hierarchically Organized Oracle - is founded

2000 Yahoo valued at $125bn at height of dot.com boom

2002 Google rejects a $3bn bid from Yahoo

2008 Microsoft's $44.6bn offer for Yahoo is turned down

2013 Blogging site Tumblr acquired by Yahoo for $1.1bn

2015 Yahoo makes net loss of $4.4bn

2016 Verizon agrees $4.8bn deal to buy Yahoo

What are Verizon’s ambitions?

Michelle Fleury

BBC New York

Yahoo sign
AP

Beyond the talk of becoming a global media company, Verizon chief executive Lowell McAdams wants a larger share of the digital advertising pie. And he thinks this deal will help him.

As a leading US mobile phone provider, Verizon already had a wealth of data from smartphone users that it could mine.

Yahoo meanwhile has struggled to build its mobile advertising business. Its appeal is that it has content.

With Yahoo, Verizon gains the internet company's 600 million monthly active mobile users as well as its email service, Yahoo finance, and Tumbler which is popular among millennials.

So is Verizon ready to take on the likes of Google and Facebook? In 2015 these two tech behemoths claimed the largest share of the digital ad market. Whether or not Verizon can challenge that remains to be seen - but that's certainly the idea.

FTSE 100 heads lower; FTSE 250 up

FTSE 100
Bloomberg

The FTSE 100 is back in negative territory.

A slide in oil prices has hit shares in oil companies. BP is down 1.4% and Royal Dutch Shell is 1.8% lower.

But the FTSE 250 which comprises companies more focused on the UK economy, is up 0.9%.

US shares head lower in early trading

US shares have started with losses. The Dow Jones Industrial Average is 0.2% lower. The S&P 500 is also down around 0.2%.

Sprint shares have jumped 7% after the mobiles services firm reported sales that were a bit better than analysts were expecting.

The upside down world of government bonds

Investors are so keen on safety right now, that they will park their money in government bonds, even if there's a cost. Michael Hewson, chief market analyst at CMC tweets:

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Mayer comments

In a conference call, Yahoo! CEO Marisa Mayer says the deal represents "exceptional value for shareholders", and there was a  "huge level of interest from multiple entities".

She pays tribute to the firm, which "populised the internet, email and search".

One of the main drivers of the sale was the ability to "scale" Yahoo's mobile offering, using Verizon's huge network.

Ms Mayer also confirms that Yahoo! trademark will transfer to Verizon

Recoveration: Is that even a word?

Audio: How to take away a knighthood

Lord Kerslake explains on The World At One.

Sir Philip Green's honour can be withdrawn if it 'brings system into disrepute'

Plea for May to act

BHS store
Reuters

Business Live reader Stephen Trott writes:

"My partner works for BHS in Ipswich. She will as a result of Phillip Green's actions very shortly be made redundant. The Prime Minister needs to push the case forward for him to be stripped of his knighthood without any further delay."

Napkin notes

The digital editor of FT Money digs out an interesting page in the BHS report:

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Jon Erlichman, of Business News Network in Canada, tweets:

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Turn back time

Tech blogger Cory Doctorow tweets a lovely reminder of how the search engine once looked:

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And as Verge editor Casey Newton tweets:

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'Authority without accountability'

Goldman Sachs Logo
Reuters

Earlier we reported how MPs had criticised Goldman Sachs' role in the sale of BHS, saying the investment bank's role in the sale of the retailer "added lustre to an otherwise questionable process".

"They enabled their prestigious name to be cited as that of 'gatekeeper' to the transaction," MPs said.  

Goldman Sachs, which provided advice to Sir Philip for free, and was not formally engaged with the sale, "should have been either 'in' or 'out' of the deal, and demonstrably so. As it was, they had authority without accountability".  

Goldman have responded with a statement:

"As the report recognises, we identified risks to Arcadia but did not provide advice or recommendations, and our informal work should not have been relied upon in any decision to proceed with the transaction."

Mayer to stay on

Yahoo CEO Marissa Mayer
Getty Images

In an email to staff today and published on Yahoo-owned Tumblr, Yahoo chief executive Marissa Mayer told employees that the firm had "changed the world", and reminded them that it still has more than one billion users worldwide.

The 41-year-old Silicon Valley veteran also said she was staying on: "I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter."

Pressure mounts

The MPs' report increases pressure for Sir Philip Green's 2006 knighthood for services to retailing to be revoked. 

The government said on Saturday the gong was under review. 

Prime Minister Theresa May's spokesperson said: "That is a decision for the Honours Forfeiture Committee. That is an independent committee and she respects that. It is for them to look at it." 

BreakingVerizon to buy Yahoo!

Verizon has confirmed its $4.8bn (£3.6bn) buyout of online pioneer Yahoo!, marking the end of an era for a company that once defined the internet.