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Summary

  1. Bank of England cuts interest rates to 0.25%
  2. FTSE closes up by 1.59% in London
  3. Pound struggles, losing 1.4% against the dollar
  4. Carney warns banks must pass on rate cut
  5. Bank announces two new stimulus schemes
  6. Bank expects no growth in second half of 2016

Live Reporting

By Bill Wilson

All times stated are UK

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  1. Goodnight

    That is all from the Business Live page for today. We'll be back from 6am tomorrow. Have a good night.   

  2. US shares close virtually unchanged

    Wall Street shares showed very little change at close on Thursday, ahead of Friday's US payrolls report.

    The Dow Jones industrial average was down 3 points,  the S&P 500 up half a point, and the Nasdaq Composite up 6.5 points.

  3. How the rate cut affects mortgages and savings

    In case you did not see it earlier, a visual guide

    Rate cut card
  4. Kellogg's sales fail to 'snap, crackle and pop'

    Snap, Crackle and Pop

    American cereal maker Kellogg's has seen its quarterly sales fall by 6.6%. The company blamed the recent volatility in Venezuela.

    Demand for its breakfast foods and snacks dropped in both the US and Asia, although Pringles sales continued to grow.

  5. ...but IEA says rate cut move is misguided

    Quote Message: "Today's decision to cut the base interest rate is both disappointing and ill-advised. The post-Brexit economic problems are down to consumer and business uncertainty and will not be solved by introducing monetary stimulus. By lowering interest rates, the Bank of England will distort the economy and potentially reduce growth. from Philip Booth Research director, Institute of Economic Affairs
    Philip BoothResearch director, Institute of Economic Affairs
  6. Adam Smith Institute backs UK rate cut

    Quote Message: "The Bank of England has done the right thing in cutting rates and starting a large quantitative easing programme. The short-term risks of Brexit must not be compounded by tight money, and with inflation rates already near zero there is little risk of excess inflation. from Sam Bowman Executive director, Adam Smith Institute
    Sam BowmanExecutive director, Adam Smith Institute
  7. Why does UK productivity lag behind other nations?

    The World at One

    BBC Radio 4

    An interesting story from earlier in the day, looking at the thorny issue of why UK productivity is found wanting compared to other developed nations.

    It seems issues of investment and skills are the key to improving UK productivity levels says the Federation of Small Businesses.National policy director Martin McTague spoke to James Robbins on the World at One soon after Theresa May hosted a meeting of small and medium sized companies in Downing Street at the same time that UK interest rates were being cut.  

    Video content

    Video caption: The Federation of Small Businesses on UK industrial strategy.
  8. You'll never believe what Facebook are doing...

    Facebook

    More on the Facebook clickbait war.

    The social network says it is updating its news feed algorithm to detect so-called "clickbait" headlines, by blacklisting the following:

    • If the headline withholds information required to understand what the content of the article is
    • If the headline exaggerates the article to create misleading expectations for the reader.

    In a blog, Facebook gives some examples of offences:

    • “You’ll Never Believe Who Tripped and Fell on the Red Carpet…” withholds information required to understand the article (What happened? Who Tripped?)
    •  The headline “Apples Are Actually Bad For You?!” misleads the reader (apples are only bad for you if you eat too many every day). 
  9. Fitch: BoE's rate cut just a cushion

    Zoe Thomas

    US business reporter

    Pillows

    Ratings agency Fitch called the Bank of England's decision to cut rates "a proactive policy response to the EU referendum". 

    But it warned that the move was just a "cushion" that would not fully offset the economic impact of the UK's decision to leave the European Union. 

    "The referendum will take a significant toll on the economy despite sterling's fall potentially supporting exports," the agency wrote in a report.

  10. US stocks largely static after UK rate cut

    Dow Jones chart

    The UK interest rate cut has left Wall Street stocks decidedly unshaken.

    US shares are barely changed in early afternoon trade in New York.

    The Dow (see chart above) is up 3 points, the S&P 2 points, and Nasdaq 9 points.

  11. What does rate cut means for the retail sector?

    UK shoppers
    Quote Message: The widely expected interest rate cut by the Bank of England is unlikely to stimulate a flurry of retail spending. The impact on consumer confidence or spending could even be detrimental in the short term. With the immediate impact of the interest rate cut being a drop in the value of the pound this move is hardly likely to boost flagging consumer confidence, which is a major factor in driving spend. In addition, consumers will see returns on savings fall yet further. In theory, this is supposed to stimulate spend by making it less desirable to save, but there seems little evidence this has worked up to now. from Nivindya Sharma Senior Analyst at Verdict Retail
    Nivindya SharmaSenior Analyst at Verdict Retail
  12. Cable: 'Don't lean too heavily on monetary policy'

    Referring to the rate cut, former business secretary Sir Vince Cable says: "Leaning too heavily on monetary policy is taking away from what the government should be doing in terms of the total budget, which is where the heavy lifting should be done."

  13. Ford recalls 830,000 vehicles

    Ford Escape

    Ford has recalled 830,000 cars in North America due to potentially faulty door latches.

    In certain situations, the company says "the door may unlatch while driving". It adds that it has identified "one reported accident and one reported injury" related to the issue.

    The models in question are:

    • 2013-15 C-MAX
    • 2013-15 Escape
    • 2012-15 Focus
    • 2015 Lincoln MKC
    • 2015 Mustang
    • 2014-16 Transit Connect