Business Live: FTSE and oil fall
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- Get in touch: bizlivepage@bbc.co.uk
- Oil price flutters around $45 a barrel
- China banks told to examine overseas deals
- West Coast mainline shortlist is revealed
- Mortgage lending rises 12% in May
- Imagination Technologies is up for sale
Live Reporting
By Dearbail Jordan and Jane-Frances Kelly
All times stated are UK
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Hornby says bid 'significantly undervalues' firm
Hornby has announced that a 32.375p per share bid from shareholder Pheonix UK "significantly undervalues" the company.
Pheonix UK made the offer after buying shares in Hornby from New Pistoria Income, taking its total holding in the company to 55%.
Hornby, whose brands include Scalextric, Airfix and Corgi, also said on Thursday that it has appointed David Adams as interim chairman after Roger Canham resigned as a result of his relationship with Phoenix UK Fund".
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Eurozone sees 'solid' second quarter growth
The European Central Bank has given a favourable forecast for growth in the second quarter.
In its regular economic bulletin it said inflation will hover near the current level in the coming months with early signs of price pressures in the production and pricing chain.
Inflation in the eurozone was 1.4% in May.
It said domestic demand is likely to be buoyed by a number of factors.
"Very favourable financing conditions and low interest rates continue to promote a recovery in investment in the context of rising profits and lower deleveraging needs."
Pressure grows on buy-to-let market
Paul Smee, director general at the Council of Mortgage Lenders, said that remortgaging and first-time buyers continued to drive lending this year.
"Looking ahead, we expect to see this trend continue, but not as strongly, as the factors supporting lending are blunted by less favourable economic conditions," he said.
"While falling mortgage interest rates have helped support borrowing, tax and prudential measures are exerting pressure on the buy-to-let market.
"Following the distortion of the stamp duty change on second properties last year, we expected a slight recovery in lending levels. However, this has not materialised, and we therefore have lowered our forecast for buy-to-let lending this year and next."
A ray of light for Provident Financial
Provident Financial's shares are leading the biggest risers on the FTSE 100.
However, a 3% rise to £24.34 is not enough to make up for a sharp fall on Wednesday when the sub-prime lender warned on profits.
As trading heads into midday, the FTSE 100 is down 26.31 points at 7,421.48.
The FTSE 250 is 42.38 points lower at 19,640.23.
The pound 0.06% down on the dollar at $1.2664.
Listen: Brits don't want fruit picking jobs
CBI: government must put the economy first
Commenting on the latest UK manufacturing figures, the CBI's chief economist Rain Newton-Smith says that companies are continuing to see demand for goods “Made in Britain”.
"Nevertheless, with cost pressures remaining elevated it’s no surprise to see that manufacturers continue to have high expectations for the prices they plan to charge.
“To build the right future for Britain’s economy, manufacturers and workers, the Government must put the economy first as it negotiates the country’s departure from the EU. This approach will deliver a deal that supports growth and raises living standards across the UK.”
UK factory orders hit highest since 1988
UK factory orders have reached the highest level for nearly 30 years, according to the CBI’s latest Industrial Trends Survey.
The CBI said the factory order book balance jumped to +16 in June from +9 in May.
It found improvements in the food, drink & tobacco and chemicals sectors. Export orders also improved to a 22-year high, hitting similar peaks to those seen in 2011 and 2013.
China banking watchdog calls for scrutiny of overseas deals
Reuters is reporting that China's banking regulator has asked a group of commercial banks to assess their exposure to offshore deals by a number of the country's companies.
They include Fosun International, owner of Wolverhampton Wanderers Football Club, HNA Group, Dalian Wanda, Anbang Insurance and Zhejiang Luosen.
They may say Donald's a dreamer
Donald Tusk, president of the European Council, has hinted that Britain's withdrawal from the EU may not be inevitable, despite the British vote last year to leave.
As EU leaders began gathering in Brussels on Thursday for a summit, Mr Tusk was asked if the Brexit negotiations that began last week could result in Britain staying.
Quoting the John Lennon song "Imagine", he replied: "You may say I'm a dreamer, but I'm not the only one."
The EU summit is the first since the Conservatives in Britain lost their majority in the general election.
Southern Rail 'amazed' at pay deal rejection
Southern Rail said it is "amazed" that the Aslef union has rejected its latest pay deal which will reportedly earn drivers £75,000 a year.
Aslef has reinstated an overtime ban and drivers will start voting for strike action on 29 June, with the first walk out potentially on 27 July.
Southern Rail said: "This ballot is a real chance for drivers to end this dispute by showing they want to accept the 23.8% pay offer and work with us to modernise the congested Southern network as updated infrastructure, trains and working practices provide the service passengers need and deserve."
It said the deal would be withdrawn if the overtime ban went ahead.
Mick Whelan, general secretary of Aslef said the company had only began to negotiate with it recently and it had reinstated the overtime ban because of the "company's failure to engage over driver-only operation".
Tough times for oil producers
Michael Burns, oil and gas partner at law firm Ashurst, said the continued drop in oil prices is proving tough for producers.
"The OPEC production cuts strategy does not seem to be holding prices and US shale activity appears to be increasing notwithstanding falling prices.
"The question is whether OPEC will respond with further cuts or whether it needs to look again at its macro strategy for addressing low prices."
Brent Crude is 0.3% lower at $44.69 a barrel and West Texas Intermediate is also down 0.3% at $42.40 a barrel.
Expats deal won't be all plain sailing
The BBC's political editor Laura Kuenssberg tweets...
Hammond: citizens rights will be protected
Today Programme
BBC Radio 4
Philip Hammond is confident a reciprocal arrangement can be achieved protecting the future rights of EU citizens who live in the UK and vice versa.
Theresa May will face the leaders of the other EU states on Thursday to discuss the issue.
Mr Hammond said: "I do think that there is a full understanding, a full acceptance across the European Union that the arrangements we put in place will be reciprocal.
"That they are looking for good protection, strong rights for European Union nationals in the UK and they are absolutely prepared to offer reciprocal assurances to UK citizens living in the European Union."
Hammond on transitional Brexit deal
May mortgage lending rises by 12%
Gross mortgage lending rose to £20.1bn in May, up 12% compared to April and the same month last year, according to the Council of Mortgage Lenders.
The CML has also revised down its buy-to-let forecast for 2017 and 2018.
It now now expects buy-to-let lending of £35bn this year and £33bn in the following 12 months.
It had expected lending of £38bn in each year.
Fruit and veg farmers facing migrant labour shortages
UK summer fruit and salad growers are having difficulty recruiting pickers according to a BBC survey.
More than half saying they don't know if they will have enough migrant workers to harvest their crops.
Many growers blame the weak pound which has reduced their workers' earning power, as well as uncertainty over Brexit.
About 80,000 seasonal workers a year pick and process British fruit and veg.
Most of them are from the European Union, mainly Romania and Bulgaria.
One in five growers says they already have fewer pickers than they need.
You can read more on the BBC Business website
ECB to set up instant money transfer service
The European Central Bank has announced that it is developing an instant payment to allow small scale, real-time money transfers.
Reuters reports that real time transfer facilities are already available for large volume payments but the new service, set to start operating in November 2018, would expand this to all transfers, including retail transactions, at a marginal cost.
"The service will be developed in close cooperation with the banking industry in Europe," the ECB said.
Hammond: Brexit transition could take four years
The Chancellor Phillip Hammond, says he is confident of securing a Brexit deal that puts jobs and prosperity first.
He's also sought to reassure employers that "transitional arrangements" will help ease the process.
"The thing that is causing concern in the business community is the risk of a cliff edge.
"And I think the sooner we can reassure business that there is going to be a smooth path from where we are now to the future arrangements we put in place with the European Union, the sooner we will hear that sigh of relief and start seeing businesses investing again."
He said he believed a deal could be achieved by the time the UK finally leaves in 2019 but acknowledges transitional arrangements could last 3 or 4 years.
His comment will infuriate hardline Brexit supporters among Conservative MPs who have been pressing for a swift break with the EU.
Imagination: A tale of two trading days
Shares in Imagination Technologies is now up 14.98% at 142p after announcing that the company is up for sale.
However, Imgination's stock would have to rise substantially to make up for the steep fall it suffered after its biggest customer Apple said in April that it had decided to design its own chips...
Have your say: saving for retirement
Queen's Speech lacking infrastructure schemes
Today Programme
BBC Radio 4
Liz Jenkins, partner at the law firm Clyde & Co, who specialises in infrastructure projects is frustrated by the lack of them mentioned in the Queen's Speech.
She said there is a "massive need for more infrastructure. We've spent so many years debating this."
The government has announced further legislation for HS2 but did not mention anything about Crossrail2 or the Northern Powerhouse Rail (HS3).
She said there appeared to be a lack of "political will" and there needed to be a re-balancing of the economy with projects in the north of the country.
Hammond: Brexit uncertainty is hurting business
Large amounts of business investment is being postponed because of uncertainty over Brexit negotiations according to the Chancellor Philip Hammond.
"There would be a sigh of relief from business if we were able to get an early agreement on a transition arrangement." Mr Hammond told the BBC's Today programme..
He wants to avoid a "cliff edge" agreement and accepts the transitional period will last several years.
"When you move into a house you don't necessarily move all your furniture in on the first day."
He said he is confident the Conservatives can reach an agreement with the DUP and called reports that Mrs May wanted to sack him as "popular mythology peddled by the media".
May-Hammond discord 'is a myth'
BBC assistant political editor Norman Smith tweets...
Today Programme
BBC Radio 4
FTSE, pound and oil all head lower
The FTSE 100 is now trading 30.16 points lower at 7,417.63.
Pharmaceuticals group Shire Plc is currently leading the biggest risers with its share price up 1.8% at £45.43. United Utilities is down 2.5% at 914.5p.
The FTSE 250 is off 64.39 points at 19,618.22.
The pound is down 0.02% on the dollar at $1.2668.
Brent crude is 0.4% lower at $44.64 a barrel and West Texas Intermediate is also down 0.4% at $42.35 a barrel.
Hammond: early transitional agreement is important
Hammond: create Brexit mischief at your own peril
BBC political correspondent Nick Eardley tweets...
Today Programme
BBC Radio 4
South Eastern rail bidders announced
The government has announced the bidders for the South Eastern rail line.
It is one of the busiest franchises in the UK running almost two thousand services every week day.
The bidders are:
Transport Secretary, Chris Grayling said he wants "spacious trains on a more punctual and reliable service."
Imagination shares surge
Shares in Imagination Technologies jumped by 17.41% to 145p on Thursday morning.
It is not a surprise that the company is up for sale, according to Neil Wilson, senior market analyst at ETC Capital.
"Shares in the group are down around 60% from where they were before the Hertfordshire company stunned the market by saying Apple was pulling the plug on its chip supply deal in little over a year’s time," he says.
Apple accounts for about half of Imagination Technologies's sales.
Mr Wilson said: "It was never going to be easy for Imagination Technologies when it lost its biggest customer and efforts to offload two of its three main businesses – MIPS and Ensigma - in a bid to strengthen the balance sheet clearly weren’t enough."
FTSE indexes open down
The FTSE 100 opened 21.57 points lower at 7,426.22.
The FTSE 250 also fell in early trading, down 15.51 points at 19,667.10.
Returning to normality
Today Programme
BBC Radio 4
If PwC's senior economic adviser Andrew Sentance was still a member of the Bank of England's Monetary Policy Committee, how would be voting?
"I would be voting for a rate rise," he tells the BBC's Today programme.
"There are two reasons for that. One is of course inflation is relatively high but the second reason is we're now nearly 10 years on from the first indications of the financial crisis and we really do need to move interest rates back up to a more normal range and that's a big strategic challenge for the Bank of England."
A glitch called Wanda? China film firm shares slump 10%
Simon Atkinson
Asia Business Reporter
What is going on at Dalian Wanda?
The Chinese conglomerate has hit the headlines in recent years for buying its way into Hollywood - including purchasing Legendary Entertainment (co-producer of hit films including Godzilla and The Dark Knight Rises) and controlling cinema chain AMC Theaters.
But today it has asked for trading in shares of its film unit to be halted, after the stock slid 10%.
The group said "malicious" rumours that banks were planning to sell Wanda bonds could be to blame - reports which it says are false.
Wanda Group is headed by Wang Jianlin. He's China’s second-richest man and is worth about $31bn according to Bloomberg.
Another day, another resignation at Uber
Today Programme
BBC Radio 4
Richard Hunter, head of research at Wilson King Investment Management, said there was probably an "element of diplomacy" in the resignation of Bill Gurley from Uber's board of directors.
Mr Gurley of venture capitalist Benchmark was one of the "gang of five" investors in Uber who forced Travis Kalanick to step down as chief executive of the taxi sharing company.
Mr Gurley was the only person from the "gang of five" to hold a seat on Uber's board. Mr Kalanick, who co-founded Uber in 2009, will remain on the board.
BreakingImagination Technologies up for sale following Apple dispute
Imagination Technologies has put itself up for sale.
The UK company has been in a dispute with its largest customer Apple.
In April, Apple told Imagination Technologies it would develop its own graphics chips and would no longer use Imagination's processing designs in 15 months to two years time.
The company said on Thursday: "Imagination Technologies announces that over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group.
"The board of Imagination has therefore decided to initiate a formal sale process for the group and is engaged in preliminary discussions with potential bidders."
West Coast winner will also run HS2
The companies short-listed to run the new West Coast mainline will also design and run the initial HS2 high speed services between London and Birmingham from 2026
The bidders are:
The West Coast franchise is currently run by Virgin and Stagecoach and connects London, Birmingham, Liverpool, Manchester and Glasgow.
CMA clears Standard Life and Aberdeen merger
Good news for Standard Life and Aberdeen Asset Management - their £11bn merger has been cleared by the Competition and Markets Authority.
Less heartening is the discovery by The Times that the fund managers' combined investment management committee includes just one woman.
That's one woman out of 12 members.
Let battle commence
BBC Today's business presenter Dominic O'Connell tweets...
No coordination at the Bank of England?
Today Programme
BBC Radio 4
BBC Today's business presenter Dominic O'Connell highlights the lack of coordination of having the Bank of England's Governor saying he does not see an interest rate rise any time soon, only for the chief economist to say the opposite the next day.
PwC's senior economic adviser Andrew Sentance says: "It may be that Mark Carney knew that Andy Haldane was going to give this speech and therefore made his own position clear in the Mansion House speech."
He added: "I think if we look at what has happened over in the United States they have developed what appears to be a strategy for raising interest rates.
"I think that is what is lacking on the MPC even if we get individual votes and even if we get a rise later this year, it is not clear if that is just undoing the cut that was made last year or whether it is the start of the normalisation process as we've seen in the United States where rates will gradually inch up over a period of time."
Lack of pension protection 'disappointing'
Today Programme
BBC Radio 4
Kate Smith, head of pensions at Aegon, says she is "very disappointed" about the lack of a pensions bill in the Queen's Speech.
Ms Smith said: "The Queen's Speech was very quiet on any legislation to ban pension cold calling or to give schemes or their providers greater powers to block suspicious fraudulent transfers.
"That is transfers where red flags are spotted indicating potentially fraudulent activity.
"I'm personally very disappointed about that. Scams in general, and pension scams in particular, are on the increase and evolving."
There was also no mention of greater protection for employees in defined benefit schemes.
Different views
Today Programme
BBC Radio 4
Commenting on whether it is odd for the Bank of England's chief economist to have a different point of view compared to the Governor, PwC's senior economic adviser Andrew Sentance says: "Members of the MPC are meant to vote independently.
"In fact, when I was on the committee the chief economist of the time, Spencer Dale, took a different view of the governor the last time there was a substantial group on the committee arguing for a rise in interest rates which was about six years ago."