15 November 2013 Last updated at 05:29 ET

Business Live: Monday morning briefing

Key Points

  • Aberdeen buys Lloyds unit in £660m deal
  • Households downbeat on finances
  • Google and Microsoft block abuse images
    0600: Anthony Reuben Business reporter, BBC News

    Good morning. Changes on the Business Live page today: there are new faces on the team and we're going to try keep the page going until 13:00. Stay with us and let us know what you think. You can e-mail bizlivepage@bbc.co.uk or tweet @bbcbusiness.

    0600: Edwin Lane Business reporter, BBC News

    Good morning! It's 0600, it's Monday, it's the Business Live page. This morning we will be pondering the deteriorating health of household finances in the UK and catching up with Boeing versus Airbus at the Dubai Air Show.

    DUBAI AIR SHOW Via Twitter

    The BBC's Katy Watson tweets: What @atko1978 and I had to deal with yesterday: BBC News - Dubai Airshow: Sandstorm and strong winds on first day [links to video] http://www.bbc.co.uk/news/business-24980650

    AUTUMN STATEMENT 0609: Radio 5 live

    The lobbying is underway ahead of the Autumn Statement at the beginning on December. Terry Scuolar from EEF, the manufacturers' organisation tells Radio 5 live that we need a cut in energy costs so we are competitive with our European rivals. We have dithered over this for many years, he says.

    DUBAI AIR SHOW 0610:
    Ruler of Dubai Sheikh Mohammed Bin Rashid al-Maktoum (L) walks past an Emirates Airline's Airbus A380 as he attends the opening ceremony of the Dubai Airshow

    It's day two of the Dubai Air Show. Yesterday was a big day for Boeing and Airbus, with Boeing leading the race with around $100bn (£62bn) in orders from airlines already. Airbus is some distance behind with orders worth about $40bn. Not bad for a day's work.

    AUTUMN STATEMENT 0616: Radio 5 live

    More lobbying for the Autumn Statement - you may get bored of this in the next few weeks. Richard Lay, a nursery owner, tells Radio 5 live he converted a working men's club into a nursery, got hit with a £54,000 business rates tax bill, so converted it into a flat.


    The top headline in this morning's Financial Times is that the paper has seen documents showing that 3,000 construction workers who were put on industry blacklists have been offered compensation of between £1,000 and £100,000.


    Households are feeling gloomier about their finances, according to a survey released this morning by Markit. Prices are going up, the report says, and wages aren't rising as fast as inflation, squeezing finances. The survey suggested households were at their gloomiest since April.

    EXECUTIVE PAY 0631: Radio 4

    Guests on the Today programme are discussing the contrast between the state of household finances and the pay of executives at the big FTSE 100 companies. Executives saw their earnings rise 14% over the last year, according to Income Data Services. Bonuses are still making up most of that income, Steve Tatton from IDS says.

    CURRENCY WARS 0639: Radio 4

    The US is accusing Germany of engaging in currency manipulation. It's suggesting the Germans aren't doing enough to rebalance their economy, keeping the euro artificially high, says CIBC currency trader Jeremy Stretch, making a change from China, which is the usual target of the US's criticism.


    The top story in the Telegraph's business section is the news that British employers have put £182bn into defined benefit pension schemes since quantitative easing began in 2009. That's according to a report from the pension regulator and Pension Protection Fund. I didn't think there were enough companies that still had defined benefit schemes to pay that much.

    Via Twitter Theo Leggett Business reporter, BBC News

    tweets: US Senate committee to discuss pros and cons of #Bitcoin and other online currencies today. Hear what they're worried about on @BBCNewsday

    AUSTERITY 0647:

    An editorial by David Blanchflower in the Independent says: "The cat is finally out of the bag. The cuts are here to stay because David Cameron and George Osborne like them. They make them feel all warm and cuddly to know they are shrinking the state and bashing all those scroungers who depend on a helping hand."

    INTERNET ABUSE 0657: Rory Cellan-Jones Technology correspondent

    reports that rivals Google and Microsoft are giving "a rare display of unity" in taking action to block images of child abuse in search engine results.

    EXECUTIVE PAY 0657: BBC Breakfast

    Steph McGovern on BBC1 Breakfast suggests to Luke Hildyard from the High Pay Centre, which campaigns against excessive executive pay, that the reason executive pay has gone up significantly is that FTSE 100 companies have been doing better. "It's only the one or two executives in London who are getting huge bonuses. A company's success is based on all its workers around the world."

    Screen shot from Breakfast
    Via Twitter Adam Parsons Business Correspondent

    tweets: "Story of the day in the FT: Chinese corruption crackdown hits sales of hairy crabs." Believe it or not, hairy crabs used to be a perk of government service in China - but no more.

    LLOYDS SALE 0706:

    We've just heard that Aberdeen Asset Management has agreed to buy Scottish Widows Investment Partnership for about £550m.

    SEVERN TRENT 0709:

    BT has announced that the boss of its Openreach division, Liv Garfield, is leaving to become the new boss of Severn Trent - the FTSE 100 water company.

    LLOYDS SALE 0714:

    Aberdeen Asset Management is going to make its up-front payment for Scottish Widows Asset Management almost entirely in its own shares, handing over about 10% of its stock. It will also pay up to £100m over the next five years depending on how much growth is delivered by a new strategic partnership with Lloyds.


    Capita has announced that Paul Pindar is to step down as chief executive of the outsourcing firm after 26 years at the company. Andy Parker, the current deputy chief executive will take over from 1 March next year.

    INTERNET ABUSE 0719: Radio 4

    John Carr, a government adviser on child internet safety, tells the Today programme: "This is the first time big companies have acknowledged their responsibility to manage the way their technology is being used. We should welcome it and recognise it as a positive development."

    INTERNET ABUSE Via Twitter Rory Cellan-Jones Technology correspondent

    tweets: "Search engines to block abuse images. But critics say police need more funds http://www.bbc.co.uk/news/uk-24980765"

    LLOYDS SALE Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "Aberdeen Asset Mgt this am not talking job implications, but it's reported 150 could go in overlap with SWIP, which employs 400 in Edinburgh"

    CO-OP BANK CHAIR 0732: Radio 4

    Robert Peston is on the Today programme talking about Paul Flowers, the former chairman of Co-op Bank. A video on the Mail on Sunday website apparently shows him buying illegal drugs. Robert says it was "jaw-dropping" that Mr Flowers had ever got the job in the first place. "What an earth were the authorities doing in allowing the appointment of someone who patently knew very little about banking?" he asks.

    LLOYDS SALE Via Twitter Adam Parsons Business Correspondent

    tweets: Coming up at 7.45am - I'll be talking to the boss of Aberdeen Asset Management, Martin Gilbert @bbc5live

    LLOYDS SALE 0743:

    An interesting discrepancy between Lloyds and Aberdeen Asset Management on the sale of Scottish Widows Investment Partnership. Lloyds' announcement to the Stock Exchange says it is selling the business for "approximately £560m" while the Aberdeen announcement says it's selling it for "approximately £550m". What's £10m between strategic partners?

    Majestic Wine

    Majestic Wine reports a 4.2% increase in pre-tax profit to £9.5m for the six months to 30 September. Sales of Prosecco up 39%.

    LLOYDS SALE 0748:

    We've spoken to the PR people for Aberdeen Asset Management about the £10m discrepancy in the price being paid for Scottish Widows Investment Partnership. They advise up to go with the Lloyds figure. With the possible extra £100m over five years that's £660m. So that's all clear now.

    LLOYDS SALE 0757: Radio 5 live

    The boss of Aberdeen Asset Management, Martin Gilbert explained to Adam Parsons on 5 live why his firm is buying Scottish Widows Investment Partnership from Lloyds. He hopes to make "two and two equal five". Asset management companies don't have to be huge, he said, "but do have to be profitable".

    Via Twitter Justin Rowlatt Presenter, Business Daily, BBC World Service

    tweets: Business Daily is in campaigning mode in half an hour on @bbcworldservice - latest #occupy campaign and a singing toilet!


    The big news so far is the planned sale of a Lloyds unit to Aberdeen Asset Management. Meanwhile, two pieces of research out this morning find of household finances tightening and rising pay for FTSE 100 executives. Get in touch at @bbcbusiness or bizlivepage@bbc.co.uk.

    BENEFITS 0816:

    Research from the University of Edinburgh covering 28 European countries has found that benefit levels had "no effect" on the wellbeing of those without a job. Researchers found some countries with the most generous benefits also had some of the most despondent unemployed citizens, and vice versa.


    The markets in Europe have opened slightly lower this morning. The FTSE 100 is down 0.1%, while the Dax is Frankfurt and the Cac 40 in Paris are both down 0.2%. In Hong Kong the Hang Seng closed up 2.7%, while in Tokyo the Nikkei closed virtually unchanged.

    Via Twitter Adam Parsons Business Correspondent

    tweets: No wonder Martin Gilbert sounded perky on @bbc5live. Aberdeen Asst Mngmnt shares up 11.5%.

    Tesco logo

    The Guardian reports that Tesco is using its food delivery lorries to pick up rubbish from stores in an attempt to cut costs. The report says that Tesco's big trucks drop off food waste and other rubbish at waste centres before returning to its warehouses. Tesco insists there is no risk to food hygiene.

    LLOYDS SALE Via Twitter Adam Parsons Business Correspondent

    tweets: No wonder Martin Gilbert sounded perky on @bbc5live. Aberdeen Asst Mngmnt shares up 11.5%

    YOUNG TECH 0842:
    computer user

    A warning for investors chasing the youth market. The Wall Street Journal argues "Kids Aren't Reliable Tech Predictors". This line in the article probably summarises the argument "Just ask Myspace how far being cool can get you."

    BITCOIN 0852: BBC World News

    World Business Report reports that US lawmakers are holding their first hearing into regulating virtual currencies such as Bitcoin, amid concerns they are becoming the currency of choice for some criminals.

    AUSTERITY 0901: Radio 4

    Nobel Prize-winning economist Paul Krugman compares George Osborne's austerity policies to "hitting yourself in the head with a baseball bat", and suggests the economic growth the UK is now seeing is in spite of, rather than because of, those policies.

    CO-OP BANK CHAIR 0902: Via Blog Robert Peston Business editor

    blogs: I spent a bit of time yesterday trying to find out a bit more about the Reverend Paul Flowers - because it is not every day that a former bank chairman is caught on camera apparently trying to buy cocaine and crystal meth from the back of a car in Leeds.

    DIRECTORS' PAY 0911: Radio 5 live

    The average director of a FTSE-100 company makes £3m a year, so says Steve Tatton the editor of IDS Executive Compensation Review on 5 live. Around £2.5m of that comes from share-based awards, which have soared 58% compared with last year, according to IDS. And apparently you can blame the United States for the high pay of UK directors, as they often use US pay rates as a benchmark.

    NOT BETTER OFF 0921: Radio 4

    It used to be the case that every generation became richer than their parents, but not any more according to the Today programme. This is the first generation of people in their mid-twenties who are not better off than people in their mid-twenties 10 years ago, and will not be better off in their eighties than current octogenarians, says Chris Giles, FT economics editor.


    Time for another quick look at the markets: The FTSE 100 is down 0.3%, as are the Dax in Frankfurt and the Cac 40 in Paris. In Asia, Japan's Nikkei closed virtually unchanged, while the Hang Seng in Hong Kong ended the day up 2.7%.

    MORNING COFFEE Via Twitter Kevin Peachey Personal finance reporter, BBC News

    tweets: This'll make you spill your coffee: Consumers to swap caffeine for 'functional green vegetable drinks' in 2014, predicts Mintel mkt research

    CANCELLING DEBT 0937: World Service

    On Business Daily, Ann Larson from the Occupy Wall Street explains how the movement has so-far spent $400,000 buying $14m of debt and cancelling it. When uninsured people need medical treatment, for example, they borrow money and the debt is then sold to debt-collection companies. That debt is often then sold on for pennies in the dollar, and Occupy buys and cancels it.


    If you're just joining us this morning we have been talking about pay increases for top company executives versus the squeeze on household budgets, plus the latest from the Dubai Air Show, where Boeing and Airbus have announced multibillion-dollar deals. Get in touch at @bbcbusiness or bizlivepage@bbc.co.uk.

    DUBAI AIR SHOW 0955: BBC World News
    James Hogan, Etihad Airways

    The BBC's Simon Atkinson has interviewed the boss of Etihad Airways, James Hogan at the Dubai Air Show. His company has just signed a deal that will see the Etihad brand being used by a Swiss regional airline. "The rules of business are changing in global aviation," he says, "and we're at the forefront of that."

    Scotland football fan

    An independent Scotland would have to make a significant cut in spending or raise taxes to balance its books, according to a report from the Institute for Fiscal Studies, a respected independent research group. Its most optimistic forecast is for a £3bn fiscal gap, which could be closed by an increase in the basic rate of income tax by nine percentage points or a 6% cut in total public spending.

    Chinese baby

    Shares in Chinese companies that make baby-related products have soared after authorities eased the one-child policy. Infant formula producer Yashili surged 10%, while pushchair manufacturer Goodbaby jumped almost 6%.

    Lisa Lazarus

    How did Lisa Lazarus, from Llanelli in Wales, end up in Bollywood? Find out how she and other foreign actors are making it in India's film industry.

    Empty Spanish factory

    Bad loans at Spanish banks hit a record in September totalling 188bn euros ($254bn, £158bn), according to the Bank of Spain. They now account for 12.7% of all credit extended and are largely the result of the crash in Spain's property market.

    Chess pieces

    "Business processes are a lot like chess," according to Alan Trefler, chief executive of business software group Pegasystems. "First you need to look at the board, absorb all the data, recognise patterns, analyse, develop a strategy, then continually revise and develop that strategy as the game progresses."

    SCOTTISH INDEPENDENCE Via Twitter Douglas Fraser Business and economy editor, Scotland

    tweets: "IFS report on independent Scotland makes bold long-term assumptions on population, migration and offshore oil revenues. #indyref"

    WORLD TOILET DAY 1047: World Service

    It's World Toilet Day. To mark it, Chris Wainwright from Water UK has been on Business Daily. He's talking about a new character, Louis the Loo, who sings. "People don't really want to talk about toilets. They don't like talking about poo and wee and the impact of the lack of sanitation on the one in three people around the world who don't have somewhere safe to go to the toilet," Mr Wainwright says.

    Peter Barron, Google and Nicola Hodson, Microsoft

    An unusual interview for BBC Technology Correspondent, Rory Cellan-Jones, speaking to Google and Microsoft at the same time. Peter Barron from Google and Nicola Hodson from Microsoft explain how they are tackling images of child abuse on the internet.

    SEVERN TRENT 1111:
    Liv Garfield

    The Guardian points out that the appointment of Liv Garfield as the new boss of Severn Trent makes her one of just four women to head FTSE 100 companies, and one of those is Burberry's Angela Ahrendts, who's imminently leaving to work for Apple.

    ENERGY PRICES 1116: Radio 4

    Are people losing patience with the "big six" energy firms? Radio 4's You & Yours programme hears from the small independent suppliers who are reporting a big increase in their customer bases.

    Via Twitter Robert Peston Business editor

    tweets: forgot to say that Co-op Bank's Flowers, styled the crystal methodist, was on Ed Miliband's finance advisory group

    AIR NEW ZEALAND 1129: BBC World News

    BBC World News reports on the New Zealand government's plans to sell a 20% stake in national carrier Air New Zealand as part of an ongoing programme of state asset sales. The sale is expected to be worth around NZ$363m (£189m).


    Investors appear a little more upbeat on the European markets compared with earlier this morning. The FTSE 100 is currently up about 0.3% after spending much of the morning in the red. The Cac 40 in Paris is up 0.35% while the Dax is up 0.5%. Aberdeen Asset Management is the biggest riser in London, up more than 13%.

    CHINA REFORMS 1148: Linda Yueh Chief business correspondent

    tells BBC World News that investors in Asia have responded positively to China's huge raft of planned reforms announced on Friday. She says 60 different reforms have been announced. "I think its the sheer ambition of it that has caused some to be optimistic that the new Chinese President Xi Jinping can deliver," she says.

    LLOYDS SALE 1200: BBC News Channel
    Martin Gilbert

    Martin Gilbert, chief executive of Aberdeen Asset Management has been on the BBC News Channel, and is still saying that he's paying £550m to buy Scottish Widows Investment Partnership from Lloyds. Lloyds says it's getting £560m. The trouble is that because Aberdeen is paying in shares, it depends what share price you're taking. You'd still think they could agree between themselves.

    INDEPENDENT SCOTLAND 1210: Via Blog Douglas Fraser Business and economy editor, Scotland

    blogs: It's worth stressing that the projections for an independent Scotland look bad, but shouldn't let us forget that UK finances are in a mess.

    AUTUMN STATEMENT Via Twitter Kevin Peachey Personal finance reporter, BBC News

    tweets: "BBA calls for chancellor to explain exit strategy for Help to Buy, and change Isa rules to give incentive to savers ow.ly/qVs0L"

    STAMP DUTY Via Twitter Simon Gompertz Personal finance correspondent, BBC News

    tweets: "Lot of talk about stamp duty changes - here's how the system works http://bit.ly/18IxsNf"

    BITCOIN Via Twitter Aaron Heslehurst Presenter, World Business Report

    tweets: "Suspicion on #bitcoins they used for trade from buying&selling drugs, guns even human trafficking!! But if regulated #bitcoins will be HUGE!"

    POOR PILOTS 1231:
    Vapour trail

    Some commercial pilots have become so reliant on automated systems that they have poor manual flying skills. That's according to a report from the US Federal Aviation Authority and seen by the Wall Street Journal.

    CAPITA GROUP 1242:

    The Telegraph has a profile of Paul Pindar, chief executive of Capita Group, who is stepping down after 26 years at the outsourcing company, 14 of them as chief executive. Its headline is "Paul Pindar: the man who took the 'r' out of Capita".


    Time for a final check on the markets: It's all looking positive, with the FTSE 100 now up nearly 0.5%, and the Cac 40 in Paris and the Dax in Frankfurt both up 0.7%.


    That's it from us for today. We will be back bright and early at 06:00 tomorrow for another extended Business Live, with all the latest business headlines.


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