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Summary

  1. The morning's main business programmes are available on the Live Coverage tab
  2. Yahoo profits surge on Alibaba sale
  3. Cities need more power, says study

Live Reporting

By Matthew West and Howard Mustoe

All times stated are UK

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Matthew West

Business reporter

OK that's it for the day. Tomorrow is very likely to be dominated by one event: Tesco's belated half-year profits. There will also be retail sales figures for September and Debenhams has some full year results out too. We'll see you tomorrow from 06:00.

Via Email

BANK OF ENGLAND MINUTES

Peter Hemington

Partner at BDO

writes: "We can expect the MPC doves to rule the roost well into next year with a rise unlikely until after the General Election. This uncertainty leaves UK businesses in a tricky position. Forward guidance from the Bank of England has not been clear enough. Businesses cannot plan for growth on the basis of vague or conflicting statements - policy makers can do more to provide certainty for businesses, enabling them to make informed decisions for the future."

GLAXO EARNINGS

FTSE 100 index graph
BBC

....have lifted the

FTSE 100 into positive territory (for the time being). The big pharma's results came out at mid-day and it seems they gave everyone a bit of a lift. The FTSE is currently up 0.10% at 6378.39 so not a big gain, admittedly, but it's out of the red... for now at least.

GLAXO EARNINGS

GlaxoSmithKline shares have risen 4.6% in London trading after reporting third-quarter earnings per share of 27.9p, up 5% on last year and above the 24p forecast by analysts. The gain is the biggest one-day rise for stock since April.

TOTAL CEO

Total has selected Patrick Pouyanne, currently head of refining and chemicals, as its new chief executive. The move comes after chief executive Christophe de Margerie died in a plane crash in Moscow on Monday.

Via Email

HOME RETAIL PROFIT DROPS

Lucy Cox

Associate Director at Added Value

writes: "As online shopping grows ever more dominant, unless Homebase offers a shopping experience that ensures footfall in its store, its store closure rate is only set to continue"

SHOPPING HABITS

BBC News Channel

Waitrose
BBC

Britons are grocery shopping at least twice as often as they were five years ago, according to a report by Waitrose, lacking the time for a big shop. Mike Price, managing director of Waitrose tells the News Channel "when the times is right, people are treating themselves," but in the week they are buying more ready-meals which are quick and easy.

EUROZONE CRISIS

In a development that will do nothing to calm jitters over the eurozone, the

Financial Times reports the European Commission will tell five members, including France and Italy, that their budget plans risk breaching EU rules. It quotes three officials briefed on the decision. The Commission will ask the member states for more information, which is a first step towards rejecting an eurozone member state's budget plans.

APPLE CAR

Is there no aspect of our lives that Apple doesn't want to run? Are we headed for a world run by corporations with rollerball as entertainment? It sometimes feels like it when you come across stories like this one in the

Telegraph. The newspaper reports that Apple has filed a patent that could see your iPhone do things like unlock your car and start its engine.

YEAR OF THE JAGUAR?

Range Rover Evoque
Reuters

Jaguar Land Rover has opened its first full overseas manufacturing plant, in China, the

Daily Mail reports today. The first model to be built there will be the Range Rover Evoque. Jaguar production is to follow. The new Changshu factory near Shanghai will have a production capacity of 130,000 units, but only for the Chinese market.

UK MANUFACTURING

BBC Radio 4

robot
Getty Images

"The idea that manufacturing just disappeared from the UK just isn't right. If anything we actually produce slightly more in the UK now than we did in the 1970s," Joe Grice, chief economist at the Office for National Statistics told

Today... er... earlier today. But employment in the sector is only about a third of what it was in the 1970s, he adds. The reason, believe it or not, is that productivity has improved. That feels like another way of saying there are more machines doing the work humans used to do. There is a conference today to try to find out.

Via Email

BANK OF ENGLAND MINUTES

And right on cue economist, Howard Archer says he has recently put back his forecast for the first interest rate hike "from February to mid-2015". Given there is a general election in May 2015, June would appear to be the earliest month that an interest rate rise can take place. He also now believes interest rates won't rise above 1% next year, that's down from an original forecast of 1.25% by the end of 2015. Great news for borrowers, but pretty awful news for savers who have already endured five-and-a-half-years of near zero rates.

BANK OF ENGLAND MINUTES

It gets worse. "Analysis by Bank staff suggested that the output gap, while continuing to fall, was estimated to be slightly larger in the second half of the year than had been previously expected," say the minutes. Roughly translated that means there is more "slack" in the economy than forecast in the August inflation report. What does that mean? Well, taken together with this year's anaemic wage growth and falling inflation don't be surprised if economists start pushing forecasts for an interest rate rise back to June 2015.

BANK OF ENGLAND MINUTES

It appears that the fall in the Consumer Prices Index (CPI) measure of inflation caught out the MPC. Today's minutes show September's fall to 1.2% was 0.3 percentage points lower than Bank staff expected in September and 0.5 percentage points lower than incorporated into the August Inflation Report.

CITY POWERS

BBC Radio 4

Jim O'Neill, the former Goldman Sachs man who invented the acronym BRICS, to describe the group of emerging markets has turned his attention to the devolution of government powers to the the UK's regions and cities. He tells Today cities should be able to spend much more of the local taxes they collect with a system of centrally available grants to help top up funds. His report also has the backing of the Chancellor. Mr O'Neill says he would be very surprised if at least some of his recommendations are not adopted in the Autumn Statement.

BANK OF ENGLAND MINUTES

The Bank of England
PA

No changes in the vote in October. The Monetary Policy Committee stuck in the same position for the third month in a row voting 7 to 2 to hold interest rates at 0.5%.

TESLA SALE

Tesla
EPA

Mercedes-owner Daimler says it will make $780m (£485m) from selling a 4% stake it owns in electric car maker Tesla. A cooperation agreement to supply Mercedes-Benz cars with Tesla battery technology remains unaffected by the sale, Daimler chief executive Dieter Zetsche said.

MARKET UPDATE

It's a bit of a mixed bag on the markets this morning. The

FTSE 100 is down a touch (0.15%) at 6362.69. But Germany's
Dax is up 0.50% at 8930.37 and France's
Cac-40 is up 0.13% at 4086.47. The biggest faller on the FTSE 100 is
BAT down nearly 4% to 3334.5p on those declining cigarette sales volumes.

HOME RETAIL PROFIT DROPS

Home Retail share graph
BBC

...and consequently so has its share price. The group is down 4.3% to 168p on the news of those Homebase store closures. Share slumped 6% at the open so have recovered slightly, 40 minutes into the trading day.

Via Blog

TESCO WOES

Kamal Ahmed

BBC Business editor

"Tomorrow, Tesco will reveal its latest results. Sales and profits are likely to be down again," BBC Business Editor Kamal Ahmed writes in his

latest blog. "Many believe that Tesco should move away from vouchers and one-off price promotions and win back customers with lower prices across all its ranges."

HOME RETAIL PROFIT DROPS

A Homebase store in Stanford near Lincolnshire.
PA

Despite talking up the prospects for its full year profits, Home Retail is closing 25% of its 323 Homebase stores over the next four years. That's as it lets leases expire on some properties. Homebase managing director Paul Loft is also stepping down, although he will continue on in his role until a successor is found.

HOME RETAIL PROFIT DROPS

Homebase and Argos owner Home Retail Group has reported a 5% fall in half-year pre-tax profit to £13.5m. But like-for-like sales were up 2.9% at Argos, and 4.1% at Homebase. Chief executive, John Walden said the group expects to meet City expectations for its full year profit. But he added: "as always, the full-year outcome will depend upon the important Argos Christmas trading period".

BRITISH AMERICAN TOBACCO

Cigarettes in their package
Reuters

Cigarette-pedlar BAT has said revenue for the nine months to the end of September grew by 2.4%. "Industry volume has declined at a lower rate than last year, but is being impacted by large excise-driven price increases," it said.

Via Twitter

SUPERGROUP

James Quinn

Executive Business Editor, Telegraph

tweets: "Strong comeback from Sutherland who fell victim to all he tried to achieve at the Co-op Group, and can be credited with rescuing Co-op Bank."

SUPERGROUP

SuperGroup chief executive, Euan Sutherland,
Reuters

Former Co-op Group chief executive Euan Sutherland is back having been announced as chief executive of SuperGroup this morning with immediate effect. He was previously CEO of Kingfisher UK, which operates B&Q, Screwfix and TradePoint.

GERMAN GROWTH

BBC Radio 4

Germany has very low unemployment, Dr Stephanie Hare, senior analyst for western Europe at Oxford Analytica tells

Today. "Making more jobs for Germany isn't the issue here," she says. "We need stimulus and investment in countries that are going to help boost the future of Germany's trading partners in the eurozone. So we can either increase demand in Germany, or Germany could be part of a wider European solution to increase stimulus in its eurozone trading partners." She points out Germany has benefitted from other countries investing and stimulating its economy once or twice in the past century.

EUROTUNNEL

Eurostar results yesterday, Eurotunnel results today. Revenues for the third quarter of 2014 increased 7% to €343.9m (£271.5m).

UK BORROWING

Radio 5 live

"The main reason tax receipts aren't as high as you'd like is the increase in personal tax allowance," says Alan Clarke, UK and eurozone economist at Scotiabank on

Wake Up to Money. He's talking about yesterday's disappointing figures. There are more people in work, though, which means less spending on benefits, he says. Low-paid jobs mean that doesn't help as much as you may think, points out presenter Mickey Clark.

GERMAN GROWTH

BBC Radio 4

Christian Schultz, senior economist at Berenberg Bank, tells the

Today programme Germany needs to work on its infrastructure, but even if it started to work on inward investment now the effects would not be felt for several years. This as more political pressure builds on Germany to act to avert another eurozone crisis. But German inward investment doesn't solve the problem, he says. "How does Germany fixing some bridges make French and Italian entrepreneurs invest more?"

STORM POWER

storm
PA

The UK's wind farms generated more power than its nuclear power stations on Tuesday, the National Grid says. The energy network operator said it was caused by a combination of high winds and faults in nuclear plants. Wind made up 14.2% of all generation and nuclear offered 13.2%. As BBC environment analyst Roger Harrabin reports, for a 24-hour period yesterday,

spinning blades produced more energy than splitting atoms.

CITY POWERS

Radio 5 live

On things like transport and education, local government can make better decisions, says Alexandra Jones, chief executive of the Centre for Cities, which does independent research and policy analysis on UK city economies on

5 live. "Whatever you're doing in a city, you have to balance the books, though, she says. Competitiveness on tax becomes a "race to the bottom" she adds.

CITY POWERS

Radio 5 live

"I think there's real momentum... this is the biggest opportunity in decades to transport the relationship with local government," says Mr Wakefield on

5 live. The debate for Scottish independence shows there are a lot of people interested in local powers, he adds.

CITY POWERS

Radio 5 live

Allowing UK cities to make their own decisions on tax and spending could boost economic growth by £79bn a year by 2030, a year-long study has concluded. "More people want local powers in Leeds," says Councillor Keith Wakefield, leader of Leeds City Council on

Radio 5 live. He thinks councils can target some spending more efficiently.

Matthew West

Business reporter

Morning all. We have the latest minutes from the Bank of England's September Monetary Policy Committee meeting at 09:30; Argos and Homebase owner Home Retail Group publishes interim results before that and there are trading updates from GlaxoSmithKline, British American Tobacco and Everything Everywhere. We'll bring you it all as it happens.