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Summary

  1. The morning's main business programmes are available on the Live Coverage tab
  2. Tesco half-year results down 92%
  3. Lloyds expected to cut 9,000 jobs
  4. KPMG and FSA criticised over Co-op

Live Reporting

By Matthew West and Howard Mustoe

All times stated are UK

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Howard Mustoe

Business reporter

That's all for today folks. Another busy one. Tomorrow bank earnings season starts with TSB. We'll also get the first estimate of third quarter UK GDP from the ONS. We'll keep you updated as things happen. See you from 06:00.

SOMALIA OIL

Bob Sheppard, the chief executive of Soma Oil and Gas, has told the BBC's Russell Padmore seismic surveys of Somalia look very promising: "They need to stimulate exploration, they need to stimulate the development of a hydrocarbon regime, because they are in a prospective area. The neighbourhood is very busy and they need to catch up."

ONLY ZUCKERBERG COULD GO TO....

Mark Zuckerberg and friends
facebook

....China. Turns out the Facebook founder was in the country on a recent visit and that he's learned to speak Mandarin - fairly fluently by all accounts. The video of the Q&A at Tsinghua University has been viewed more than 500,000 times on Mr Zuckerberg's Facebook page. It's all part of a tour of the Far East, a market Facebook is still in the process of trying to crack - particularly China. Here's Mr Zuckerberg in fancy dress... before heading out to a rave. Oh no, wait, that's a Samsung factory.

CREDIT SUISSE

Credit Suisse's profits more than doubled in the third quarter as it cut costs, and it added 400 staff in the last three months. It was also helped by a rise in bond-trading and fees from the multi-billion dollar listing of China's Alibaba.

INTEREST RATES

Ben Broadbent, deputy governor for monetary policy at the Bank of England is joining the chorus of colleagues including Andrew Haldane in saying rates are likely to stay low. Mr Broadbent said at an economics conference in London that the so-called 'neutral' interest rate - which affects investment returns and Bank policy decisions - were likely to stay low for some time.

CBI REPORT

manufacture
EPA

The recovery in British manufacturing continued in the three months to the end of October, but the pace of growth slowed as new export orders dropped, according to a CBI survey. "The manufacturing sector is clearly facing headwinds. Global political instability, mounting concerns about weakness in the eurozone and recent rises in Sterling are all weighing on export demand," said Rain Newton-Smith, CBI director of economics.

HAPPY BIRTHDAY IPOD

The Apple logo together with an Apple iPod
PA

Apple's iPod is no longer that sweet child you nurtured. It's turned into a grumpy teenager. Today marks the thirteenth anniversary (23 October 2001) of the launch by Steve Jobs of the Apple iPod.

Via Email

RETAIL SALES

Keith Richardson

Managing Director Retail Sector at Lloyds Bank Commercial Banking

"With much of the country bathed in sunshine retailers were left to count the cost of September's unseasonably high temperatures. Just weeks after launching their Autumn and Winter collections many of the large fashion chains and high street retailers were forced to discount these ranges in an attempt to attract consumers."

EUROZONE CRISIS?

According to Markit's data, France saw a big slowdown in business activity, with employment also suffering. French prices sank at the fastest rate since 2009, Markit said. Job shedding was at its fastest pace since April 2013. Germany's PMI index hit a three-month high, however, a offering some respite after a raft of poor data out of Europe's economic growth-engine. Where that leaves the eurozone or the outlook for European Central Bank action is anyone's guess.

EUROZONE CRISIS?

Eurozone business activity gaph
Markit

Business activity in the eurozone strengthened slightly in October, a key survey has shown today. But overall, the economy remains weak with new orders low and pressure on prices. Markit Economics said its composite Purchasing Managers Index (PMI) rose to 52.2 points in October from a 10-month low of 52.0 points in September.

RETAIL SALES

Here's a bit more from the retail sales figures. Clothing and footwear sales fell 7.8% in September compared with August, according to the

Office for National Statistics (ONS). Average store prices in September fell 1.4% year-on-year. That was the largest fall in five years, the ONS adds.

MORTGAGE LENDING

Mortgage lending graph
BBA

Mortgage lending in September was 7% higher than the same moth a year earlier at £10.6bn, according to the latest figures from the

British Bankers Association (BBA). That's down a bit on August's £11bn figure but not necessarily evidence yet of a slowdown. That said, the BBA says approvals for house purchase are 10% lower than a year earlier. Translated that means fewer people are borrowing more as house prices have risen.

FOXTONS

Foxtons's shares are now below the price public investors first paid in their worst day of trading. The shares

downsized 15%, or 30.8p, to the cosier price of 174.5p, well below the premium 230p investors paid in September 2013.

TESCO EARNINGS

BBC News Channel

analyst
BBC

Jasper Lawler, retail analyst for CMC Markets, is on the News Channel, talking about Tesco's results. "I think the one box that's been ticked is the chairman will step down," he says. But there are no signs of selling any assets like blinkbox, the supermarket's video on-demand service, "there's no signs of strategy but maybe that's to come," he adds

TESCO EARNINGS

Philip Clarke
Reuters

Former Tesco boss Philip Clarke's reported £10m severance package is being withheld until the outcome of the Financial Conduct Authority (FCA) investigation into the supermarket's accounting practice has been concluded it's also emerged. In case you're wondering the

Guardian reported the pay advisory group Manifest summed this up as his £1.1m salary and share awards, although it didn't cover his pension pot. When he resigned in July Mr Clarke was expected to continue to be paid his £1.1m salary for one year.

RETAIL SALES

Retail sales graph
ONS

Retail sales volumes fell 0.3% in September compared with August. But September were 2.7% higher than the same month a year ago, marking the 18th consecutive month of year-on-year growth, official figures show.

Via Twitter

TESCO EARNINGS

Kamal Ahmed

BBC Business editor

tweets: Three big takeouts from Tesco numbers - accounts problem cost £263m, went back to 2013, chairman to leave, sales down 4.6%

MARKET REPORT

European markets have opened down. The

FTSE in London has lost 0.54% to 6,365.10, while Frankfurt's DAX dropped 0.01% and the French CAC declined 0.09%.

TESCO EARNINGS

In fact things might be so bad that Tesco has decided not to provide full year profit guidance blaming "a number of uncertainties which limit visibility of future performance." It adds the "commercial income overstatement" will affect its second half results as it revisit its "plans with new management"

TESCO EARNINGS

Tesco has also warned on its full year profits outlook. It says it is "reviewing all opportunities that exist within the group to generate value and create headroom. Full year profitability could therefore be further impacted by actions we choose to take." In other words, don't expect a turnaround over the next six months.

FOXTONS FALL

estate agent
PA

Estate agents Foxtons' shares have fallen 18% after it said its earnings would fall due to a sharp drop in demand in the London property market. Foxtons said its third quarter sales fell 3% to £39.3m and said political and economic uncertainty in Britain and more restrictive rules on mortgage lending were the cause. This is the Foxtons who were

told in 2009 their "renewal" commission from a landlord if a tenant stayed on past the initial tenancy period - even if the agency had played no further part in arranging or managing the extended tenancy - was unfair.

TESCO EARNINGS

BBC Radio 4

Brian Roberts of Kantar Retail is talking Tesco on the

Today programme. He says some retailers -Aldi - have a far simpler business model than Tesco. They buy things to sell to their customers. But most supermarkets make more money through buying. And Tesco has been the biggest sinner here, he says by "extracting its profitability from suppliers" over the last few years as opposed to its customers. That's as a result of these supplier rebates we've been hearing about recently, which mean supermarkets get a discount on the goods they buy from suppliers if they hit certain sales targets. Hope that's clear.

TESCO EARNINGS

Radio 5 live

Jane Clark, author of the blog Frugal Queen has been talking Tesco on

5 live. "I do find it a bit pricey... they are more expensive than my local fruit and veg shop for greengrocery." Tesco "will have to price match with the discounters and be aware of how little money people have." She says they need to ditch buy one get one free on junk food because people want cheaper basics.

TESCO EARNINGS

Tesco share graph
BBC

Tesco shareholders have reacted badly to its interim results. The supermarket's shares have opened 6.5% lower to 171p.

TESCO EARNINGS

Tesco's rather dramatic fall in statutory pre-tax profits is the result of one-off items totalling £527m, including an adjustment relating to "prior years' commercial income" of £145m, stock write-downs of £63m, impairment charges of £136m in the UK and Europe, restructuring costs of £41m, and another £41m retrospective charge relating to a Valuation Office ruling on ATM rates plus a £27m increase in the Bank's provision for customer redress.

REED ELSEVIER

Media firm Reed Elsevier said underlying revenue growth for the first nine months of the year was 4%. It bought 25 firms for £294m.

Via Email

TESCO EARNINGS

Winston Collinge from Carlisle writes in: "Notwithstanding the upsurge of Aldi and Lidl, isn't it just the case that there is overcapacity in the food retailer sector and they are now fighting like dogs?"

DEBENHAMS EARNINGS

Debenhams
PA

And now for something completely different. Department store Debenhams says like-for-like sales rose 1.0% for the year to 30 August. Profit shrank 24% to £105.8m as profit margins narrowed.

TESCO EARNINGS

There's an update to the Deloitte investigation into Tesco's overstatement of its expected half year profit too. The amount overstated is up - a bit - and it's no longer a singular overstatement. Tesco now says the overstatement amounted to £263m in total. The impact on its trading profit for the first half of this year is £118m. But there is a further £70m overstatement from the previous financial year and £75m from before the 2013/14 financial year. Both of those have been treated as one-off items within this set of results.

TESCO EARNINGS

Tesco chairman, Sir Richard Broadbent, has also announced his resignation although there's no timetable yet. He says: "My decision reflects the important principle of accountability on behalf of the Board and will support the company to draw a line under the past as it enters the next phase of its development." He has come under pressure to stand down since Tesco revealed that it had mis-stated its profit outlook for the first half of 2014/15 in September.

TESCO EARNINGS

... are out. UK like-for-like sales excluding petrol are down 4.6%. Statutory pre-tax profits are down 91.9% to £112m. The underlying profit figure for the period (26 weeks to 23 August) is down 46.6% on the same period a year earlier to £783m.

LLOYDS JOB LOSSES

BBC Radio 4

Mr Hahn tells

Today the UK banking industry needs to do more in the way of community banks. He adds banks are beginning to link up with supermarkets as a way of doing this but local communities are likely to suffer as more bank branches close. He says it has been "an error" of government policy that "we keep thinking in terms of challenger banks". What the UK banking industry really needs to think much more about is community banking and how to provide banking services to small communities, he adds.

LLOYDS JOB LOSSES

BBC Radio 4

A Lloyds Bank logo
PA

The 9,000 job losses at Lloyds Banking Group amount to about 10% of its total workforce. It is also expected to announce a series of branch closures. Cass Business School banking analyst Peter Hahn tells

Today the way we buy things from banks has changed. That's putting pressure on bank branches. He says we'll see "fewer but better bank branches". "We'll see them more principally located, so big cities and market [towns]," he says. Mr Hahn suggests they will be slicker operations, more sales-oriented, but not used as much for "regular transactions."

GLAXOSMITHKLINE

Radio 5 live

Newspapers are reporting GlaxoSmithKline may spin off its HIV business. Holly Cook, managing editor of Morningstar's website for UK investors tells

5 live
Wake Up to MoneyGSK's respiratory drug, advair is under "intense competition" and a sale through a public offer "will allow GSK to streamline itself" as its HIV drugs see "huge demand".

TESCO EARNINGS

Radio 5 live

"Like-for-like sales is the first number analysts will look at, followed by the accounting problems," says Holly Cook of Morningstar on

Wake Up to Money. The online business may have done well while the supermarkets will be a "weak spot." Looking at Tesco, "a lot of customers find it a bit overwhelming and you are bombarded by information and you can't find what you want."

TESCO EARNINGS

Radio 5 live

A Tesco trolley
PA

"When the CEO is on gardening leave the chairman should step up and that's not happened," says Mr Roberts on

Wake Up to Money, talking about the performance of Tesco chairman Sir Richard Broadbent. The supermarket discovered a £250m profit black hole. "I'd be remarkably surprised if it's limited to a 6-month period," he adds.

TESCO EARNINGS

Radio 5 live

Brian Roberts of Kantar Retail is on

Wake Up to Money talking about Tesco's results, out today. "There's lots of hoops you have to jump through" as a shopper at Tesco, he says. Buy one get one free, the loyalty card, driving a car and buying the petrol. "With Aldi you just have to turn up... Tesco used to have the shopper at the centre of the business and now they've replaced the shopper with the shareholder."

Matthew West

Business reporter

Morning all. Now we could try and pretend that there is other news going on (and in fairness there is some) but let's face it, the focus today is all going to be on Tesco's half year results. We'll bring you them as soon as they drop, plus all the reaction and the rest of the day's news as it happens.