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Summary

  1. The morning's main business programmes are available on the Live Coverage tab
  2. Inflation likely to fall below 1% in coming months says Bank of England
  3. UK unemployment falls by 115,000 between July and September
  4. Five banks are fined £2bn over rigging the foreign exchange market
  5. Sainsbury's cuts back plans to open new stores

Live Reporting

By Ben Morris and Matthew West

All times stated are UK

Get involved

Matthew West

Business Reporter

Right folks. We're signing off for the day. Tomorrow looks to be fairly busy once again with results from the London Stock Exchange, ITV, Asda and Arcadia among others. Join us from 06:00.

PUNCH TAVERNS PROFITS

Punch Taverns has reported full year earnings today. It says pre-tax profits were £69m for the year to 23 August. That compares with £49m last year. Total revenue dropped 2% to £448.1m. The pub chain said it had started the search for a new chief executive and hoped to be in a position to announce appointment in early 2015.

Via Blog

Robert Peston

Economics editor

"

Unless productivity were finally to improve, to make our exporters more competitive, those who finance the deficit might lose patience. And we could witness a phenomenon that would engender the wrong kind of nostalgia in those of a certain age: an old-fashioned sterling crisis."

DEFENSIVE JUNCKER

President of the European Commission, Jean Claude Juncker
Reuters

The President of the European Commission, Jean Claude Juncker has made an unannounced appearance at a news conference in Brussels to

defend himself against suggestions that he presided over an ethically dubious tax regime during his tenure as Prime Minister and Finance Minister of Luxembourg. Mr Juncker told journalists that there was "no conflict of interest" with his current position and that there was "nothing in my past to indicate that I wanted to encourage tax evasion".

Via Twitter

Ralph Silva, partner, SBR Network

#Banks fined for rigging Forex Market…. Are regulators short of handcuffs? They manipulated the world economy, fines are not enough! ... The fines imposed on #banks, for manipulating the Forex market represents a fraction of the profits from. How does this deter others?

WAGE GROWTH

The TUC has calculated that, at the current rate of improvement, real earnings (adjusted for inflation) will not reach their pre-recession level for another 12 years. The TUC welcomed today's increase in real wages, but says it is concerned about the quality of jobs being created.

MASSIVE BANK FINES

BBC News Channel

"We need a new moral regulator for the whole industry" says Phillip Blond from ResPublica. He believes that laws and regulations won't change the "amoral culture" inside many banks.

Via Twitter

John Moylan

Industry correspondent, BBC News

tweets: "Plans to restart turbine blade production on Isle of Wight announced 5 years after @Vestas shut its blade factory hitting more than 400 jobs"

FLYBE SHARES PLUNGE

Flybe share graph
Bloomberg

Flybe shares have slumped 16% today. That's after the budget airline reported a worse than expected half year loss of £15.3m. It was hit by a £10m one-off loss on its stake in Flybe Finland, which it sold to its partner in the business for just one euro.

INFLATION REPORT

When asked if the Bank is concerned about the damage on financial markets of another trading scandal, Minouche Shafik, the deputy governor of markets and banking explains that the Bank is leading a "fair and effective markets review". A consultation document went out at the end of October and recommendations are due in June.

Via Twitter

INFLATION REPORT

Economist, Shaun Richards

tweets: "For those unaware of the "loon" question asked of Mark Carney the Canadian Dollar is called the loonie (believe it or not!)"

INFLATION REPORT

Mr Carney can't envision any circumstances - even deflation - when a central bank would issue "helicopter money" or take over government debt. He couldn't even see that happening in the eurozone, where they is a real threat of deflation. The MPC can innovate when it needs to, he assures us.

Via Twitter

INFLATION REPORT

Ed Conway. Economics editor, Sky News

tweets: "I asked
@bankofengland Governor what he thought of fact that many in City call his forward guidance policy a joke. It went down, erm, badly"

Via Email

Samuel Tombs, senior UK economist, Capital Economics

"November's Bank of England inflation report provides further reassurance that the MPC will keep interest rates on hold for a number of months yet. The MPC continues to believe that strong growth will not generate inflationary pressure due to the spare capacity in the economy, which it thinks remains in the region of 1% of GDP."

INFLATION REPORT

Journalist Ed Conway from Sky News is slapped down by Mr Carney, apparently for not listening. Mr Conway said it was striking that Mr Carney did not mention forward guidance. Mr Carney tells him to go and read the transcript. He also tells him this is not a discussion, when Mr Conway attempts to interject.

INFLATION REPORT

Is Mr Carney a hawk, dove, owl or loon (the Canadian bird) asks one journalist. That gets a laugh. Mr Carney says he's a pragmatist.

INFLATION REPORT

A little central banker joke from Mr Carney. "I'm the only G7 central banker to have risen rates, just not here (he did it while bank chief in Canada). I do know how to raise interest rates," Mr Carney says.

INFLATION REPORT

Chart showing Sterling v US dollar
BBC

The pound has fallen since the governor of the Bank of England started talking. It's now trading lower by 0.05% at $1.591. But as the chart above shows sterling was higher against the US dollar earlier in the day. Against the euro the pound is 0.12% lower at €1.274. Again is was a fair bit higher against the single currency earlier.

INFLATION REPORT

Mr Carney comments on the sacking of the Bank of England's chief dealer. The dealer was aware of circumstances in

the foreign exchange market which could lead to "improper" activities and did not take steps to address the situation, he says. Confusingly the dealer was not fired over that, but another issue, that emerged from the investigation into foreign exchange trading.

Via Twitter

INFLATION REPORT

Ed Conway, Economics editor, Sky News

tweets: "Bank of England signals in Inflation Report that markets are right not to expect the first interest rate hike til next autumn. Dovish report"

Via Twitter

INFLATION REPORT

Robert Peston

Economics editor

tweets: "Bank of Eng expects inflation around 1% for much of next year"

Via Twitter

Andy Verity

Business reporter

tweets: "When bank rate does begin to rise, it will rise only gradually - though that's an expectation not a promise (Carney)"

INFLATION REPORT

Inflation is likely to fall to below 1% and, as a result, Mr Carney is likely to have to write a letter to the Chancellor to explain why inflation is below the target rate. However, real growth in take home pay is a prospect he says. Real incomes will be supported by subdued energy and food prices.

INFLATION REPORT

Mr Carney is gloomy on Europe. The "spectre of economic stagnation in Europe" he highlights straight away. But the bank still expects UK growth this year of 3.5%.

INFLATION REPORT

Mark Carney
AFP

Coming up shortly, Mark Carney will present the Bank of England's quarterly inflation report. Watch what he has to say about wages and unemployment.

UNEMPLOYMENT

Chart showing the fall in the unemployment rate
ONS

This could be considered churlish, but it's worth considering that the unemployment rate has stayed the same at 6%. There has been a slight slowdown in the number of people finding work. In the three months to the end of August 154,000 entered the workforce, the ONS said. But the number of people entering the workforce has slowed in the three months to the end of September. The ONS said 115,000, found work in that period. That takes the unemployment figure down from 1.97 million to 1.96 million, but its not enough to move the unemployment rate when compared with the previous three months.

UNEMPLOYMENT

Chancellor George Osborne has welcome the unemployment figures are further evidence that the government's "long term economic plan is working." He says: "We've seen another big fall in unemployment, record numbers of jobs, and encouraging signs that pay cheques are beginning to rise faster than inflation. If we want to keep Britain on this path then we need to keep working through our economic plan."

UNEMPLOYMENT

Work and Pensions Secretary Iain Duncan Smith says the latest unemployment figures are "somewhat better than encouraging - they are rather remarkable". He adds: "If you take out bonuses, which are usually due to the financial sector and distort the figure, they show pay is rising above inflation and will continue to do so." Two thirds of jobs are managerial and professional and almost all of the new jobs added in the three months to the end of September were full time, he continues.

UNEMPLOYMENT

Chart showing the fall in the claimant count
ONS

The latest figures from the

Office for National Statistics also show the claimant count - those claiming Jobseekers' Allowance - fell again in October by 20,400 to 931,700. That marks the 24th month in a row that the claimant count has fallen.

BreakingBreaking News

UNEMPLOYMENT

UK unemployment fell by 115,000 in the three months to the end of September to 1.96 million according to

official figures. Pay excluding bonuses rose by 1.3%, just above the rate of Consumer Price Index inflation. That's the first time in five years it has been above CPI inflation.

SSE HALF YEAR RESULTS

Energy supplier SSE has reported a 6.2% fall in half year pre-tax profits to £316.6m. The Scottish based energy firm saw an 83% fall in operating profit in its wholesale division to £26.7m. That was driven by an 86% plunge in profit from electricity generation to £11.8m. The supplier lost 210,000 customer accounts across the UK and Ireland over the first half of its financial year and households used less energy due to the warmer than average weather going into the autumn.

BARRATT TRADING UPDATE

New houses are conctructed on a housing estate
Getty Images

Housebuilder Barratt Developments said it is on course to hit its target of 15,000 sales this financial year. It says market conditions remain robust, with demand strong across all regions of the country.

MASSIVE BANK FINES

BBC Radio 4

Economic secretary to the Treasury Andrea Leadsom tells

Today there will be investigations into whether any criminal activity can be proven. She says: "I certainly will be making sure that those people that have done wrong will not be back in the dealing room on a big salary." But cultural change across the banking sector is still required, she adds.

Via Blog

Louise Cooper, financial market analyst, CooperCity blog

"

What is extraordinary is the arrogance and sheer stupidity of these traders (or though maybe that is not so extraordinary). The CFTC notes that some of the manipulation occurred after the LIBOR investigation had begun. These investigations also took place after the financial crisis hit, when it was pretty clear that more regulatory oversight was coming to the industry."

LISTEN AGAIN

Radio 5 live

There was a fascinating interview with a heavyweight in the investment world earlier on

Wake Up to Money. Mohamed El-Erian the chairman of President Barack Obama's Global Development Council said there is still too much debt in Europe and politicians have to "step-up" and address the issue.
You can listen to the show again here.

SUPERMARKET SHARES

Sainsbury's shares
BLOOMBERG

Sainsbury's shares bounced around at the open as you can see from the chart above. Investors will have been cheered that the supermarket maintained its dividend.

MASSIVE BANK FINES

BBC Radio 4

More from Mr Wheatley: "There is a change to culture that's needed, there's a change to remuneration practices and, frankly, there's a change to the personal accountability that people need to take." He adds: "It's not just about institutions. People do bad things."

MASSIVE BANK FINES

BBC Radio 4

Financial Conduct Authority (FCA), chief executive Martin Wheatley, has just been on the

Today programme. He says scandals in the banking industry frustrate him as much as anybody else. He believes the need for change in the baking industry is understood by "those at the top." But they have got to "drive it all the way down" through the trading floor he says to "the people who deal with money, and that is taking too long".

Via Twitter

Duncan Weldon, Economics Correspondent, BBC Newsnight

tweets: "German wholesale prices: -0.7% year on year, lower than expected. Eurozone deflation threat feeling pretty real."

Via Email

Nick Bubb, retail analyst

"Eyebrows will be raised at the news that Sainsbury think that 25% of their stores are over-spaced (where does that leave Tesco?!?)"