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Summary

  1. Tesco posts largest loss in its history
  2. Tesco's Lewis: 'Some encouraging signs, but we are only at the beginning'
  3. Tesco's loss before tax for the year is £6.4bn

Live Reporting

By Tom Espiner

All times stated are UK

Get involved

Bye now

That wraps it up for today. Tesco dominated the headlines after

reporting record annual losses of £6.4bn with around £4.7bn of the losses the result of a fall in property value for its UK stores. And a UK financial trader accused of contributing to the 2010 Wall Street "flash crash"
has been granted bail. Join us again tomorrow from 06:00.

Deutsche Bank litigation

Deutsche Bank has announced that it expects

litigation costs of approximately €1.5bn in first quarter of 2015.

GM food battle

GM potatoes
BBC

The US is unhappy about European Union plans to allow individual member countries to decide whether to allow imports of genetically modified foods and animal feed. "Dividing the EU into 28 separate markets for the circulation of certain products seems at odds with the EU's goal of deepening the internal market," said US trade representative Michael Froman.

Million dollar whistleblower

The US Securities and Exchange Commission said it can't by law name either the whistleblower who got more than $1m for raising misconduct concerns about a firm, or the firm itself. But, it said that a whistleblower can get between 10% and 30% of the money collected by the SEC when its sanctions exceed $1m. Since 2011, the SEC has paid out more than $50m to 16 whistleblowers.

Million dollar whistleblower award

Briefcase full of dollars
BBC

US financial regulators have awarded a whistleblower between $1.4m and $1.6m for reporting misconduct at his firm. The unnamed compliance officer blew the whistle "after responsible management at the entity became aware of potentially impending harm to investors and failed to take steps to prevent it," the US Securities and Exchange Commission

said in a statement.

Flash crash

Market complexity and size were factors in how long it took to bring charges against Navinder Singh Sarao, a UK trader accused of contributing to the Wall Street "flash crash" nearly five years ago, according to the head of the US Commodity Futures Trading Commission (CFTC). "Sometimes it takes a long time to put cases together," said CFTC chairman Tim Massad. "These are huge markets. There's a lot going on."

Market update

The FTSE has closed at 7,030.66, a fall of 32.27 points, or 0.46%. Big supermarket shares had a rough old time today, with the biggest fall seen by

Tesco. Its shares dropped just over 5% after it reported a record £6.4bn annual loss. Shares in
Sainsbury's fell 4%, and
Morrisons dropped 3.8%. The biggest gains on the FTSE were made by
Rolls Royce Holdings, which rose more than 4% after it announced that chief executive John Rishton would be succeeded by Warren East, head of technology company
Arm Holdings.

Flash crash

Nanex chart showing trading during the flash crash
Nanex

Bail conditions for Mr Sarao, apart from the £5.05m security he must pay, and the £50,000 security his parents must pay, include: his wearing an electronic tag, a curfew at his Hounslow address, no internet access, and surrendering his passport and his parents' passports. In addition, he must make no attempt to leave England or Wales, and must report to Hounslow police station three times a week. Mr Sarao is accused of contributing to the 2010 Wall Street "flash crash".

Flash crash

Navinder Singh Sarao, who shares a house with his parents in Hounslow, was granted conditional bail by a UK court after being accused by US authorities of contributing to the 2010 Wall Street "flash crash". Judge Quentin Purdy said: "I suspect the last 24 hours or less have been somewhat dramatic for you. You know the US seek to extradite you to face very serious charges and put you on trial to prove that."

Flash crash

Navider Singh Sarao, a UK trader who was arrested after US authorities

accused him of contributing to the Wall Street "flash crash" of 2010, has been granted bail with a security of £5m. Mr Sarao appeared in the dock at Westminster Magistrates' Court wearing a bright yellow sweatshirt and white tracksuit bottoms.

Tesco kitchen-sinking

Harry Low

BBC Magazine

"It's a communication technique commonly used by political parties and businesses, although it's not so well known by the public.

The idea is to get release all of your bad news at the same time rather than creating a drip-drip effect over an extended period of time."

Read

Harry's full article.

Market update

Dow Jones index
BBC

In New York, the

Dow Jones Industrial Average was down slightly in early trading, with a fall of 0.22% to 17909.58.
McDonald's shares rose 4.28% after it said it had a turnaround plan that it will reveal on 4 May, and
Coca Cola saw gains of more than 1% after better than expected profits.
Boeing shares fell more than 1.3% after sales missed analysts' expectations.

McDonald's in Japan

McDonald's outlet in China
AFP

McDonald's first quarter like-for-like sales fell 8.3% for the Asia Pacific, Middle East and Africa regions. This was mainly due to "prolonged, broad-based consumer perception issues in Japan." In January, McDonald's apologised after a human tooth, plastic, and vinyl were among objects found in its food in Japan.

France's frozen Russia warship deal

Vladivostok in dock near Saint-Nazaire
AFP

President Francois Hollande says that France will reimburse Russia if it fails to deliver two Mistral helicopter carrier warships in a deal frozen over the Ukraine conflict. "According to the different scenarios you either have payment or reimbursement," Mr Hollande said. He said that he will broach all aspects of the frozen deal when he meets Russian President Vladimir Putin later this week, but that delivery was not possible in the current conditions.

Boeing airliners

Boeing 737-800 airplane being assembled at Boeing's 737 facility in Renton, Washington.
AP

Boeing said it delivered 184 airliners in the quarter, up from 161 in the same period last year, with two-thirds of them for the venerable 737 jet. Orders rose by a net figure of 110 in the quarter, and Boeing now has 5,700 orders on its books. About half are for an upcoming version of the 737. The backlog is valued at $495bn.

Tesco pensions

Kevin Peachey

Personal finance reporter, BBC News

"Tesco wants to close its defined benefit pension scheme - which guarantees a pension based on earnings and length of service - to new members and for existing members' future accrual.

This means that, should the change happen, all entitlements to date would be preserved, but staff would then move to a defined contribution scheme."

Read

Kevin's full article.

McDonald's US and European sales

Ronald McDonald in Macy's parade
Getty Images

In the US, McDonald's like-for-like sales declined 2.6% in the first quarter "reflecting negative guest traffic",

the company said - we're guessing that means it had fewer customers. In Europe, the firm saw sales growth in the UK, but this was more than offset by "weak results" in France and Russia.

Boeing earnings

boeing planes
Reuters

Boeing delivered more airliners in the first quarter, which helped prop the company up amid slow defence sales. First-quarter earnings rose 38% to $1.34bn (£890m). Sales rose 8% to $22.15bn, although that missed analysts' expectations.

Coca cola beats expectations

Cans of coke
Getty Images

Coca-Cola's first quarter net profit fell 4% to $1.6bn (£1.06bn)

the company has said. The figures beat Wall Street expectations after the world's largest soft drinks maker raised prices to offset slower growth.

New-look live page

post share
BBC

We've had a number of emails from live page readers about the new option to share posts on Twitter and Facebook. Mainly you've been asking how to get rid of it once you've clicked on it. We are given to understand older browsers don't have the 'X' in the top right corner, or don't respond when you click on it, causing much consternation. The only solution for the moment, we are sad to say, is to update your web browser.

McDonald's sales fall

McDonald's chicken nuggets
Reuters

McDonald's first-quarter profits have fallen, partly because of reduced sales, costs to close underperforming restaurants, and a stronger dollar. Globally, like-for-like sales fell 2.3%, and net income fell 26%, McDonald's

said in a statement.

Hatton Garden heist

Hatton garden heist
Met Police

Not strictly business, but the Met Police have just released rather artistic images of the hole drilled by thieves into the vault at a Hatton Garden safe deposit company over Easter. No arrests have been made yet.

See more pictures here.

'An ant scaling the Himalayas'

People climbing up an ice-covered mountain
Getty Images

"An ant scaling the Himalayas," is how Paul Thomas of retail consultancy Retail Remedy describes the task facing new Tesco boss Dave Lewis. "To say Tesco's chief executive has a mountain to climb to reverse its decline is to underplay the scale of the task," he says. Get your crampons and ice axe out, Mr Lewis.

Fashion TTIP

World Service

Viv
AFP

More negotiations are underway in New York for the mammoth Transatlantic Trade and Investment Partnership, a free trade deal between Europe and the US. Supporters say it'll create new markets for businesses on both sides of the Atlantic, create jobs and bring down prices for consumers.

But critics - including fashion designer Vivienne Westwood - believe countries will lose control of their resources. Listen to the interview on the website.

Dilbert

Dilbert
dilbert

Another instalment of

engineer-themed humour from Dilbert today. There'll be more Tesco analysis soon, we assure you.

Flash crash

Navinder Singh Sarao, a trader arrested in the UK after US authorities accused him of contributing to

the 2010 Wall Street "flash crash", has said he doesn't want to be extradited to the US. Mr Sarao, who is currently appearing at an extradition hearing at Westminster Magistrates' Court, has been charged with wire fraud, commodities fraud and market manipulation by the US Department of Justice.

Via Twitter

Robert Peston

Economics editor

For no good reason I am obsessing about Tesco losing £6bn & still being formidable & Greece needing roughly that sum to stay afloat

Gazprom denies EU charges

Russia's Gazprom has said

EU accusations that it is abusing its dominance in Central and Eastern European gas markets are "unfounded". "Gazprom strictly adheres to all the norms of international law and national legislation in the countries where the Gazprom Group conducts business," it said in a statement.

Via Twitter

Kamal Ahmed

BBC Business editor

Tesco will not close more large stores. Dave Lewis, CEO: "They may not be the dinosaurs some have painted." #tesco

Tesco shares fall

Tesco share graph
BBC

Tesco's shares seem to have caught up with reality. Following this morning's brief uptick,

they're now down 1.2% and have fallen further than the overall London market which is down 0.6%. City Index analyst Joshua Raymond says more than 20 million Tesco shares have already changed hands - the amount normally traded in one day - and there's still almost five hours until the London market shuts.

Merrill Lynch fine

FCA logo
Getty Images

The City watchdog has fined US bank Merrill Lynch a record £13.3m for transaction reporting failures between 2007 and 2014.

The Financial Conduct Authority said the size of the fine - its largest ever for this type of failing - reflects the severity of Merrill's misconduct. "Proper transaction reporting really matters. Merrill Lynch International has failed to get this right again - despite a Private Warning, a previous fine, and extensive FCA guidance and enforcement action in this area," says Georgina Philippou, FCA acting director of enforcement and market oversight. Ms Philippou says the size of the fine aims to make it clear that the FCA expects to "be heard and understood across the industry".

Germany lifts growth forecast

german flag
Getty Images

The German government has hiked its growth forecast for this year to 1.8%, up from its January prediction of 1.5%, but still below independent analyst projections. German economy minister Sigmar Gabriel said that the government wants to "stay on the safe side of growth projections."

Via Blog

Tesco hits the bottom

Kamal Ahmed

BBC Business editor

The big, hairy, shiver-down the spine number is the revaluation of Tesco's 3,000 UK supermarkets and its stores overseas. With the value of sales down and shoppers turning away from larger out-of-town stores, the business has admitted that its property portfolio simply isn't as valuable as it once believed.

Read more on Kamal's blog.

Gazprom probe

The European Union is opening a competition probe against Russia's state-controlled Gazprom energy company. The EU alleges Gazprom's terms hinder cross-border competition. Gazprom has 12 weeks to react to the EU's allegations.

Via Twitter

Kamal Ahmed

BBC Business editor

Join me tomorrow 11:00 BST for live Q&A @BBCRealityCheck looking at political parties plans for #business. Send questions to #AskBBCKamal

Tesco compared

rbs
Reuters

Tesco's £6.4bn loss may be gargantuan, but it's still only the sixth biggest loss in corporate history. Royal Bank of Scotland reported annual losses of £24.1bn in 2008, Vodafone reported an annual net loss of £21.8bn in 2006, Vodafone also reported a £13.5bn pre-tax loss in 2002, Lloyds Banking Group reported a loss of £8.5bn in 2009 after its 2008 purchase of Halifax Bank of Scotland and Cable & Wireless announced losses of £6.5bn in 2003 - all trumping Tesco's loss.

Market update

London's FTSE 100 index has fallen 0.8% to 7,006.08. It hit a record high of 7,119.35 points last week.
Frankfurt's Dax fell 0.73% and
Paris's Cac 40 fell 0.7%.

'Another shocker'

Marc Kimsey, senior trader at Accendo Markets, says Tesco's results are "another shocker" from the troubled supermarket chain. "This set of results disappoints on every level - the pre-tax loss exceeds the City's already dire expectations and the trading profit has fallen by almost 60% in just a year," he writes.

Bank of England

The central bank said that the euro zone appeared to be recovering more strongly than thought. "Although it was too early to be confident, a succession of firmer data suggested that growth in the euro area economy was picking up," the BoE said. The US economy had unexpectedly disappointed in the previous month. However, the Bank said there was a good chance this would prove temporary.