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Summary

  1. Fed Chair Yellen 'concerned' over latest jobs report
  2. FTSE 100 closes 1% higher as mining shares jump
  3. Pound drops sharply against the dollar and euro
  4. Sports Direct boss Mike Ashley agrees to face MPs on Tuesday
  5. Germany hit by weak export demand

Live Reporting

All times stated are UK

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Goodnight from London

That's it for Monday's Business Live page. Tomorrow morning is looking lively, with Sports Direct founder, Mike Ashley due to appear before MPs. Join us from 06:00.

US stock markets close higher

The stock market was largely unperturbed by a speech from Federal Reserve chief Janet Yellen.

Instead, a 2.4% gain for US crude oil prices, supplied a spur for investors. Exxon Mobil shares closed more than 1% higher.

Overall, the Dow closed 0.6% higher at 17,920. The S&P 500 closed 0.5% higher at 2,109, which is a seven-month high.

Chinese firm warned over AccorHotels

AccorHotels sign
Reuters

Well, the French President has exactly said "hands-off" but he has warned the Chinese firm Jin Jiang that he is keeping a close eye on its interest in AccorHotels.

Jin Jiang has built its stake in AccorHotels to 15% and a newspaper report last week said the Chinese firm wanted to raise that to 29%, sparking concern in France that Jin Jiang might want to take complete control.

"Accor has Chinese investors because it is also developing in Asia," President Hollande said in an interview with La Voix du Nord newspaper.

"But I am keeping a close eye on the capital of this global group remaining diversified," the president added. 

Dominic Chappell speaks

Over the weekend the Sunday Times reported that Sir Philip Green made a payment of £10m to Retail Acquisitions Limited (RAL) after selling BHS to Retail Acquisitions for just £1.

Dominic Chappell led Retail Acquisitions through its disastrous takeover of BHS.

Sunday Times reporter Oliver Shah tweets:

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T Mobile dials up share plan

T Mobile website
T Mobile

T-Mobile US plans to give one share to every subscriber to turn its customers into shareholders. The stock was trading at $43.22 a share in afternoon trading in New York. 

The mobile network has also launched a "T-Mobile Tuesdays" app to give customers discounts on food, movie tickets and ride shares. 

Viacom chief's plea

Philippe Dauman
AP

More on the struggle for control of media giant Viacom. Chief executive Philippe Dauman (pictured), who is suing over his removal from founder Sumner Redstone's trust, said in a court filing that a judge should start a trial quickly because the 93-year-old media mogul is in poor health and may soon not be able to provide evidence. 

Saying "time is of the essence", the filing in Massachusetts state court described Mr Redstone as unable to "speak, stand, walk, eat, write or read". 

A spokesman for Mr Redstone did not have an immediate response. 

No Trump for Yellen

BreakingViews columinist Gina Chon tweets:

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July rise in US rates 'still a possiblity'

Paul Ashworth, chief US economist at Capital Economics, comments:

Based on her speech today, Fed Chair Janet Yellen might still be in favour of a July rate hike, but it will require a bounce-back in June's employment figures and a vote by the UK to remain in the European Union. Overall, we still think the Fed will raise rates twice this year, in July/September and December. Beyond that, we expect rising wage and price inflation to prompt the Fed to change tack next year, with the fed funds rate above 2% by the end of 2017.

Chinese firm completes Inter Milan takeover

BBC World Service

China's President, Xi Jinping, is a huge soccer fan. A few weeks ago, he laid out a plan for his country to both host and win the World Cup by 2050. So the latest investment by Chinese electronics retailer Suning Commerce Group is likely to meet with approval. It's paying $306m for a near 70% stake in the Italian club Inter Milan. So was this a business decision or an attempt to curry political favour?

Rob Harris, global football writer for the Associated Press told Alex Ritson it is probably a bit of both.  

Suning Commerce Group is paying $306m for 68% of Inter Milan football club.

US shares bounce

And now US shares have rebounded. The S&P 500 is up 0.4% and the Dow Industrials is 0.55% higher.

Yellen reaction: Chance of July rate rise

Aberdeen Asset Management Investment Manage Luke Bartholomew comments:

Yellen has certainly put pay to a rate rise in June but there’s more going on here than that. She acknowledged that the non-farm payroll numbers last week were bad but essentially said that one set of bad numbers doesn’t make a poor economy. Her message really is that the US is making consistent progress towards full-employment, that inflation should pick up and there’s more positives than negatives. This should give those hoping for a July rate rise some modicum of solace."

Yellen: 'More of a believer in wage growth'

Hedge fund operator econhedge tweets:

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US shares give up ground

S&P 500
Google

US shares have given up some of their gains since Janet Yellen started speaking. 

The S&P 500 is now up 0.2%.

The Dow Industrials is 0.4% higher.

Yellen: Brexit would have 'significant repercussions'

"A UK vote to exit the European Union could have significant economic repercussions," says Ms Yellen.

Yellen: 'Positives outweigh negatives'

Economic developments abroad have restrained growth in the US, Ms Yellen says,  "although headwinds are now fading".

A drag will remain, due to the significant increase in the value of the dollar since 2014.

Ms Yellen also highlights that business investment has been week in the last six months, but she thinks that is "transitory".

She will be paying "close attention" to developments in this area.

All in all, economic positives outweigh negatives, according to Ms Yellen.

Yellen: Workers quitting a sign of strength

Help wanted sign, California
Getty Images

Fed Chair Yellen says that the increase in the rate of US workers quitting their jobs indicates confidence about the strength of the labour market.

However she also describes last Friday's report as "disappointing".

"We will need to watch labour market developments carefully," she says.

US rate hikes 'down the line'

Sam Fleming, US economics editor at the Financial Times tweets:

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Yellen: Last jobs report was 'concerning'

US Federal Reserve Chair Janet Yellen
AP

The Chair of the US Federal Reserve Janet Yellen has said that last week's poor US jobs report was "concerning".

Ms Yellen is giving a speech in Philadelphia.

'Woeful' evidence given to MPs inquiry

Iain Wright
bbc

Iain Wright is chairman of the Business, Innovation and Skills Select Committee.

"It is clear from the woeful evidence given to our inquiry by Lord Grabiner, chariman of Arcadia that effective corporate governance in BHS was almost entirely absent," he told the House of Commons.

He quotes from a letter from the Institute of Directors which said the sale of BHS represents a "blight" on the reputation of British business.

FTSE closes 1% higher

Mining shares powered the FTSE 100 to a 1% gain.

Anglo American soared 11%, Rio Tinto and BHP Billiton were both up more than 6%.

Prices of the most important industrial metals rose, which helped mining shares. That rise was attributed to a fall in the value of the US dollar.

Frankfurt-Hahn airport to be sold

Frankfurth Hahn Airport
Reuters

Frankfurt-Hahn airport, much favoured by low cost carrier, Ryanair, is being sold to a Chinese firm.

Shanghai Yiqian Trading is buying the loss-making airport, which is around 60 miles from the city of Frankfurt.

The Chinese firm is buying an 82.5% stake owned by the Rhineland-Palatinate region and the remaining stake owned by the neighboring Hesse region.

BHS: 'Wrongdoing will be taken very seriously'

Soubry
BBC

Business Minister, Anna Soubry is making a statement in the House of Commons on the collapse of BHS.

"Any wrongdoing will be taken very seriously," she says.

The insolvency service has begun an investigation into the conduct of BHS directors, Ms Soubry informs the House.

If directors' conduct "fell below what is expected", then action will be taken, she says.

If any evidence of criminal wrongdoing is found, relevant authorities will be informed, she says.

Video: Expect a 'bouncy' pound

BBC Business Editor Simon Jack tells the BBC that you can expect sterling "to bounce around a lot" in the comings days and weeks. More below.

'Expect sterling to bounce around a lot'

Chinese women make inroads on power list

Lucy Peng, Alipay
Getty Images

An annual list of the world's most powerful women published by the US business magazine, Forbes, has included a record number of names from China. In all, there are nine women who are from or are based in China, including Hong Kong.

The highest entry in the Forbes list from China is Lucy Peng (pictured), the chief executive of Alipay - the company that runs the payments system of the world's biggest e-commerce firm, Alibaba. Forbes calculates her to be the 35th most powerful woman in the world. 

Vodafone 'failing' on customer complaints

BBC personal finance reporter Brian Milligan tweets:

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US shares inch higher

It's been a cautious start to trading on Wall Street. The Dow Industrials has moved 0.2% higher.

Trading is likely to be subdued while investors await a speech from the boss of the US Federal Reserve at 17:30 BST.

Oil firms are being helped by stronger crude prices. Exxon Mobil is up almost 1% and Chevron is up 0.7%. 

All eyes on Janet Yellen

Janet Yellen
Getty Images

Federal Reserve chair Janet Yellen is due to speak at 17:30 BST (12:30 EST) on the US economy and monetary policy.

It's the last speech she'll give before the next meeting of interest rate policy makers at the US central bank, which takes place over 14 and 15 June.

Official data on Friday showing the US economy added 38,000 jobs last month - the fewest in more than five years - means most now expect the Fed will hold off raising interest rates until July or September. 

HSBC aims to be 'agile'

HSBC logo
Getty Images

We already know that HSBC is planning to cut 8,000 jobs in the UK as it tries to reduce costs, it outlined the plans in June

But now Reuters has seen the internal memo outlining the changes in more detail. It's planning to set up a new corporate, financials and multinationals banking unit with the aim of making the bank more "agile".

"Our new structure will ...improve returns for our shareholders by improving our profitability and generating efficiencies," the memo said. 

Why are housebuilding shares falling?

The FTSE 100 losers' list is dominated by housebuilders with Crest Nicholson, Redrow, Galliford Try and Countrywide down between 3 to 4%.

Bruce Dear, head of London real estate at law firm Eversheds, says many investors in the property market are simply waiting until the outcome of the 23 June referendum is known.

Before the Scottish independence referendum, buyers put 'Scotxit' break clauses into contracts. This meant they could break if Scotland voted out. Buyers are putting the same clauses into UK contracts now. If the UK votes out, buyers want the right to break their contracts. However, as the big Brexit decision day gets closer, many deals are simply pausing to wait for the referendum roulette wheel to stop.

Bruce DearEversheds head of London real estate

Good hair day?

Spanish actress Blanca Suarez
Getty Images

Those determined to iron out curls and frizz will know GHD - which stands for good hair day - well. The firm behind the hair straighteners and other hair accessories is being primed for sale, according to Sky News

It says private equity owner Lion Capital is lining up potential buyers for the firm, with a price-tag of around £400m.

London shares continue to move higher

FTSE 100
BBC

The FTSE 100 index of leading shares is continuing to move upwards, and is currently trading over 1% higher marking its highest level for the day.

Mining shares are continuing to drive the increase, with the top five gainers, which are all miners, up between 5-10%.  Anglo American is up 8.9% with Vedanta Resources close behind, up 6.7%.

Pound regains some lost ground

The pound has pulled back from earlier losses of about 1% against the dollar - spooked, market watchers said, by the latest referendum polls suggestion that a vote for Brexit was more likely. 

It is currently down 0.66% against the dollar at $1.442, and against the euro it is down 0.44% at €1.2708.

Burberry boss takes huge pay cut

The boss of luxury goods firm Burberry, Christopher Bailey, accepted a pay cut of 75% last year. Burberry, the country's largest luxury goods business, had a difficult year as it struggled for growth. Mr Bailey's pay was £1.9m, down from £7.5m the year before, according to its annual report which was published on Monday.

Burberry models
Burberry

Anglo American leads mining charge

Mining and commodity stocks continue to lead the 100 index gainers. Anglo American is up almost 10%. A rise in the price of copper to a four week high is one of the factors.

share price chart
BBC

Wall St expected to open flat

The Dow Jones is looking far more reticent than the FTSE this Monday, the futures pointing to a mild 0.1% jump after the bell. With little data on the cards this afternoon the US-focus this Monday will be on Janet Yellen, who speaks at a World Affairs Council luncheon in Philadelphia later in the day. Interestingly, however, investors may now not be looking for hints surrounding a rate hike, but rather an explanation for last Friday’s worryingly weak non-farms payroll.

Connor CampbellFinancial analyst at Spreadex

'Clean the floors'

Logitech boss shares his surprising tip for succcess

WPP's Martin Sorrell pay in focus

Martin Sorrell
Getty Images

The Local Authority Pension Fund Forum (LAPFF) has advised shareholders to vote against WPP boss Martin Sorrell's £70m pay deal at Wednesday's AGM. 

It said it was against the "excessive payments offered to Sir Martin Sorrell, WPP's chief executive, which have been consistently increasing". 

According to the LAPFF's calculations, Mr Sorrell's pay has jumped 56% a year over the last five years, almost twice the year-on-year 28.8% average increase in total shareholder returns at the advertising firm over the same period. 

James HindFounder of www.carwow.co.uk

Housebuilding shares fall

house being built
Getty Images

The FTSE 100 is holding onto its gains, currently up 0.7% at 6,254.56, but the housebuilders have been left behind. 

Berkeley, Barratt Developments, Taylor Wimpey, Persimmon, Crest Nicholson, Galliford Try, Bovis Homes are all down over 1% hurt by concerns they will be hit hard if the UK votes to leave the EU on 23 June.

The falls come after two fresh polls suggested the Vote Leave campaign has gained ground. 

We're in the final stages of the Brexit debate now, and anything with a strong UK exposure is starting to come under a bit of pressure from traders that are looking at stocks ... that will see significant downside if there is a vote to leave the EU.

Charles Hanover InvestmentsJonathan Roy, advisory investment manager

Bookmakers shorten odds on Brexit vote

In response to the latest polls suggesting the Vote Leave campaign is gaining ground, bookmakers have shortened their odds on a possible UK exit from the EU.

Betting website Betfair now puts the chances of a vote to leave at around 30%, compared with odds of around 27% a week ago.