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Summary

  1. FTSE 100 dragged down by financial shares
  2. Terra Firma drops Citigroup EMI lawsuit
  3. Russia cuts interest rates to 10.5% from 11%
  4. Tesco confirms sale of Giraffe and Turkish business
  5. Shares in Japanese messaging service Line to go on sale next month
  6. India to impose 25% tax on sugar exports

Live Reporting

By Karen Hoggan

All times stated are UK

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Good Bye!

That's all for today on the Business Live page. 

Thank you for joining us.

We will - of course - be back bright and early on Monday morning.

Do join us from 6am for all the up-to-date business news. 

FTSE 100 down on global growth fears and EU uncertainty

London Stock Exchange sign
Getty Images

The FTSE 100 failed to claw back into positive territory on Friday.

It closed down 1.86% at 6,115.76.

Worries about global economic growth and uncertainties about the EU referendum vote seem to be affecting investors' sentiment. 

Adidas versus Nike - the sponsorship war

BBC World Service

Journalist Kevin Roberts of Sportbusiness International magazine explains to the Business Daily's Ed Butler the bidding war that's going on and how high the stakes are.

Sports journalist Kevin Roberts explains the bidding war and how high the stakes are.

As Euro 2016 prepares to kick off - how are strikes affecting fans?

Travel writer tweets ...

Wall Street winners

So the weekend's nearly upon us - but for the aspiring athletes of Wall Street it's not going to mean the chance to laze around with a cup of coffee reading the newspapers.

The Wall Street Decathlon is this weekend. The event is a competitive match-up between workers at the top US banks and investment firms that raises money for charity.

Other cities have similar events that allow people of all professions to compete but in New York you have to work on Wall Street.  

Last year, a group from Goldman Sachs was the winner in the team category.

GM boosts spending on driverless cars research

GM logo
Getty Images

General Motors Co said on Friday it will create about 1,000 jobs in the Canadian province of Ontario. It's stepping up research spending on connected and driverless cars, reports Reuters. . 

GM also said it would invest $10m (£7m) million in its Kapuskasing, Ontario cold-weather facility, where it would conduct testing for new GM products and technologies. 

Ontario Economic Development Minister Brad Duguid and General Motors' Canadian president Stephen Carlisle have been promoting Ontario, the first Canadian province to allow on-road testing of driverless vehicles, as a high-tech hub for connected-car development. 

Wall Street down on global uncertainty

Wall Street sign in front of US flags
Getty Images

Shares on Wall Street have opened lower today, following on from yesterday's declines. 

Concerns about global economic growth and a sharp drop in oil prices seem to be the key factors behind the falls. 

Bank stocks came under pressure again as global issues, including uncertainty over when US interest rates are going to go up and Britain's EU referendum saw investors putting their money into safe haven assets. 

"I think its the fear factor (on global issues) that is pushing stocks a little bit," said Peter Cardillo, chief market economist at First Standard Financial in New York.

"The British exit is beginning to become more of a factor now and that's due to the fact that we have crumbling yields throughout the globe." 

A short while ago the Dow Jones was down 0.48% at 17,899.34.

The Nasdaq was at 4,910.27 - a fall of -0.98%.

And the S&P 500 was at 2,100.58 - that's down -0.70%.

How brands make sure they get noticed at Euro 2016

Marketing Week magazine tweets

Africa's biggest mobile company settles Nigeria fine

BBC World Service

The South African telecoms company MTN says it has agreed to pay a $1.7bn (£1.2bn) fine to the Nigerian government over its failure to disconnect unregistered mobile phone users, reports BBC World Service.

The mobile phone giant had been asked to pay over $5bn, but was able to get the amount reduced through negotiations with the government. 

The Nigerian government said Boko Haram militants were able to use unregistered phones, making them harder to trace.  

More on Terra Firma withdrawing allegations against Citi

BBC business reporter who was in court tweets ...

Recap of how Terra Firma and Citigroup ended up in court

EMI logo
Getty Images

If you haven't been following the Terra Firma legal case against Citigroup - here's a quick reminder of how it all began.

Terra Firma - whose chairman is Guy Hands - took over EMI for £2.4bn in 2007, shortly before the financial crisis.

Citigroup had advised EMI, which was then listed on the stock market, but also provided finance to Terra Firma for the deal.

After EMI's sales began to slump following Mr Hands' takeover, the bank ended up taking control of the label in 2011.

Guy Hands had sought damages of £1.5bn alleging that the US investment bank misled him over the deal.

Citigroup denied the allegations. 

Mr Hands had tried to sue Citigroup in the US, but the case ended in 2014 when a jury found that the bank had not misled Terra Firma.

Mr Hands had argued that Citi led him to believe other parties were interested in EMI.

Guy Hands: 'Matter is now closed'

More on the dropping of the Terra Firma allegations against Citi ...

These claims were brought in good faith. However, it has become evident that our documentation of the fast-moving and complex events, and memories of these events after nine years, are no longer sufficient to meet the high demands of proof required for a fraud claim in court. The matter is now closed. Terra Firma is looking to the future. We have an exciting portfolio of companies, a talented and experienced team, supportive and loyal investors and one billion euros of capital to invest.

Guy HandsTerra Firma chairman

Citi welcomes withdrawal of Terra Firma's allegations

We have always maintained that the allegations made by Terra Firma were entirely baseless and that City, specifically David Wormsley, Michael Klein and Chad Leat, acted at all times with absolute honesty and professional integrity throughout the EMI transaction. We are very pleased that Terra Firma has unreservedly withdrawn the allegations, agreed to the dismissal of the proceedings and will pay Citi's costs in relation to this matter.

Citi statement

Guy Hands' Terra Firma drops allegations against Citi

Terra Firma agrees to pay defendant's costs after withdrawing allegations against US investment bank Citigroup over EMI buyout. 

Eurozone banks hit by bad debts

World Service economics correspondent tweets:

Banks to get bigger industry body

Canary Wharf
PA

The banking industry is likely to have more clout following the merger of three bodies that represent different parts of the sector.

The BBA, Council of Mortgage Lenders, Payments UK and UK Cards Association are all teaming up.

Anthony Browne, BBA CEO, said: “It is right that our members get effective representation and value for money from their trade associations. The BBA membership has voted 94 per cent in favour of consolidating the BBA as part of a new Financial Services Trade Association."

MPs want to question Pensions Minister

Frank Field is chairman of the Work and Pensions Committee and a Labour MP.

BBC personal finance reporter Simon Gompertz tweets:

View more on twitter

Pubs anticipate beer guzzling weekend

Dog and Gun near Leicester
Reuters

The British Beer and Pub Association estimates that an extra 17 million pints of beer will be sold over this weekend due to the Euro 2016 football tournament and the extra pub opening hours granted to mark the Queen's 90th birthday.

FTSE 100 extends losses

FTSE 100 graph
BBC

The FTSE 100 has extended its losses on the back of worries about global economic growth and uncertainties over the EU referendum vote.

Falls were broad-based, with Barclays, Easyjet and paper and packaging firm Mondi all down more than 3%. Shares in insurer Standard Life fell 2.3% after investment bank UBS cut its price target. 

In early afternoon trading, the index was down 1.58% at 6,133.6 points, with Fresnillo and Randgold Resources the only two stocks managing to creep into positive territory. Both are benefiting from a rise in the gold price as investors move into safer assets.

Pensions withdrawal fee 'should be capped at £50'

Russia cuts interest rates

Russian roubles
Reuters

Russia's central bank has cut its main interest rate from 11% to 10.5%.

It is the first reduction in 10 months and follows a recovery in ruble, which has risen 25% since January.

The Russian economy, the nation's finances and the ruble are heavily influenced by crude oil prices.

Back in January Brent Crude hit $27.88 a barrel, but has recovered since then to trade above $50 a barrel.

India rejects Google Street View plan

Google street view car
EPA

India has rejected Google's plans to collect images for its Street View service in the country after objections from security agencies.

It was felt the service would compromise the country's security.

Google Street View collects high definition images to give its users 360 degree views of streets, tourist spots, hills and rivers.

But Google's data collection has caused concern in several countries.

The Press Trust of India agency reported that India's interior ministry had informed Google that its plans to cover India through the service had been rejected.

Iceland supermarket facing 'extreme challenges'

Frozen food supermarket Iceland has turned in flat annual profits and labelled the UK grocery market as "extremely challenging".

The chain saw full-year earnings inch up 0.2% to £150.5m in the 12 months to 26 March, compared with a year ago, lifted by stronger margins and tighter cost control.

The business saw its like-for-like sales fall 2.7% over the year, an improvement on the 4.4% decline in the prior year as the industry continues its fierce price war sparked by competition from discounters Aldi and Lidl. 

But Iceland said in a statement that food price deflation and changing consumer spending patterns was making life tough.

Iceland runs 864 stores, and has about a 2.1% share of the UK grocery market. 

Lufthansa executive in surprise departure

Lufthansa tailfins
AFP

Investors in German airline Lufthansa are spooked by surprise news that the chief financial officer is stepping down.

The shares fell almost 5% on the announcement that Simone Menne, 55, is leaving at her own request. She is one of the few top-ranked female executives among blue chip companies in Germany.

Lufthansa is undergoing a major cost-cutting drive, which has sparked a series of strikes.

In a statement, Lufthansa said it regretted her decision to end her contract early, which was due to run until 2020.

"She has always steered a steady course, and has never shied away from difficult decisions," chairman Wolfgang Mayrhuber said. The carrier said it would take a decision on her successor shortly.  

'Time to stop laughing at Nokia'

Dave Lee

North America technology reporter

You know what? I think it's time to stop laughing at Nokia. The clichéd joke is that it's tech's most famous has-been, a firm that peaked with the 3310 and has nothing else to offer the world other than nostalgia about how your dad "still uses his old Nokia". Nokia isn't going away, and it surely once again deserves the tech world's respect and attention.

You can read more from Dave here.

Fiat Argentina withdraws 'misogynistic' car manual

Fiat logo
Reuters

Fiat Argentina appears to be stuck in the 1970s.

A car manual which refers to women as "co-pilots" and men as "alpha males" has been withdrawn by the company after complaints.

The pamphlet, which was handed to new owners with the official paperwork, also featured comments on women's legs and the length of their skirts.  

Losses deepen on the FTSE 100

Losses for the FTSE 100 have deepened through the morning in London. The FTSE 100 is down almost 1.6%.

Financials are the biggest losers, led by Barclays with a 3% decline.

A short while ago there were no shares trading higher among FTSE 100 stocks.

On the FTSE 250 Essentra shares are down another 5% following a 28% plunge on Thursday, after the engineering firm warned of lower full-year profits.

Adidas vs Nike - the sponsorship war

Journalist Kevin Roberts of Sportbusiness International magazine explains to the BBC's Ed Butler the high the stakes in sports sponsorship.

Sports journalist Kevin Roberts explains the bidding war and how high the stakes are.

MP calls for Sir Philip's knighthood to be revoked

Jim McMahon is the Labour MP for Oldham West & Royton

I have written to the Prime Minister seeking support in revoking Sir Philip Green's knighthood. Hope he acts #BHS

I have written to the Prime Minister seeking support in revoking Sir Philip Green's knighthood. Hope he acts #BHS

UK construction output rebounds in April

UK construction output rose 2.5% in April from March. That was stronger than economists had been expecting, but is not a full recovery from a 3.6% decline in March.

Those figures are from the Office for National Statistics.

Samuel Tombs, chief UK Economist at Pantheon Macroeconomics, says that construction will be a drag on the UK's second quarter growth figures. 

He also points out: "Housebuilding continues to surge, while private industrial investment has been hit by Brexit risk. Meanwhile, output in the public and infrastructure sectors is trending down, due to the renewed fiscal squeeze."

Air France pilots strike

Travel expert Simon Calder tweets:

View more on twitter

FTSE 100 update

It's not looking good for Britain's leading shares. There are currently no rises on the FTSE 100, which is down 1.2%. GKN and Standard Life, down more than 2%, are the biggest fallers. 

The index seems to be tracking loses on Asian and US markets, which were hit by worries about the Chinese and eurozone economies.

Bond market 'supernova that will explode'

This tweet has rattled a few cages in the City. Bill Gross is one of the biggest names in the bond trading business, so when he refers to the rally in bond prices as a supernova, people take notice.

View more on twitter

US firm chooses Glasgow

BBC Scotland business editor tweets:

Line in one of the year's biggest new share sales

BBC Business Live

Line is a messaging service based in Japan, which gained popularity after the 2011 earthquake, when phone lines went down and it proved to be a useful way of staying in touch.

Its South Korean owner has announced plans to sell shares in the company for the first time in New York and London, next month.

It could be one of the biggest new share sales of the year.

BBC business reporter Mariko Oi explained more on Business Live.

Shares in Japan's Line to go on sale next month

Tata reponds to steel delay speculation

Port Talbot steelworks
Getty Images

There are reports this morning that Tata Steel has put back a decision on the future of its UK operations until July. It comes amid speculation that the firm is reconsidering a sale now that the UK government has offered to help with the costs of running the business, which includes the Port Talbot plant. We're not sure Tata's response clarifies the situation much, but here it is. 

Tata Steel has consistently stated, such as in its release of 25 May, that it is committed to running a thorough and urgent sale process for its UK business. That remains the case today and the sales process, supported by specialist advisors and the Governments of the UK and Wales, has involved approaches to around 200 potential investors across the world. In the current phase, the binding bids are under evaluation and some bidders have asked for clarifications which we are in the process of providing."

Bond yields edge higher

On Thursday the return on UK, European and US benchmark bonds hit record lows.

In the UK the yield on the 10-year Treasury fell to 1.2183%, before recovering a bit.

That recovery has continued this morning in London - a short while ago the 10-year bond was yielding 1.232%.

Bond returns are important as they affect annuity rates, pension fund income, and debts.

Fullers profits rise 8%

Watch interview with brewery boss

BBC Breakfast

Tesco to make 'small loss' on Giraffe sale

Retail analyst Bruno Monteyne, from Bernstein, estimates that Tesco's sale of Giraffe will result in a "small loss" that will not have a significant impact on the group.

The sale of the Turkish supermarket chain Kipa will cost Tesco around £20m in 2016, Mr Monteyne estimates.

"Tesco was only a small player in Turkey and suffered from a highly competitive market. As a result the main Tesco business had to support Tesco Kipa. The sale of the business means that the focus can be on the other parts of the international business," he said.

FTSE 100 lower in early trading

The FTSE 100 is 0.6% lower in early trading at 6,197.

BP is down 0.7% after announcing a joint venture with Det Norske that will merge the firms' Norwegian assets.

Tesco is down 0.7% after announcing the disposal of Giraffe and its supermarkets in Turkey.