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Summary

  1. Get in touch: bizlivepage@bbc.co.uk
  2. Problems continue for TSB customers
  3. Santander reports 10% rise in quarterly profits
  4. PSA reports 13% growth at Peugeot Citroen
  5. Melrose spent £107m on GKN bid fees

Live Reporting

By Tom Espiner

All times stated are UK

Goodnight

That's all for tonight folks. We'll be back tomorrow from 06:00.

Wall Street sunk by corporate cost warnings

Wall Street trader
Getty Images

Wall Street dropped sharply as concerns over corporates warning of higher costs were exacerbated by the benchmark US 10-year Treasury yield going above 3% for the first time in four years.

Google-parent Alphabet sank almost 5%, erasing all its gains for the year, as investors focused on the company's rising expenses and shrinking margins rather than a profit beat.

Caterpillar sank 6% after it warned of the impact of steel price hikes on its business.

The stock had gained as much as 4.6% earlier on a strong set of quarterly results and full-year outlook.

The 10-year yield, a benchmark for global borrowing costs, has been driven steadily higher by a combination of concerns over inflation, growing debt supply, and rising Federal Reserve borrowing costs.

At the closing bell the Dow Jones index was down 1.7% to 24,022.07, while the S&P 500 had lost 1.3% to 2,634.48.

The Nasdaq Composite was down 1.7% at 7,007.18.

Ulster Bank offers emergency cash

Ulster Bank, the Irish unit of RBS, has said it was aware that some transactions applied to accounts in the Irish Republic over the last five days were not appearing.

The bank offered its customers access to emergency cash at its branches, and said it had fixed the issues to facilitate the recovery of the funds overnight.

The problem was the result of a human error, it said.

The bank, Ireland's third largest, suffered a huge system crash in 2012 that deprived customers of basic banking services for almost a month. That cost it €59m in compensation and a €3.5m fine from the country's central bank.

Surging Gucci sales boost Kering

Gucci model
Gett

Surging demand for Gucci clothing and handbags lifted revenue at the luxury goods group Kering in the first three months of 2018.

It follows a major revamp of Gucci's fashions and store designs under designer Alessandro Michele.

Kering, which also owns Yves Saint Laurent, also benefited from a recovery in spending by wealthy Chinese shoppers.

Sales at the French group jumped by 27.1% to € 3.1bn, with Gucci's revenue up almost 40%.

Hamleys owner 'eyes House of Fraser deal'

Hamleys
Getty Images

In case you missed it, the Chinese owner of Hamleys is in talks to take a stake in House of Fraser, according to a report.

Hamleys owner C.banner International has signed a memorandum of understanding with Nanjing Xinjiekou, the Press Association reported.

Nanjing Xinjiekou holds an 89% stake in House of Fraser and is part of Sanpower, the Chinese firm that paid £480m for the department store in 2014.

An announcement is expected later on Tuesday.

Read more here.

Coffee chain Boston Tea Party 'first' to ban disposable cups

Coffee cup
Getty Images

An independent coffee chain is believed to be the first in the UK to ban the sale of hot drinks in disposable cups.

From 1 June, Boston Tea Party, which has 21 branches around England, will only sell hot drinks in reusable cups.

Customers must either bring their own mug, buy one in store or pay a deposit on one they can return to any branch.

Supermarket giant Waitrose has made a similar pledge to stop using disposable cups by autumn while Costa Coffee has vowed to improve on recycling.

Read more here.

Caterpillar shares plunge on concerns earnings have peaked

Caterpillar machines
Getty Images

Caterpillar's shares have given up early gains and are down more than 6.5%.

Rising material costs following US President Donald Trump's crackdown on steel imports could hurt its earnings in the coming quarters.

Concerns were sparked by management's comments that strong performance in the first quarter was the "high watermark" for the year and the company would not have the same pricing power in the remainder of 2018 to pass on the increased material costs.

Amazon launches car delivery service

Amazon has started delivering packages to people's cars in the US.

It works by people downloading an app from Amazon and linking it to their vehicle's so-called connected car service, such as General Motors' OnStar system or Volvo Car Group's On Call service.

The world's largest online retailer is rolling the programme out in 37 US cities for customers with compatible cars.

Apple to pay €13bn Irish tax this year

Margrethe Vestager
Getty Images
The EU's competition chief Margrethe Vestager said Apple was guilty of receiving illegal state aid

Apple's €13bn Irish tax bill will be paid this year, Ireland's finance minister has said.

Paschal Donohoe said he expected the recovery of funds to be completed in the coming months after signing a detailed legal agreement on the refund of what the EU alleges is state aid from the technology giant.

Facebook shares fall further

Facebook logo
Getty Images

Shares of Facebook are down nearly 4% after the firm updated its privacy policy to allow users to view information they share and show how its being used.

Facebook shares have been suffering since the Cambridge Analytica scandal where millions of users' data were improperly accessed by a political consultancy, falling 14% since 17 March.

Facebook made the change ahead of new European data laws on 25 May.

The drop in shares also followed a report that Facebook hosted stolen identities and stolen social security numbers.

Cybercriminals used the social network to try to sell data including credit cards, social security numbers and other personal information, with some posts advertising the information left up for years, tech publication Motherboard reported.

Total music sales still down...

Jonathan Josephs

BBC business producer

Public finances 'back at pre-crisis levels'

Financial Times

Trump: 'Good chance' if China trade deal

Donald Trump
Getty Images

US President Donald Trump says the US and China have "a very good chance at making a deal" on trade when both sides sit down to negotiations in a few days.

"China's very serious, and we're very serious," Mr Trump said.

US Treasury Secretary Steven Mnuchin will travel to China as part of a delegation.

Regulator talking to TSB

Salesforce announces $2.2bn French investment

Macron and Trump
Getty Images

US software company Salesforce will invest more than $2.2bn in its French business over the next five years, it says

French President Emmanuel Macron began a state visit to Washington on Tuesday becoming the first foreign leader to do so.

Three days and counting

Didcot power station
Getty Images

For fans of energy stories, the UK has been managing without coal power for three days and counting.

That time period began on Saturday at 10:00, and is the first time since the 1880s that has happened.

The previous record was from last week, at 55 hours, from Monday 16 April at 22:25.

Shaken but not stirred

Former Grange Hill actor tells of TSB 'nightmare'

BBC Radio 5 live

Lee MacDonald
Lee MacDonald

Lee MacDonald, who played Zammo in children's TV show Grange Hill in the 1980s, told the BBC he has had an "absolute nightmare" following TSB's IT glitches.

Mr MacDonald, a key cutter and locksmith, told Anna Foster on BBC Radio 5 live: "I'm having an absolute nightmare. I've got two accounts, both business accounts, with TSB."

He continued: "My business has literally stopped. I don't know what money's coming in, I don't know what money's going out.

"It is unbelievable for a big company like that. I'm in absolute turmoil at the moment."

"I've been ringing the online helpline and it goes to an engaged tone, so I can't even speak to anybody at the other end of the phone...

"When you're running a small business, every job counts and it's just a nightmare."

Earnings give Wall Street a boost

Wall Street traders
Getty Images

US stocks are getting a bit of a boost from strong earnings from Caterpillar, Verizon and other big names.

However, the gains were curbed by rising bond yields. The yield on the 10-year US Treasury notes hit 3% for the first time since 2014, due to a growing supply of government debt and accelerating inflation as commodity prices gain.

Caterpillar, which serves as a bellwether for global economic activity, jumped as high as 4%, while Pratt & Whitney aircraft engines-maker United Tech rose as much as 1.3%. Both companies topped quarterly profit estimates and raised their full-year earnings forecasts.

One dampener was Google-parent Alphabet, which dipped 2.5% as investors focused on rising costs rather than the profit beat.

The Dow Jones Industrial Average is down 34 points, or 0.14%, at 24,415, the S&P 500 was up 0.24 points, or 0.03 %, at 2,671, and the Nasdaq Composite was down 20 points, or 0.28%, at 7,108.

Shire chairwoman says talks with Takeda ongoing

Pills
Getty Images

Shire says discussions are ongoing with Takeda Pharmaceutical about the Japanese firm's bid for its Dublin-based rival.

There is a deadline to strike a deal on Wednesday.

"Following several offers from Takeda, the board requested that the advisers of Shire and Takeda enter into a dialogue to discuss whether a further, more attractive proposal may be forthcoming," chairwoman Susan Kilsby told Shire's annual shareholder meeting in Dublin.

"As of today the board can confirm that it is reviewing that offer. As of now we can only say that discussions between the advisers of Shire and Takeda are ongoing."

Metro Bank revolt fails to transpire

Vernon Hill with Duffy
PA
Vernon Hill with his dog, Duffy

Metro Bank shareholders voted to reelect American businessman Vernon Hill as chairman, despite a controversy over payments made over several years by the British bank to his wife's architecture company.

Of the votes cast at the bank's annual general meeting in London 96% were in favour of Mr Hill continuing in his role.

3M shares plunge after income drop

3M logo
Getty Images

Shares in US conglomerate 3M are down more than 5% after first quarter income fell 54%.

The firm took an $897m hit in legal costs and a $217m charge related to the Tax Cuts and Jobs Act, it said.

Streaming beats CDs and vinyl

Ulster Bank transactions go awry

It doesn't seem to be a good day for banking technology.

As well as ongoing problems for TSB customers, Ulster Bank, the Irish unit of RBS, says it is aware that some transactions to accounts in the Irish Republic over the last five days have not been appearing.

Customers complained to the bank's customer services account on Twitter that large sums were missing, debit cards had been declined and in some cases accounts were overdrawn.

"We are aware that some transactions previously applied to accounts for ROI [Republic of Ireland] customers since 20/04 are no longer showing. We are working hard to fix this issue and apologise for any inconvenience," Ulster Bank said.

Mr Hammond’s big test on borrowing

Kamal Ahmed

Economics editor

Philip Hammond
AFP

The amount the government borrows is at its lowest level since 2007.

The current budget - the amount the government spends on day-to-day operations - is actually in surplus, albeit by a wafer thin amount.

That's the first time that has happened since 2002 and the era of Gordon Brown.

Tax receipts are at record levels as the number of people employed remains high.

Read more here.

UK has record coal-free energy run

Wind farm Scotland
Getty Images

The UK has managed 72 hours without using coal, according to the National Grid. That's the longest period without coal power since industrial revolution began in the 1880s.

So where did the energy come from?

  • 30.3% from gas
  • 24.9% from wind
  • 23.3% from nuclear
  • 6.2% from solar
  • biomass, hydro power, storage and imports make up the remainder

Mr Hammond’s big test on borrowing

Kamal Ahmed

Economics editor

Philip Hammond
AFP

The amount the government borrows is at its lowest level since 2007.

The current budget - the amount the government spends on day-to-day operations - is actually in surplus, albeit by a wafer thin amount.

That's the first time that has happened since 2002 and the era of Gordon Brown.

Tax receipts are at record levels as the number of people employed remains high.

Philip Hammond welcomed the news - his target is to eliminate the deficit by the middle of the next decade.

But the chancellor also knows that a lower deficit creates its own challenges.

Read more from Kamal here.

Shire on renewed takeover interest from Takeda

The board announces that it has received a revised proposal from Takeda regarding a possible offer for the company on 24 April 2018. The Board is considering its position. There can be no certainty that any firm offer for the company will be made nor as to the terms on which any firm offer might be made.

Shire Pharmaceutical

Ryanair to buy 25 more Boeing 737 aircraft

Ryanair passengers
Getty Images

Budget ariline Ryanair has agreed to buy 25 Boeing 737 passenger planes, the pair have said.

The 737 Max 200 aircraft, worth $3bn at list prices, will help Ryanair to meet its target of carrying 200 million passengers a year by 2024.

In September 2014, Dublin-based Ryanair bought 100 of the 197-seater planes from Boeing for a list price of $11bn.

Shire shares up 5% on takeover talk

Shire graphic
Reuters

Shares in pharma giant Shire are up by more than 5% in London lunchtime trading after media reports that Japanese rival Takeda is close to reaching a preliminary agreement for the firm.

Last week Shire rejected a cash and stock offer of £46.50 a share that valued it at £43bn.

However, at the time Takeda said that discussions between the two firms about a potential offer would continue.

And Shire confirmed then too that it had opened talks with Takeda to determine if it could make a higher offer.

According to Bloomberg, the continuing talks have focused on agreeing an improved offer, including a possible increase in the cash component.

Hamleys owner in HoF talks - report

House of Fraser logo
Getty Images

What's going on at House of Fraser?

You might remember that back in 2014 the department store chain was bought by Chinese firm Sanpower in a deal worth £480m.

The plan was to role out House of Fraser stores across China, but just one store opened.

Last week House of Fraser appointed turnaround experts for advice.

Now it's being reported that the Chinese owners of Hamleys are in talks to buy a stake in House of Fraser.

C Banner Holdings bought Hamleys in 2015.

Sanpower has also been talking to tourism firm Wuji Wenhua about selling a stake in House of Fraser.

Betting firm shares languishing

Electronic gambling machine
Reuters

No respite for William Hill shares in lunchtime trading in London after reports that the government is poised to slash the maximum stake on fixed odds betting terminals to just £2.

It had been thought that a government review of such machines would result in a less drastic reduction.

Hill's shares remain down 11.47%. Meanwhile shares in Ladbrokes' owner GVC Holdings are down 6.75%.

And shares in Paddy Power Betfair are down 4.5%.

Breaking'This isn't what customers expect from TSB'

Bank's chief executive is 'truly sorry'

I’ve just resurfaced after 48 hours with my teams who have been working as hard and fast as they can to get our services back up and running. This isn’t the level of service that we pride ourselves on providing, and isn’t what our customers have come to expect from TSB, and for that I’m truly sorry. We’re still seeing issues with access to our digital services. One of the steps we need to take to resolve this is to take our mobile app and online banking down for a few hours. We did this at around 10.30 this morning and we hope to be back up later this afternoon. We’ll let [our] customers know as soon as it’s available again. Of course, customers can rest assured that no one will be left out of pocket as a result of these service issues.

Paul PesterTSB chief executive

Coca-cola boost by Coke Zero

Coca-Cola bottles
Getty Images

Coca-Cola sales rose 5% in the first quarter, helped by strong growth in sales of Coca-Cola Zero Sugar.

The company also said its sparkling water brand, Topo Chico, had seen strong growth.

Net income rose 16% to $1.37bn.

Customs Union 'hokey cokey'

If you are wondering what the latest is with Brexit, here's what the BBC's Political Editor Laura Kuenssberg is tweeting:

View more on twitter
View more on twitter

Insight into the Facebook privacy scandal

Facebook has said that the personal information of about 87 million users may have been improperly shares with Cambridge Analytica, a political consultancy.

Researcher Aleksandr Kogan created a personality quiz that collected the data from Facebook. He is answering questions from a panel of MPs.

View more on twitter
View more on twitter
View more on twitter

TSB meltdown 'simply isn't good enough'

Nick Morgan, chair Treasury Committee
AFP

Nicky Morgan MP, chair of the Treasury Committee, has written to Paul Pester, chief executive of TSB. This is what she said in a statement.

“This is yet another addition to the litany of failures of banking IT systems. Potentially millions of customers could be affected by uncertainty and disruption.

“It simply isn’t good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money.

“Warm words and platitudes will not suffice. TSB customers deserve to know what has happened, when normal services will resume, and how they can expect to be compensated."

China's Didi to take on Uber in Mexico

Didi Chuxing app
Getty Images

China's ride-hailing firm Didi Chuxing is posing a new threat to Uber. This time in Mexico.

Didi launched in the Mexican city of Toluca on Monday and could expand even further across the country later this year.

But it faces stiff competition from Uber in Mexico where the San Francisco firm has the lion's share of the market.

But Didi is already challenging Uber in another Latin American country - Brazil.

The ride-hailing firm is now the world's largest ride-hailing app, best known for driving Uber off China's streets.

And it's currently worth $56bn (£39.4bn), making it the world's most valuable start-up.

Vodafone 'worst mobile provider' says Which?

Vodafone logo
Getty Images

Vodafone has been rated the worst mobile phone provider for the seventh year running in an annual customer satisfaction survey.

The other leading providers, EE, 02 and Three, also scored badly, with service judged "average" and "disappointing".

Of the small providers, Utility Warehouse ranked highest for value for money, incentives and customer service.

The survey, by the consumer organisation, Which?, asked 3,600 consumers about their service provider.

Arsenal signs global deal with electric car firm

Arsenal promo car pic
Arsenal FC/BYD

Arsenal has signed a global agreement with the Chinese electric vehicle manufacturer, BYD Auto, which becomes the club’s official car and bus partner.

China-based BYD (Build Your Dreams), designs, develops, manufactures and distributes cars, buses, commercial vehicles and rail stock.

The Shenzhen, Guangdong Province-based firm provide single and double-decker buses to Transport for London and emplos more than 220,000 employees across five continents.

"The deal with BYD represents a further step forward in how Arsenal works with its partners to build a greener future, following its work to power Emirates Stadium and all other Arsenal sites with 100% renewable energy," said the club.