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Summary

  1. Jaguar to create 1,300 UK jobs
  2. Heathrow and Gatwick report record traffic
  3. Oil prices down on Goldman report

Live Reporting

By Ben Morris and Matthew West

All times stated are UK

Get involved

Matthew West

Business Reporter

That's it for today. Tomorrow we have trading updates from Morrisons, Greggs and Debenhams. And we'll discover whether Bank of England governor Mark Carney has had to write to the Chancellor to explain falling inflation, when official figures are released. Join us from 06:00.

Via Twitter

Aaron Heslehurst

Presenter, World Business Report

#

Heathrow airport hangs on to its crown as busiest int'l airport by passenger no's. 73.4mln passengers made journeys thru airport in 2014... although that said - @DubaiAirports could be very close to taking that crown. They haven't released their 2014 numbers yet. Expecting 70+mln

Cream egged

A Cadbury Creme Egg cut in two
BBC

A brave move from Cadbury. It has changed the recipe of its Creme Egg. The US owner of Cadbury, Kraft, today confirmed it has replaced the popular Cadbury's Dairy Milk shell in its Creme Eggs with one made from a standard cocoa mix chocolate. The recipe had remained since the egg was invented in 1971.

Tesco cuts petrol price

Petrol pump
PA

And there we have it. Tesco has cut the cost of petrol and diesel by 2p per litre. The changes will come into effect from this afternoon. Tesco has the largest network of filling stations, with 500 across the nation.

Via Twitter

Tuesday's inflation figures

Andrew Sentance

Former member, Bank of England Monetary Policy Committee

"UK inflation should be well below 1 pc tomorrow, but no #BoE Governor letter. Changes to procedure mean letter delayed until after Feb MPC."

Petrol below £1 a litre

We're edging ever closer to petrol at, or below, the £1 per litre mark nationwide. Asda has triggered another round of petrol price cuts at the supermarkets today, knocking 2p per litre off unleaded petrol. The cut takes effect tomorrow and means a litre of unleaded will cost 103.7p while diesel will cost 110.7p. Morrisons has already copied the move dropping 2p off prices. It's highly likely Sainsbury's and Tesco will have followed suit before the end of the day.

End of the world?

Scientists, entrepreneurs and investors, including Stephen Hawking and Tesla Motors chief executive Elon Musk, have signed an open letter warning greater focus is needed to ensure the safe development and use of artificial intelligence (AI). Concerns range from the technology costing jobs in economies to, well, the end of the world. The open letter from the non-profit

Future of Life foundation calls for more robust research. Last month, Professor Hawking warned AI could heard the end of the world. It would appear he wasn't joking.

Conservative manifesto launch

David Cameron
BBC

Another Conservative commitment is based around the welfare budget. Mr Cameron says a Conservative government will make £12bn of cuts to welfare. It's worth bearing in mind that's £12bn in two years as the Prime Minister is suggesting his government would run a budget surplus in 2017.

Conservative manifesto launch

Mr Cameron has five economic commitments. The first is to get the government's budget back to a surplus by 2017. That will require £30bn, yes, £30bn of savings (or cuts). But he argues that means reducing government spending by just 1% per year.

Conservative manifesto launch

Prime Minister David Cameron has started speaking in Nottingham as part of his unveiling of the core themes on which the general election will be fought. The first theme is predictably about the economy. He argues the Conservatives are the only political party that understands that the government can achieve nothing unless the UK learns to live within its means.

Rangers bid rejected

A general view of the Ibrox Stadium, in Glasgow,
PA

Glasgow Rangers have rejected Robert Sarver's latest proposed takeover of the Ibrox club. American Sarver, who owns the Phoenix Suns basketball team, had offered £20m for a majority stake in the Championship club. But Rangers has rejected the deal on the basis that they did not believe it would receive the backing of enough of the club's shareholders. Mr Sarver originally bid £18m for the club on 6 Janaury.

Heavenly guff

World Service

Justin Welby
Getty Images

The Church of England says it's looking for "a radical step change in our development of leaders who can shape and articulate a compelling vision and who are skilled and robust enough to create spaces of safe uncertainty in which the Kingdom grows", and makes it onto Lucy Kellaway's list of bad business jargon of the year. Listen to

her rant on Business Daily, and
download today's podcast.

Spider venom

Funnel Web spider
Getty Images

Here's a nice bit of business trivia to start your week. NPS Pharmaceuticals,

which has agreed to a $5.2bn bid from Shire, was set up by two US scientists who wanted to study the medicinal uses of spider venom, according to the Times newspaper this morning. The company was set up in 1986 and has yet to make a profit, the report adds.

Market update

FTSE 100
BBC

The FTSE 100 has been rather bouncy this morning. After briefly dipping into negative territory, it's now up 0.6%.

Detroit Auto Show

BBC World News

Samira Hussain, Detroit
BBC

The

North American International Auto Show opens to the press in Detroit today. The BBC's Samira Hussain is there and says that General Motors will be keen to forget 2014, after recalling more than 30 million vehicles to correct problems. She says that GM will unveil a new electric concept car, with a range of 200 miles and a price tag of $30,000 (£20,000).

Asda cuts fuel prices

Asda has announced it's cutting the price of fuel further. From tomorrow, the cost of unleaded will be 103.7p.

Via Twitter

Douglas Fraser

Business and economy editor, Scotland

"£2bn of UK offshore oil investment plans at risk due to price crash: @WoodMackenzie - if axed, 2015 investment 1/2 of high 2014 level ... 2014 v challenging for UK offshore: rising costs, poor exploration results, falling prices squeezing already tight economics"

Lufthansa boost

Lufthansa 747
EPA

Lufthansa expects this year's fuel bill to be 13% lower than last year, at €5.8bn (£4.5bn; $6.9bn). As a result, the company expects a significant improvement in operating profit.

Lufthansa shares are up 1.6% this morning.

Via Twitter

Andrew Critchlow

Commodities Editor, Telegraph

Goldman Sachs, the bank that called $200 oil now says it will hit $40. Not a bad random guess! #OPEC

Via Email

Simon Atkinson

Editor, India Business Report

Ajay Banga, chief executive Mastercard
AP

MasterCard chief executive Ajay Banga is one of several Indian-born bosses of top US Firms. At India's biggest foreign investor summit - Vibrant Gujarat - he told the BBC that India should let foreign firms like Walmart invest in supermarkets - that it'd be good for India, especially helping food storage and cutting waste.

Petrol below £1 a litre

Well at least one petrol station has dipped prices below the £1 litre mark. A sharp eyed reporter at the

Birmingham Mail spotted the forecourt of Harvest Energy in Kings Heath advertising petrol at 99.7p per litre last night. We think this is the first petrol station forecourt to do so but let us know at bizlivepage@bbc.co.uk if you have spotted any others, ideally with a photo (camera phone picture perfectly acceptable).

Newspaper review

Business pages
BBC

North Sea oil and gas firms are to be offered tax breaks by Chancellor Osborne to avoid a drastic reduction in investment, according to the Daily Telegraph's business section today. Meanwhile, the Guardian says that one major oil company will abandon fossil fuels altogether. Tesco's decision to end its final salary pension scheme is "shameless and yes, shameful" writes Robert Lea in the Times' business commentary. And spare a thought for investment bankers as the FT is reporting that they are fighting over a "diminished" bonus pool this year.

Market update

London's

FTSE 100 Index appears to be shrugging off the lower oil price and is up 0.3% to 6525.05 so far today. Online white goods retailer,
AO World, which reported strong Christmas sales and confirmed it is on course to meet full year targets is leading gains, up 5.2% to 260p.
Shire, which announced its £3.4bn deal to buy US rival NPS Pharmaceuticals overnight is up 0.9% at 4784p.
SSE, is down 2% to 1564p as it continues to deal with the power cuts caused by the weekend's storms in Scotland.

Oil prices down

Brent Crude oil
Bloomberg

Oil prices have kicked off the week with sharp losses.

Brent Crude is down 2.6% at $48.81 a barrel. A couple of factors are helping drive down prices. Investment bank Goldman Sachs has lowered its forecast for the average price of Brent in 2015 to $50.40 per barrel from $83.75. There were also disruptions to production at two big US oil refineries over the weekend.

Gatwick's record year

Gatwick airport
Getty Images

Like rival Heathrow, Gatwick also had a record 2014. More than 38 million travellers flew through Gatwick, up 7.6% on the previous year. Long haul traffic recorded particularly strong growth, including traffic to Dubai which grew 8.3%.

Milk crisis

BBC Radio 4

National Farmers Union (NFU) president Meurig Raymond tells

Today the latest crisis at First Milk is just a symptom of a much wider industry problem. "We've seen the product devalued... liquid milk is now cheaper than water," he says. "There are very few dairy farms making money". We lost 60 dairy producers in December alone."

Milk crisis

BBC Radio 4

David Handley a dairy farmer and chairman of Farmers 4 Action tells

Today there are a lot of dairy farming families "in a state of limbo",
due to the delayed payment of bills by First Milk. There is not a clear message coming from First Milk he says.

New Jaguar car

Radio 5 live

Stricken vessel "Hoegh Osaka" in the Solent
Getty Images

Jaguar Land Rover has 1,200 cars on board the cargo ship that has been stranded on an Isle of Wight sandbank. That sounds like a lot, but Mark Wright says every week the company has cars on 30 ships heading overseas.

New Jaguar car

Radio 5 live

On

Radio 5 live Jaguar Land Rover executive director Mark Wright highlights that the new Jaguar will have an aluminium body, which will make it lightweight and therefore more fuel efficient. Their Midlands plant is one of the biggest aluminium body shops in the world, he says. But is it more expensive to mend a ding in aluminium, the Business live page wonders? If you know, email bizlivepage@bbc.co.uk.

Ticket resale reforms

BBC Radio 4

Viagogo spokesman Oliver Wheeler tells

Today ticket resale websites are supportive of government reforms of their industry to make the reselling of tickets more transparent. But they do have concerns around naming the originally seller of the ticket and displaying the original seat number of the ticket. "The only reason that rights owners [event organisers] want us to publish that detail is to have the ability to cancel those tickets in the aftermarket. They don't like the fact these tickets are resold, " he says.

New Jaguar car

BBC Radio 4

Last year, Jaguar Land Rover sales in China grew by 28%. executive director Mark Wright tells

Today. Demand in China remains strong despite fears of a slowdown in the economy. One of the reasons the company invested in a plant in China was because it sees a great deal of potential in the market, he says.

New Jaguar car

BBC Radio 4

Range Rover Evoque cars, made by Land Rover sit at the docks in Southampton
PA

Jaguar Land Rover executive director Mark Wright tells

Today he's not concerned about
the new Jaguar model affecting sales of existing Land Rover models, particularly the Evoque. He says: "Jaguar and Land Rover work in very distinct parts of the marketplace and we have done a lot of research and we think the potential for Jaguar to develop a car that is performance crossover is great."

Heathrow passenger numbers

A plane leaving Heathrow airport
PA

Heathrow airport has reported record passenger numbers for 2014. It says 73.4 million people made journeys from the airport in the year, up 1.4% on a year earlier. Passenger volumes to Latin America were up 6.3% year on year, followed by East Asia, up 5.2% and the Middle East and Central Asia which saw a 3.5% rise in passengers.

Via Twitter

Adam Parsons

Business Correspondent

Rangers reject Sarver's latest bid - £20m offer turned down

Taylor Wimpey upbeat

Shares in home builders were hit on Friday after a research report from analysts at Jefferies warned over weak data on the housing market. However, today

Taylor Wimpey has issued a very upbeat trading statement. It is "encouraged" by more "balanced" market conditions. It highlights "sensible" regulation of the mortgage market.

Oil prices

BBC Radio 4

An oil well near Tioga, North Dakota.
AFP

Amrita Sen of Energy Aspects tells

Today that Saudi Arabia "is playing the long game" because the lower oil price will lead to cuts in production, which will lead to shortages, which will push up prices and lead to a spike in about a year to 18 months' time.

North Sea oil crisis

BBC Radio 4

"If you take the view that the OPEC cartel is finished and I think it is actually, then North Sea oil is a bit like being in the coal industry in the 1980s in that the UK capital is going to exit and jobs will be lost I'm afraid that's how I see it," David Cumming of Standard Life Investment tells Today.

North Sea oil crisis

BBC Radio 4

North Sea oil platform
Getty Images

More than 15% of North Sea production is uneconomic, Amrita Sen, chief oil analyst at Energy Aspects tells

Today. She says that a lot of oil production, even if it is in deep water, may continue because it is more expensive to shut down production. "The question you need to ask is how the investment side of things is panning out and nobody is going to invest at these prices," she adds.

M&S woes

BBC Radio 4

David Cumming of Standard Life Investments is not a fan of M&S boss Marc Bolland. He tells Today: "Marc Bolland has been there for almost five years and over that period profits have actually fallen despite £2.5bn of cap ex." He suggests the chairman and senior independent director could be asking themselves whether Mr Bolland's scorecard is "acceptable".

Retail woes

BBC Radio 4

Last week, Tesco and Sainsbury's published Christmas trading updates. This week it's the turn of Morrisons. David Cuming of Standard Life Investments tells the

Today programme he thinks one or two retail bosses could go if results don't improve quickly this year. He tips both Morrisons chief executive Dalton Phillips and Marks & Spencer boss Marc Bolland as bosses who are under pressure.