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Summary

  1. Get in touch: bizlivepage@bbc.co.uk
  2. Wage growth remains below inflation
  3. BoE deputy 'not ready' to raise rate
  4. CMA to probe Tesco's bid for Booker

Live Reporting

By Tom Espiner

All times stated are UK

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  1. Good night

    That's all for another day on the Business Live page. Join us again tomorrow from 06:00.

  2. US stocks close higher after Yellen comments

    Janet Yellen, Fed Chair

    US stocks have closed higher after Federal Reserve Chair Janet Yellen said interest rates hikes would be gradual and would not have to rise much further to reach the neutral rate.

    The Dow Jones Industrial Average was up 0.57% at 21,532.14, a new closing record.

    The broad-based S&P 500 gained 0.7% to 2,443.48, while the tech-focused Nasdaq jumped 1.1% to 6,260.55.

  3. Kaspersky 'a pawn in geopolitical game'

    Eugene Kaspersky

    Russian cyber security firm Kaspersky Lab has reacted to a US government move restricting its activities, saying it has fallen victim to US-Russia global sparring.

    The Trump administration on Tuesday removed the Moscow-based firm from two lists of approved vendors used by government agencies to purchase technology equipment, amid concerns its products could be used by the Kremlin to access US networks.

    "By all appearances, Kaspersky Lab happened to be dragged into a geopolitical fight where each side is trying to use the company as a pawn in its game," RIA news agency quoted the firm as saying.

  4. Hilary Benn re-elected as Brexit committee chair

    Hilary Benn

    Labour MP Hilary Benn has been re-elected as chair of the cross-party Exiting the European Union select committee.

    He said:It is an honour... As the government negotiates our withdrawal from the EU, the committee will have a very important part to play in scrutinising both the negotiations on an agreement and the legislation that the government will be bringing before Parliament."

  5. Hyperloop completes first full-systems test

    A Hyperloop prototype

    US start-up Hyperloop One says it has completed the first full-systems test of its futuristic rail transit system.

    Based on an idea by tech entrepreneur Elon Musk, the Hyperloop aims to fire pods carrying people through reduced-pressure tubes at high speeds.

    In theory it could one day travel at up to 750 miles per hour - a rate that would cut the 424-mile journey from London to Edinburgh to 50 minutes.

    The start-up, which has raised $160m to date, said its test took place in May at the company's development track in the Nevada desert, and saw a vehicle coasting above tracks for more than five seconds using magnetic levitation.

    The test vehicle reached speeds of 70mph, but the firm said its next goal was to ramp that up to 250 mph.

    The firm says its system would be safer than passenger jets and cheaper to run than high-speed trains.

  6. Wetherspoon boss 'slinging mud' says CBI

    Tim Martin

    The Confederation of British Industry (CBI) - which is, as you'd expect, normally quite august - has responded in very strong terms to Wetherspoon chairman Tim Martin telling the CBI's Carolyn Fairbairn to "put a sock in it" over Brexit.

    A CBI spokesperson said:

    "Rather than slinging mud, Mr Martin should know that all the major UK business groups have made clear the risks to the economy of leaving the EU without a deal.

    "The prospect of multiple cliff edges – in tariffs, red tape and regulation - is already casting a long shadow over investment decisions for many firms in this country.

    "The CBI and the wider business community is committed to making a success of the negotiations and helping to secure the most ambitious and comprehensive free trade deal ever agreed."

    Mr Martin this morning used the medium of a Wetherspoon trading statement to say that organisations pointing out the potential economic perils of Brexit were "gloomsters" who could stymie UK negotiators' efforts:

    "The public's message to Carolyn 'We're all doomed' Fairbairn, head of the CBI, and other gloomsters is: put a sock in it. We'll do well with or without a free trade deal, so stop tying the hands of our negotiators, who are doing their best to achieve a respectable outcome," he said.

    It's worth pointing out here that a recent YouGov poll found that only 18% of people thought that the UK could get a good deal on Brexit given the result of the general election - 36% thought we would get a poor deal.

  7. Brazil markets jump after Lula conviction

    Daniel Gallas

    BBC South America business correspondent

    Stock markets are up in Sao Paulo. They jumped 1% in a matter of seconds after the news broke, and are still moving up.

    A criminal conviction for Lula means he may not be able to run in next year’s elections. Polls show he is a frontrunner. Most market analysts believe a new Lula Presidency would undo the economic steps Brazil has taken to emerge from recession.

    This – combined with yesterday’s approval of Michel Temer’s labour reforms – is a boost to Brazilian markets, despite other ongoing political scandals.

  8. Nicky Morgan to chair Treasury Select Committee

    Nicky Morgan

    Conservative politician and former education secretary Nicky Morgan has been elected to chair the influential Treasury Select Committee.

    "Rt Hon. Nicky Morgan MP will formally take up the position of chair when the remaining members of the committee have been appointed by the House," the Treasury said in a statement.

    Ms Morgan was in competition with five other Tory MPs to land the coveted role scrutinising the government's finances.

  9. Brazil's ex-President Lula convicted of corruption

    Lula

    Former Brazilian President Luiz Inacio Lula da Silva has been convicted of corruption charges and sentenced to nine-and-a-half years in prison, court documents show.

    The judge ruled he could remain free pending an appeal.

    Lula has rejected claims he received an apartment as a bribe in a corruption scandal linked to state oil company Petrobras.

    He says the trial is politically motivated and denies any wrongdoing.

    Read more here.

  10. Former Brazilian President Lula found guilty of corruption

    Former President of Brazil, Luiz Inacio Lula da Silva

    Former Brazilian President Luiz Inacio Lula da Silva has been convicted of corruption in the first of five trials he faces, the Reuters news agency reports.

    Mr Lula was sentenced to nine and a half years in prison and will remain free on appeal.

    Lawyers for Mr Lula, still one of Brazil's most popular politicians, have said they would appeal a guilty ruling and have continuously criticised the trial as being a political witch hunt.

  11. One down, at least one to go...

    RBS logo

    The Federal Housing Finance Agency agreement means RBS has resolved one of the two major long-awaited settlements with US regulators over its selling practices of toxic mortgage-backed securities.

    It is still to agree a settlement with the Department of Justice, as well other smaller claims related to mortgage-backed security mis-selling.

    The expected fines have weighed heavily on the bank’s shares due to fears over the size of the settlements.

    RBS said it had not started discussions with the Department of Justice (DoJ).

    Chief executive Ross McEwan warned that the bank may need to set aside more cash to settle outstanding claims.

    "We have always been very open about the fact there could be further provisions against the DoJ," he said.

    He added it is "never a great experience for a chief executive to be writing such a large cheque".

    RBS shares fell after the FHFA settlement announcement, but remained in positive territory.

  12. Google wins challenge against 1.1bn euro French tax bill

    Google

    US internet giant Google won a court challenge against demands by French authorities that it pay 1.1bn euros (£970m) in back taxes.

    The Paris administrative court ruled that Google Ireland was not subject to corporate and value-added taxes for the period 2005-2010, striking down the tax administration's demands for back payments.

    The ruling in favour of Google, now part of Alphabet, followed a court adviser's recommendation that Google did not have a "permanent establishment" or sufficient taxable presence to justify the bill.

  13. Canada economic performance 'excellent'

    So why has the Bank of Canada decided to raise interest rates?

    Governor Stephen Poloz says: "The most important thing is the economy clearly no longer needs as much as stimulus as we've been giving it... We're monitoring carefully how the economy continues to adjust."

    Manuel Ortiz-Olave, a marker analyst at Monex Europe, says: "The Canadian economy’s performance has been excellent lately. It has seen a 3.7% increase in GDP in Q1 2017 (3.3% increase year-on-year in April 2017); the unemployment rate has been consistently decreasing since the beginning of 2015 to 6.5% - the lowest in nearly a decade, and the average earnings are at the highest level since April 2015."

  14. Bank of Canada raises rates

    The Bank of Canada has raised interest rates for the first time in nearly seven years citing confidence in it outlook for "above potential growth" .

    But it said it will wait for more economic data before committing to its next move.

    The hike brought the bank's official interest rate to 0.75% and boosted the Canadian dollar to a 10-month high.

  15. Burberry and miners boost FTSE at the close

    The FTSE 100 has closed higher after commodities stocks rose and luxury retailer Burberry jumped after stronger than expected sales.

    The share index closed 1.19% higher at 7,416.93.

  16. Digging deep?

    RBS logo

    So how will RBS pay for the net £3.65bn cost of the settlement with the with the Federal Housing Finance Agency (FHFA)?

    It said the cost would be largely covered by funds it has already set aside.

    But it will take a $196m (£151m) charge in its second quarter results for the deal.

    RBS had already put £6.6bn by to cover US mis-selling claims.

    The bank's finance chief Ewen Stevenson said the FHFA settlement was "in the region of what we'd been anticipating".

  17. Yellen cautions about US inflation

    The US economy is healthy enough for the Fed to move forward with plans to raise rates and begin winding down its massive bond portfolio, though low inflation and a low neutral rate may leave the central bank with diminished leeway, Fed Chair Janet Yellen has said.

    Her appearance comes as the Trump administration mulls whether to replace her when her term ends in February.

    Following her remarks, US stocks rose, while yields on Treasury bonds fell, and the dollar declined against a basket of currencies.

  18. Will Janet Yellen serve out her term as Fed chair?

    Federal Reserve chair Janet Yellen is asked: if she is renominated as chair by Donald Trump in 2018, would she accept?

    She reiterated that she intends to serve out her term, and hasn't considered a further term.

  19. US banks slip after Yellen's rate hike comments

    Morgan Stanley and Bank of America have slipped about 1%, while other top banks have fallen about 0.5%, after Fed Chair Janet Yellen tempered the pace of future rate hikes in testimony to Congress.

    Fed rates "would not have to rise all that much further" to reach what it considers a neutral rate that neither encourages nor discourages spending and investment, she said.

    "It [Ms Yellen's comment] was a little bit more dovish than most had thought. She said rates won't have to rise much further to get to neutral, I thought that was key," said Richard Scalone, co-head of foreign exchange at TJM Brokerage.