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Steel crisis grows as Tata confirms 1,200 job cuts - business live Steel crisis grows as Tata confirms 1,200 job cuts - business live
(35 minutes later)
1.04pm BST13:04
Conservative Stephen Hammond: how to make dumping not endemic?
Javid: we have been taking action, voted for it, will be pushing for action to be taken more quickly.
1.03pm BST13:03
Labour Stephen Doughty: Why does secretary not go over to Brussels and sort out state aid?
Javid: Not in full control of UK government. It is a priority, and it is too slow. We are doing everything we can.
1.02pm BST13:02
Conservative Martin Vickers: could we have more detail about the task force in Lincolnshire.
Javid: Task force just been set up. We need to listen to task force and local leaders. First meeting will take place tomorrow.
Updated at 1.02pm BST
1.01pm BST13:01
Labour’s Nick Dakin said action must be taken now.
Javid said some of the actions require working with our EU partners, working as quickly as possible.
1.00pm BST13:00
Javid:
It’s a shame he [Brenna] wants to play politics.
We will do all we can, support package for Redcar. Task force in Scunthorpe, will listen to what more we can do.
Clearly China is one of the main countries in terms of overcapacity. But wider than just China, Brazil is in recession. It needs an EU wide solution.
12.58pm BST12:58
Brennan:
Despite the rhetoric the government seems content to let the industry disappear in the face of Chinese dumping.
Will he implement the actions the industry is calling for?
12.57pm BST12:57
Javid is ticked off by by the speaker for exceeding his allotted time.
12.56pm BST12:56
Business secretary Sajid Javid said the industry was facing unprecedented challenges, and the situation was devastating.
The situation is difficult and deeply worrying for workers. The government is doing and will continue to do everything in its power to support you in the weeks and months to come.
We will not abandon you now in your greatest time of need.
There is no straighforward solution.
The goverment has given an £80m package to people who lost their jobs at SSI.
We will do all we can to soften the blow. We will set up a taskforce.
Taking steps to assure there is a future for the British steel industry in difficult markets
But excess capacity is enormous, 570m tonnes last year.
The price of steel has halved. In the three years since SSI restarted the plant, it lost £600m.
There are limits to what the government can do.
We can’t change the price of steel, dictate exchange rates, disregard international regulations.
On Friday I hosted a top level summit, created a framework for action to suppor steelworks.
We will drive up the number of public procument contracts won by UK steelmakers.
UK steel should play a central role.
Secondly we will see what lessons we can learn from other countries in the EU and beyond.
Also what the government can do to boost productions, reduce costs, including energy. training. A review of business rates is underway.
On top of £50m paid out to energy intensive users. But the process needs EU approval whichis taking longer than we would like.
I will meet the European Commission next week to discuss unfair trade.
Updated at 12.57pm BST
12.45pm BST12:45
And now the urgent parliamentary question in Parliament from Kevin Brennan, shadow minister for trade and investment. Brennan said:
Will the business secretary make a statement about what action government taking to secure future of steel industry?
12.16pm BST12:1612.16pm BST12:16
Libby BrooksLibby Brooks
Describing the announcement as a crushing blow for the workforce, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary welcomed the decision to mothball the plants, and said that it was essential that the UK and Scottish Governments responded quickly to the crisis.Describing the announcement as a crushing blow for the workforce, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary welcomed the decision to mothball the plants, and said that it was essential that the UK and Scottish Governments responded quickly to the crisis.
“The UK Government must work with the industry to prevent the unfair dumping of Chinese steel on the UK market and provide a package of support similar to those routinely provided by other European nations to their energy intensive manufacturing sectors.“The UK Government must work with the industry to prevent the unfair dumping of Chinese steel on the UK market and provide a package of support similar to those routinely provided by other European nations to their energy intensive manufacturing sectors.
Smith, who became the first union leader to be invited to speak at the SNP’s conference in Aberdeen last weekend, added: “The Scottish Government must work with the Tata and the trade unions to provide a package of assistance to sustain jobs and the skills base whilst a strategy for the sector’s future development is agreed and implemented. Simply relying on the usual interventions to help find jobs for redundant workers will be unacceptable at this stage”.Smith, who became the first union leader to be invited to speak at the SNP’s conference in Aberdeen last weekend, added: “The Scottish Government must work with the Tata and the trade unions to provide a package of assistance to sustain jobs and the skills base whilst a strategy for the sector’s future development is agreed and implemented. Simply relying on the usual interventions to help find jobs for redundant workers will be unacceptable at this stage”.
12.04pm BST12:0412.04pm BST12:04
Angela Eagle, shadow business secretary, said:Angela Eagle, shadow business secretary, said:
“This latest announcement from Tata Steel is devastating for the workers and their local communities.“This latest announcement from Tata Steel is devastating for the workers and their local communities.
“With each passing day there is a new blow to the industry which is now on its knees, however this Government is only prepared to offer warm words.“With each passing day there is a new blow to the industry which is now on its knees, however this Government is only prepared to offer warm words.
“Rather than setting up more talking shops the Government should be taking action including working with the European Commission and the Chinese government to relieve the pressure on the industry.“Rather than setting up more talking shops the Government should be taking action including working with the European Commission and the Chinese government to relieve the pressure on the industry.
“We also need action from the Scottish Government. When Grangemouth, Fergusons and Prestwick Airport were at risk, the Scottish Government stepped in to provide support and to secure jobs. They need to do the same now - anything less will not be acceptable.”“We also need action from the Scottish Government. When Grangemouth, Fergusons and Prestwick Airport were at risk, the Scottish Government stepped in to provide support and to secure jobs. They need to do the same now - anything less will not be acceptable.”
Updated at 12.04pm BSTUpdated at 12.04pm BST
11.55am BST11:5511.55am BST11:55
Dalzell "only UK plant capable of processing steel for Trident"Dalzell "only UK plant capable of processing steel for Trident"
UK Steel also points to the potential loss of vital national assets, including the ability to process the steel used in Trident submarines:UK Steel also points to the potential loss of vital national assets, including the ability to process the steel used in Trident submarines:
The Dalzell plant in Scotland has an array of processes which make it a very special facility which few, if any, in Europe can match.The Dalzell plant in Scotland has an array of processes which make it a very special facility which few, if any, in Europe can match.
It is the only plant in UK capable of rolling and processing the steel used in Trident submarines and the MoD special Armour plate.It is the only plant in UK capable of rolling and processing the steel used in Trident submarines and the MoD special Armour plate.
If the plant is lost the UK faces the prospect of building the next Trident fleet using imported steel. It is also the only UK facility with the capability to supply the exotic specifications demanded by the offshore oil and gas industry for drilling platforms and oil and gas pipelines.If the plant is lost the UK faces the prospect of building the next Trident fleet using imported steel. It is also the only UK facility with the capability to supply the exotic specifications demanded by the offshore oil and gas industry for drilling platforms and oil and gas pipelines.
11.51am BST11:5111.51am BST11:51
UK Steel, the trade association for the industry, has added to the calls for prime minister David Cameron to press the Chinese president on steel dumping during this week’s state visit. Director Gareth Stace said:UK Steel, the trade association for the industry, has added to the calls for prime minister David Cameron to press the Chinese president on steel dumping during this week’s state visit. Director Gareth Stace said:
“Our fears about further job losses have now been confirmed. If we are to stem this tide then the Business Secretary must now deliver as a matter of urgency the commitments he made at last week’s summit, on energy costs, Business Rates costs and tackling unfair trade. In addition, we must also see a commitment from all parts of government at the highest level to ensure the sector’s survival in the UK.“Our fears about further job losses have now been confirmed. If we are to stem this tide then the Business Secretary must now deliver as a matter of urgency the commitments he made at last week’s summit, on energy costs, Business Rates costs and tackling unfair trade. In addition, we must also see a commitment from all parts of government at the highest level to ensure the sector’s survival in the UK.
“The Prime Minister can demonstrate that he is prepared to lead this commitment by stepping in this week and pressing the Chinese Premier about the dumping of under-priced steel which is one of the major factors killing our industry.”“The Prime Minister can demonstrate that he is prepared to lead this commitment by stepping in this week and pressing the Chinese Premier about the dumping of under-priced steel which is one of the major factors killing our industry.”
Updated at 11.57am BSTUpdated at 11.57am BST
11.43am BST11:4311.43am BST11:43
"We've been trying to make government aware for over two years""We've been trying to make government aware for over two years"
Libby BrooksLibby Brooks
Here’s more detail from Libby Brooks in Motherwell on the comments from John Clark, Community rep for Dalzell.Here’s more detail from Libby Brooks in Motherwell on the comments from John Clark, Community rep for Dalzell.
He says that workers are still be briefed inside.He says that workers are still be briefed inside.
“Obviously it’s devastating for a community that has been here since 1872. It’s a particularly bad time for the guys in there coming up for Christmas. We’re seen Ravenscraig come and go and if you talk to anyone in the street in Motherwell town centre they have all got some involvement.”“Obviously it’s devastating for a community that has been here since 1872. It’s a particularly bad time for the guys in there coming up for Christmas. We’re seen Ravenscraig come and go and if you talk to anyone in the street in Motherwell town centre they have all got some involvement.”
Clark said that he “absolutely” believed that there was still a future for steel making in Motherwell and that the priority now was to find a buyer for the plant.Clark said that he “absolutely” believed that there was still a future for steel making in Motherwell and that the priority now was to find a buyer for the plant.
“Nicola Sturgeon has said that she will leave no stone unturned to help the industry and we are putting our faith in the Scottish government. We think this has still got a future and with investment we can still turn the corner.”“Nicola Sturgeon has said that she will leave no stone unturned to help the industry and we are putting our faith in the Scottish government. We think this has still got a future and with investment we can still turn the corner.”
He also criticised David Cameron who is today meeting the Chinese president Xi Jinping. Tata blamed cheap Chinese imports in part for the job cuts.He also criticised David Cameron who is today meeting the Chinese president Xi Jinping. Tata blamed cheap Chinese imports in part for the job cuts.
“David Cameron is putting out the red carpet for the Chinese president. He be putting demands on the table instead.“David Cameron is putting out the red carpet for the Chinese president. He be putting demands on the table instead.
“He must see that this has been an ongoing situation and we have been trying to make the UK government aware of the situation for over two years.”“He must see that this has been an ongoing situation and we have been trying to make the UK government aware of the situation for over two years.”
11.38am BST11:3811.38am BST11:38
"They just sat there in shock""They just sat there in shock"
In Scunthorpe, the Community union’s McBean told PA: “If we all worked for nothing here we could not compete with the prices they’re (the Chinese) are dumping it on our shores for.In Scunthorpe, the Community union’s McBean told PA: “If we all worked for nothing here we could not compete with the prices they’re (the Chinese) are dumping it on our shores for.
“Let us compete with the rest of the world.“Let us compete with the rest of the world.
“Give us a level playing field and these guys here will compete with the rest of the world. We just need some help.“Give us a level playing field and these guys here will compete with the rest of the world. We just need some help.
“We have profitable parts of this business and we will keep going.”“We have profitable parts of this business and we will keep going.”
Asked how his members took the news when they watched the web-cast, he said: “They just sat there in shock.”Asked how his members took the news when they watched the web-cast, he said: “They just sat there in shock.”
Martin Foster, from Unite, said outside the plant: “Across Scunthorpe there’s three assets affected but the knock-on effect through the site is probably 800 to 900 people.”Martin Foster, from Unite, said outside the plant: “Across Scunthorpe there’s three assets affected but the knock-on effect through the site is probably 800 to 900 people.”
He said: “It’s going to be devastating news for all them. I’ve just come from the plate mill. I’ve seen some of the guys down there. A lot of them were expecting something like this, they all know the plates business has been struggling, But, as I say that doesn’t soften the blow, even though you were expecting it. It still comes pretty hard.”He said: “It’s going to be devastating news for all them. I’ve just come from the plate mill. I’ve seen some of the guys down there. A lot of them were expecting something like this, they all know the plates business has been struggling, But, as I say that doesn’t soften the blow, even though you were expecting it. It still comes pretty hard.”
Updated at 11.45am BSTUpdated at 11.45am BST
11.36am BST11:3611.36am BST11:36
In Scunthorpe, workers also said they were devastated by the Tata announcement, even though the news did not exactly come as a surprise. PA reports:In Scunthorpe, workers also said they were devastated by the Tata announcement, even though the news did not exactly come as a surprise. PA reports:
Paul McBean, from the Community union, said: “They are just devastated and I’m devastated too. We knew it was coming but it doesn’t make it any easier.Paul McBean, from the Community union, said: “They are just devastated and I’m devastated too. We knew it was coming but it doesn’t make it any easier.
“I’ve worked here for 40 years and I don’t know my future. It’s the same for a lot of people in there.”“I’ve worked here for 40 years and I don’t know my future. It’s the same for a lot of people in there.”
Mr McBean said: “I just can’t believe the numbers involved. I’m still in shock, to be honest, even though the rumours were leaked.”Mr McBean said: “I just can’t believe the numbers involved. I’m still in shock, to be honest, even though the rumours were leaked.”
One man leaving by car said to reporters: “I’m bothered about myself, of course, but it’s my sons, both of my sons work here. It’s their future.One man leaving by car said to reporters: “I’m bothered about myself, of course, but it’s my sons, both of my sons work here. It’s their future.
“But you’ve just got to keep your chin up and keep going.”“But you’ve just got to keep your chin up and keep going.”
Staff leaving the works said they would not know who would be affected until after the 90-day consultation period was over.Staff leaving the works said they would not know who would be affected until after the 90-day consultation period was over.
One said: “We’ll try and enjoy Christmas and see what happens in January.”One said: “We’ll try and enjoy Christmas and see what happens in January.”
They said they were told the news by video conference in a series of meetings.They said they were told the news by video conference in a series of meetings.
11.34am BST11:3411.34am BST11:34
Workers "devastated" by Tata job cutsWorkers "devastated" by Tata job cuts
Union representatives at Motherwell described the job cuts as devastating, says Libby Brooks:Union representatives at Motherwell described the job cuts as devastating, says Libby Brooks:
John Clark, Community rep: this is devastating for workers, we are placing our faith in the Scottish government pic.twitter.com/EpFlXLmBz3John Clark, Community rep: this is devastating for workers, we are placing our faith in the Scottish government pic.twitter.com/EpFlXLmBz3
Dalzell union rep: I absolutely think there is a future for steel making in MotherwellDalzell union rep: I absolutely think there is a future for steel making in Motherwell
Dalzell Union rep attacks David Cameron: he's putting the red carpet out for the Chinese president, but he should be making demandsDalzell Union rep attacks David Cameron: he's putting the red carpet out for the Chinese president, but he should be making demands
Updated at 11.36am BSTUpdated at 11.36am BST
11.13am BST11:1311.13am BST11:13
Here’s the response to the Tata news from the Unite union, courtesy PA:Here’s the response to the Tata news from the Unite union, courtesy PA:
Unite assistant general secretary Tony Burke said: “This is a dark day for the UK steel industry, for the workers and the communities who livelihoods depend on steel. We will be working closely with Tata to find alternatives and to save as many jobs as possible.Unite assistant general secretary Tony Burke said: “This is a dark day for the UK steel industry, for the workers and the communities who livelihoods depend on steel. We will be working closely with Tata to find alternatives and to save as many jobs as possible.
“The knock on effects of today’s news combined with Caparo and the closure of Redcar through the supply chain will be devastating. Trade unions, the industry and business groups are all united on the need for the UK Government to support the steel industry.“The knock on effects of today’s news combined with Caparo and the closure of Redcar through the supply chain will be devastating. Trade unions, the industry and business groups are all united on the need for the UK Government to support the steel industry.
“Sajid Javid (Business Secretary) is becoming increasingly isolated by his failure to act swiftly to support the steel industry. He and the UK Government know what needs to be done and they need to do it quickly. A failure to act and tackle the dumping of cheap Chinese steel will spell the end of steel in the UK.”“Sajid Javid (Business Secretary) is becoming increasingly isolated by his failure to act swiftly to support the steel industry. He and the UK Government know what needs to be done and they need to do it quickly. A failure to act and tackle the dumping of cheap Chinese steel will spell the end of steel in the UK.”
Unite’s Scottish secretary Pat Rafferty added: “Today’s news effectively brings an end to a proud tradition of steelmaking in Scotland. The impact on the Scottish economy which is also being hammered by job losses in North Sea oil will be severe unless there is urgent support.Unite’s Scottish secretary Pat Rafferty added: “Today’s news effectively brings an end to a proud tradition of steelmaking in Scotland. The impact on the Scottish economy which is also being hammered by job losses in North Sea oil will be severe unless there is urgent support.
“We will be pressing the Scottish Government to live up to its promise to do everything it can to support the steel industry in Scotland and save jobs. The UK Government should take note of the Scottish Government’s more proactive response and act to save our steel across the UK.”“We will be pressing the Scottish Government to live up to its promise to do everything it can to support the steel industry in Scotland and save jobs. The UK Government should take note of the Scottish Government’s more proactive response and act to save our steel across the UK.”
Updated at 11.14am BSTUpdated at 11.14am BST
11.02am BST11:0211.02am BST11:02
PA is reporting comments from Paul Kenny, general secretary of the GMB.PA is reporting comments from Paul Kenny, general secretary of the GMB.
He said: “Only the UK Government acting with the EU can deal with dumping of steel and green taxes on energy prices. There has been no action. “Look at the dismal record: :: 16th July Tata Steel announce 720 jobs losses in Rotherham, Stocksbridge and Wednesbury. No action from Government. :: 25th August Tata announce 250 redundancies in strip steel at Llanwern. No action from Government. :: 18th September 2015 SSI announce 2,200 jobs at Redcar under threat. No action from Government. :: 19th October steel firm Caparo in administration. No action from Government. :: 20 October Tata announce 1,200 jobs to go in Scunthorpe and Lanarkshire. No action from Government. “Parliament has to insist on immediate action on steel.”He said: “Only the UK Government acting with the EU can deal with dumping of steel and green taxes on energy prices. There has been no action. “Look at the dismal record: :: 16th July Tata Steel announce 720 jobs losses in Rotherham, Stocksbridge and Wednesbury. No action from Government. :: 25th August Tata announce 250 redundancies in strip steel at Llanwern. No action from Government. :: 18th September 2015 SSI announce 2,200 jobs at Redcar under threat. No action from Government. :: 19th October steel firm Caparo in administration. No action from Government. :: 20 October Tata announce 1,200 jobs to go in Scunthorpe and Lanarkshire. No action from Government. “Parliament has to insist on immediate action on steel.”
11.00am BST11:0011.00am BST11:00
I have been granted an Urgent Question in Commons on what action the Government is taking to secure the future of the Steel Industry?I have been granted an Urgent Question in Commons on what action the Government is taking to secure the future of the Steel Industry?
Speaker has granted Labour urgent question in Commons on steel to Bis Secretary at lunchtimeSpeaker has granted Labour urgent question in Commons on steel to Bis Secretary at lunchtime
Urgent Question in House of Commons on the future of the British steel industry granted to @UKLabour at 12.30pm.Urgent Question in House of Commons on the future of the British steel industry granted to @UKLabour at 12.30pm.
Updated at 11.58am BSTUpdated at 11.58am BST
10.58am BST10:5810.58am BST10:58
Libby BrooksLibby Brooks
More from Libby Brooks in Scotland on the steel crisis:More from Libby Brooks in Scotland on the steel crisis:
Dalzell Steel and Iron Works opened in Motherwell in 1872 and by the first World War had become the largest steel works in Scotland, providing plates for the thriving ship-building industry on the River Clyde.Dalzell Steel and Iron Works opened in Motherwell in 1872 and by the first World War had become the largest steel works in Scotland, providing plates for the thriving ship-building industry on the River Clyde.
Once the steel production capital of Scotland, Motherwell was nicknamed Steelopolis and its skyline was once dominated by the gas holder and three cooling towers of the Ravenscraig steel plant. But the closure of Ravenscraig in 1992 signalled the end of large scale steel making in Scotland.Once the steel production capital of Scotland, Motherwell was nicknamed Steelopolis and its skyline was once dominated by the gas holder and three cooling towers of the Ravenscraig steel plant. But the closure of Ravenscraig in 1992 signalled the end of large scale steel making in Scotland.
John Pentland, Labour MSP for Motherwell and Wishaw called on the SNP to take decisive action to save the industry: “Steel-making is just as iconic as Irn Bru to Scotland. If you allow the steel industry to die you are putting all those skilled people on the scrapheap.”John Pentland, Labour MSP for Motherwell and Wishaw called on the SNP to take decisive action to save the industry: “Steel-making is just as iconic as Irn Bru to Scotland. If you allow the steel industry to die you are putting all those skilled people on the scrapheap.”
“The people here are still recovering from the closure of Ravenscraig. It shattered this area and we are still picking up the pieces.”“The people here are still recovering from the closure of Ravenscraig. It shattered this area and we are still picking up the pieces.”
10.57am BST10:5710.57am BST10:57
Don't delay too long on rates - MPC member McCaffertyDon't delay too long on rates - MPC member McCafferty
Heather StewartHeather Stewart
As Bank of England governor Mark Carney and deputy governor Andrew Bailey appear at a Treasury select committe, another member of the Bank’s monetary policy committee has been speaking on interest rates. Heather Stewart reports:As Bank of England governor Mark Carney and deputy governor Andrew Bailey appear at a Treasury select committe, another member of the Bank’s monetary policy committee has been speaking on interest rates. Heather Stewart reports:
In a speech at Bloomberg this morning, Ian McCafferty, the one member of the Bank of England’s monetary policy committee who has voted for an immediate increase in interest rates at recent meetings, warns his colleagues not to delay tightening policy for too long.In a speech at Bloomberg this morning, Ian McCafferty, the one member of the Bank of England’s monetary policy committee who has voted for an immediate increase in interest rates at recent meetings, warns his colleagues not to delay tightening policy for too long.
“If we on the MPC are to achieve our ambition of raising rates only gradually, so as to minimise the disruption to households and businesses of a normalisation of policy after a long period in which interest rates have been at historic lows, we need to avoid getting ‘behind the curve’”“If we on the MPC are to achieve our ambition of raising rates only gradually, so as to minimise the disruption to households and businesses of a normalisation of policy after a long period in which interest rates have been at historic lows, we need to avoid getting ‘behind the curve’”
McCafferty has carried out some research about how easy it is for firms to borrow, and finds that it has become increasingly easy, relieving the credit crunch that followed the financial crisis, and removing one “headwind” to economic growth.McCafferty has carried out some research about how easy it is for firms to borrow, and finds that it has become increasingly easy, relieving the credit crunch that followed the financial crisis, and removing one “headwind” to economic growth.
McCafferty says companies have been helped by a “thaw in conditions” for bank lending, alongside the arrival of new sources of finance, such as peer-to-peer lenders. “Together, these are bringing about a gradual normalisation of the corporate credit markets, such that this headwind, at least, may be starting to blow itself out”, he says.McCafferty says companies have been helped by a “thaw in conditions” for bank lending, alongside the arrival of new sources of finance, such as peer-to-peer lenders. “Together, these are bringing about a gradual normalisation of the corporate credit markets, such that this headwind, at least, may be starting to blow itself out”, he says.
Updated at 10.59am BSTUpdated at 10.59am BST
10.49am BST10:4910.49am BST10:49
Libby BrooksLibby Brooks
Here’s more detail from Libby:Here’s more detail from Libby:
A Tata Steel representative speaking outside the Motherwell plant confirmed that 270 jobs would be lost in Scotland, 225 from Dalzell and 45 from the Clydebridge works in Cambuslang.A Tata Steel representative speaking outside the Motherwell plant confirmed that 270 jobs would be lost in Scotland, 225 from Dalzell and 45 from the Clydebridge works in Cambuslang.
First minister Nicola Sturgeon announced plans to visit both sites on Thursday, as the Scottish government confirmed plans for a steel task force to seek alternative buyers for the works and support those facing redundancy.First minister Nicola Sturgeon announced plans to visit both sites on Thursday, as the Scottish government confirmed plans for a steel task force to seek alternative buyers for the works and support those facing redundancy.
Sturgeon said: “This is a very anxious time for Tata Steel employees and their families and is deeply concerning for everyone involved.“My government is determined to fight for a future for our steel industry.“That is why I have established a Scottish Steel Task Force – to be chaired by my Business Minister, Fergus Ewing - that will bring together all the key representatives to work to keep the Dalzell and Clydebridge plants open.“We will leave no stone unturned in our efforts to keep the plants open and support the 270 staff affected by today’s announcement.”Sturgeon said: “This is a very anxious time for Tata Steel employees and their families and is deeply concerning for everyone involved.“My government is determined to fight for a future for our steel industry.“That is why I have established a Scottish Steel Task Force – to be chaired by my Business Minister, Fergus Ewing - that will bring together all the key representatives to work to keep the Dalzell and Clydebridge plants open.“We will leave no stone unturned in our efforts to keep the plants open and support the 270 staff affected by today’s announcement.”
10.42am BST10:4210.42am BST10:42
Our Scotland correpondent Libby Brooks is at Motherwell:Our Scotland correpondent Libby Brooks is at Motherwell:
Tata steel rep outside Motherwell works confirms 270 jobs to go, 225 at Dalzell & 45 at Clydebridge ie all jobs gone, both sites mothballedTata steel rep outside Motherwell works confirms 270 jobs to go, 225 at Dalzell & 45 at Clydebridge ie all jobs gone, both sites mothballed
First minister @NicolaSturgeon will visit both steel works this Thursday as Scottish gov't established steel task forceFirst minister @NicolaSturgeon will visit both steel works this Thursday as Scottish gov't established steel task force
Updated at 10.42am BSTUpdated at 10.42am BST
10.39am BST10:3910.39am BST10:39
Hmm...Hmm...
10.33am BST10:3310.33am BST10:33
The company said it would begin consultations with employees and their trade union representatives today. It added:The company said it would begin consultations with employees and their trade union representatives today. It added:
“Tata Steel’s subsidiary UK Steel Enterprise will look at how it can provide more support to the local communities affected by today’s announcement and help stimulate new job creation in those areas. Over the last four decades the company has helped to regenerate local economies with £88 million of support and created more than 75,000 new jobs across the UK.”“Tata Steel’s subsidiary UK Steel Enterprise will look at how it can provide more support to the local communities affected by today’s announcement and help stimulate new job creation in those areas. Over the last four decades the company has helped to regenerate local economies with £88 million of support and created more than 75,000 new jobs across the UK.”
The full statement is here:The full statement is here:
Restructure announced at Tata Steel’s Long Products Europe businessRestructure announced at Tata Steel’s Long Products Europe business
10.31am BST10:3110.31am BST10:31
Tata said in response to the problems it face, it would be concentrating on “higher-value markets with a focus on developing stronger and lighter products for its customers.”Tata said in response to the problems it face, it would be concentrating on “higher-value markets with a focus on developing stronger and lighter products for its customers.”
Bimlendra Jha, Executive Chairman of the stand-alone Long Products Europe business, said: “Today’s proposals mark the next step in reshaping our business to give it the best chance of survival in this fiercely-competitive global marketplace. We are looking closely at the performance of all parts of Long Products Europe as part of a focus on returning to profitability.”Bimlendra Jha, Executive Chairman of the stand-alone Long Products Europe business, said: “Today’s proposals mark the next step in reshaping our business to give it the best chance of survival in this fiercely-competitive global marketplace. We are looking closely at the performance of all parts of Long Products Europe as part of a focus on returning to profitability.”
10.29am BST10:2910.29am BST10:29
Tata blames China, strong pound and power costs for job cutsTata blames China, strong pound and power costs for job cuts
Tata said the cut came “in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.”Tata said the cut came “in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.”
It said plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed while one of the two coke ovens at the Scunthorpe steelworks would be closed.It said plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed while one of the two coke ovens at the Scunthorpe steelworks would be closed.
Karl Koehler, chief executive of Tata Steel’s European operations, said: “I realise how distressing this news will be for all those affected. We have looked at all other options before proposing these changes.Karl Koehler, chief executive of Tata Steel’s European operations, said: “I realise how distressing this news will be for all those affected. We have looked at all other options before proposing these changes.
“We will work closely with affected employees and their trade union representatives. We will look to redeploy employees, wherever possible, and minimise employee hardship.“We will work closely with affected employees and their trade union representatives. We will look to redeploy employees, wherever possible, and minimise employee hardship.
“The UK steel industry is struggling for survival in the face of extremely challenging market conditions. This industry has a crucial role to play in rebalancing the UK economy, but we need a fairer system to encourage growth. The European Commission needs to do much more to deal with unfairly traded imports – inaction threatens the future of the entire European steel industry.”“The UK steel industry is struggling for survival in the face of extremely challenging market conditions. This industry has a crucial role to play in rebalancing the UK economy, but we need a fairer system to encourage growth. The European Commission needs to do much more to deal with unfairly traded imports – inaction threatens the future of the entire European steel industry.”
10.22am BST10:2210.22am BST10:22
Tata confirms 1,200 steel jobs to goTata confirms 1,200 steel jobs to go
BREAKING NEWS:BREAKING NEWS:
Tata Steel has confrmed that nearly 1,200 jobs will go in Scunthorpe and Scotland, the company said.Tata Steel has confrmed that nearly 1,200 jobs will go in Scunthorpe and Scotland, the company said.
It said 900 jobs will go at Scunthorpe and 270 in Scotland, “as well as a small number at other Long Products Europe sites.” The Long Products division will stop production of steel plate.It said 900 jobs will go at Scunthorpe and 270 in Scotland, “as well as a small number at other Long Products Europe sites.” The Long Products division will stop production of steel plate.
Updated at 10.47am BSTUpdated at 10.47am BST
10.11am BST10:1110.11am BST10:11
Staff at Tata Steel in Motherwell have started to gather for a meeting at the plant. Announcement expected soon.Staff at Tata Steel in Motherwell have started to gather for a meeting at the plant. Announcement expected soon.
10.09am BST10:0910.09am BST10:09
Tata steel workers still waiting to hear if jobs are safe. Webcast with company bosses happening right now. pic.twitter.com/uQPgcTPhaTTata steel workers still waiting to hear if jobs are safe. Webcast with company bosses happening right now. pic.twitter.com/uQPgcTPhaT
10.06am BST10:0610.06am BST10:06
David Fagan of North Lanarkshire Council, told BBC Scotland:David Fagan of North Lanarkshire Council, told BBC Scotland:
We do need to at least ask Tata to slow down the process, work in partnership with all of the agencies that might be able to support this and look at any options that are there.We do need to at least ask Tata to slow down the process, work in partnership with all of the agencies that might be able to support this and look at any options that are there.
If that’s not successful, North Lanarkshire Council will work along with key agencies including local colleges, the NHS, to provide support for workers moving into other forms of employment and we’ve a good track record in doing that.If that’s not successful, North Lanarkshire Council will work along with key agencies including local colleges, the NHS, to provide support for workers moving into other forms of employment and we’ve a good track record in doing that.
10.04am BST10:0410.04am BST10:04
Workers at Tata’s steel plants in Scunthorpe and Scotland are expected to hear their fates shortly.Workers at Tata’s steel plants in Scunthorpe and Scotland are expected to hear their fates shortly.
If Indian-owned Tata cuts its plants at Dalzell in Motherwell and Clydebridge in Cambuslang, that would effectively end 143 years of steelmaking in Scotland.If Indian-owned Tata cuts its plants at Dalzell in Motherwell and Clydebridge in Cambuslang, that would effectively end 143 years of steelmaking in Scotland.
9.50am BST09:509.50am BST09:50
Eurozone bank lending continued at a steady pace in the third quarter, according to the latest survey from the European Central Bank.Eurozone bank lending continued at a steady pace in the third quarter, according to the latest survey from the European Central Bank.
Demand for mortgages remained high with a net 33% of eurozone banks reporting increased demand, albeit this was down from the record 49% in the second quarter.Demand for mortgages remained high with a net 33% of eurozone banks reporting increased demand, albeit this was down from the record 49% in the second quarter.
Demand for business loans was a modest 16%, not much better than the 13% seen in the previous three months. Teunis Brosens at ING Bank said:Demand for business loans was a modest 16%, not much better than the 13% seen in the previous three months. Teunis Brosens at ING Bank said:
Especially disappointing is the fact that there is no sign of an investment pickup: The net percentage of banks reporting higher loan demand due to increasing investment activity was little changed at 11%. Indeed, net lending growth to non-financial businesses amounted to only 0.4% year on year in August. The survey results suggest we need not expect a strong pickup in September or beyond, for that matter.Especially disappointing is the fact that there is no sign of an investment pickup: The net percentage of banks reporting higher loan demand due to increasing investment activity was little changed at 11%. Indeed, net lending growth to non-financial businesses amounted to only 0.4% year on year in August. The survey results suggest we need not expect a strong pickup in September or beyond, for that matter.
While the ECB claims that QE continues to support bank lending, the low rate-effect appears to be wearing off. The availability of low rates has become less important for households: a net 35% of banks report low rates as reason for households to take out (or refinance) a mortgage, down from 45% in the second quarter. For business clients, a net 19% of banks reported low rates as a motivating factor to borrow, down from 21% in the second quarter.While the ECB claims that QE continues to support bank lending, the low rate-effect appears to be wearing off. The availability of low rates has become less important for households: a net 35% of banks report low rates as reason for households to take out (or refinance) a mortgage, down from 45% in the second quarter. For business clients, a net 19% of banks reported low rates as a motivating factor to borrow, down from 21% in the second quarter.
All in all, today’s Bank Lending Survey gives us “more of the same”: the credit recovery is continuing, showing that the eurozone recovery is keeping pace. But is that good enough? We would really have liked to see an acceleration of business lending as a signal of business confidence translating into higher investment activity. More verbal sabre rattling by ECB-president Draghi on Thursday is likely, but will it convince Eurozone businesses to start investing?All in all, today’s Bank Lending Survey gives us “more of the same”: the credit recovery is continuing, showing that the eurozone recovery is keeping pace. But is that good enough? We would really have liked to see an acceleration of business lending as a signal of business confidence translating into higher investment activity. More verbal sabre rattling by ECB-president Draghi on Thursday is likely, but will it convince Eurozone businesses to start investing?
Updated at 9.55am BSTUpdated at 9.55am BST
9.34am BST09:349.34am BST09:34
China of course is very much bound up in the current steel crisis in the UK, accused of dumping cheap steel on the market.China of course is very much bound up in the current steel crisis in the UK, accused of dumping cheap steel on the market.
So it is timely that Chinese president Xi Jinping is visiting the UK at the moment, with David Cameron and foreign secretary Philip Hammond both saying the issue of steel production will be raised.So it is timely that Chinese president Xi Jinping is visiting the UK at the moment, with David Cameron and foreign secretary Philip Hammond both saying the issue of steel production will be raised.
We are live blogging the president’s visit here:We are live blogging the president’s visit here:
Related: Xi Jinping visit: UK royal banquet prepared as MPs set to greet Chinese president - liveRelated: Xi Jinping visit: UK royal banquet prepared as MPs set to greet Chinese president - live
9.07am BST09:079.07am BST09:07
Here’s a graphic which shows one of the problems facing the steel industry:Here’s a graphic which shows one of the problems facing the steel industry:
8.56am BST08:568.56am BST08:56
Other MPs are wading into the steel crisis.Other MPs are wading into the steel crisis.
Scunthorpe Labour MP Nic Dakin told Radio 5 Live:Scunthorpe Labour MP Nic Dakin told Radio 5 Live:
Nobody’s asking for subsidies here. What they’re asking for is a level playing field. A level playing field on business rates, a level playing field on energy taxes compared with our european neighbours.Nobody’s asking for subsidies here. What they’re asking for is a level playing field. A level playing field on business rates, a level playing field on energy taxes compared with our european neighbours.
John Pentland, Labour MSP for Motherwell and Wishaw said:John Pentland, Labour MSP for Motherwell and Wishaw said:
It’s going to be very, very devastating. There is no way that we should be thrown on the scrap heap. These are well experienced, skilled workers. These people should be retained.It’s going to be very, very devastating. There is no way that we should be thrown on the scrap heap. These are well experienced, skilled workers. These people should be retained.
There could very well be intervention from the Scottish government.There could very well be intervention from the Scottish government.
Meanwhile Labour’s Chuka Umunna has taken the opportunity to attack the Conservative government:Meanwhile Labour’s Chuka Umunna has taken the opportunity to attack the Conservative government:
The Government's handling of the steel industry crisis is a lesson in industrial inactivism - a complete lack of commitment. DisgracefulThe Government's handling of the steel industry crisis is a lesson in industrial inactivism - a complete lack of commitment. Disgraceful
Either you want to nurture and grow our manufacturing base or not - the Govt's handling of the steel crisis shows they aren't interestedEither you want to nurture and grow our manufacturing base or not - the Govt's handling of the steel crisis shows they aren't interested
8.31am BST08:318.31am BST08:31
Steel dumping will be raised with Chinese - HammondSteel dumping will be raised with Chinese - Hammond
Foreign secretary Philip Hammond told Sky News that the issue of steel dumping will be raised with Chinese president Xi Jinping during his UK visit. Hammond said:Foreign secretary Philip Hammond told Sky News that the issue of steel dumping will be raised with Chinese president Xi Jinping during his UK visit. Hammond said:
It’s certainly one of the subjects that will be on the agenda, the steel industry. China is a very big producer of steel, as you would expect.It’s certainly one of the subjects that will be on the agenda, the steel industry. China is a very big producer of steel, as you would expect.
But there’s a global over-capacity in the steel industry and that’s caused prices to fall very precipitately over the last 12 months or so, and that’s causing a problem around the world.But there’s a global over-capacity in the steel industry and that’s caused prices to fall very precipitately over the last 12 months or so, and that’s causing a problem around the world.
The EU has imposed tariffs on Chinese steel to ensure that the price of Chinese steel reaching consumers here is fair, but there is a problem in this industry.The EU has imposed tariffs on Chinese steel to ensure that the price of Chinese steel reaching consumers here is fair, but there is a problem in this industry.
8.29am BST08:298.29am BST08:29
European markets edge higherEuropean markets edge higher
Shares are struggling to make much ground in early trading.Shares are struggling to make much ground in early trading.
The FTSE 100 is up just 5.4 points, with commodity companies once more weighing on the index on worries about demand in China, the world’s second biggest economy.The FTSE 100 is up just 5.4 points, with commodity companies once more weighing on the index on worries about demand in China, the world’s second biggest economy.
But InterContinental Hotels is higher after the company reported a 4.8% rise in revenue per available room - a key industry measure - for the third quarter. Investors had been nervous about growth in China, but the company said it was confident in its outlook for the year.But InterContinental Hotels is higher after the company reported a 4.8% rise in revenue per available room - a key industry measure - for the third quarter. Investors had been nervous about growth in China, but the company said it was confident in its outlook for the year.
Shares in Premier Inn and Costa Coffee group Whitbread have climbed 2% after the company said first half pretax profit rose 13.8%.Shares in Premier Inn and Costa Coffee group Whitbread have climbed 2% after the company said first half pretax profit rose 13.8%.
But Asos is down 2% after full year profits for the online fashion group rose just 1% and despite a confident outlook statement. The shares have been a reasonably strong performer in the run-up to the results.But Asos is down 2% after full year profits for the online fashion group rose just 1% and despite a confident outlook statement. The shares have been a reasonably strong performer in the run-up to the results.
Elsewhere Germany’s Dax and France’s Cac are also marginally higher.Elsewhere Germany’s Dax and France’s Cac are also marginally higher.
8.25am BST08:258.25am BST08:25
The UK needs a long term strategic plan for the steel industry, but the challenge for government is what it can realistically do, says economist Gerard Lyons.The UK needs a long term strategic plan for the steel industry, but the challenge for government is what it can realistically do, says economist Gerard Lyons.
1/ UK steel: been here many times before usually combination of factors public, private & international & need long term strategic thinking1/ UK steel: been here many times before usually combination of factors public, private & international & need long term strategic thinking
https://twitter.com/DrGerardLyons/status/656365990968733696https://twitter.com/DrGerardLyons/status/656365990968733696
2/Trouble is: good times economists grumble if government favours particular industry & in bad times (bank & steel) pressure is to intervene2/Trouble is: good times economists grumble if government favours particular industry & in bad times (bank & steel) pressure is to intervene
3/ 1st issue is does government want to intervene & be aware of job losses if it doesn't & realistic of what it can achieve if it tries to3/ 1st issue is does government want to intervene & be aware of job losses if it doesn't & realistic of what it can achieve if it tries to
4/ if to intervene immediate issues are do we take China to WTO about anti dumping but this takes long time in Europe & may not achieve much4/ if to intervene immediate issues are do we take China to WTO about anti dumping but this takes long time in Europe & may not achieve much
5/ or & again not easy, is to decide whether to intervene as China does with its steel industry - also sterling & energy costs too high5/ or & again not easy, is to decide whether to intervene as China does with its steel industry - also sterling & energy costs too high
6/ these crises also expose structural issues e.g. - French firms have energy cheaper than ours - Germany steel more vertically integrated.6/ these crises also expose structural issues e.g. - French firms have energy cheaper than ours - Germany steel more vertically integrated.
7/ also the cyclical strength of £ can't help (another reason not to hike rates as that transmission mechanism of strong £ not good)7/ also the cyclical strength of £ can't help (another reason not to hike rates as that transmission mechanism of strong £ not good)
8/ providing all the help possible given the strategic benefit of high quality steel & regional impact of these heavy job losses.8/ providing all the help possible given the strategic benefit of high quality steel & regional impact of these heavy job losses.
9/ Ministers said right things via expressing concern about steel job losses - their challenge is what realistically they can effectively do9/ Ministers said right things via expressing concern about steel job losses - their challenge is what realistically they can effectively do
8.17am BST08:178.17am BST08:17
Caparo administrators already seeing interest in the businessCaparo administrators already seeing interest in the business
A more positive sign for Caparo Industries, which went into adminstration on Monday.A more positive sign for Caparo Industries, which went into adminstration on Monday.
PwC, the administrators of the business, said they had already received several expressions of interest.PwC, the administrators of the business, said they had already received several expressions of interest.
Matthew Hammond of PwC told BBC Radio 5 Live that the approaches had come from the UK so far, with interest in buying all of the business as well as individual parts.Matthew Hammond of PwC told BBC Radio 5 Live that the approaches had come from the UK so far, with interest in buying all of the business as well as individual parts.
Hammond said staff would continue to be paid. He believes PwC will need two weeks to fully assess the situation, while the whole administration process should take a couple of months.Hammond said staff would continue to be paid. He believes PwC will need two weeks to fully assess the situation, while the whole administration process should take a couple of months.
8.02am BST08:028.02am BST08:02
Here’s the Bloomberg story on the problems at China’s Sinosteel:Here’s the Bloomberg story on the problems at China’s Sinosteel:
A Chinese state-owned steel trader is set to default on a bond payment even after the government was said to have stepped in to help, highlighting worsening corporate finances as an economic slowdown deepens.A Chinese state-owned steel trader is set to default on a bond payment even after the government was said to have stepped in to help, highlighting worsening corporate finances as an economic slowdown deepens.
Sinosteel Co. will delay an interest payment due Tuesday on 2 billion yuan ($314.5 million) of 5.3 percent notes that mature in 2017, according to a statement on Chinabond’s website Monday. The firm delayed payment as it plans to back the securities with stock of its unit Sinosteel Engineering & Technology Co., and that may affect issues related to interest payment, it said without elaborating. The failure to pay interest on time constitutes a default, according to Industrial Securities Co., Haitong Securities Co. and China Merchants Securities Co.Sinosteel Co. will delay an interest payment due Tuesday on 2 billion yuan ($314.5 million) of 5.3 percent notes that mature in 2017, according to a statement on Chinabond’s website Monday. The firm delayed payment as it plans to back the securities with stock of its unit Sinosteel Engineering & Technology Co., and that may affect issues related to interest payment, it said without elaborating. The failure to pay interest on time constitutes a default, according to Industrial Securities Co., Haitong Securities Co. and China Merchants Securities Co.
“Investors have fully expected Sinosteel’s default,” said Sun Binbin, a bond analyst at China Merchants Securities. “It’s possible it will pay the interest later, which would be better than the market expectation.”“Investors have fully expected Sinosteel’s default,” said Sun Binbin, a bond analyst at China Merchants Securities. “It’s possible it will pay the interest later, which would be better than the market expectation.”
More Chinese firms are struggling to repay obligations, and government-backed companies aren’t immune, as defaults this year had already included two state-owned enterprises, according to China International Capital Corp. The National Development and Reform Commission planned to meet Sinosteel investors, people familiar with the matter said last week. The yuan’s fall, a stock rout and speculation that bubbles are forming in the debt market have fanned concern.More Chinese firms are struggling to repay obligations, and government-backed companies aren’t immune, as defaults this year had already included two state-owned enterprises, according to China International Capital Corp. The National Development and Reform Commission planned to meet Sinosteel investors, people familiar with the matter said last week. The yuan’s fall, a stock rout and speculation that bubbles are forming in the debt market have fanned concern.
More here.More here.
7.56am BST07:567.56am BST07:56
Meanwhile in Germany, producer prices fell 0.4% in September compared to the previous month, a bigger decline than the 0.1% expected by economists. The year on year fall was 2.1%, again higher than the forecst 1.8%.Meanwhile in Germany, producer prices fell 0.4% in September compared to the previous month, a bigger decline than the 0.1% expected by economists. The year on year fall was 2.1%, again higher than the forecst 1.8%.
7.48am BST07:487.48am BST07:48
Stock markets are expected to open virtually unchanged as investors weigh up the problems with the Chinese economy, and look ahead to this week’s meeting of the European Central Bank:Stock markets are expected to open virtually unchanged as investors weigh up the problems with the Chinese economy, and look ahead to this week’s meeting of the European Central Bank:
Our European opening calls: $FTSE 6348 down 5 $DAX 10153 down 12 $CAC 4700 down 4 $IBEX 10199 down 8 $MIB 22413 down 6Our European opening calls: $FTSE 6348 down 5 $DAX 10153 down 12 $CAC 4700 down 4 $IBEX 10199 down 8 $MIB 22413 down 6
7.41am BST07:417.41am BST07:41
One in six UK steelworkers under threatOne in six UK steelworkers under threat
Tallying up the potential job losses in the steel industry in just this month - 2,200 at Redcar, 1,700 at Caparo Industries and now 1,200 at Tata - means that of a total UK workforce of 30,000, one in six workers face the axe.Tallying up the potential job losses in the steel industry in just this month - 2,200 at Redcar, 1,700 at Caparo Industries and now 1,200 at Tata - means that of a total UK workforce of 30,000, one in six workers face the axe.
Here is our analysis of the problems facing the industry:Here is our analysis of the problems facing the industry:
Related: Can the government save Britain's ailing steel industry?Related: Can the government save Britain's ailing steel industry?
7.33am BST07:337.33am BST07:33
More UK steel jobs to goMore UK steel jobs to go
Good morning and welcome to our our rolling coverage of the world economy, the financial markets, the eurozone and the business world.Good morning and welcome to our our rolling coverage of the world economy, the financial markets, the eurozone and the business world.
It will be another grim day for the UK steel industry - what’s left of it - with Tata expected to announce up to 1,200 job losses in Scunthorpe and Scotland.It will be another grim day for the UK steel industry - what’s left of it - with Tata expected to announce up to 1,200 job losses in Scunthorpe and Scotland.
Workers are due to be told their fate at 10 o’clock (BST) this morning, with an official statement an hour later.Workers are due to be told their fate at 10 o’clock (BST) this morning, with an official statement an hour later.
The move follows Monday’s news that steel products group Caparo Industries had gone into administration and the recent liquidation of the Thai owned Redcar steelworks on Teesside with the loss of 2,200 jobs.The move follows Monday’s news that steel products group Caparo Industries had gone into administration and the recent liquidation of the Thai owned Redcar steelworks on Teesside with the loss of 2,200 jobs.
Here’s our latest story:Here’s our latest story:
Related: Tata Steel expected to announce 1,200 job losses in UKRelated: Tata Steel expected to announce 1,200 job losses in UK
One of the reasons for the crisis in UK steel is the dumping of cheap imports from China. UK prime minister David Cameron has promised to raise the issue during the four day visit by Chinese president Xi Jinping.One of the reasons for the crisis in UK steel is the dumping of cheap imports from China. UK prime minister David Cameron has promised to raise the issue during the four day visit by Chinese president Xi Jinping.
Selling cheap steel has also caused problems for Chinese companies. Michael Hewson at CMC Markets said:Selling cheap steel has also caused problems for Chinese companies. Michael Hewson at CMC Markets said:
While the weakness of commodity prices has its upsides, in the form of low inflation, we are now starting to see the downsides with job losses across the board in global manufacturing, not only in the UK, but in the US as well, while China has bailed out one of its own state owned commodity miners, in the form of Sinosteel, which has been haemorrhaging cash hand over fist, as it sells steel below market prices.While the weakness of commodity prices has its upsides, in the form of low inflation, we are now starting to see the downsides with job losses across the board in global manufacturing, not only in the UK, but in the US as well, while China has bailed out one of its own state owned commodity miners, in the form of Sinosteel, which has been haemorrhaging cash hand over fist, as it sells steel below market prices.
Deutsche Bank’s Jim Reid said:Deutsche Bank’s Jim Reid said:
The story on the Chinese SOE Sinosteel... is gathering steam with a Bloomberg article noting moments ago that the company delayed an interest payment on its Yuan dominated bonds due today. The same story suggests that the Chinese regulator and State Council are working with all related parties in order to try to prevent a default. Certainly a noteworthy story testing China’s commitment to allowing market reform.The story on the Chinese SOE Sinosteel... is gathering steam with a Bloomberg article noting moments ago that the company delayed an interest payment on its Yuan dominated bonds due today. The same story suggests that the Chinese regulator and State Council are working with all related parties in order to try to prevent a default. Certainly a noteworthy story testing China’s commitment to allowing market reform.
With the UK government reluctant to bail out the industry, perhaps China’s perceived willingness to act could be something else for Cameron and Xi Jinping to discuss.With the UK government reluctant to bail out the industry, perhaps China’s perceived willingness to act could be something else for Cameron and Xi Jinping to discuss.
Elsewhere today we have results from Asos, InterContinental Hotels and Whitbread, while Bank of England governor is up before the Treasury Select Committee this morning.Elsewhere today we have results from Asos, InterContinental Hotels and Whitbread, while Bank of England governor is up before the Treasury Select Committee this morning.
Updated at 7.45am BSTUpdated at 7.45am BST