This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/live/2016/apr/28/sajid-javid-mps-steel-crisis-japan-markets-us-gdp-greece-live

The article has changed 19 times. There is an RSS feed of changes available.

Version 11 Version 12
US GDP: growth slows sharply as business spending slumps - live updates US GDP: growth slows sharply as business spending slumps - live updates
(35 minutes later)
3.19pm BST
15:19
Sticking with UK news for a moment, Jill Treanor and Julia Kollewe have been following shareholder rebellions over pay today.
They have more details on the majority of investors at Shire pharmaceuticals failing to support a 25% pay rise for its chief executive, Flemming Ørnskov. The report continues:
The increase in his salary to $1.7m (£1.2m) means Ørnskov’s bonuses are also going up, a move which shareholders had been urged to protest against before the annual meeting on Thursday.
The advisory pay vote squeezed through, as holders of 50.5% of the shares in the Dublin-based but London-listed FTSE 100 company voted in favour – but if deliberate abstentions were included, support for the board fell just below 50%.
It builds on the defiant mood in which the AGM season started earlier this month when there were “no votes” at two FTSE 100 companies – BP and Smith & Nephew – on the same day. Mining company Anglo American has also faced protests over pay, with more than 40% of investors voting against its remuneration report last week.
Jill and Julia’s full story is here:
Related: Shareholder rebellions gather pace with Shire pay revolt
3.11pm BST
15:11
Carney cites EU referendum risks as he notes UK slowdown
Bank of England governor Mark Carney has been in Stockport this week and talking about the EU referendum again.
Growth appears to be slowing ahead of June’s vote, said Carney, who has previously warned that Britain’s economy could struggle to grow after a decision to quit the European Union. The referendum itself posed a significant risk to the economy, the Canadian said.
He told the Stockport Express newspaper: “In the very short term the economy appears to be slowing, probably related to issues around the referendum. One of the responsibilities of the Bank of England is to manage risk and financial stability.
“Risks around the referendum are the biggest risks facing the UK economy, we have contingency planning to decrease the potential impacts of uncertainty.”
As we reported yesterday, the latest official figures showed UK economic growth slowed markedly in the first quarter of this year to 0.4% from 0.6% in the final three months of 2015. But economists are divided over how much of the slowdown could be blamed on the referendum.
The full interview with Carney, including him fessing up to drinking a whole half pint of beer while on duty (gasp!) is here.
#BankofEngland Governer Mark Carney in #Stockport to talk potential #Brexit and beer https://t.co/siGlflCLhC pic.twitter.com/o04nVLW6ky
2.36pm BST2.36pm BST
14:3614:36
In other UK news... the business select committee has launched a full inquiry into the collapse of high street chain BHS.In other UK news... the business select committee has launched a full inquiry into the collapse of high street chain BHS.
They will investigate the sale of the business by Sir Philip Green for £1 last year, what due diligence was done by the buyers, and whether the taxpayer is now on the hook for BHS’s pension bill.They will investigate the sale of the business by Sir Philip Green for £1 last year, what due diligence was done by the buyers, and whether the taxpayer is now on the hook for BHS’s pension bill.
Iain Wright MP, committee chair, says:Iain Wright MP, committee chair, says:
“The collapse of BHS brings misery and uncertainty for thousands of workers and also places a potentially significant burden on the taxpayer in the form of pension liabilities.“The collapse of BHS brings misery and uncertainty for thousands of workers and also places a potentially significant burden on the taxpayer in the form of pension liabilities.
The sale and acquisition of BHS raises real questions about whether directors acted in the best long-term interests of the company and their employees. Is there too much of an incentive in the system for owners to asset-strip, take out vast sums for personal gain, and then dump and run leaving the taxpayer to pick up the tab when the company fails, rather than create value for the long-term?The sale and acquisition of BHS raises real questions about whether directors acted in the best long-term interests of the company and their employees. Is there too much of an incentive in the system for owners to asset-strip, take out vast sums for personal gain, and then dump and run leaving the taxpayer to pick up the tab when the company fails, rather than create value for the long-term?
2.29pm BST2.29pm BST
14:2914:29
Back in the UK, Royal Bank of Scotland has admitted that it will probably fail to sell its Williams & Glyn division by the end of next year.Back in the UK, Royal Bank of Scotland has admitted that it will probably fail to sell its Williams & Glyn division by the end of next year.
It has just warned that City that it will probably miss a deadline of the end of 2017 to offload more than 300 branches, due to the complexity of separating customers from the rest of RBS.It has just warned that City that it will probably miss a deadline of the end of 2017 to offload more than 300 branches, due to the complexity of separating customers from the rest of RBS.
The overall financial impact on RBS is now likely to be significantly greater than previously estimated, it admits.The overall financial impact on RBS is now likely to be significantly greater than previously estimated, it admits.
RBS shares have been hit hard, down 4.6%.RBS shares have been hit hard, down 4.6%.
2.09pm BST2.09pm BST
14:0914:09
This is the third year running in which US growth has been alarmingly weak in the January-March quarter.This is the third year running in which US growth has been alarmingly weak in the January-March quarter.
US Q1 GDP +0.5%. That's annualized, so economy virtually ground to a halt. GDP trend pretty clear in last two years: pic.twitter.com/xYVAAnHcmpUS Q1 GDP +0.5%. That's annualized, so economy virtually ground to a halt. GDP trend pretty clear in last two years: pic.twitter.com/xYVAAnHcmp
2.05pm BST2.05pm BST
14:0514:05
Weak growth = no June rate hikeWeak growth = no June rate hike
There’s no chance of the US central bank raising interest rates while growth is so weak, argues Tom Floyd of Foenix Partners.There’s no chance of the US central bank raising interest rates while growth is so weak, argues Tom Floyd of Foenix Partners.
According to Floyd, Americans can stop worrying that interest rates might rise in June.According to Floyd, Americans can stop worrying that interest rates might rise in June.
Despite the Fed’s best efforts to leave the door open for a hike at the next meeting, today’s GDP data risks blowing it firmly shut. The data, showing a rise of just 0.5% in the first quarter versus expectations of a rise of 0.7%, undermines the more hawkish Fed tone from last night and does little to justify an imminent raise.Despite the Fed’s best efforts to leave the door open for a hike at the next meeting, today’s GDP data risks blowing it firmly shut. The data, showing a rise of just 0.5% in the first quarter versus expectations of a rise of 0.7%, undermines the more hawkish Fed tone from last night and does little to justify an imminent raise.
Although the Fed dropped language acknowledging global risks it is worth noting the next meeting is only 8 days before the next major global risk event, the Brexit vote.Although the Fed dropped language acknowledging global risks it is worth noting the next meeting is only 8 days before the next major global risk event, the Brexit vote.
In light of the soft data and the looming referendum, a June hike is looking increasingly unlikely with Janet Yellen’s attempts to convince markets to the contrary becoming largely futile. Traders will remain rightly sceptical.In light of the soft data and the looming referendum, a June hike is looking increasingly unlikely with Janet Yellen’s attempts to convince markets to the contrary becoming largely futile. Traders will remain rightly sceptical.
1.57pm BST1.57pm BST
13:5713:57
Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management, is also concerned by the slowdown in US growth:Nancy Curtin, Chief Investment Officer at Close Brothers Asset Management, is also concerned by the slowdown in US growth:
“The US economy hasn’t run aground by any means, but it is navigating more difficult domestic waters than three months ago. Growth has been weighed down by weak performances in the manufacturing and energy sectors due to the strong dollar and volatile oil prices. On top of this, consumer confidence has been knocked recently, impacting retail sales.“The US economy hasn’t run aground by any means, but it is navigating more difficult domestic waters than three months ago. Growth has been weighed down by weak performances in the manufacturing and energy sectors due to the strong dollar and volatile oil prices. On top of this, consumer confidence has been knocked recently, impacting retail sales.
“Although today’s results clearly indicate a slowdown in growth, it’s important to remember that the US economy has still expanded. The labour market is in reasonably good shape, and global risks seem to be slightly more muted than at the start of the year. This will help support domestic momentum as the year progresses.“Although today’s results clearly indicate a slowdown in growth, it’s important to remember that the US economy has still expanded. The labour market is in reasonably good shape, and global risks seem to be slightly more muted than at the start of the year. This will help support domestic momentum as the year progresses.
1.57pm BST1.57pm BST
13:5713:57
Paul Sommerville of Sommerville Advisory Markets says an annualised growth rate of 0.5% is ‘woeful’.Paul Sommerville of Sommerville Advisory Markets says an annualised growth rate of 0.5% is ‘woeful’.
1.50pm BST1.50pm BST
13:5013:50
This is America’s weakest quarterly growth rate in almost two years:This is America’s weakest quarterly growth rate in almost two years:
Q1 keeps up its 'low-growth' reputation. US #GDP growth in Q1 +0.5% annualized, below expectations. pic.twitter.com/K87sDaTR40Q1 keeps up its 'low-growth' reputation. US #GDP growth in Q1 +0.5% annualized, below expectations. pic.twitter.com/K87sDaTR40
And while consumer spending is up, exports and business spending have fallen - suggesting the US recovery is uneven, as well as weak.And while consumer spending is up, exports and business spending have fallen - suggesting the US recovery is uneven, as well as weak.
UpdatedUpdated
at 1.54pm BSTat 1.54pm BST
1.36pm BST1.36pm BST
13:3613:36
US economy almost stallsUS economy almost stalls
Breaking news from America: The US economy has barely grown at all in the last three months.Breaking news from America: The US economy has barely grown at all in the last three months.
US GDP expanded by 0.5%, on an annualised basis, according to the US commerce department.US GDP expanded by 0.5%, on an annualised basis, according to the US commerce department.
That’s a quarterly growth rate of just 0.125% - a very measly outcome - and weaker than the 0.4% which Britain reported yesterday.That’s a quarterly growth rate of just 0.125% - a very measly outcome - and weaker than the 0.4% which Britain reported yesterday.
Although consumer spending rose by 1.9%, business investment tumbled by 5.9%, suggesting corporations cut back sharply.Although consumer spending rose by 1.9%, business investment tumbled by 5.9%, suggesting corporations cut back sharply.
U.S. GDP +0.5%. Business spending down 5.9%, the biggest drop since the waning days of the recession.U.S. GDP +0.5%. Business spending down 5.9%, the biggest drop since the waning days of the recession.
1.08pm BST1.08pm BST
13:0813:08
Here’s Graham Ruddick’s early story about this morning’s session, in which Tata Steel’s UK boss warned of ‘disaster’ looming unless a deal is reached.Here’s Graham Ruddick’s early story about this morning’s session, in which Tata Steel’s UK boss warned of ‘disaster’ looming unless a deal is reached.
Related: Tata Steel UK boss warns of pension timebomb if buyer not foundRelated: Tata Steel UK boss warns of pension timebomb if buyer not found
12.30pm BST12.30pm BST
12:3012:30
Sajid Javid's testimony: What we learnedSajid Javid's testimony: What we learned
Sajid Javid has been spoken of as a future prime minister. Even Forbes Magazine got in on the act, saying it would be a cheering rags-to-riches story if Javid got the keys to Number 10.Sajid Javid has been spoken of as a future prime minister. Even Forbes Magazine got in on the act, saying it would be a cheering rags-to-riches story if Javid got the keys to Number 10.
But his hopes of a glittering career are now tightly bound with the future of Britain’s steel industry. Today’s session showed us that:But his hopes of a glittering career are now tightly bound with the future of Britain’s steel industry. Today’s session showed us that:
1) Javid regrets that fateful trip to Australia.1) Javid regrets that fateful trip to Australia.
He freely admitted that, with hindsight, he should have flown to Mumbai last month as Tata’s board decided what to do with its UK steel plants.He freely admitted that, with hindsight, he should have flown to Mumbai last month as Tata’s board decided what to do with its UK steel plants.
He also insists it wouldn’t have done any good, as his department has been working behind the scenes since February. But we’ll never know if Tata might have softened the tone of its announcement, if Javid had been banging on the boardroom door promising to do whatever it took to keep the mills running.He also insists it wouldn’t have done any good, as his department has been working behind the scenes since February. But we’ll never know if Tata might have softened the tone of its announcement, if Javid had been banging on the boardroom door promising to do whatever it took to keep the mills running.
Javid failed to shake off the impression that the government was caught out by Tata’s decision - suggesting it didn’t actually have a full grip on the crisis.Javid failed to shake off the impression that the government was caught out by Tata’s decision - suggesting it didn’t actually have a full grip on the crisis.
And if Port Talbot closes, Javid may go down in political history as the man who took his teenage daughter on a jolly to Australia as the steel industry burned. Harsh game, politics.And if Port Talbot closes, Javid may go down in political history as the man who took his teenage daughter on a jolly to Australia as the steel industry burned. Harsh game, politics.
2) It’s all about the pensions.2) It’s all about the pensions.
Javid agreed with Tata’s Steel UK SEO Bimlendra Jha that the pension liabilities are crucial.Javid agreed with Tata’s Steel UK SEO Bimlendra Jha that the pension liabilities are crucial.
Several potential buyers have already said they wouldn’t take them on, so Tata and the government need to find a way of resolving the £15bn scheme, and its deficit.Several potential buyers have already said they wouldn’t take them on, so Tata and the government need to find a way of resolving the £15bn scheme, and its deficit.
Javid claims that Tata’s pension scheme is not a ‘major risk’ to taxpayers. But that’s not the same as saying taxpayers won’t pay a penny....Javid claims that Tata’s pension scheme is not a ‘major risk’ to taxpayers. But that’s not the same as saying taxpayers won’t pay a penny....
And don’t forget that Jha warned of economic and social disaster if the pension problem isn’t dealt with...And don’t forget that Jha warned of economic and social disaster if the pension problem isn’t dealt with...
3) The government won’t own more than 25% of British steel.3) The government won’t own more than 25% of British steel.
Javid is committed to taking a 25% stake in Tata UK, if it helps find a buyer. But that’s his limit - anything more would, in his view, be counterproductive. That’s a typically Thatcherite view, and means full nationalisation isn’t on the cards.Javid is committed to taking a 25% stake in Tata UK, if it helps find a buyer. But that’s his limit - anything more would, in his view, be counterproductive. That’s a typically Thatcherite view, and means full nationalisation isn’t on the cards.
UpdatedUpdated
at 12.33pm BSTat 12.33pm BST
11.58am BST11.58am BST
11:5811:58
Q: Finally, what can you do to reassure customers and suppliers to keep working with Tata steel at this time?Q: Finally, what can you do to reassure customers and suppliers to keep working with Tata steel at this time?
Sajid Javid says he has already written to all Tata’s customers and suppliers, and contacted the largest ones directly.Sajid Javid says he has already written to all Tata’s customers and suppliers, and contacted the largest ones directly.
He has also asked Tata to give similar reassurances.He has also asked Tata to give similar reassurances.
But the biggest comfort I can give is the action that we are prepared to take, and how far we will go to get a deal.But the biggest comfort I can give is the action that we are prepared to take, and how far we will go to get a deal.
That means customers and suppliers can look at this and say ‘this business has a long-term future’.That means customers and suppliers can look at this and say ‘this business has a long-term future’.
It’s an ongoing process too - we need to keep reassuring people.It’s an ongoing process too - we need to keep reassuring people.
Javid concludes the session by insisting that the government is doing everything it can, along with other partners such as the Welsh government and unions.Javid concludes the session by insisting that the government is doing everything it can, along with other partners such as the Welsh government and unions.
The Community union couldn’t be more helpful if it tried, he concludes.The Community union couldn’t be more helpful if it tried, he concludes.
That’s the end of the session.That’s the end of the session.
11.53am BST11.53am BST
11:5311:53
Javid: We want a quick dealJavid: We want a quick deal
Q: If a potential buyer says it needs nine months to agree a deal, but Tata insist on a quick deal, would you step in with a bridging loan?Q: If a potential buyer says it needs nine months to agree a deal, but Tata insist on a quick deal, would you step in with a bridging loan?
I’m not going to rule anything out, Javid replies, but the focus is to find a commercial operator quickly.I’m not going to rule anything out, Javid replies, but the focus is to find a commercial operator quickly.
A nine-month process isn’t in anyone’s interest.A nine-month process isn’t in anyone’s interest.
Q: You have offered to take a 25% stake in Tata UK. Is that your maximum limit?Q: You have offered to take a 25% stake in Tata UK. Is that your maximum limit?
Javid says his offer of 25% co-ownership was designed to show potential buyers that he’s serious about getting a deal.Javid says his offer of 25% co-ownership was designed to show potential buyers that he’s serious about getting a deal.
But the 25% figure is important - if you go over that, the government would be a significant shareholder, and too closely involved.But the 25% figure is important - if you go over that, the government would be a significant shareholder, and too closely involved.
Q: How long would you be prepared to hold this stake before looking to exit?Q: How long would you be prepared to hold this stake before looking to exit?
Javid says it’s too early to say.Javid says it’s too early to say.
11.49am BST11.49am BST
11:4911:49
Q: Unions have told us they would favour scrapping the lesser duty rule, in favour of a new solution just for the steel sector. Is this under consideration?Q: Unions have told us they would favour scrapping the lesser duty rule, in favour of a new solution just for the steel sector. Is this under consideration?
Javid says he still supports the lesser duty rule [this is the rule that prevents higher tariffs being imposed on Chinese steel]Javid says he still supports the lesser duty rule [this is the rule that prevents higher tariffs being imposed on Chinese steel]
The lesser duty rule works, Javid insists. Its intention is to stop dumping or provide compensation.The lesser duty rule works, Javid insists. Its intention is to stop dumping or provide compensation.
If we scrapped it, we would have spent an extra £500m on the solar industry for example [because the lesser duty rule covers a range of industries, not just steel]If we scrapped it, we would have spent an extra £500m on the solar industry for example [because the lesser duty rule covers a range of industries, not just steel]
Q: Do you believe Tata are a responsible seller, given they didn’t fully brief you about their plans for a quick sale?Q: Do you believe Tata are a responsible seller, given they didn’t fully brief you about their plans for a quick sale?
Yes, Javid replies, based on the conversations I’d had with them. They have approached this issue responsibly.Yes, Javid replies, based on the conversations I’d had with them. They have approached this issue responsibly.
Q: Is there timeline appropriate? They are talking about finding a buyer within weeks, but this will take months.Q: Is there timeline appropriate? They are talking about finding a buyer within weeks, but this will take months.
Tata are losing money every day, so they can’t have unlimited time. But it is important that they do everything possible to find a responsible buyer.Tata are losing money every day, so they can’t have unlimited time. But it is important that they do everything possible to find a responsible buyer.
I have every reason to believe that when they promise to be responsible, that will be reflected in the timeline, Javid hints.I have every reason to believe that when they promise to be responsible, that will be reflected in the timeline, Javid hints.
11.41am BST11.41am BST
11:4111:41
MPs are questioning whether Sajid Javid is really doing enough to help the steel industry.MPs are questioning whether Sajid Javid is really doing enough to help the steel industry.
I will do everything in my power to help, but I cannot influence the price of steel, says JavidI will do everything in my power to help, but I cannot influence the price of steel, says Javid
Q: But what about tariffs? Should the EU move faster to identify problems?Q: But what about tariffs? Should the EU move faster to identify problems?
Speed of action is an issue, Javid replies -- that’s why I called a meeting last year to look at the issue of dumping. Europe must move faster.Speed of action is an issue, Javid replies -- that’s why I called a meeting last year to look at the issue of dumping. Europe must move faster.
Reminder: Javid actually blocked a measure to impose higher tariffs on Chinese steel imports....Reminder: Javid actually blocked a measure to impose higher tariffs on Chinese steel imports....
Javid wants speed of action in trade defence and tariffs?! Why was he blocking tariff increases at an EU council level then?Javid wants speed of action in trade defence and tariffs?! Why was he blocking tariff increases at an EU council level then?
But the business secretary is adamant that tariffs can work. Take wire rod imports - they have gone from 67,000 tonnes to zero.But the business secretary is adamant that tariffs can work. Take wire rod imports - they have gone from 67,000 tonnes to zero.