Business news - live: Mark Carney issues fresh warning over no-deal Brexit impact, as Royal Mail workers vote to strike

Follow live updates as sterling makes gains

Michel Barnier says Brexit 'like climbing a mountain' as positive deal talks continue

Mark Carney warned MPs that a no-deal Brexit will likely result in job losses and business closures. The Bank of England governor’s comments came as UK unemployment rose unexpectedly in the latest quarter as the jobs market showed signs of a slowdown amid prolonged economic uncertainty.

However, the pound jumped to a four-month high against the dollar after the EU’s chief negotiator said that it was still possible this week, despite it becoming “more difficult to reach an agreement”.

Sterling rose as Michel Barnier told reporters in Luxembourg: “Even if an agreement will be difficult – more and more difficult, to be frank – it is still possible this week.”

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Key Points

• UK jobs market buckling as pressures from Brexit and global uncertainty mount
• Former Thomas Cook bosses start fundraising to help jobless staff
• Neil Woodford’s frozen fund will be wound up
• Royal Mail workers vote overwhelmingly in favour of strike action

[15 October 2019 11:30 · ben.chapman]

'No choice' but to invest in oil, Shell CEO says

(Reuters) - Royal Dutch Shell still sees abundant opportunity to make money from oil and gas in coming decades even as investors and governments increase pressure on energy companies over climate change, its chief executive said.

But in an interview with Reuters, Ben van Beurden expressed concern that some shareholders could abandon the world’s second-largest listed energy company due partly to what he called the “demonisation” of oil and gas and “unjustified” worries that its business model was unsustainable.

The 61-year-old Dutch executive in recent years became one of the sector’s most prominent voices advocating action over global warming in the wake of the 2015 Paris climate agreement.

Shell, which supplies around 3 per cent of the world’s energy, set out in 2017 a plan to halve the intensity of its greenhouse emissions by the middle of the century, based in large part on building one of the world’s biggest power businesses.

Still, the amount of carbon dioxide emitted from Shell’s operations and the products it sells rose by 2.5 per cent between 2017 and 2018.

[15 October 2019 11:48 · ben.chapman]

'One of the most important industrial battles of the decade'

The outcome of a ballot of 110,000 Royal Mail workers is expected to be delivered at 15:30.

[15 October 2019 13:15 · ben.chapman]

Mark Zuckerberg defends meeting with US conservatives

(Press Association) Mark Zuckerberg has defended his decision to take meetings with leading conservative figures in the US, following suggestions that the social network's founder is trying to appease the US government amid scrutiny of the company.

A report by Politico said the Facebook founder had held a series of informal dinners with conservative figures - including politicians and media figures - to discuss free speech and possible partnerships.

The report suggested the meetings were an attempt by the social network's boss to reduce the feeling held by some American conservatives that social media is biased against them, calling the meetings Mr Zuckerberg's "effort to cultivate friends on the right".

It also suggested that Mr Zuckerberg wants to appease the US government in order to prevent it from taking action to break up the firm - which also owns and operates Instagram and WhatsApp.

[15 October 2019 13:23 · ben.chapman]

Ukrainian oligarchs lose appeal over $5.5bn bank theft

[15 October 2019 13:45 · ben.chapman]

[15 October 2019 14:00 · ben.chapman]

'Say sorry to people whose jobs you've taken and whose holidays you've ruined'

Rachel Reeves, chair of the BEIS committee, has some harsh words for Thomas Cook's former boss.

"Peter Fankhauser, you've spoken about the commitment of your staff, and the fact that they're here today - some of them in their uniforms - I think speaks to their commitment to the company you ran and their commitment to the people they served in your company.

"I think they do your company proud and I think you should reflect, Mr Fankhauser, on what you can do to put something back to try and say sorry to the people whose jobs you've taken from them and whose holidays you've ruined.

"You say you're a reflective man. I hope you will go away and reflect on the huge salaries you've earned, salaries that probably in all the lives of some of the people who worked for you will never earn in their while careers, and think about what you can do, not just as a token, but in some way to put right the wrong that you have done."

[15 October 2019 15:25 · ben.chapman]

Government’s Brexit threats hitting jobs, says TUC 

Commenting on today's jobs numbers, TUC General Secretary Frances O’Grady said:   

“The threat to working families of the hardest possible Brexit has damaged economic growth and is now hitting the labour market.  

“The government must stop playing games with people’s jobs and rule out a disastrous no-deal Brexit. And MPs must not support any deal that will hurt workers’ rights, jobs and livelihoods.” 

[15 October 2019 15:42 · ben.chapman]

Royal Mail workers have voted overwhelmingly for strike action in a dispute over a wide range of issues, including plans to reduce the working week, as well as job security.

[15 October 2019 16:00 · ben.chapman]

UK house prices will crash by 10% in case of no-deal Brexit - ratings agency

A no-deal Brexit will shave more than 10 per cent off UK house prices next year, a top global credit rating agency has forecast.

The decline will hit many people’s most valuable asset even earlier. If Britain crashes out of the EU at the end of this month, house prices will end the year 1.7 per cent lower than in 2018, said Standard & Poor’s (S&P), one of the world’s three biggest providers of government and company credit scores to investors.

Prices will then tumble another 10.2 per cent in 2020 and another 6.1 per cent in 2021, S&P said in a report on Tuesday. House values will start rising again in 2022, but a predicted 5.9 per cent increase that year will undo only some of the previous losses.

[15 October 2019 16:15 · ben.chapman]

Interest rates will need to be slashed further after Brexit, says BoE 

Interest rates would likely need to be slashed if Brexit is delayed again, a key Bank policymaker has said.

Gertjan Vlieghe, a member of the Bank's Monetary Policy Committee (MPC), said the Bank would probably need to act to boost the economy in the event of "entrenched" Brexit uncertainty.

In a speech to the MMF Monetary and Financial Policy Conference in London, Mr Vlieghe said: "A scenario of entrenched Brexit uncertainty is likely to keep economic growth below potential, and require some monetary stimulus."

It comes amid signs of a growing split among the rate-setting committee, after the Bank's deputy governor Sir Dave Ramsden said in an interview with The Daily Telegraph on Monday that the UK's slower "speed limit" for growth could weaken the case for lower rates, which currently stand at 0.75 per cent.