KFC owner spins off struggling China division
Chinese president emphasises 'shared interests' with UK
Tata Steel confirms 1,200 jobs to go in England and Scotland
'Wrong" to blame Chinese for steel prices - government
Caparo administrators have received approaches for business
Yum Brands shares jumped 4.35% as Wall Street began trading, after the fast-food giant announced plans to separate its struggling China business. Yum China, the new division, will become a franchise of Yum Brands, and will pay a percentage of its sales to the parent company for exclusive rights to three of the company's brands: KFC, Pizza Hut and Taco Bell.
Image source, Getty ImagesThe FTSE is down 0.26%, as falling commodity prices drag down mining firms. The falling price of oil and weak Chinese economic growth figures are pushing down the price of miners BHP Billiton and Glencore, which are both down around 2%. But after positive quarterly results, InterContinental Hotels Group are leading the FTSE's winners, up 5.6%.
An anonymous email to the BBC:
Quote MessageMy family moved from Wales in the 1800s to set up the iron mines, which later founded the steel mill. Generations of my family have worked at that plant. We were there at the birth of Teesside Steel and we were there at its death. Many people will lay the blame at the door of the current government, and indeed it does share some of the responsibility, but that is only scratching the surface. I grew up in the area. I watched as men were laid off from all of the heavy industries in the 1970s, in the 1980s and again in the 1990s. I have watched as good money has been thrown after bad in the name of "regeneration". I have seen nothing change."
Image source, PAYou can't just blame Chinese steel dumping for the current jobs crisis, says Jeremy Nicholson, director of the Energy Intensive Users Group.
He tells the BBC that the steel industry - along with other sectors - have long complained that UK energy policies that keep power prices higher than competitors are a problem.
"What we can't live with is substantially higher electricity prices here than elsewhere in Europe, and more particularly elsewhere in the world. One of the reasons we've got rising imports from China is not just because the wage costs are lower or for other reasons that might be related to dumping. No, it's because we have uncompetitive electricity prices."
Quote MessageThis is not only a crisis for the metals industry but a crisis that goes to the very heart of the UK’s industrial manufacturing. The negative knock on effects of this crisis for the UK economy cannot be underestimated. The current crisis has much wider implications throughout the whole supply chain. Knock-on effects will be felt by steel processors, stockholders, distributors, scrap metal dealers, metal traders, maintenance providers and equipment suppliers who will all be impacted by a falling steel price in different ways. We also forecast significant distress within metal product manufacturing businesses."
Stephen Cooper and Mark Firmin,, KPMG
Shadow Business Minister Kevin Brennan accuses the government of "spinning" over the £80m in funds to help areas hit by steel closures.
Mr Brennan points out that Mr Javid himself said last week it was only £50m - and "even that's questionable," Mr Brennan says.
"They (the Conservatives) seem content to allow Britain's entire steel making industry to disappear in the face of blatant Chinese dumping."
The BBC's assistant political editor Norman Smith tweets:
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Sajid Javid is told off by the speaker of the House for taking twice as long he should for answering the question.
"Discourteous and incompetent," is how the John Bercow describes Mr Javid's behaviour.
Mr Javid highlights the government's training schemes and efforts to help workers find new jobs.
But there are no promises to re-open the plants.
He points out that no government can change the price of steel, or exchange rates or break regulations governing trade.
But he says the UK steel industry should play a big part in government infrastructure contracts.
Business secretary Sajid Javid says to steel workers:
"This government is doing everything whithin our power to support you."
"We will not abandon you now in your greatest time of need."
"There is huge pressure on the government to be active, to intervene," says assistant political editor Norman Smith on BBC News.
Tata Steel has very directly pointed the finger at the Chinese, Norman says which makes the situation "problematic" as Prime Minister Cameron rolls out the red carpet for the Chinese president.
The government is also trying to brand itself as the 'northern powerhouse' party.
Charles emails the BBC:
Quote MessageThe core problem is that running a high energy, high carbon industry in the current low energy, low carbon, high tax environment simply isn't viable. We need to decide what it is that we actually want, the jobs and the steel - or the policies?
Assistant political editor Norman Smith tweets:
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BBC Scotland business and economics editor Douglas Fraser tweets:
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Rosie from Scunthorpe emailed the BBC:
Quote MessageMy dad has worked at the steel works since he was a teenager as an apprentice. My grandad also works there and has done over many years, this is their life, they depend on this job. How can the government not try to stop these job losses? Thousands of people rely on the steel works for employment, people have families, houses, cars, and bills to pay. The steel works is part of the history of Scunthorpe and the government are not trying their best to fix this.
BBC Radio 5 Live
Image source, Getty Images"There's very little" the government can do to help the failing steel plants says Peter Fish the founder of the global consultancy MEPS, which specialises in steel industry data and analysis.
The government is limited by european rules that limit state aid for industry, he says on Radio 5 live.
Mr Fish says that in the longer term some smaller changes could be made, for example insisting that foreign companies use local suppliers in big contracts, like power stations.
BBC Radio 5 Live
So, are the Chinese being scapegoated over the failure of British steel companies?
Peter Matthews, chairman of Black Country Metals, thinks they are.
Quote MessageA little bit.. there's a lot more than laying it at the door of so-called dumping of Chinese steel... We've got to take into consideration the strong pound and how that hits the exports - our exports are too expensive. We've got a problem with languages... that's holding us back as well. It's not about putting money into anything, it's about leadership. Training the right engineers, making sure that we've got languages.
Reacting to the job losses at Tata Steel, Unite assistant general secretary Tony Burke said:
Quote MessageThis 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.
Quote MessageSajid 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.
Tony Burke, Unite
Image source, bbcThe Scottish Government is "determined to fight" for a future for the steel industry, the First Minister Nicola Sturgeon says. She announced a task force has been set up to work to keep the Tata plants at Dalzell, in Motherwell, and Clydebridge, in Cambuslang, open.
"I will be writing to the UK Government to urge them to respond quickly to industry demands for action and to play their full part in our efforts to keep these plants open."
Quote MessageOnly 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. 20th 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."
Paul Kenny, General Secretary, GMB union