Summary

  • 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

Live Reporting

Faarea Masud

  1. Tata job cuts reaction

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  3. Tata job cuts reaction

    Economist, Capital Economics

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  4. Tata job cuts reaction

    tata plantTata

    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."

    Gareth Stace, Director, UK Steel

  5. Tata announces 'distressing news'

    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.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."

    Karl Koehler, Chief executive, Tata Steel Europe

  6. Tata job cuts

    About 900 jobs will go at Scunthorpe and 270 in Scotland, and the Long Products division will stop production of steel plate, Tata's statement says. 

  7. Tata confirms cuts

    Tata Steel is to cut 1,200 jobs in Scunthorpe and Scotland, the company has just confirmed.

  8. The end of Scottish steel production?

    Colin Blane from BBC Scotland makes this point:

    Tata Steel signGetty Images

    Dalyell and Clydebridge are the last major processors of steel in Scotland. If they close, it will mean the end of the steel industry in Scotland - apart from small scale specialists and galvanisers.

  9. Steel crisis: 'Timing awful' for Cameron

    BBC Radio 5 Live

    James Kirkup, from the Daily Telegraph, talking on Radio 5 live about the steel announcements.

    The timing is terrible for David Cameron. The fact that people believe the Chinese are responsible for the problems of the British steel industry, makes this all the more awkward.

  10. Scunthorpe steel: 'Morale is incredibly low'

    David Sayers is the third generation of his family to work at the Tata steel works in Scunthorpe. He says the cuts could impact him severely: 

    I'm a single parent father, I support my family. And if I potentially lose my income, I could lose my home as well. This is just the latest in a series of blows that have faced us in this industry. We're going from what feels like one disaster to another and the morale is incredibly low, particularly with the rumours of the announcement coming as they did, and having to wait over the weekend -- you can imagine what that's done to morale locally."

  11. Steel industry crisis: 'It's our problem... not theirs'

    BBC Radio 5 Live

    SSI plant TeesideGetty Images

    Radio 5 live listener Sam from Durham was a subcontractor to the SSI steel plant in Redcar (pictured), which is being liquidated. He's now looking for work.

    "The plant was making losses even before the price of steel dropped," he claims.

    His company was trying to get away from the steel industry but couldn't.

    "There is Chinese competition but we are better than them. It's how can you beat the competition and not just surrender and say it's too cheap. 

    "It's our problem that we can't make it cheap, not theirs... we can make things that they are still importing from us," Sam says.

  12. Chinese steel exports hit record

    This won't quell the steel dumping debate. Reuters reports that China's steel exports surged to a record 11.25 million tonnes last month as producers shipped more overseas due to falling demand at home. The figures are based on an analysis of customs data.

    "Excess Chinese steel output means lower steel prices," say analysts at the ANZ investment bank. "And with steel mills running on paper-thin margins - lower steel prices ultimately means lower iron ore prices." 

  13. Steel prices: One-way traffic

    Here's an example, courtesy of Bloomberg, of how steel prices have gone since 2010. Pretty much one-way travel.

    SteelBloomberg

  14. What can be done to save steel jobs?

    BBC Scotland Business and Economics Editor Douglas Fraser tweets:

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  15. The benefits of Chinese investment

    BBC Business Live

    Ben Thompson on Business Live

    Ben Thompson is at the Chinese-owned plant in Coventry that makes black cabs. 

    Back in 2013 the business was sold to China's Geely after it ran into trouble. 

    Now 1,500 cabs roll off the production line every year and some are exported.

    "All of that was made possible by that Chinese investment," Ben points out on Business Live.

  16. Steel cuts: Workers 'should not be thrown on scrap heap'

    BBC 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," says Nic Dakin, the Labour MP for Scunthorpe about the expected job cuts at Tata Steel.

    "It's going to be very, very devastating," says John Pentland, Labour MSP for Motherwell and Wishaw who was also a steel worker.

    "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," he said on Radio 5 live.

  17. Steel: don't just blame the Chinese for dumping

    Today Programme
    BBC Radio 4

    Foreign Secretary Philip Hammond says it's wrong to blame only the Chinese for dumping steel. There's a global surplus of steel, and that has forced down prices. "That's a problem, but it's not only the Chinese," he tells Today.

    He also reminds listeners that cheap steel is not a problem for everyone. For example,Jaguar Land Rover is a big exporter, including to China, and part of it's ability to be competitive is cheaper steel prices, he says.

  18. FTSE 100 edges higher

    The FTSE 100 is a touch higher in early trading.

    Investors liked the first-half results from Whitbread, shares are up more than 2% so far.

    But Asos shares are down more than 2% after its annual results. 

    Retail analyst Nick Bubb said that a lack of improvement in profit margins might have disappointed some in the City.

  19. Steel: Germans have a different approach

    Today Programme
    BBC Radio 4

    German steel workReuters

    Businessman Tom Westley compares the UK government's attitude to its steel industry with Germany. The boss of UK foundry and engineering firm Westley Group tells Today that Germany has two furnances similar to the one closing in Redcar. 

    "The German ones are still going. The Germans see them as a long term national assets," he says. The furnances might be under pressure now, but the Germans know they will need them when economic times change in a few years.

  20. Asos forecasts 20% sales growth this year

    Online fashion retailer Asos says that trading in its current financial year has "started well" and is forecasting sales growth of 20% this year.

    It reported a pre-tax profit of £47m for the financial year which ended on 31 August. That's up just 1% on the previous year.

    Sales rose 18% to £1.15bn.