Vicki Young
Chief Political Correspondent

Image source, Getty Images

Downing Street says today's report into BHS is "clearly concerning" and Prime Minister Theresa May has already set out the need to "tackle corporate irresponsibility" and "prevent reckless behaviour".

Her spokesperson said it was right to look carefully at the report and added that there was a need to "reform capitalism to make sure it works for everyone, not just the privileged few". 

Mrs May is in Belfast today to meet Northern Ireland's leaders.

Simon Jack
BBC Business Editor

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The report on the demise of BHS would make a decent script for a mini-series. Titled "The Unacceptable Face of Capitalism", it would have a cast of colourful characters in an epic tale of greed starring Sir Philip Green.

Read more from Simon here.

Assistant political editor tweets about prospective Labour leader Owen Smith:

The demise of BHS has a silver lining for some, as Telegraph retail correspondent Ashley Armstrong tweets:

Personal finance reporter Kevin Peachey tweets:

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British manufacturing order books fell in July and expectations for the next three months were at their lowest since December as Brexit hit business confidence, a new survey showed. 

The CBI's monthly total order book balance from its monthly industrial trends survey fell to minus 4 in July from minus 2, while a measure of output over the next three months fell to 6 in July from 23 in June. 

Quarterly business optimism balance plummeted to minus 47 from minus 5, the lowest since January 2009 - around the depths of the financial crisis.

Rain Newton-Smith, CBI chief economist, said: "It's clear that a cloud of uncertainty is hovering over industry, post-Brexit. We see this in weak expectations for new orders, a sharp fall in optimism and a scaling back of investment plans."

Image source, Getty Images

The Donna Karan and DKNY fashion brands will be taken over by G-III Holdings, which also owns the Calvin Klein and Tommy Hilfiger labels.

French luxury giant LVMH said it was selling, external the clothing company, founded by New York designer Donna Karan in the 1980s, for $650m (£494m). 

The deal is expected to be completed by early 2017.

Markets reporter at the Wall Street Journal tweets:

The report to which Mike refers is the monthly Ifo business survey. The institute's president, Dr Clemens Fuest, said the following:

BBC Business Live

Image source, Ryanair

Ryanair says it will "focus more" on growing at its EU airports, rather than its hubs in the UK, following Brexit.

The Irish airline - which is also the biggest in the UK - had campaigned for a 'Remain' vote.

The company made the remarks as it published rather modest first-quarter results, with post tax profits rising 4%.

Boss Michael O’Leary blamed "on-going market volatility arising from terrorist events" and air traffic control strikes in France and elsewhere.

Speaking to Business Live, Neil Sorahan, Ryanair's chief financial officer said "the kind of growth rate that we would have planned for the UK will slow down somewhat"

He added that the airline would be "reducing frequencies on a number of the different routes out of Stansted over the winter”.

Newsnight's editor tweets:

The BBC's Joe Lynam has been doing some top-notch yachting research:

Clue: It's in the Med...

Image source, Vessel Finder

This is what the Business Department has to say in response to the BHS report: 

“This case shows why the Government is determined to tackle corporate irresponsibility and reform capitalism so it works for everyone - not just the privileged few.

"Today's report is very concerning, and the Insolvency Service is now carrying out an accelerated investigation. Jobcentres are also standing by to provide support and advice to those who were affected. But in the long run we need to do more to prevent this kind of irresponsible and reckless behaviour."

More from Iain Wright on Victoria Derbyshire:

Victoria Derbyshire

Iain Wright, one of the MPs on the Business select committee, tells Joanna Gosling on the Victoria Derbyshire programme that Sir Philip Green does not deserve his reputation as "king of the high street". BHS lost market share while he owned it and had no real investment or innovation, he argues.

Sir Philip extracted wealth from BHS, did not invest in the pension scheme and left the company unstable, Mr Wright says: "Surprise, surprise - 13 months later it was crashed into a cliff."

Sir Philip needs to get his cheque book out to plug the huge pension fund deficit, he argues. 

The MP is also really proud of the report: "We don't have to spice up any of this - the evidence speaks for itself."

Dominic O'Connell
Business Presenter, BBC Radio 4 Today programme

Image source, Getty Images

As Sir Philip Green sits on his yacht ruminating over his grilling by two select committees, one thought will be running through his mind: betrayal. According to those close to him, Sir Philip feels he has been unfairly singled out over the collapse of BHS - poorly treated by the committees, the professional firms that advised him, the politicians that once sought his company, and in particular the financial media.

In his glory years, when he took a £1bn dividend from his Arcadia empire and narrowly missed out on buying Marks & Spencer, City hacks cheered him to the rafters. Now, they are queuing up to damn him.

Sir Philip thinks the accusations that he and his family profited while pensioners suffered are wrong – but he does admit to one big mistake. By choosing Dominic Chappell, a serial bankrupt with no retail experience, and as the select committee report confirms, no capital, the tycoon chose in his words “the wrong jockey”.

So far, Sir Philip has chosen not to respond to the report’s withering criticism. He is unlikely to stay silent forever. In the medium term, he faces a more pressing question – what to do make good his promise to “sort” the BHS pension. 

In the past he has privately expressed his willingness to make some kind of financial contribution, but is understood to be reluctant to make a payment direct to the Pension Protection Fund (PPF), the lifeboat scheme that is now preparing to take the BHS scheme on board. A payment to the PPF would benefit its coffers, but not lead to improved benefits for BHS pension members.

The sums involved are sizeable. In order to make the good the likely call on the PPF, Sir Philip would have to come up with about £275m. To improve benefits to BHS pensioners (above those guaranteed by the PPF) he would have to pay more. And to insure completely all future payouts, the likely bill would be £571m. That is enough to give anyone pause for thought – even a storied retail tycoon with more than £1bn in the bank.

The Financial Times reports that billions of euros have been pulled out of investment funds, external since the UK voted to leave the EU, although some analysts say this could just be an initial knee-jerk response.

The story also quotes a survey of 45 European fund selectors, showing that "many investors are concerned about whether UK managers will face restrictions when selling funds in Europe once Britain leaves the EU".  

A quick market update just for a change. The FTSE 100 is 0.3% higher at 6,753 points. Housebuilder Taylor Wimpey is leading the risers, up almost 2%, while miners Fresnillo and Randgold are the biggest fallers.

On the mid-cap FTSE 250, William Hill is the biggest riser, up 8.3% following a takeover bid from 888 and Rank Group. The index is 0.6% higher at 17,090 points.

The pound is also up 0.2% against the dollar at $1.3141.

Kevin Peachey
Personal finance reporter

Image source, Getty Images

The Pensions Regulator, which is described as “reactive" and "slow-moving” in the report, has responded, pointing out that its investigation into BHS is ongoing.

Lesley Titcomb, chief executive, said the regulator “is determined to achieve the best possible outcome for members of the BHS pension scheme and PPF levy payers.

“Our anti-avoidance investigation continues and we expect to have made significant progress by the end of this year. Discussions are ongoing with various parties and our focus remains on the members of the BHS pension scheme,” she said.

The regulator has previously said such investigations are complex and can take a considerable amount of time.

Image source, Superyachtfan.com

Steve, a Business Live reader from Wiltshire, has this suggestion:

"Free holidays to BHS ex-employees and pensioners on Lionheart."

That is, of course, the 90 metre (295ft) £100m superyacht that Sir Philip and Lady Green recently took delivery of. It's their third yacht, by the way.

BBC Breakfast

Frank Field, chairman of the Work and Pensions select committee, calls on Prime Minister Theresa May to take action: 

He tells BBC Breakfast: "I cannot believe this plundering of BHS, the vulnerability of staff and pensioners is something she is going to accept. What are the powers we need both to safeguard pensions, past pension promises, but also when people have just raked off huge billions of pounds out of this country, not paid tax on it? What moves might we be able to make to redistribute some of those funds to people who by three-quarters of the way through August will actually not have jobs?" 

The Serious Fraud Office should examine Sir Philip's conduct, Mr Field argues: "At the moment he has got away, maybe not with his knighthood, but he has got away with his billions. He is floating around there out in the Mediterranean and large numbers of people have lost their jobs and other people's pensions are uncertain - that cannot be the status quo that we allow to go forward."