Newsnight business editor Helen Thomas tweets:

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"This is a sensible way forward," says BT chief executive Gavin Patterson on Today.

He rejects Dido Harding's suggestion that the existing arrangement benefits BT. "We've certainly not gamed the system," he says, adding that Openreach is "the most regulated market in the world", with prices set by Ofcom.

As for the extra £4bn that the company has allegedly made through Openreach, Mr Patterson says that this is because they have run the subsidiary more efficiently, and that there has been "no incremental benefit" to BT.

In response to the businesses and individuals complaining that they get poor - or no - broadband, the BT boss says: "I completely understand that people see this as a critical service."  

"We accept that we can do better and we stand ready to make investments of £6bn," Mr Patterson adds.

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Dido Harding, the head of BT rival TalkTalk, is on Today. She wanted Openreach to be split off entirely, but says the Ofcom decision is a "step in the right direction". 

However, she says that BT have been "absolutely brilliant at gaming the existing regulatory system" and made "£4bn more than they should have done because functional separation wasn't working".  

"It looks as if it wont be necessary for Openreach to declare what dividend they are paying back to BT Group," Ms Harding adds. 

"The danger is that you create a regime that is so complicated that it actually five steps in the wrong direction."

But Ms Harding stresses that Ofcom "haven't made a decision, they have made a proposal" and encourages everyone "who cares about our broadband future to get engaged" in the upcoming consultation.

Are you a business banking customer of RBS or NatWest and have been sent a letter warning of possible negative interest rates? Get in touch: bizlivepage@bbc.co.uk 

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BP shares are down 1% after reporting a 44% slide in quarterly profit. The oil giant has taken another $2.8bn charge on costs associated with the Deepwater Horizon for the 2010 disaster in the Gulf of Mexico, bringing the total to about $61.6bn (£46.9b), with BP saying it has drawn a line under the payouts. 

Richard Hunter, head of research at Wilson King Investment Management, comments: “The sigh of relief emanating from BP HQ is almost palpable as the Gulf of Mexico spill is finally consigned to the history books.

"This is not to say that the challenges are over, not least of which is an underlying oil price still markedly short of the level which would provide comfort for the company. These two major factors have weighed heavily on refining margins, revenues and profits, whilst BP’s outlook for the third quarter is also guarded. However, there are a number of reasons for optimism.

"The company’s ability to generate cash remains prodigious, its divestment programme and focused cost control are contributing towards a leaner business and its comments on prospects further out are upbeat."

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Listen to Ofcom chief executive Sharon White explain the watchdog's thinking on Openreach:

Jeremy Darroch, chief executive of Sky, responds to the Ofcom announcement:

“Today’s proposal to create a legally separate Openreach is a step in the right direction, although falls short of the full change that would have guaranteed the world-class broadband network customers expect and the UK will need.

"In particular, leaving Openreach’s budget in the hands of BT Group raises significant questions as to whether this will really lead to the fibre investment Britain requires. At the end of the day, Ofcom’s changes will only work if they deliver better outcomes for customers. 

"It’s now important that the changes Ofcom have mandated today are implemented rapidly, fully and without dilution. We are encouraged by Ofcom’s stated commitment and willingness to use its powers to hold BT’s feet to the fire.”

The FTSE 100 is 0.4% higher at 6,738 points, with BT Group jumping 2.5% - possibly a relief rally from investors who had feared Ofcom might try to force it to split off Openreach entirely.

Coming up on Business Live on BBC News Channel and BBC World at 08:30 with Ben Thompson and Aaron Heslehurst:

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A veteran of the Bank of England's interest rate-setting committee, the MPC, wants the Threadneedle St institution to inject stimulus into the economy, after a series of lacklustre post-Brexit business surveys.

The FT reports that Martin Weale's new stance, external "all but guarantees that the central bank will announce a package of stimulus measures to fight a post-referendum downturn at its August 4 meeting".

BT has responded to today’s Openreach announcement:

“We welcome Ofcom's recognition that structural separation would be a disproportionate move. Our proposals provide Ofcom with every benefit they're seeking but without any of the substantial and unavoidable costs associated with legal incorporation. We will continue to engage with them over the coming months.”

Digital and culture minister Matt Hancock tweets: 

Ofcom has examined the structure of Openreach - the division of BT that runs the UK's main telecoms network - because rival phone and broadband companies such as Sky, TalkTalk and Vodafone have long called for a split between BT and Openreach. 

They pay to use the network and have previously complained over poor service and urged the group to replace its ageing network of copper wire. 

It's worth pointing out that the changes Ofcom is proposing will now be subject to a consultation until 4 October.

We'll hear from Gavin Patterson, chief executive of BT, and TalkTalk boss Dido Harding on Radio 4's Today programme shortly after 08:00.

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Liam Fox, the newly appointed trade minister, has been given a somewhat lukewarm post-Brexit reception, external by his counterpart in Washington, Reuters reports.

"As a practical matter, it is not possible to meaningfully advance separate trade and investment negotiations with the United Kingdom until some of the basic issues around the future EU-UK relationship have been worked out," Michael Froman's office said.

During the EU referendum campaign, President Obama had warned that Britain would be at the "back of the queue" for bilateral trade talks with the US.

Lots about this morning - and a bit of corporate news: AB InBev has raised its offer for SABMiller by £1 to £45 following the slide in sterling in the wake of the Brexit vote. 

The Belgium-based brewer of Budweiser and Stella Artois first offered £44 in November and the extra quid now means the bid is worth £79bn.

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MP Frank Field has until this afternoon to apologies to Sir Philip Green or the retail tycoon says he will take legal action against him. Mr Field has said he has no intention of apologising. 

Business editor Simon Jack tells Today Sir Philip's anger is in relation to comparisons made by Mr Field on the Today programme on Monday with Robert Maxwell, the former Daily Mirror owner who pilfered money from his company's pension funds in 1991. Sir Philip had not done that, "as we were at pains to point out yesterday morning", Simon says.

Mr Field went "further than the report", he adds.

Today business presenter Dominic O'Connell tweets:

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Ofcom chief executive Sharon White tells Today that while BT recognises the need for reform regarding Openreach, there remains a gap between what Ofcom is proposing and what BT wants. 

The regulator will use its powers to enforce change if needs be, she says.

The charges Ofcom is proposing means the board of Openreach will have to consider the interest of all customers - not just BT.

But will that satisfy the likes of TalkTalk? Ms White says there is now "substantial common ground" between Ofcom's proposals and industry demands. The changes will help get faster, more reliable broadband to more people, she adds.

"We need more fast fibre right to the doorstep," she says. The take-up for fibre in the UK is 2% - the figure in Japan is 70%.

Bookmakers Ladbrokes and Gala Coral must sell about 350 to 400 shops to win clearance for their proposed merger, the Competition and Markets Authority said.

The watchdog said that a tie-up between Britain's second and third-largest bookmakers may give rise to competition issues in 642 local areas. 

The CMA said the sales must be substantially completed before the merger can go ahead. 

Ladbrokes agreed the terms of a £2.3bn merger with Coral in July last year and shareholders backed the deal in November.

Profits at oil giant BP plunged 44% to $720m (£549m) in the second quarter.