A key regulator has called for immediate action on the
future of cash in the UK.
Charles Randell, who chairs the City regulator the
Financial Conduct Authority, told bankers that “the time to face up to these
issues is now”.
A broad debate including who paid for community banking,
and the closure of branches and ATMs, was needed, he told the UK Finance Retail
Banking Conference in London.
Last week, the Access to Cash Review was published,
concluding that the system underpinning the use of cash in the UK was “falling
apart”.
Morrisons' shares are currently down 1% after today's results, but Hargreaves Lansdown analyst Sophie Lund-Yates believes its full-year results are "good".
"The in-store like-for-like sales growth may not be impressive, but it’s something not all its competitors are managing."
She says the real jewel in Morrison’s crown is its wholesale supply deals with the likes of Amazon and McColl’s - which drove £700m in sales this year.
"That added dough is needed to feed the bottom line, in what has become an increasingly competitive industry.
"Morrison’s lower price point means the rise of Aldi and Lidl is a threat, so it’s important Morrison does what it can to widen its offering," she adds.
No clear 'winners and losers'
Getty ImagesCopyright: Getty Images
The rush to get the no-deal tariff plan out means there has been "no clear thought of likely winners and losers," says Nigel
Driffield, professor of international business at Warwick Business School.
He says leaving the EU this month would leave no time for a cost-benefit analysis.
"Those who have argued
that 'managed no deal' offers certainty could not be further from the truth.
"In trading terms there
can be nothing more uncertain than not knowing ones trading schedule, in terms
of both tariff and non-tariff barriers and other associated frictions," he says.
BreakingSpotify files Apple complaint
Getty ImagesCopyright: Getty Images
Music streaming service Spotify has filed a
complaint with EU antitrust regulators against Apple, claiming the tech giant is unfairly limiting rivals to its own music streaming service.
It says Apple's control of its App store means consumers are being denied choice to the tech giant's own benefit.
Spotify filed its complaint to the European
Commission on Monday.
Key to Spotify's argument is the 30% fee which it says Apple
charges content-based service providers to use Apple's in-app
purchase system.
Online boosts Zara-owner Inditex
Marc AlexCopyright: Marc Alex
Zara-owner Inditex has continued to be boosted by strong online sales growth.
Inditex, which also owns brands including Pull & Bear, Bershka and Massimo Dutti, said revenue from online sales rose 27% last year to €3.2bn.
Overall group sales - including stores - rose 3%, hitting an all-time high of €26.14bn.
Net profit was up 2% to €3.44bn.
Barnier: Risk of no-deal Brexit has 'never been higher'
The EU's chief Brexit negotiator Michel Barnier has been speaking after the vote in the UK parliament yesterday.
He says Jean-Claude Juncker has already made clear there will be no further reassurance offered to the UK.
"We cannot go any further," Mr Barnier says.
Referring to UK ministers, he says: “What will be the clear line that they take?"
He says that an answer to that question is needed before a discussion on extending Article 50.
He adds: "Why would we extend these discussions, because the discussion on Article 50 is done and dusted?”
Concluding, he says the risk of a no-deal Brexit has "never been higher", but this is something the EU is ready for.
PFI consultation
Getty ImagesCopyright: Getty Images
Philip Hammond will use the Spring Statement to launch a consultation into new ways to fund Britain’s infrastructure after axing the Private Finance Initiative.
That's according to the Financial Times, which says the Chancellor will issue a sweeping review of what mechanisms the government could use to bring in private sector funding to build new energy and transport projects in the future.
In the 2018 budget, he had said the government would honour existing PFI contracts but not enter into any new ones.
'Absolutely brutal'
Getty ImagesCopyright: Getty Images
Under the plan, food producers in the Republic of Ireland would not face tariffs for sending their produce to Northern IrelandImage caption: Under the plan, food producers in the Republic of Ireland would not face tariffs for sending their produce to Northern Ireland
This morning's tariff announcement is likely to "strengthen business opposition to a no-deal Brexit", according to The Times.
It has spoken to an unnamed cabinet minister, who describes the changes as "absolutely brutal."
“We haven’t published them before because we had to keep up the pretence that no-deal was still an option, but they show that actually no-deal is catastrophic," they tell the newspaper.
Irish plan 'quite extraordinary'
Getty ImagesCopyright: Getty Images
Under the current proposals, Irish goods entering the Northern Ireland market will not face tariffs in a no deal Brexit.
However, Irish products entering the rest of the UK would face high tariffs on a range of food products.
John Campbell, BBC News NI economics & business editor, says what is being proposed "is quite extraordinary".
"You would have a scenario where if you're a food exporter in the Republic of Ireland and send stuff to Holyhead you will face tariffs, if you send it over the border to Newry you will not face tariffs.
However, you could have the situation where farmers and food producers in Northern Ireland trying to send their stuff in the other direction will face tariffs.
That will be up to the Irish government and the EU to decide.
So it will seriously undermine the competiveness of Northern Ireland farmers".
As we reported earlier, sales of loo rolls and painkillers have risen at Morrisons ahead of Brexit.
Chief executive David Potts said there had been "a recent spike" in sales with "a very small amount of customers buying in".
He said the supermarket is doing its best to prepare for a no-deal Brexit, ensuring it has enough
"cupboard fillers" for shoppers.
'No big changes'
Today Programme
BBC Radio 4
BBCCopyright: BBC
Whilst today's Spring Statement is likely to be overshadowed by Brexit negotiations, the Treasury has confirmed it will still go ahead.
Melanie Baker, senior economist at Royal London Asset Management, says however there will be no big tax and spending announcements.
"That's supposed to be done in the Budget in the autumn. This is a numbers update. It's not the occasion for big changes," she says.
Nonetheless, she says the fact that the public finances are better-than-expected with strong tax revenues and national insurance income gives the chancellor "a bit extra to play with".
Pru's profits rise
PRUDENTIALCopyright: PRUDENTIAL
Prudential has a reported a 6% rise in
2018 operating profit to £4.8bn, driven by its Asian business.
The insurer said it was making "continued
progress" in separating its UK business M&G Prudential through a
stock market listing.
Mike Wells, chief executive, said the separation would "enhance the strategic focus of both businesses".
"In 2018, our financial performance, again led by our Asia operations, is testament to the scale of our opportunity set, the depth of our capabilities and our unrelenting focus on executing our strategy at pace," he said.
CBI's Carolyn Fairbairn interview
Today Programme
BBC Radio 4
If you missed CBI director general Carolyn Fairbairn's interview on Today earlier this morning, don't worry you can catch it now.
"Today's results are testament to the immense progress that the Group has made over the past 18 months, having delivered adjusted profit before tax growth of 82.3% in 2018," said Provident Financial's chief executive Malcolm Le May.
'Unwelcome shock'
Getty ImagesCopyright: Getty Images
The abrupt change would be a shock to many firms, the BCC saysImage caption: The abrupt change would be a shock to many firms, the BCC says
The British Chambers of Commerce (BCC) says the new tariff regime - if it comes into effect - would be "an unwelcome shock" for many firms.
BCC director general Dr
Adam Marshall says the abruptness of changes would create "winners and losers across UK industry overnight".
“While ministers have clearly listened to our arguments and
maintained targeted protection in some areas, overall there has not been enough
consultation, preparation or planning to support the firms and communities that
could find themselves at the end of a sudden shift in tariffs," he adds.
FTSE movers
Standard Life Aberdeen is leading the FTSE 100 risers, up 3.5%.
Morrisons is also higher, up 1.4%, after increasing its dividend.
In the FTSE 250 Provident Financial is among the largest risers, up nearly 3%, after reporting £90m of profit for 2018 after a loss the previous year.
Profits down
PACopyright: PA
Dignity, the only stock market listed funeral company, has reported a 43% fall in annual profits to £40.5m.
"Our surveys demonstrate that the majority of clients assume the funeral industry is regulated, when it is not. Some may assume that they will receive the same quality of service from different operators irrespective of price. They will not".
Northern Ireland welcomes no-deal plan
Getty ImagesCopyright: Getty Images
Northern Ireland has welcomed the government's tariff announcement.
Northern Ireland Secretary Karen Bradley says the no-deal plans "recognise the unique circumstances of Northern
Ireland".
However, she adds: "These arrangements can only be temporary and short term."
Tariffs will be payable on goods moving from the EU into the rest of
the UK via Northern Ireland.
The government insists that this will not create a border down the Irish Sea,
as there will be no checks on goods moving between Northern Ireland and Great
Britain.
Pound rises as market expects UK to avert no deal
Getty ImagesCopyright: Getty Images
The pound is up at $1.3144 against the previous close of $1.3077 as the markets expect the UK to avert a no-deal Brexit.
It has been a volatile week for the currency so far - trading as low as $1.2945 and as high of $1.3290 amid the parliamentary votes on the UK's departure from the EU.
The FTSE 100 is little changed at the open, trading at around 7,139.19 in the first few minutes of trade.
Live Reporting
Bill Wilson
All times stated are UK
Regulator calls for action on cash
Kevin Peachey
Personal finance reporter
A key regulator has called for immediate action on the future of cash in the UK.
Charles Randell, who chairs the City regulator the Financial Conduct Authority, told bankers that “the time to face up to these issues is now”.
A broad debate including who paid for community banking, and the closure of branches and ATMs, was needed, he told the UK Finance Retail Banking Conference in London.
Last week, the Access to Cash Review was published, concluding that the system underpinning the use of cash in the UK was “falling apart”.
Read more on that here
Morrisons: Credit where it's due
Morrisons' shares are currently down 1% after today's results, but Hargreaves Lansdown analyst Sophie Lund-Yates believes its full-year results are "good".
"The in-store like-for-like sales growth may not be impressive, but it’s something not all its competitors are managing."
She says the real jewel in Morrison’s crown is its wholesale supply deals with the likes of Amazon and McColl’s - which drove £700m in sales this year.
"That added dough is needed to feed the bottom line, in what has become an increasingly competitive industry.
"Morrison’s lower price point means the rise of Aldi and Lidl is a threat, so it’s important Morrison does what it can to widen its offering," she adds.
No clear 'winners and losers'
The rush to get the no-deal tariff plan out means there has been "no clear thought of likely winners and losers," says Nigel Driffield, professor of international business at Warwick Business School.
He says leaving the EU this month would leave no time for a cost-benefit analysis.
"Those who have argued that 'managed no deal' offers certainty could not be further from the truth.
"In trading terms there can be nothing more uncertain than not knowing ones trading schedule, in terms of both tariff and non-tariff barriers and other associated frictions," he says.
BreakingSpotify files Apple complaint
Music streaming service Spotify has filed a complaint with EU antitrust regulators against Apple, claiming the tech giant is unfairly limiting rivals to its own music streaming service.
It says Apple's control of its App store means consumers are being denied choice to the tech giant's own benefit.
Spotify filed its complaint to the European Commission on Monday.
Key to Spotify's argument is the 30% fee which it says Apple charges content-based service providers to use Apple's in-app purchase system.
Online boosts Zara-owner Inditex
Zara-owner Inditex has continued to be boosted by strong online sales growth.
Inditex, which also owns brands including Pull & Bear, Bershka and Massimo Dutti, said revenue from online sales rose 27% last year to €3.2bn.
Overall group sales - including stores - rose 3%, hitting an all-time high of €26.14bn.
Net profit was up 2% to €3.44bn.
Barnier: Risk of no-deal Brexit has 'never been higher'
European Parliament
Strasbourg
The EU's chief Brexit negotiator Michel Barnier has been speaking after the vote in the UK parliament yesterday.
He says Jean-Claude Juncker has already made clear there will be no further reassurance offered to the UK.
"We cannot go any further," Mr Barnier says.
Referring to UK ministers, he says: “What will be the clear line that they take?"
He says that an answer to that question is needed before a discussion on extending Article 50.
He adds: "Why would we extend these discussions, because the discussion on Article 50 is done and dusted?”
Concluding, he says the risk of a no-deal Brexit has "never been higher", but this is something the EU is ready for.
PFI consultation
Philip Hammond will use the Spring Statement to launch a consultation into new ways to fund Britain’s infrastructure after axing the Private Finance Initiative.
That's according to the Financial Times, which says the Chancellor will issue a sweeping review of what mechanisms the government could use to bring in private sector funding to build new energy and transport projects in the future.
In the 2018 budget, he had said the government would honour existing PFI contracts but not enter into any new ones.
'Absolutely brutal'
This morning's tariff announcement is likely to "strengthen business opposition to a no-deal Brexit", according to The Times.
It has spoken to an unnamed cabinet minister, who describes the changes as "absolutely brutal."
“We haven’t published them before because we had to keep up the pretence that no-deal was still an option, but they show that actually no-deal is catastrophic," they tell the newspaper.
Irish plan 'quite extraordinary'
Under the current proposals, Irish goods entering the Northern Ireland market will not face tariffs in a no deal Brexit.
However, Irish products entering the rest of the UK would face high tariffs on a range of food products.
John Campbell, BBC News NI economics & business editor, says what is being proposed "is quite extraordinary".
"You would have a scenario where if you're a food exporter in the Republic of Ireland and send stuff to Holyhead you will face tariffs, if you send it over the border to Newry you will not face tariffs.
However, you could have the situation where farmers and food producers in Northern Ireland trying to send their stuff in the other direction will face tariffs.
That will be up to the Irish government and the EU to decide.
So it will seriously undermine the competiveness of Northern Ireland farmers".
Read more here
Tariffs in detail
For people with excellent eyesight, here's the no-deal tariff plan in full, courtesy of Sky's outgoing political editor Faisal Islam.
'Cupboard fillers'
As we reported earlier, sales of loo rolls and painkillers have risen at Morrisons ahead of Brexit.
Chief executive David Potts said there had been "a recent spike" in sales with "a very small amount of customers buying in".
He said the supermarket is doing its best to prepare for a no-deal Brexit, ensuring it has enough "cupboard fillers" for shoppers.
'No big changes'
Today Programme
BBC Radio 4
Whilst today's Spring Statement is likely to be overshadowed by Brexit negotiations, the Treasury has confirmed it will still go ahead.
Melanie Baker, senior economist at Royal London Asset Management, says however there will be no big tax and spending announcements.
"That's supposed to be done in the Budget in the autumn. This is a numbers update. It's not the occasion for big changes," she says.
Nonetheless, she says the fact that the public finances are better-than-expected with strong tax revenues and national insurance income gives the chancellor "a bit extra to play with".
Pru's profits rise
Prudential has a reported a 6% rise in 2018 operating profit to £4.8bn, driven by its Asian business.
The insurer said it was making "continued progress" in separating its UK business M&G Prudential through a stock market listing.
Mike Wells, chief executive, said the separation would "enhance the strategic focus of both businesses".
"In 2018, our financial performance, again led by our Asia operations, is testament to the scale of our opportunity set, the depth of our capabilities and our unrelenting focus on executing our strategy at pace," he said.
CBI's Carolyn Fairbairn interview
Today Programme
BBC Radio 4
If you missed CBI director general Carolyn Fairbairn's interview on Today earlier this morning, don't worry you can catch it now.
Here it is in full below:
Profits boost at Provident Financial
Provident Financial, the doorstep lender which is fending off a bid from its former boss John van Kuffeler via Non-Standard Finance, has reported annual profits of £90.7m compared with a £147.9m loss in 2017.
"Today's results are testament to the immense progress that the Group has made over the past 18 months, having delivered adjusted profit before tax growth of 82.3% in 2018," said Provident Financial's chief executive Malcolm Le May.
'Unwelcome shock'
The British Chambers of Commerce (BCC) says the new tariff regime - if it comes into effect - would be "an unwelcome shock" for many firms.
BCC director general Dr Adam Marshall says the abruptness of changes would create "winners and losers across UK industry overnight".
“While ministers have clearly listened to our arguments and maintained targeted protection in some areas, overall there has not been enough consultation, preparation or planning to support the firms and communities that could find themselves at the end of a sudden shift in tariffs," he adds.
FTSE movers
Standard Life Aberdeen is leading the FTSE 100 risers, up 3.5%.
Morrisons is also higher, up 1.4%, after increasing its dividend.
In the FTSE 250 Provident Financial is among the largest risers, up nearly 3%, after reporting £90m of profit for 2018 after a loss the previous year.
Profits down
Dignity, the only stock market listed funeral company, has reported a 43% fall in annual profits to £40.5m.
Mike McCollum, chief executive, said 2019 is likely to mark the start of the Competition and Markets Authority's investigation into the industry.
"Our surveys demonstrate that the majority of clients assume the funeral industry is regulated, when it is not. Some may assume that they will receive the same quality of service from different operators irrespective of price. They will not".
Northern Ireland welcomes no-deal plan
Northern Ireland has welcomed the government's tariff announcement.
Northern Ireland Secretary Karen Bradley says the no-deal plans "recognise the unique circumstances of Northern Ireland".
However, she adds: "These arrangements can only be temporary and short term."
Tariffs will be payable on goods moving from the EU into the rest of the UK via Northern Ireland.
The government insists that this will not create a border down the Irish Sea, as there will be no checks on goods moving between Northern Ireland and Great Britain.
Pound rises as market expects UK to avert no deal
The pound is up at $1.3144 against the previous close of $1.3077 as the markets expect the UK to avert a no-deal Brexit.
It has been a volatile week for the currency so far - trading as low as $1.2945 and as high of $1.3290 amid the parliamentary votes on the UK's departure from the EU.
The FTSE 100 is little changed at the open, trading at around 7,139.19 in the first few minutes of trade.