The Business: Monday June 30 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Supermarkets have just five more years as the dominant destination for grocery shoppers, suggests new data from an industry body. IGD predicts that sales from supermarkets and hypermarkets will fall by 4% over the next five years despite a 16% rise in overall grocery sales. This would mean that sales from convenience stores, discounters and the internet will overtake supermarkets and hypermarkets by April 2019.
Interest rates are likely to hit 5% within a decade, says the outgoing Bank of England deputy governor for monetary policy. Sir Charlie Bean claims it is "reasonable" to expect borrowing costs to return to pre-recession levels in the long term – between five and 10 years. He told Sky News: "It might be reasonable to think that in that long term you would go back to 5% but it's probably quite a long way down the road."
The UK is urging the US to overturn a 43-year ban on haggis, a move that could be worth millions to Scottish producers. Environment Secretary Owen Paterson is to lobby US Secretary of Agriculture Tom Vilsack to end to the ban, which began in 1971 as part of an embargo on food containing sheep lung. Sky News says that Paterson hopes the ban can be lifted as part of trade deal negotiations which could be worth £10bn to the British economy overall.
Germany’s finance minister has vowed to keep the UK in the EU. Speaking to the Financial Times, Wolfgang Schäuble said an EU without Britain would be “absolutely not acceptable”. His remarks come after David Cameron and Jean-Claude Juncker’s bridge-building phone call in which the prime minister congratulated the Commission’s president-elect. Juncker told Cameron that he is committed to finding solutions to British political concerns.
“In a boardroom I no longer say ‘You’re wrong mate.’ I now say: ‘That’s an interesting point. Now let’s, for a moment, consider the opposite.’” Former Dragons Den star Richard Farleigh on how he adapted his Aussie manners to English business.
Income tax and national insurance would be merged under plans being lined up for the Conservative Party manifesto, reports The Times. George Osborne came “within a whisker” of introducing the move in the last budget, says a source. Supporters of the reform hope it would remind the public how much tax they contribute. Meanwhile, Ed Balls is to launch a bid to bolster Labour's credibility with business by promising to keep a low rate of corporation tax.
FTSE-100: up +0.34 to 6757.77
Dow Jones: up +0.03 to 16851.84
Dax: up +0.10 to 9815.17
Cac-40: down -0.06 to 4436.99
Nikkei: up +0.26 to 15133.73
Hang Seng: down -0.18 to 23178.82
US dollar: buys €0.73290 and £0.58720
Sterling: buys $1.70280 and €1.24810
Oil: $113.18 down -0.0