The Business: Thursday June 5 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
Top banks may have underpaid compensation for mis-sold Payment Protection Insurance by up to £1bn, says the BBC. The customers potentially affected by the shortfall had PPI on credit cards issued by Lloyds Banking Group, Barclays, MBNA and Capital One. All the lenders claim they make every effort to pay the correct level of compensation. But one customer told the BBC of the allegation: "That's almost robbery, isn't it? They should be fined big time."
Tesco boss Philip Clarke says he will not resign, despite presiding over the worst sales performance for 40 years. The supermarket chain said that like-for-like sales fell by 3.7% in the three months to May 25. Analysts at HSBC said the sink in sales is equivalent to £1.74bn of lost revenues. After the news broke, Clarke said: “I have never been more determined. I’m not going anywhere. I am going to see through a fundamental reshaping of Tesco.”
President of the European Central Bank, Mario Draghi, will launch a last-ditch stimulus plan today to try and save the eurozone from the brink of catastrophe. His move follows news of weakening business activity which analysts say has driven the “final nail in the coffin” for recovery. Draghi will unveil his plans today, which are rumoured to include quantitative easing, negative rates on bank deposits and a state-subsidised scheme to incentivise credit.
The Office for National Statistics claims it has proven a link between wealth and income. An ONS survey found that on average, the poorest fifth of British households rated their life satisfaction at 6.9 on a scale of 0 to 10, while the richest fifth rated their life satisfaction at an average of 7.7. "As household income increases, life satisfaction and happiness rise, while anxiety falls," said an ONS spokesperson.
“But is Mr Clarke the right man to get on the front foot? Not on current evidence. Or his cheesed-off demeanour.” Alistair Osborne, of The Times, wonders if Tesco grande fromage is the man for the job.
The revenue of Premier League football clubs passed the £3bn mark last season, say Deloitte analysts. This means revenues have doubled in the last seven years. Dan Jones, head of Deloitte's sports team, described the milestone as: “A remarkable achievement in isolation, but phenomenal in the wider economic context of that same period.” The war between BSkyB and BT Sport is a major driver in the upward trajectory of revenue.
FTSE-100: down -0.26 to 6818.63
Dow Jones: up +0.09 to 16737.53
Dax: up +0.07 to 9926.67
Cac-40: down -0.06 to 4501.00
Nikkei: down -0.04 to 15062.43
Hang Seng: down -0.31 to 23078.86
US dollar: buys €0.73470 and £0.59690
Sterling: buys $1.67510 and €1.23080
Oil: $108.35 down -1.0