The Business: Tuesday June 3 2014

Company news, markets and financial talking points, available from 8am Monday to Friday

AIRLINES ‘MAKE JUST £3.50 PER PASSENGER’

The average profit per traveller made by airlines will be less than £3.50 this year, says an industry body. The International Air and Transport Association said that although airline companies are set to record combined net profits of £10.8bm in 2014, massive overheads will drastically diminish returns. “The brutal economic reality is on revenues of $746bn (£445bn) we will earn an average net margin of just 2.4%,” said a spokesman.

BRUSSELS TELLS UK TO CHANGE ECONOMIC PLAN

It’s time to tear up your economic policy – that was the message Brussels delivered to David Cameron yesterday. The EU has urged the British government to raise taxes, rein in the Help to Buy scheme, and provide more affordable childcare. Officials in Brussels also suggested that Britain launch new land and property taxes to “alleviate distortions in the housing market” here. The recommendations come days after Ukip’s success at the polls highlighted unease over the powers of the commission.

‘POWERFUL’ CYBER ATTACK DUE IN WEEKS

A major cyber attack which could see hackers steal financial data is expected in the next two weeks, reports Sky News. The FBI is working with British investigators to trace the criminals behind the planned attack. Up to a million computers have already been infected by software that steals bank details and demands a ransom. The National Crime Agency (NCA) is now warning of a new "powerful computer attack".

OSBORNE TO REGULATE FX MARKET

George Osborne is set to regulate the FX market, says the BBC. Following allegations of abuse and manipulation, the chancellor is poised to unveil new rules to regulate the £3-trillion-a-day foreign exchange market. The treasury is working with the international Financial Stability Board on a set of regulations aimed at cleaning up the market. London is the biggest market in global foreign exchange with the largest proportion of daily trades.

MANUFACTURING SECTOR REMAINS STRONG

Continued expansion in manufacturing paves the way for mergers and acquisitions, said analysts as the sector rose for the 15th month in a row. The growth was underpinned by healthy domestic and overseas demand, according to survey compiler Markit, which said the comprehensive expansion reflected "stronger economic conditions", as enterprises of all sizes all hired more staff. Markit described May's expansion as "one of the highest readings in the survey's history".

QUOTE OF THE DAY… BA CHIEF ON NON-BITCHING CUSTOMERS

“People buy their products and don't bitch and moan about it.” British Airways chief executive Willie Walsh on why other industries have an advantage when it comes to margins.

BANKER BONUSES REACHED 10% IN 2013

Pay rises for senior bankers reached 10% last year, says the Financial Times. US banks are handing their bosses vastly more generous packages than their European equivalents, broadening the gap between the two territories. Analysis of total pay awarded to the chiefs of 15 lenders, including Goldman Sachs and Lloyds Banking Group, shows they pocketed $13m on average in 2013. In the same year, banks paid record fines for wrongdoing in the US.

THE NUMBERS... AT 0715 BST


FTSE-100: down +0.29 to 6864.10
Dow Jones: up +0.16 to 16743.63
Dax: up +0.07 to 9950.12
Cac-40: down -0.08 to 4515.89
Nikkei: up +2.07 to 14935.92
Hang Seng: up +0.31 to 23081.65
US dollar: buys €0.73510 and £0.59700
Sterling: buys $1.67510 and €1.23130
Oil: $109.41 up -0.0