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You can find the current article at its original source at http://www.theguardian.com/business/live/2016/apr/26/bhs-bosses-blasted-over-administration-bp-profits-slump-business-live
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| Sir Philip Green to be called to face MPs over BHS administration – live updates | Sir Philip Green to be called to face MPs over BHS administration – live updates |
| (35 minutes later) | |
| 4.27pm BST | |
| 16:27 | |
| BHS is not the only corporate problem facing the UK government of course. Steel is still very much on the agenda, and earlier today prime minister David Cameron visited the troubled Port Talbot steel works. The Press Association reports some reaction to the PM turning up: | |
| Dai Bowyer, steelworker and Unite executive committee member, said: “Myself and fellow trade union representatives had a constructive meeting with the Prime Minister where we impressed upon him the need to ensure that UK steelworkers have a level playing field on which to compete with our global competitors. | |
| “This included the need for the Government to go further in tackling sky high energy costs and the dumping of cheap Chinese steel, as well as help with high business rates. | |
| “During the conversation we welcomed the recent commitment by his Government to take a public stake in the UK steel industry, stressing the importance of steel to Britain’s manufacturing base. Clearly impressed by what he saw, we trust that David Cameron will keep his word in doing everything he can to support steel in Port Talbot and the rest of the UK.” | |
| 4.21pm BST | 4.21pm BST |
| 16:21 | 16:21 |
| Only two remaining companies in the US with a AAA rating are $JNJ and $MSFT pic.twitter.com/9bpGgrUYHn | Only two remaining companies in the US with a AAA rating are $JNJ and $MSFT pic.twitter.com/9bpGgrUYHn |
| 4.19pm BST | 4.19pm BST |
| 16:19 | 16:19 |
| Exxon Mobil stripped of AAA rating - S&P | |
| Meanwhile US oil giant Exxon Mobil has had its credit rating cut by Standard & Poor’s to reflect the plunge in crude prices: | |
| #BREAKING: @ExxonMobil credit rating cut to AA+ from AAA by S&P ($XOM had enjoyed the highest rating since 1930) pic.twitter.com/F4NonyoxLD | #BREAKING: @ExxonMobil credit rating cut to AA+ from AAA by S&P ($XOM had enjoyed the highest rating since 1930) pic.twitter.com/F4NonyoxLD |
| Updated | Updated |
| at 4.38pm BST | |
| 4.13pm BST | 4.13pm BST |
| 16:13 | 16:13 |
| Back with the US consumer confidence figures, which come before the latest Federal Reserve decision on Wednesday and Thursday’s US GDP numbers. Dennis de Jong, managing director at UFX.com, said: | Back with the US consumer confidence figures, which come before the latest Federal Reserve decision on Wednesday and Thursday’s US GDP numbers. Dennis de Jong, managing director at UFX.com, said: |
| While remaining steadfast, American consumers don’t appear to be wildly optimistic about the future which will help inform [Fed chair] Yellen and Co.’s decision on interest rates tomorrow. All eyes now turn to the Q1 GDP figures on Thursday, where the first effect of Yellen’s December interest rate rise will be seen. | While remaining steadfast, American consumers don’t appear to be wildly optimistic about the future which will help inform [Fed chair] Yellen and Co.’s decision on interest rates tomorrow. All eyes now turn to the Q1 GDP figures on Thursday, where the first effect of Yellen’s December interest rate rise will be seen. |
| 4.02pm BST | 4.02pm BST |
| 16:02 | 16:02 |
| Conservative MP Richard Fuller, who on Monday described leaving the idea of the taxpayer picking up the bill for the BHS pensions shortfall as “the unacceptable face of capitalism”, has demanded Sir Philip Green clarify his involvement in the demise of the retailer. He said (quotes from PA): | Conservative MP Richard Fuller, who on Monday described leaving the idea of the taxpayer picking up the bill for the BHS pensions shortfall as “the unacceptable face of capitalism”, has demanded Sir Philip Green clarify his involvement in the demise of the retailer. He said (quotes from PA): |
| Green and Arcadia need to put out a statement immediately clarifying their position. He has a responsibility, a duty. | Green and Arcadia need to put out a statement immediately clarifying their position. He has a responsibility, a duty. |
| Arcadia should be made to make public the documents and correspondence between themselves and Retail Acquisitions so that we can ascertain if the correct due diligence was undertaken in terms of there being enough cash left in the business and to cover the pension liability. | Arcadia should be made to make public the documents and correspondence between themselves and Retail Acquisitions so that we can ascertain if the correct due diligence was undertaken in terms of there being enough cash left in the business and to cover the pension liability. |
| If it’s found that the correct due diligence was not undertaken, the Sir Philip will face serious consequences. | If it’s found that the correct due diligence was not undertaken, the Sir Philip will face serious consequences. |
| Updated | Updated |
| at 4.02pm BST | at 4.02pm BST |
| 3.36pm BST | 3.36pm BST |
| 15:36 | 15:36 |
| The Press Association have confirmed that a letter of invitation will soon be winging its way to Sir Philip Green. | The Press Association have confirmed that a letter of invitation will soon be winging its way to Sir Philip Green. |
| Asked whether Sir Philip would be called before the committee, Mr Field told the Press Association: “I am sure he will be invited to give evidence.” | Asked whether Sir Philip would be called before the committee, Mr Field told the Press Association: “I am sure he will be invited to give evidence.” |
| Philip Green asked to appear before cross party committee of MPs to face questions over BHS. - Frank Field. Should be worth watching. | Philip Green asked to appear before cross party committee of MPs to face questions over BHS. - Frank Field. Should be worth watching. |
| 3.15pm BST | 3.15pm BST |
| 15:15 | 15:15 |
| MPs summon Sir Philip Green for questioning | MPs summon Sir Philip Green for questioning |
| Breaking: Sir Philip Green is being called to parliament to be questioned by the Work and Pensions Committee over the collapse of BHS. | Breaking: Sir Philip Green is being called to parliament to be questioned by the Work and Pensions Committee over the collapse of BHS. |
| This follows committee chair Frank Field’s decision to open an inquiry into the impact of BHS’s administration (see earlier post). | This follows committee chair Frank Field’s decision to open an inquiry into the impact of BHS’s administration (see earlier post). |
| They will investigate how BHS’s 571m pension deficit will affect Britain’s Pension Protection Fund, a rescue scheme funded by contributions from other pension pots. | They will investigate how BHS’s 571m pension deficit will affect Britain’s Pension Protection Fund, a rescue scheme funded by contributions from other pension pots. |
| Sir Philip Green to be called before MPs to face questions over collapse of BHS, Work and Pensions Committee Chair, Frank Field says | Sir Philip Green to be called before MPs to face questions over collapse of BHS, Work and Pensions Committee Chair, Frank Field says |
| Updated | Updated |
| at 3.27pm BST | at 3.27pm BST |
| 3.10pm BST | 3.10pm BST |
| 15:10 | 15:10 |
| The Wall Street Journal has a good piece on how many pension funds are struggling right now. | The Wall Street Journal has a good piece on how many pension funds are struggling right now. |
| The Collapse of BHS is a Warning for the U.K’s Faltering Pension Schemes | The Collapse of BHS is a Warning for the U.K’s Faltering Pension Schemes |
| Here’s a flavour: | Here’s a flavour: |
| The problems for BHS’s pension scheme are particularly acute, but it’s not alone by any means. Schemes all across Europe are being squeezed by two pincers: an increasing number of elderly people relative to the working population, and shrinking interest income. | The problems for BHS’s pension scheme are particularly acute, but it’s not alone by any means. Schemes all across Europe are being squeezed by two pincers: an increasing number of elderly people relative to the working population, and shrinking interest income. |
| As long as those two trends continue, BHS isn’t going to be the last company to struggle under the weight of its pension liabilities. | As long as those two trends continue, BHS isn’t going to be the last company to struggle under the weight of its pension liabilities. |
| And this graph underlines why the problem is getting worse: | And this graph underlines why the problem is getting worse: |
| 3.05pm BST | 3.05pm BST |
| 15:05 | 15:05 |
| More disappointing US economic data: | More disappointing US economic data: |
| BREAKING: Consumer confidence hits 94.2 in April, versus 96 estimate https://t.co/UKzx9ZP2s7 | BREAKING: Consumer confidence hits 94.2 in April, versus 96 estimate https://t.co/UKzx9ZP2s7 |
| 2.53pm BST | 2.53pm BST |
| 14:53 | 14:53 |
| Christmas seems to come round earlier every year in the shops. But at BHS’s store in Friars Square, Aylesbury, staff are still trying to shift last year’s stock.... | Christmas seems to come round earlier every year in the shops. But at BHS’s store in Friars Square, Aylesbury, staff are still trying to shift last year’s stock.... |
| End of April & still Christmas items on sale in #BHS - #endofanera? @WHS_Carpet pic.twitter.com/FbCS182k8K | End of April & still Christmas items on sale in #BHS - #endofanera? @WHS_Carpet pic.twitter.com/FbCS182k8K |
| 2.24pm BST | 2.24pm BST |
| 14:24 | 14:24 |
| Michael White: Politicians in thrall to Philip Green | Michael White: Politicians in thrall to Philip Green |
| Back to BHS... and our veteran political commentator Michael White has written about how our elected masters have a blind spot when it comes to business bosses. | Back to BHS... and our veteran political commentator Michael White has written about how our elected masters have a blind spot when it comes to business bosses. |
| Here’s a flavour of his latest Political Briefing. | Here’s a flavour of his latest Political Briefing. |
| BHS paid Phil and Tina [Green] a lot of rent (£11m a year) on its 164 stores. Crafty or what! It’s the same story we heard when the Southern Cross care homes group collapsed in 2011. It had been financially re-engineered after being sold to Blackstone, the US private equity crowd. The homes were sold as a property business, then leased back at high rents by the care business. Together with falling local authority fees for elderly patients – that’s austerity for you – it bust the model. | BHS paid Phil and Tina [Green] a lot of rent (£11m a year) on its 164 stores. Crafty or what! It’s the same story we heard when the Southern Cross care homes group collapsed in 2011. It had been financially re-engineered after being sold to Blackstone, the US private equity crowd. The homes were sold as a property business, then leased back at high rents by the care business. Together with falling local authority fees for elderly patients – that’s austerity for you – it bust the model. |
| The scandal at Boots exposed this month by the Guardian is quite different, but the idea is the same. Sweat the assets while loading the core business with debt, so you can move on and do it again. | The scandal at Boots exposed this month by the Guardian is quite different, but the idea is the same. Sweat the assets while loading the core business with debt, so you can move on and do it again. |
| It’s the task of governments everywhere to hold the line, to see such activities are robustly regulated, their entrepreneurs honoured when they do well by society as well as themselves, jailed if they commit fraud, condemned when their legal manoeuvres are transparently immoral as some of King Phil’s have been – despite protests of injured innocence. | It’s the task of governments everywhere to hold the line, to see such activities are robustly regulated, their entrepreneurs honoured when they do well by society as well as themselves, jailed if they commit fraud, condemned when their legal manoeuvres are transparently immoral as some of King Phil’s have been – despite protests of injured innocence. |
| Alas, Blair gave him the knighthood he wanted for “services to the retail industry”. And David Cameron? After King Phil repaid Labour for its obsequiousness by publicly backing the Tories in 2010, the new PM asked him to review government spending and procurement. Phil reported back that there’s a lot of waste. Angels wept. | Alas, Blair gave him the knighthood he wanted for “services to the retail industry”. And David Cameron? After King Phil repaid Labour for its obsequiousness by publicly backing the Tories in 2010, the new PM asked him to review government spending and procurement. Phil reported back that there’s a lot of waste. Angels wept. |
| Here’s the full piece: | Here’s the full piece: |
| Related: Philip Green: Blair gave him a knighthood, Cameron gave him a job | Related: Philip Green: Blair gave him a knighthood, Cameron gave him a job |
| 2.19pm BST | 2.19pm BST |
| 14:19 | 14:19 |
| The latest economic data from America is a little disappointing, showing that the global economy may be weaker than hoped. | The latest economic data from America is a little disappointing, showing that the global economy may be weaker than hoped. |
| Orders for durable goods, such as computers, kitchen equipment and even aeroplanes, rose by just 0.8% in March after a 3.1% slump in February. Economists expected a 1.8% recovery, so they’re now a little worried. | Orders for durable goods, such as computers, kitchen equipment and even aeroplanes, rose by just 0.8% in March after a 3.1% slump in February. Economists expected a 1.8% recovery, so they’re now a little worried. |
| Separately, US house price growth has cooled to a 5.4% annual rate in February, down from 5.7% in January. | Separately, US house price growth has cooled to a 5.4% annual rate in February, down from 5.7% in January. |
| 1.31pm BST | 1.31pm BST |
| 13:31 | 13:31 |
| Downing Street: Worrying time for BHS staff | Downing Street: Worrying time for BHS staff |
| Prime Minister David Cameron’s official spokeswoman has declined to comment on criticisms of Sir Philip Green: | Prime Minister David Cameron’s official spokeswoman has declined to comment on criticisms of Sir Philip Green: |
| She told today’s Lobby briefing that the government is concentrating on helping BHS staff. | She told today’s Lobby briefing that the government is concentrating on helping BHS staff. |
| I’ve taken the quotes from the Press Association: | I’ve taken the quotes from the Press Association: |
| “It is a worrying time for BHS staff and their families. We have now got the Pensions Protection Fund carrying out an assessment. It’s usual in this type of case for the Insolvency Service to also look into what’s happened. I think we need to let these assessments take place first. | “It is a worrying time for BHS staff and their families. We have now got the Pensions Protection Fund carrying out an assessment. It’s usual in this type of case for the Insolvency Service to also look into what’s happened. I think we need to let these assessments take place first. |
| “We are currently focused on what this means for BHS staff moving forward and what the Government can do to support them.” | “We are currently focused on what this means for BHS staff moving forward and what the Government can do to support them.” |
| 12.52pm BST | 12.52pm BST |
| 12:52 | 12:52 |
| It’s official: high street tailor Austin Reed has followed BHS into administration. | It’s official: high street tailor Austin Reed has followed BHS into administration. |
| The move leaves around 1,100 workers facing redundancy. Administrators are hoping to sell the company as a going concern, so the stores are staying open for now. | The move leaves around 1,100 workers facing redundancy. Administrators are hoping to sell the company as a going concern, so the stores are staying open for now. |
| Here’s the full story: | Here’s the full story: |
| Related: Upmarket tailor Austin Reed goes into administration | Related: Upmarket tailor Austin Reed goes into administration |
| The company is offering some chunky discounts today.... | The company is offering some chunky discounts today.... |
| "Shop before it's too late", says Austin Reed's website https://t.co/ROxdHlGBh6 pic.twitter.com/kT98WB9c3n | "Shop before it's too late", says Austin Reed's website https://t.co/ROxdHlGBh6 pic.twitter.com/kT98WB9c3n |