BT claims Labour nationalisation plan would cost up to £100bn - business live
Rolling coverage of the latest economic and financial news, including reaction to Labour's pledge to bring BT under partial state ownership if elected
- Shadow chancellor details Openreach plans
- Rival TalkTalk stalls sale of fibre arm amid Labour pledge
- Full story: Labour pledges free broadband for all homes and firms in UK
3.01pm GMT
Time for a recap of the reaction to Labour's divisive broadband pledge:
2.34pm GMT
The main US markets have opened and all three have hit new record highs:
2.25pm GMT
DATA ALERT: US industrial output contracted -0.8% in October.
That's a larger contraction than was forecasted by analysts, who were expecting a -0.4% drop. It is also worse than September's -0.3% fall.
2.19pm GMT
NEWSFLASH: Engineering firm Babcock have been awarded the contract to build to the next fleet of warships for the UK defence ministry.
It will be working on a fleet of five ships for the Royal Navy at its Rosyth facility, at an average cost of 250m each.
1.58pm GMT
Analysts from investment bank Jefferies say BT could launch a legal challenge if Labour attempts to nationalise part of the business.
In a nationalisation scenario, we understand that BT's most effective legal recourse might be to defend shareholder value, not attempt to block government policy.
The UK has bilateral investment treaties with countries in which overseas BT shareholders are located, and these are intended to protect against asset expropriation.
1.36pm GMT
NEWSFLASH: US retail sales rose +0.3% in October.
That is higher than consensus forecasts for a +0.2% rise and an improvement on the -0.3% fall in September.
1.20pm GMT
My colleagues Mark Sweney and Patrick Collinson have put together a comprehensive Q&A on the feasibility of the Labour broadband policy, covering key issues including whether the policy would breach state aid rules:
Could the policy fall foul of policies on state aid?
Related: How feasible is Labour's free broadband plan and part-nationalisation of BT?
12.52pm GMT
BT's share price has been shifting all morning, but its stock is no longer the worst performer on the FTSE 100.
Its shares fell as much as 3% in early trading, hitting lows of about 189p but have slightly recovered.
12.29pm GMT
A Lloyds Banking Group spokesperson has said:
The group welcomes the Court's decision. Throughout this process, the group has sought to act in the interests of our shareholders as a whole.
12.18pm GMT
The Press Association is reporting that shareholders have lost a high court battle over the 2008 takeover of HBOS.
The case was brought by almost 6,000 private investors who claimed they were not provided with the full details about the financial health of HBOS before the deal went through.
#Breaking Lloyds shareholders have lost a multimillion-pound High Court action over the acquisition of HBOS
12.00pm GMT
While the big tech giants will be taxed to help fund the broadband scheme, McDonnell says the cash will actually be funding the infrastructure that their businesses run on:
Yes, tech giants like Google and Facebook will have to pay a bit more for internet connectivity that they all benefit from.
11.54am GMT
Labour's John McDonnell, the shadow chancellor, is back on the telly, giving the next speech at the party's event in Lancaster.
He said the broadband plan would benefit businesses which are both using and developing 5G technologies.
Let's be clear, it's not a return to the 1970s ... This is public ownership of the future.
11.44am GMT
If you prefer to take a listen, ITV have some clips from Corbyn's speech:
The Labour leader confirms that poorly connected areas will be first to benefit from plans to nationalise parts of BT and provide free full-fibre broadband https://t.co/mjI68gHoDz pic.twitter.com/jmLUuXYLm4
Free broadband will fire up our economy and bring 'half a million people back into the workforce', Jeremy Corbyn says https://t.co/mjI68gHoDz pic.twitter.com/4CeKQ6rFwq
"I pay my tax, everybody in this rooms pays their tax... so why do the giant multinationals think they can get away from not paying their fair share?"
Jeremy Corbyn takes aim at corporations for not paying their "fair share" in taxes https://t.co/mjI68gHoDz pic.twitter.com/Oi2IbiWNQu
11.38am GMT
Labour leader Jeremy Corbyn has hailed the party's broadband pledge during a speech in Lancaster.
He said it would just be the next in a string of successful nationalisation of essential services in the UK:
In the 19th century, it was the public water supply and water works...in the 20th century it was our fantastic National Health Service...British Broadband will be our treasured public institution for the 21st century.
11.28am GMT
Britain's leading business lobby group the Confederation of British Industry believes Labour's plan is not the the way to improve broadband across the UK.
Matthew Fell, CBI's Chief UK Policy Director, says:
Fast reliable broadband is an absolute priority for people and firms and does need improving. But Labour's plan is not the way to do it. The roll out of full fibre broadband across the country is underway, and all renationalisation will achieve is to slow down a process that needs speeding up.
It is private sector investment that has driven connectivity, massively widened internet access and put faster speeds within reach for most UK households. This progress will be stopped in its tracks and the bill passed to pensioners and savers.
With so many challenges facing the UK, blinkered ideologies must be left behind and replaced by forward-looking public-private partnerships that deliver rather than delay.
As the scope of Labour's radical re-nationalisation plans expands almost daily, firms around the world lose confidence in the UK as a place to invest safely. Some will be asking if they are next. This threat damages the livelihoods of communities across the country. It's time for all parties to work with business, not against it.
11.05am GMT
My colleague Rajeev Syal has rounded up key comments from shadow chancellor John McDonnell's media tour this morning.
Related: Free broadband essential to make UK competitive, says John McDonnell
It doesn't just have economic benefits. It has environmental benefits in terms of basically people locating in their local towns and not commuting, some people moving into rural and coastal areas as well so they're properly connected, and it has social implications as well.
We will always ensure that we attract the talent that we need.
We're not being unfair to anyone, we're simply saying you make your profits here, on the percentage of the profits you make here, you pay your taxes properly.
We'll come to an agreement with them, either an agreement of access arrangements or working alongside us, or, yes, if necessary they can then come within the ambit of British Broadband itself.
10.41am GMT
BT competitor Virgin Media has weighed in.
It's taken a subtle swipe at nationalisation proposals, saying that private - not public - investment is to thank for its own growth and success.
Virgin Media has the fastest scaled network in the UK and has pledged to bring next-generation Gigabit broadband to half of the UK, by the end of 2021. As this commitment shows, private investment is essential to delivering improved broadband infrastructure.
With billions of pounds worth of private money invested in the UK, Virgin Media continues to expand its network, providing competition and choice to consumers.
10.18am GMT
Amidst the flurry of reaction and commentary to Labour's BT pledge, we've had the final reading of eurozone inflation released this morning.
The 19-country bloc's headline inflation slowed to 0.7% year-on-year in October, from 0.8% in September. That's line with preliminary estimates by Eurostat.
10.08am GMT
NEWSFLASH: In other BT news, the telecoms giant has won the exclusive rights to broadcast all 420 games of the UEFA Champions League, UEFA Europa League and the new UEFA Europa Conference League fora further three seasons.
BT will pay 400m each year for the privilege, but says its financial outlook for 2019/2020 remains unchanged.
9.59am GMT
Unsurprisingly, the prime minister has strongly criticised Labour's pre-election pledge, and made it clear there will be no similar efforts by the Tories.
Boris told BBC radio:
What we won't be doing is some crackpot scheme that would involve many, many tens of billions of taxpayers' money nationalising a British business
9.43am GMT
Labour plans to fund the nationalisation by swapping investor shares for UK government bonds.
So who are the lucky shareholders in the running for those gilts?
9.33am GMT
Labour has said web companies like Amazon, Facebook and Google, would foot the bill for the nationalised British broadband company's annual maintenance costs.
The party estimates those operating costs are about 230m a year.
These companies now have to pay their fair share...no more sweetheart deals.
Related: Labour pledges free broadband for all homes and firms in UK
9.15am GMT
Investors are considering which other UK firms could be candidates for nationalisation.
Some of the names being bandied around include Royal Mail (privatised fully by 2015) and Royal Bank of Scotland (which is still 62% owned by the government following its bailout in 2008).
BT expressed surprise at last night's announcement having been assured by Labour fairly recently that they weren't being considered as a nationalisation candidate.
With other companies also being told the same thing by the Labour Party, investors will no doubt be looking very carefully at other possible candidates for nationalisation, and whether they need to be concerned.
9.01am GMT
BT rival TalkTalk is holding off on a decision to sell its own infrastructure arm to see how this whole Labour plan pans out.
TalkTalk chief executive Tristia Harrison told Reuters:
Our discussions are very advanced, and yes, the news overnight of course is making everybody in the sector pause and consider.
We were really close, really close, but I think something of this sort that is in the news, obviously everybody is pausing, considering, digesting and working out what it means.
Revealed: The sale of TalkTalk's ultrafast broadband network, FibreNation, to Goldman Sachs-backed rival CityFibre Holdings has been delayed until after next month's general election following Labour's pledge of free broadband for all by 2030. https://t.co/8PSsGQgSol
8.51am GMT
More comments from Labour's shadow chancellor, who is now speaking to Sky News.
He says the Labour pledge to establish a company called British Broadband from nationalising BT's Openreach, follows similar models in countries like South Korea.
That's exactly what pension funds and other shareholders are saying they need at the moment. It will be a good deal.
We can't afford not to do it...we've fallen behind global competitors.
I've been touring around the country and you know even in some of our city areas they're not connected up...this is good for the economy.
8.24am GMT
Speaking to the BBC's Today programme, McDonnell has been clarifying Labour's proposals, including that the part nationalisation would only apply to BT's broadband network operator Openreach.
My colleague Lisa O'Carroll has some of the details:
John McDonnell says Labour is not "taking over all of BT", simply taking over "Openreach".. that's the bit of BT hat maintains the telephone cables, ducts, cabinets and exchange and switches your broadband on or off through telephone cables.. (BT in old money).
McDonnell says it can "come to an agreement" with Virgin, or others who are laying optic fibre.
Radio 4's Justin Webb says "You are effectively closing them down".
McDonnell says no.
Is it money?
We will make sure we have an agreement that allows us with full access rights
8.18am GMT
The reaction trickling out from analysts hasn't been glowing so far.
There are concerns that ongoing efforts by the government and sector regulator Ofcom to incentivise fibre installation by rival operators could all be for naught.
This is a spectacularly bad take by the Labour Party. The almost cut throat competition between broadband rivals has meant faster speeds, improved coverage and lower prices for consumers up and down the country.
The current government, and independent regulator Ofcom, have spent the last three years incentivising alternative operators to BT to deploy faster fibre technologies. Companies such as Virgin, CityFibre and others have committed billions to rival Openreach. Those plans risk being shelved overnight.
8.12am GMT
BT shares have slipped at the UK market open, dropping more than 2%
It makes the telecoms firm one of biggest fallers on the FTSE 100 alongside Berkeley group down 1.7%. Fresnillo down 1.6% and Standard Chartered down 0.6%.
8.02am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Overnight, UK businesses have been digesting Labour's latest election pledge that would result in the part-nationalisation of telecoms giant BT.
These are very, very ambitious ideas and the Conservative Party have their own ambitious idea for full fibre for everyone by 2025 and how we do it is not straight forward.
It needs funding, it is very big numbers, so we are talking 30 to 40 billion pounds.. and if you are giving it away over an eight year time frame it is a another 30 or 40 billion pounds. You are not short of 100 billion pounds.
Full-fibre broadband has become the latest election battleground. Labour pledges to roll it out nationally for free by part-nationalising BT. But how big could the bill be -
and who'll pay? Today's business from #r4today https://t.co/JiAIhoGnis