Business Live: Tuesday 28 June

BBCCopyright: BBC

The BBC's Shilpa Kannan was given a first look at a smartphone costing less than £3, set to launch in India next week. 

Freedom 251 is an Android phone advertised by the Indian company Ringing Bells at 251 rupees (£2.77).

In the hand, it feels somewhat like Apple's iPhone 5, says our correspondent. Read more here

APCopyright: AP

Wall Street recouped some losses on Tuesday - following on from gains seen in Europe earlier. 

Investors were grabbing the opportunity to buy up sales which have fallen sharply in value since the Brexit vote last week. 

The Dow Jones closed up 1.57% at 17,409.72.

Nasdaq was up 2.12% at 4,691.87.

And the S&P 500 ended at 2,036.09 - a rise of 1.78%.

 "After a few days of a lot of volatility, it looks like we have found some stability," said TD Securities' European Head of Currency Strategy Ned Rumpeltin. 

But Paul Nolte, portfolio manager at Kingsview Asset Management said he thought it was a "short-lived rally".

Moody's cut its outlook on the UK banking system to 'negative' from 'stable' on Tuesday, following the the referendum vote in favour of Brexit. 

Moody's also cut the outlooks on the ratings of 12 UK banks and building societies, citing reduced profitability after the referendum vote. 

Barclays, Lloyds Banking Group and Santander were among the banks downgraded by Moody's. 

"We expect lower economic growth and heightened uncertainty over the UK's future trade relationship with the EU to lead to reduced demand for credit, higher credit losses and more volatile wholesale funding conditions for UK financial institutions," Moody's said in a statement. 

Moody's changed the outlooks on the ratings of eight banks and building societies to negative from stable - Barclays, HSBC Bank, Santander UK, Coventry Building Society, Leeds Building Society, Nationwide Building Society, Nottingham Building Society and TSB Bank), and the outlooks on the ratings of two issuers to stable from positive -  Lloyds Bank and Principality Building Society. 

Moody's also changed the outlook on the UK government guaranteed senior unsecured debt instruments to negative from stable of the aforementioned issuers, Lloyds and Barclays, as well as Bradford & Bingley and NRAM (No1) Ltd.  

However, the credit rating agency affirmed the credit rating of these 10 banks - along with Bradford and Bingley and NRAM.

It also affirmed the rating of four UK banks and building societies, whose outlooks were maintained - The Royal Bank of Scotland Group, Skipton Building Society, West Bromwich Building Society and Yorkshire Building Societ. 

Moody's said it believed that the potential impact of the referendum result on these institutions is outweighed by more firm-specific credit considerations.

BBCCopyright: BBC

Douglas Carswell is UKIP's only MP.

He said there was no going back on the referendum result.

Quote Message: I'm not gonna choose who the next Prime Minister is but you can bet one thing. I will do everything I can to make sure that the next Prime Minister honours the promise to the British people. We need to be sensible about this. We need to proceed on the basis of goodwill. But we are leaving the European Union, make no mistake about that. from Douglas Carswell UKIP MP

I'm not gonna choose who the next Prime Minister is but you can bet one thing. I will do everything I can to make sure that the next Prime Minister honours the promise to the British people. We need to be sensible about this. We need to proceed on the basis of goodwill. But we are leaving the European Union, make no mistake about that.

ReutersCopyright: Reuters

Tens of thousands of people have been demonstrating again in France against plans by the Socialist government to reform the country's labour laws, reports BBC World Service.

Police officers were called in to maintain law and order in Paris, after previous demonstrations turned violent. There were 30 arrests. 

The unions, who have organised eleven protests in three months in Paris say they have no intention of giving up the fight.

The proposed law would make it slightly easier for companies to regulate their own working hours and overtime rates.

CBI director general Carolyn Fairbairn was one of the business leaders who attended today's meeting with Business Secretary Sajid Javid. 

For the past three days the CBI has been consulting CBI member firms, of all sizes, in every sector and region.

Quote Message: The UK has a long history of being an open and collaborative trading nation and that must continue. The Government must communicate and demonstrate that the UK is open for business and investment, including by keeping critical infrastructure projects and spending decisions on track. We must give urgent long-term reassurance to the thousands of EU migrants already working in the UK that they can stay here. A visible commitment to openness must be at the heart of our new relationship with the EU. In practice this means tariff and barrier free access to the single market; maintaining trade deals around the world; attracting and keeping skills; and working out the trade-offs between these three. from Carolyn Fairbairn CBI director general

The UK has a long history of being an open and collaborative trading nation and that must continue. The Government must communicate and demonstrate that the UK is open for business and investment, including by keeping critical infrastructure projects and spending decisions on track. We must give urgent long-term reassurance to the thousands of EU migrants already working in the UK that they can stay here. A visible commitment to openness must be at the heart of our new relationship with the EU. In practice this means tariff and barrier free access to the single market; maintaining trade deals around the world; attracting and keeping skills; and working out the trade-offs between these three.

More on the Vodafone story - and the company's statement points out that the "very large majority of our 462 million customers, 108,000 employees and 15,000 suppliers are based outside the UK".

It goes on to say: "The UK's membership of the European Union has been an important factor in the growth of a company such as Vodafone. Freedom of movement of people, capital and goods are integral to the operation of any pan-European business as are single legal frameworks spanning all Member States. 

"Access to the emerging European digital single market should represent a significant opportunity for the UK, one of the world's leading digital economies."

However, the statement also makes clear that it's too early to make a decision about the future location of the HQ. 

"It remains unclear at this point how many of those positive attributes will remain in place once the process of the UK's exit from the European Union has been completed," it says. 

"It is therefore not yet possible to draw any firm conclusions regarding the long-term location for the headquarters of the Group.

"We will continue to evaluate the situation and will take whatever decisions are appropriate in the interests of our customers, shareholders and employees."

VodafoneCopyright: Vodafone

Vodafone says it could consider moving its HQ out of the UK, according to the Financial Times.

The telecoms company is reportedly considering the move because of the "uncertainty" about how many of the "positive attributes" of being in the EU post Brexit.

Sir Philip's Arcadia group had a meeting with The Pensions Regulator on Monday about plugging the pension deficit, it has emerged. Mr Khan was at the meeting. 

He says the plan is called "Project Atlantic".

Frank Field can't resist having a joke, suggesting the new plan should really be called "Project Tina" as that's where the money to plug the hole will come from. 

Mr Khan is reluctant to talk in detail about the pension deal being worked on for BHS pensioners, but says it's "a work in progress".

The BHS pension scheme deficit of £571m is the most contentious of the issues being investigated by MPs.

Deloitte partner and Sir Philip Green adviser Neville Khan is now in front of the committee. He says descriptions of him in the media as part of Sir Philip's inner circle are incorrect, and that meetings with him were "very sporadic".

"Unless there was  a case that I was involved in I wouldn’t see him from one year to the next. The first engagement I had with him was in 2013," he says.

Paul Sutton claims he was being blackmailed and this is why a dossier about him was sent to Sir Philip Green.

The dossier said he had been found guilty of fraud in France and extradited.

Mr Sutton said that information was incorrect.

However, it was given to Sir Philip and went around BHS before he could do anything about it.

As a result he had to pull out of the BHS deal.  

He said he had a “ campaign” being waged against him.

Paul Sutton, who introduced Dominic Chappell, former owner of BHS, to Sir Philip Green - is also giving evidence to the select committee of MPs. Mr Sutton was also an early bidder for BHS before Mr Chappell entered the fray.

He tells them: “I never thought in a million years he (Dominic Chappell) could run BHS stores.“

PACopyright: PA

"Britain is open for business," Business Secretary Sajid Javid has said. 

He made his remarks in a statement released following a meeting he held with the bosses of big companies and business organisations. 

He added "This government is still 100% committed to making the UK the best place in Europe to start and grow a business.

"This is not the time for hasty decisions that will be regretted later.

"Rather, it is the time for government to work with businesses large and small up and down the country so they don’t just deal with the challenges that the result brings, but are also able to embrace the opportunities that it creates.

"The biggest issue raised was the need to secure continued access to the single market.

"While I’m not in a position to make promises, I assured everyone that my number one priority will be just that in the negotiations to come."