Business news and markets: live

Unite may consider strike action

08.00 Unite is quick to respond to the Royal Mail with the threat of industrial action if the postal service includes compulsory redundancies.

Brian Scott, Unite's Royal Mail Officer, says:

First the Government sells off Royal Mail on the cheap and now the newly privatised service is ruthlessly sacrificing jobs.

We do not believe that it's a coincidence that this announcement has been made just before the company prepares to announce its first full set of accounts since privatisation.

For all that Royal Mail managers have been through they do not deserve to be treated in this way.

Unite is demanding a commitment to no compulsory redundancies on fair terms and an effective method for redeployment within the restructured organisation.

If Royal Mail refuse, we will have no alternative than to consider a ballot for industrial action.

Royal Mail to axe 1,60 jobs

07.50 A political storm is brewing this morning as newly-privatised Royal Mail has confirmed plans to cut 1,600 jobs as part of what it calls its "continued efficiency programme".

The postal service says it is commencing a formal consultation with Unite and the Communication Workers' Union on getting rid of 1,600 roles and creating 300 new ones - meaning a net reduction of 1,300 jobs.

Royal Mail says the cuts will mean annual savings of around £50m. Here's Moya Greene, the company's chief executive:

We are continuously improving our efficiency, whilst maintaining our high Quality of Service. We need to do so in order to effectively compete in the letters and parcels markets. This is the best way to ensure the continued delivery of the Universal Service and the good quality jobs we provide for our people.

Today's business stories

07.40 Here's what's leading our business pages this morning

• Harry Wilson writes that an IPO of the Co-op Bank is "way off" after it appealed to shareholders in a £400m cash call .

• Ambrose Evans-Pritchard reports on the prospect of capital controls in Russia after a capital flight of $70bn

• And Jeremy Warner argues that the economic recovery is

Here's the front page of today's Business section:

Good morning

07.30 Good morning and welcome to our daily business and markets live blog, your one stop shop for all the breaking business stories of the day.

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