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Summary

  1. Trading turns volatile on US markets
  2. FTSE 100 closes 1.21% lower
  3. Asian markets close higher
  4. 'Dire shortage' of housing, Rics warns
  5. Get in touch: bizlivepage@bbc.co.uk

Live Reporting

By Daniel Thomas

All times stated are UK

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Signing off...

Thanks again for reading Business Live, we hope you enjoyed our posts. We'll be back at 6am tomorrow with more on the markets, including results from Tata Steel, Jet Airways and Petrobras. Hope to see you then. 

US markets close after volatile day

The US markets have closed after a volatile day of trading linked to lingering nerves about Donald Trump's election win. 

After hitting a new record intra-day high, the Dow Jones closed at 18,807.88 points, up 1.17%. The S&P 500 finished 0.20% higher at 2,167.48 after shedding earlier gains.

And the tech-heavy Nasdaq was down 0.81% at 5,208.80 points, having spent much of the day in negative territory.

"Equities are adjusting to change and uncertainty with a Trump presidency," Terry Sandven, chief equity strategist at US Bank Wealth Management said. "There still needs to be more clarity and that's going to impact equity prices."  

Alibaba's 11.11 sale gets bigger...

Daniel Craig and Jack Ma
Getty Images
Last year, James Bond star Daniel Craig joined Alibaba chairman Jack Ma at the 11.11 event

Alibaba's 11.11 sale or 'Singles Day' - the world's largest online shopping event by some estimations - is underway in China.

According to the online retailer, more than US$7bn sales were settled through its platform in the first two hours of the event, which kicked off at midnight China time. 

Chinese consumers also bought more in the first hour of the event this year than in the entire 24 hours back in 2013, it added. 

The firm said tens of thousands of merchants were taking part, along with "millions" of buyers.

Was it Facebook 'wot won it'?

Facebook users
Getty Images

Did Facebook help Donald Trump win yesterday's US election? In this fascinating blog, BBC technology correspondent Rory Cellan-Jones suggests it might have. 

The issue centres around how the social network presents news articles to users. In short, its News Feed algorithm serves you up stories that are geared towards your personal beliefs - and it does nothing to make sure those stories contain a balance of views or are factually correct. 

As a result, stories that accused the Clintons of murder or maintained that Barack Obama was a Muslim will have cropped up in the feeds of millions of people inclined to support Mr Trump during the election campaign.

It's also worth remembering that of the 156 million Facebook members in the US, two-thirds get news via the platform.

Clark warns energy firms about unfair practices

John Moylan

BBC industry & employment correspondent

Greg Clark
Getty Images

Business Secretary Greg Clark had a warning for energy suppliers at the Energy UK annual conference today. 

He said the competition regulator's energy investigation had found a £1bn detriment to consumers. He described that as a challenge to policy makers that has to be addressed.

At issue is the 70% of households that don't switch supplier and remain on expensive standard variable tariffs which can be £300 more expensive than the cheapest deals. 

He said the challenge for the industry is that it understands the requirement to treat all customers fairly. 

Some here fear the government will intervene in the energy market to address this. That doesn't seem likely in the short term. 

But if the big suppliers don't act voluntarily to address the differentials between their standard tariffs and the cheapest deals, it's possible that longer term the government will.

Donald's Keynesian economics

From World Business report...

Predicting Donald Trump's economic strategy is testing financial analysts.

Donald Trump's election victory surprised many, but will his economic strategy to boost the US economy also be hard to predict before he takes over the leadership in Washington?

The president-elect's plan to create more American jobs by investing in infrastructure has been tried in the UK decades ago, after it was promoted by the renowned economist John Maynard Keynes.

Roger Bootle, the founder of Capital Economics, tells us more about the influence of Keynesian economics on Donald Trump.

Nissan 'will stay in Sunderland if it is profitable'

Koji Tsuruoka
Getty Images

Nissan intends to stay in Sunderland for as long as it is profitable to do so, Japanese ambassador to the UK Koji Tsuruoka has told the House of Lords EU External Affairs Sub-Committee.

At a hearing yesterday, Mr Tsuruoka said that as he understood it Nissan had no intention of leaving Sunderland any time soon, adding that it was part of Japanese culture to build links in a place of business.

"First and foremost they [Nissan] are part of Sunderland, and in the Japanese culture, when you become part of a town, or part of a community, you don't abruptly break up... They are like family," he said.

However, he added, there was one caveat: "Of course, this is a company that needs to make profits, they have to look into the future... That doesn't mean they will stay forever. It is all subject to the profitability of continuing business."

US banks push Dow towards record high

Goldman Sachs trader
Reuters

The Dow Jones is closing in on a record closing high as we head towards the last hour of trading. 

Top of the leaderboard are Goldman Sachs - up 5.9% - and JP Morgan - rising 4.7%. 

US banks are being seen as some of the likely winners from Donald Trump's presidency. 

Mr Trump's implementation team has promised to dismantle the Dodd-Frank Act, a complex set of regulations put in place after the financial crisis.  

"The Dodd-Frank economy does not work for working people. Bureaucratic red tape and Washington mandates are not the answer," Mr. Trump’s transition team wrote in a brief note on its website.  

Trump jump for the pound?

Donald Trump and Theresa May
Reuters

It's been a good afternoon for the pound. 

While most major currencies are down, sterling has shot up against the dollar and euro to go back above $1.25 and €1.15 for the first time in a month.

Analysts said the pound had been helped by US President-elect Donald Trump inviting Theresa May to Washington "as soon as possible". In a phone call this afternoon, he also stressed the importance of UK/US relations.

Mark Dampier, head of investment research at Hargreaves Lansdown, said some investors were buying the pound on the belief that Mr Trump's good will towards the UK would strengthen its negotiating position on trade deals. 

Ireland looks into export guarantee scheme for Brexit-hit firms

Irish Finance Minister Michael Noonan arrives at government buildings in Dublin
Getty Images

The Irish government may introduce an export guarantee arrangement for Irish industries hit by Britain's vote to leave the European Union, Finance Minister Michael Noonan has said.

The UK is a key trading partner for Ireland's export-focused economy and firms are already suffering after June's vote sent the value of sterling tumbling, prompting calls for the state to guarantee some credit exposures to suppliers.

"We are looking at the possibility of developing an export guarantee arrangement for vulnerable Irish industries and I'd be hoping to make an announcement on that before Christmas," Mr Noonan told parliament.

BreakingUS markets remain volatile

Post-election volatility returned to US markets this afternoon. 

After turning negative this morning, the S&P 500 has regained ground, trading 0.45% higher at 2173.09 points.

The Dow Jones is now 1.16% higher at 18,810.58 while the tech-heavy Nasdaq is still negative - down 0.61% at 5,219.15.

S&P 500
BBC
Dow Jones
BBC
Nasdaq
BBC

Suits you sir

Savile Row
Getty Images

Savile Row, the street famous for its bespoke tailoring, has had its unique status protected by Westminster Council.

Under a new policy, Westminster will be able to reject planning proposals that threaten the character of the street. It follows "intense pressure" from other types of traders to rent in the area, said council deputy leader Robert Davis MBE.

“The 17.5 million people who visit London each year come to experience our capital’s distinctive character. It’s unthinkable that world renowned destinations such as Savile Row, which is synonymous with quality tailoring, could become indistinguishable from any other high street around the world," he said.

Other parts of London to be protected include Mayfair, Harley Street, St James’ and Portland Street.

Driver ditches sponsor over Trump tweet

Sergio Perez
PA

A Mexican Formula One racing driver has dumped one of his sponsors for sending what he called an offensive tweet about Mexico. 

Sergio Perez (pictured) took the decision over a comment made on Twitter by sunglasses-manufacturer Hawker following Donald Trump's victory.

The tweet, which has since been deleted, said: "Mexicans, put on these sunglasses so your eyes don't swell when you are building the wall tomorrow."  

The Force India driver said he "didn't find it funny at all". 

All smiles...

Obama and Trump
BBC

Donald Trump has met President Obama at the White House a day after his stunning election win - and perhaps surprisingly it looks to have gone quite smoothly. 

Mr Obama said they'd had an "excellent" conversation, and he wanted to make Mr Trump feel welcome as he makes the transition to president. 

Interestingly Mr Trump says the pair had never met and that he had "great respect for the president".

"We discussed a lot of different situations, some wonderful, some difficult," he said, adding he would seek Mr Obama's "counsel" in the future. 

Better modelling needed for 'kaleidoscope' economies, says Haldane

Andy Haldane
AP

The Bank of England's chief economist has urged banks to develop more nuanced approaches to modelling, to take account for unpredictable economic events. 

In a lecture he gave at the University of Cambridge, Andy Haldane said: "The global financial crisis is an opportunity... to take uncertainty and disequilibrium seriously, to make the heterodox orthodox."

He said that George Shackle, a British economist active in the decades after World War Two, had described the economy as "a kaleidoscope, a collision of colours subject to ongoing, rapid and radical change". 

But he added, "Many of our existing techniques for modelling and measuring the economy invoke a rather different metaphor, with the economy a rather colourless, inanimate rocking horse."

Mr Haldane said "agent-based models", which economists had used as far back as the 1960s to study racial segregation in the US housing market, offered a way forward. 

Congress will provide Trump 'checks and balances'

House of Representatives
Getty Images

Dan North, chief economist at insurance giant Euler Hermes, North America, has shared his thoughts on the president-elect.

He suggests fears a Trump administration will wreck the US economy have been overplayed. 

“While Republicans maintained majorities in both the House and the Senate, Trump will still face significant hurdles implementing some of his proposals. Virtually all Democrats in Congress are likely to oppose him on many proposals, and a significant number of Republicans still disapprove of him and his ideas, potentially forming a voting block against him," he says.

“The economic effects of his election will likely include an increased deficit due to stimulus measures of lower taxes and more spending, and a significant risk to growth from anti-trade policies. However the removal of uncertainty could spur consumer confidence and spending, and may give businesses the confidence to resume investment."

Rubik's Cube shape not a trademark, rules top EU court

Rubiks Cube
BBC

The shape of multicoloured three-dimensional puzzle Rubik's Cube is not a trademark, the European Court of Justice has ruled.

It means the shape of the cube alone is not enough to protect it from being copied.

UK company Seven Towns, which manages Rubik's Cube's intellectual property rights, registered its shape as a trademark in the 1990s.

But German firm Simba Toys challenged the trademark protection in 2006.

Read more

FTSE 100 closes lower

London Stock Exchange
Getty Images

The FTSE 100 has closed lower after a volatile trading day in which earlier gains evaporated. 

The benchmark index settled at 6,827.98 points, down by 83.86 points or 1.21%.

The worst performers were private hospital group Mediclinic International, down 15.65%, and miners Fresnillo and Randgold - down 11.01% and 10.26% respectively. 

But Antofagasta, another miner, climbed 11.46% and insurer the Prudential was up 7.4%.

Could UK government take action against energy firms?

John Moylan

BBC industry & employment correspondent

Gas bill
Getty Images

Is the government considering intervening in the energy market just months after the end of the CMA's two-year probe into the industry? At the Energy UK annual conference some think the government could use the Autumn Statement to put pressure on the Big Six suppliers over bills. 

The concern is the 70% of households that don't switch supplier and are on standard variable tariffs which are often up to £300 per year more than fixed-price deals. The Business and Energy Secretary Greg Clark is due here shortly. He'll tell the industry that they “must all realise that you have responsibilities to your customers. That means treating them fairly. We cannot have companies that exploit the loyalty of their customers."

Expect more volatility...

After world markets rallied earlier today, US stocks have pared their gains and the FTSE 100 has turned negative. David Cheetham of XTB says further fluctuations are inevitable. 

After rallying out the gate and posting an intra-day record high, US stocks have seen some fairly strong selling in the past hour. The market remains on tenterhooks and highly sensitive following Trump's victory and heightened volatility seems likely to remain for the time being. The gyrations from across the Atlantic are being keenly felt in London with the FTSE falling lower into the close to trade down by over 80 points after being up by 60 this morning. The markets are seemingly still trying to second guess what the unpredictable Trump's tenure will mean for stocks, and until traders come closer to a consensus these wild swings that are normally seen every week or so could become daily occurrences.

David CheethamMarket analyst at XTB

Nasdaq tech stocks slip

After a strong start the tech-heavy Nasdaq index is down by 1.34%.  

Interestingly, some of the biggest fallers are firms that opposed a Trump win and had risen well in the run-up to the election.

View more on twitter
View more on twitter

Mexican peso continues to slide

US dollars, Mexican pesos
Getty Images

The Mexican peso fell by as much as 13.4% yesterday and continues to fall today.

The currency was down more than 3% in morning trade, at $0.049, as investors continue to bet against the country following Donald Trump's election. 

The president-elect has promised to tear up trade agreements and build a wall between the two countries to reduce illegal immigration. 

BreakingUS stocks pare early gains

After a strong start US stocks have begun to lose momentum.

The S&P is now down 0.09%, the Nasdaq is down 0.47% and the Dow has pared early gains to trade 0.67% higher. 

Mixed messages from China on Trump

Chinese newspapers
Getty Images

There have been mixed messages coming out of China today about Donald Trump's victory.

The state-backed Xinhua News Agency warned the US not to embrace isolationist policies, claiming they had "accelerated the country's economic crisis" during the Great Depression of the 20s and 30s.

But separately, China's ministry of commerce said a stable China-US trade relationship was in the interests of both countries.

"The two countries' common interests outweigh the differences, and deepening their win-win cooperation is the shared desire of the business community in both countries," said spokesman Shen Danyang at a press conference.

China shares hit 10-month high

Shanghai trader
Getty Images

There have been warnings that China could suffer if Donald Trump pursues protectionist trade policies - but investors seemed unfazed today.

Earlier, the benchmark Shanghai Composite Index hit its highest level since 8 January, closing up 1.4% at 3,171.28 points. The blue-chip CSI 300 index also rose, by 1.1% to 3,390.61 points.

It comes after markets across the world rallied today, as trepidation over Donald Trump's victory gave way to enthusiasm about his plans to boost the US economy. 

BreakingDow Jones hits record high

The Dow Jones is now trading 0.93% higher at 18,762.92 points, an all time intra-day high. 

Banks are doing particularly well on the back of Mr Trump's promises to scrap regulation brought in under President Obama.  

JP Morgan Chase & Co is up 3.21% and Goldman Sachs Group is up 1.85%.

Miners and pharma companies are also rising, again buoyed by the prospect of a Trump presidency. 

BreakingUS markets open higher

Wall Street sign
Getty Images

US markets have continued to rise, defying fears of a slowdown following Mr Trump's election. 

In the opening minutes of trade, the Dow Jones was 0.67% higher at 18,714.22 points, the S&P 500 was up 0.53% at 2,174.79 and the Nasdaq was up 0.55% at 5,279.99.

FTSE gives up gains

FTSE chart
BBC

The FTSE 100 has slid into negative territory after getting off to a buoyant start. It's now down 0.4% at 6,885.85.

Mark Dampier, an analyst at Hargreaves Lansdown, said some investors were taking profits after yesterday's Trump-inspired surge.

However, he said the volatility was likely to continue as markets digest what a Donald Trump presidency might mean.

BreakingGoogle hits back over Android

Google phone
Getty Images

Google has rejected EU allegations that it abused the market dominance of its hugely successful Android mobile phone operating system.

"Android hasn't hurt competition, it's expanded it," said Kent Walker, senior vice-president and general counsel at Google, in a blog. 

Good afternoon

Dan Thomas

Business reporter

Thanks to Dearbail and Chris for this morning's coverage of today's market machinations - Dan Thomas here to take you through the rest of the day.

I'll be keeping a close eye on how Wall Street performs when it opens in less than half an hour - and whether the FTSE can turn positive before the day is over.

Get in touch with your thoughts: bizlivepage@bbc.co.uk

Yahoo knew of 'state-backed' hack in 2014

Yahoo
Getty Images

Yahoo has confirmed that it knew for two years that a "state-sponsored actor" had hacked into its network.

It added that a panel of independent experts is now investigating exactly how much was known and by whom.

When Yahoo first disclosed the theft of millions of its users' details in September, it only made mention of a "recent investigation".

At the time, Verizon - which is buying part of Yahoo - said it had only been told of the breach the same week.

Read more here.

Mediclinic shares in A&E

Bit of a bad day for FTSE 100 member Mediclinic International - South Africa's biggest private hospital group that also has operations in Switzerland, the UAE and a big stake in the UK's Spire Healthcare.

Despite operating profit rising 10% to £169m and revenue up 28% to £1.28bn, investors have called for the doctor, sending shares down almost 14%. 

It seems they don't like the 26% slide in the earnings per share measure, which has come about from the shares Mediclinic issued last year to buy Al Noor Hospitals business in the UAE.   

The shares have fallen 28% this year, leaving the company worth about £5.8bn.

Inflation to include house costs

Simon Gompertz

Personal Finance Correspondent

For sale signs
Getty Images

The Office for National Statistics plans to introduce a new measure of inflation that includes housing costs. 

Currently the Consumer Price Index (CPI) measure includes the cost of running a home, but not other expenditure incurred by property owners.

CPIH will cover the "costs of housing services associated with owning, maintaining and living in one's own home".

The measure is set to become the preferred measure of inflation from March.   

'The world was going nuts'

Carl Icahn
Getty Images

How the other half live: billionaire investor Carl Icahn left Donald Trump’s victory party in the early hours of Wednesday morning to bet about $1bn on US stock markets, he told Bloomberg TV.

“I would have tried to put a lot more to work, but I couldn’t put more than about $1bn to work, and then the market got away," he says.

"But I’m still happy about it. The S&P was so liquid - it was unbelievably liquid - the world was going nuts. Last night it was amazing, the world was going into a panic with no reason.”