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Summary

  1. US markets remain volatile in afternoon trade
  2. FTSE 100, Cac and Dax close higher
  3. Japan's Nikkei finishes at nine-month high
  4. Taylor Wimpey shrugs off Brexit fears
  5. Get in touch: bizlivepage@bbc.co.uk

Live Reporting

By Daniel Thomas

All times stated are UK

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That's all folks

Thanks again for reading Business Live. We'll be back at 6am tomorrow so do tune in for more news, reaction and analysis on the global markets.

May promises economy that 'works for everyone'

Theresa May
BBC

In a speech at the Guildhall in the City of London, Prime Minister Theresa May has called on business leaders to help her government win back Britons disillusioned with liberal elites and globalisation.

Mrs May described the election of Donald Trump and Britain's vote to leave the EU as signs that "change is in the air" and said the UK needed an economy that "works for everyone". 

As such, she said she would champion a "new industrial strategy" that would target strengths across the British economy - be they universities, start-ups or dynamic businesses.

However, she also said Britain should not shy away from showing the benefits of global trade and urged calm in the face of populism. 

"At this moment of change, we must respond with calm, determined, global leadership to shape a new era of globalisation that works for all," she said. "I stand here confident that in facing these new challenges, once again, Britain can lead." 

She gave little away about her strategy towards exit negotiations with the EU, but said: "All of us here tonight know that there is not some choice between hard Brexit and soft Brexit. It is about how business and government works together to get the best deal; the right deal for Britain and the right deal for businesses working across the continent." 

BreakingUS share markets run out of steam

US stock markets had another volatile day today, as the upward momentum seen towards the end of last week petered out. 

The S&P 500 closed 0.01% lower, or 0.25 points, at 2,164.20, the Nasdaq was 0.36%, or 18.72 points, lower at 5,218.40 points and the Dow Jones was up 0.11%, or 21.03 points, at 18,868.69 points.

Fallers included Visa Inc, down 4.27%, Galena Biopharma Inc, down 15.71% and Michael Kors, down 5.11%. 

US tech sector sends Trump list of priorities

Donald Trump
Reuters

The US tech sector was almost diametrically opposed to Donald Trump during the election campaign. But conceding they will now have to work with him, a group of leading firms today sent the president-elect a detailed list of their policy priorities. 

The Internet Association, whose 40 members include Google, Facebook and Twitter among others, listed some ideas that chimed with Mr Trump's stance, Reuters reported.  

These include easing regulation for the sharing economy, lowering taxes on profits made from intellectual property and applying pressure on Europe to not erect too many barriers restricting US internet companies from growing in the bloc.

But other ideas are likely to clash with Mr Trump, including supporting unbreakable encryption in products, upholding recent reforms to US government surveillance programmes, and maintaining net neutrality rules.

The association also seeks immigration reform to support more high-skilled workers staying in the US - and Mr Trump has suggested he could restrict H-1B visas for skilled workers.

PwC report predicts 'limited' oil price rise

Oil rig
PA

Oil companies have been warned it is "unlikely" prices will return to $100 a barrel levels in the near future.

A report from business advisers PwC said prices could instead rise to between $60 and $70 a barrel in the next few years.

It said this could trigger a rise in capital investment and overall activity levels after the recent downturn.

Industry body Oil and Gas UK said the sector was showing "drive and determination".

Read more.

ECB warns on US protectionism

Vitor Constancio
Getty Images

Vitor Constancio, vice president of the European Central Bank, today warned that the protectionist policies promised by Donald Trump risked weakening global growth. 

The world economy was facing an "abnormal degree of uncertainty", he said, adding that the initially positive reaction on financial markets to Trump's win may be short-lived. 

"The markets' perception that the US is embarking into a new phase of expansionary budgetary policy has lifted optimism," he said, referencing Trump's pledges to cut taxes and increase spending. 

But he said the "real negative effects" of an "America first policy" - a nod to Trump's promises to scrap international trade deals - could come later. 

Kerviel says...

View more on twitter

And this is what Mr Kerviel has to say about that: "Sometimes the winner is only a dreamer who has not let go." How very enigmatic, how very French....

Jerome Kerviel

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Jerome Kerviel, the French rogue trader at Societe General, remember him? The French government certainly does. According to the French financial newspaper Les Echos, France's finance ministry has started the process of reclaiming a 2.2bn euro tax deduction granted to the bank after suffering huge losses caused (only partly it now seems) by Kerviel, back in 2008.

Mexico to raise interest rates

People walk past a board displaying the exchange rate for the Mexican peso and the US dollar in a bank in Mexico City
Reuters

Reuters in Mexico City has done a ring-round of some financial analysts, who reckon that the country's central bank will put up interest rates on Thursday. The peso has fallen further since Mr Trump became US President-elect. The expectation seems to be that Mexican interest rates will be shoved up by half a percentage point to 5.25%. That would be the fourth rate rise so far this year. The peso has dropped 6% since the last rate rise in September and is now at a record low against the US dollar.

Wealth manager Nutmeg raises £30m

Martin Stead
Nutmeg

Online platforms are disrupting the wealth management industry by offering consumers cheaper and easier ways of investing their money.

That's what they claim, anyway.

Nutmeg, the UK’s first digital wealth manager (nice jargon, there) today announced it had raised £30m to grow more. 

It manages more than half a billion pounds on behalf of over 20,000 customers. 

Mnuchin 'recommended' for Trump team

Steven Mnuchin
Getty Images

Donald Trump may be about to make another appointment to his administration team, Bloomberg reports, quoting sources. 

His transition team has recommended that former Goldman Sachs banker Steven Mnuchin should serve as his treasury secretary, although Mr Trump is yet to make a final decision.

Mnuchin, who was the Trump campaign’s national finance chairman, has been tipped for the job for while. 

It comes after Mr Trump appointed Steve Bannon, former president of Breitbart News, as his "chief strategist and senior counselor", and Republican National Committee chair Reince Priebus as his chief of staff.

Italy's UniCredit SpA 'seeks €13bn to shore up finances'

UniCredit SPA
Getty Images

More worrying signs for Italy's banks. Lender UniCredit SpA is planning to raise €13bn ($14.11bn) to shore up its finances, a source has told the Wall Street Journal.

That's almost equivalent to the bank's entire market capitalisation.

Concerns are mounting over Italian banks, many of which are carrying massive bad debts and thought to be a risk to the economy.  

Four lenders were bailed out by investors last December and the government is seeking similar solutions for others.  

Shares in UniCredit - which is also planning to sell off assets and make drastic cost savings - have dropped by 55% since January.   

Sources told the WSJ the bank would wait until after the result of a constitutional referendum Italy will hold on 4 December before setting a date for the cash call. A 'no' vote on the referendum could unseat the government and cause a period of market instability.

How can Facebook fix its fake news problem?

Fake Trump news post
BBC
Fabricated news looks just like any other article on Facebook

Facebook chief Mark Zuckerberg has promised the social network will take action over fake news appearing in its feeds, following complaints that the social network is deluged with fabricated posts.

In a post on his personal profile, he said he was "cautious" not to make Facebook an "arbiter of truth" but said the company was testing new tools to flag hoax content.

"Facebook's algorithm prioritises the popular, it doesn't know how to distinguish between real and not real," said Kate Bevan, a technology writer and broadcaster, explaining the problem. 

"It doesn't care about the quality of a page - if something looks convincing and people are sharing it, that gets prioritised."

Read more.

PM 'will not hit' one million new homes target

Kamal Ahmed

Economics editor

Homebuilders
PA

Theresa May put affordable housing at the heart of her "offer" to voters when she became prime minister.

The government's target is one million new homes by 2020; the argument being that more supply will bring down prices.

But the head of one of the UK's largest housebuilders, Berkeley Homes, says the target may be missed.

Radical change will be required to raise the current new-build rate above 170,000 per year, says Rob Perrins.

Read more of Kamal's blog.

Trump rally 'petering out'

NYSE
Reuters

With the S&P 500 and Dow Jones little changed on Monday, and the tech-heavy Nasdaq Composite lower, adding to last week's losses, some are suggesting that last week's Trump-inspired rally is fizzling out. 

Analysts told Reuters that investors wanted more details about Trump's policies and on key appointments in his administration.

"In any election cycle, many candidates make a lot of election promises and obviously they can't deliver for a variety of reasons on all these promises," said Mohannad Aama, managing director at Beam Capital Management in New York.

"Right now during this transition period, there is a lot of pricing in the unknown."

BreakingFTSE 100, Dax and Cac close up

Trader
Getty Images

The FTSE 100 has closed higher despite paring earlier gains, with analysts partly blaming the loss of momentum on a heavy sell-off in the bond markets. 

The index closed 0.34%, or 22.75 points, higher at 6,753.18 points. It was a similar story for Germany's Dax and France's Cac which both closed up after trimming early gains. 

The FTSE 100's best performers were banks, with Barclays up 5.23% and RBS up 4.37%. 

UK employers 'expect slower hiring'

Fewer British employers expect to hire staff in late 2016 as the impact of the decision to quit the EU sets in, a report from the Chartered Institute of Personnel Development claims. 

The industry body also said wages in real terms were likely to fall next year as inflation rose.

"The report points to the UK economy beginning to face some likely headwinds following the UK's decision to leave the European Union," Gerwyn Davies, a labour market analyst at the CIPD, told Reuters.

"Pay expectations are already weak, and as inflation moves up we can expect a period of low or negative real wage growth for the squeezed middle."

Annual inflation rose to 1% in September and is expected to climb towards 3% by the end of next year, reflecting the fall in the value of sterling since the Brexit vote. 

Emerging markets worried about 'Trumponomics'

Daniel Gallas

BBC South America business correspondent

Currencies
Getty Images

It's worth remembering that emerging markets have had a rough time since Donald Trump became president-elect.

In Brazil, the dollar is currently being traded at 3.44 Brazilian reais – almost 9% stronger than it was on the eve of the election. Stock markets indices iBovespa and Merval – from Brazil and Argentina – have also lost almost 9% in value since Trump won.

Investors in emerging markets are worried that “Trumponomics” would increase public spending and inflation in the US, prompting interest rates in America to go up faster and sooner than expected. That would see a lot of capital flowing out of riskier emerging markets towards the US, where higher earnings would be offered.

So far, monetary authorities have not yet intervened – but they have said that they are watching the markets.

Wall Street trading turns volatile

It's been an up and down morning on Wall Street, with the major markets showing no clear direction of travel. 

Just over an hour into the session, the Dow Jones is up 0.16% at 18,877.25 points, the Nasdaq is down 0.27% at 5,222.92 and the S&P 500 is up 0.02% at 2,164.95.

Dow Jones
BBC
Nasdaq
BBC
Nasdaq
BBC

Sainsbury's boss: 'We do all we can to lower costs'

Sainsbury's boss says they'll do all they can to keep costs down amid inflation rises.

Sainsbury's boss, Mike Coupe, has told 5 live he is doing everything he can to mitigate cost price increases for customers. Inflation has been a hot topic recently, as some food producers have warned of more costly prices for raw materials.  

Oil price hits three-month low

Petrol pump
BBC

Oil prices hit their lowest in three months today as doubts over OPEC's ability to cut production persisted.

Brent crude futures fell 53 cents on the day to $44.22 in mid-afternoon trading while West Texas Intermediate Crude fell 58 cents to $42.83.

The OPEC group of nations plans to cut or freeze output, but analysts doubt that they will reach an agreement at their next meeting on 30 November. 

If they don't, analysts warn the market will remain over-supplied and prices will remain depressed. 

Best value Christmas chocolate boxes revealed

Quality Street
BBC

Chocolate boxes are an essential part of Christmas, but be warned - larger boxes can be significantly better value than smaller ones.

Research from consumer protection magazine Which? looked at the price of Christmas chocolate boxes in the leading supermarkets, and found you can pay almost double the price per 100g for smaller packs.

For example, it found a 1.32kg tub of Quality Street cost 53p per 100g at Asda, while a 265g box was nearly twice as expensive, at £1.02 per 100g.

It also listed some of the bargains to be had. 

Asda had the cheapest pack of both Cadbury Heroes and Mars Celebrations at 62p and 58p per 100g respectively.

Meanwhile, Waitrose had the cheapest pack of Cadbury Roses (55p per 100g) and Morrisons had the cheapest Cadbury’s Milk Tray at 93p per 100g.

Which? editor Richard Headland said: “Chocolate boxes are a firm favourite [at Christmas] and this snapshot research shows that it can be worth comparing prices by weight to save money at this time of year."

'Ferocity' of bond sell-off surprising

Currency
Eyewire

Here's some more on that bond sell-off. Globally bonds lost $1.29tn (£1tn) last week, driven by fears Donald Trump will enact inflationary policies that speed the pace of US interest rate rises. 

That rout is now accelerating - depressing the value of some pension investments and making it more expensive for countries and companies to borrow money.

On Monday, the 30-year US Treasury jumped above 3% for the first time since January. In the UK, the 10-year gilt yields returned to levels not seen since June's Brexit referendum vote. And German 30-year bunds rose above 1% for the first time since early May.

Italian bonds have been among the most affected. Rome's 10-year yields rose four basis points to 2.01% on Monday, their highest in 14 months.

Jim Cielinski, head of fixed income at Columbia Threadneedle, said the sell-off trend was not surprising, but the "ferocity of the reversal" was.  

Read more.

BreakingMixed picture as Wall Street opens

US traders
Getty Images

US share markets are broadly flat in the opening few minutes of trade. 

The S&P 500 is up 0.05% at 2,165.48 points, the Dow Jones is up 0.17% at 18,879.82 points and the tech-heavy Nasdaq is down 0.02% at 5236.25 points.

How unequal is Scotland?

Douglas Fraser, Scotland business and economics editor, looks at inequality north of the border...

Douglas Fraser

Scotland business & economy editor

Douglas Fraser
BBC

Throughout this week I will be looking at how equal or otherwise Scotland is. Here, I examine income inequality and discover changes in the UK-wide picture over the decades. Read on - you might be surprised by some of my findings.

PokerStars to cash in its chips?

Cristiano Ronaldo
PokerStars

The online gambling firm which sponsors Cristiano Ronaldo and Rafael Nadal, and which was in merger talks with William Hill, has received a $6.7bn bid to take it private.

Amaya, which owns PokerStars, reported that its founder David Baazov has offered to take over the firm and delist it from the Canadian stock market. The Amaya board said it would consider his offer.

Amaya and William Hill abandoned merger talks last month amid heavy criticism from William Hill's biggest shareholder.

It would be a dramatic comeback for Mr Baazov who stepped down as Amaya's chief executive last year amid an investigation into insider trading. He has strongly denied the charges.

Dark web hackers boast of Tesco Bank thefts

Tesco bank
Getty Images

Hackers boasted of thefts from Tesco Bank months before before the company reported losing £2.5m in an attack.

Cybersecurity company Cyberint said it had discovered posts on a variety of dark web forumswhose members had described the lender as being a "cash milking cow" and "easy to cash out".

It is not clear, however, whether there is any link between these claims and the money stolen just over a week ago.

The bank has repeatedly declined to give details of the crime.

Read more.

Cac and Dax holding onto gains

Deutsche Boerse
Getty Images

France's blue-chip Cac index has followed the FTSE lower - it's still 0.1% higher on the day, but down from the 1% gains it saw at the start of the session.

Germany's Dax index is 0.2% higher, having also been up about 1%. Deutsche Bank and Commerzbank are the biggest risers, buoyed by hopes of rising interest rates.

India's PM defends rupee withdrawal

BBC World Service

Rupee notes
AP

BBC World Service has the latest on last week's withdrawal of large denomination rupees in India. It reports on the news that Prime Minister Narendra Modi has been defending his decision to take the notes out of circulation.

Speaking in Uttar Pradesh, Mr Modi said that poor people were sleeping soundly and only those with illegal cash were suffering. 

The government has now increased the limit for cash withdrawals from banks and says the old notes can be used to pay utility bills and taxes, as well as for fuel and travel for the next ten days. 

FTSE still in positive territory - just

FTSE 100
BBC

The FTSE 100 share index is showing gains for the day but it hasn't built on that stellar start. 

It's 0.4% higher at 6,755 points - compared with a 1% rise to 6,809 in the first half hour - with analysts partly putting it down to jitters over a heavy sell-off in the bond markets. 

Irish services supplier DCC is still top of the leaderboard after posting strong half-year results. Barclays is 4.0% higher after it was upgraded by analysts and RBS is up 3.6%. 

Russian miner Polymetal is the heaviest faller as investors continue to move away from gold. 

On the currency markets, the pound is holding its ground against the euro at just above the €1.16 level, but has slipped slightly from last week's closing level of US$1.26 versus the dollar. 

Frankfurt seeks to lure London finance jobs

Bloomberg

Frankfurt skyline
Getty Images

Frankfurt is stepping up efforts to win financial jobs that may leave London following the UK's Brexit vote, reports Bloomberg. 

Volker Bouffier, Prime Minister of the German state of Hesse, is in New York to meet representatives of the big US banks and discuss their options for retaining access to the EU market, Thomas Schaefer, the state’s Finance Minister, said at a conference in Frankfurt on Monday.

Germany isn't the only country keen to present itself as the best location for banks to set up their EU headquarters.

London banks provide some $2.5 trillion of loans to the rest of the EU and carry out a “big percentage” of euro-denominated transactions, European Central Bank Vice President Vitor Constancio told the same conference. The latter “is bound to change with Brexit.”

What the markets will be watching this week

Sterling notes and coins
Getty Images

Global inflation trends will be in the spotlight this week, with figures due from the UK (tomorrow), the euro zone (Thursday) and the US (Thursday). Central bank speakers will also attract attention as markets look for any signs that last week’s US election result could impact on monetary policy outlooks. Highlights will include BoE Governor Carney’s testimony to the Treasury Select Committee (tomorrow), Fed Chair Yellen’s testimony to the Joint Economic Committee (Thursday), and ECB President Draghi’s keynote speech at the European Banking Congress (Friday).

Chris SaintSenior analyst, Hargreaves Lansdown Currency Service

Keep a lid on it?

Shopping street
Getty Images

A petition urging shops to stay closed on Boxing Day to give staff a break has been backed by more than 100,000.

Retail workers are "being bled dry" by "greedy employers", supporters wrote on the petition's web page.

Ian Lapworth, a baker from Kettering, started the campaign a month ago, calling for a return to a less commercialised holiday season.

Called "Stop Shops opening on Boxing Day", the petition argues retail staff should get a longer break over the Christmas period. It will be delivered to Prime Minister Theresa May if it reaches 150,000 signatories. Read more here

Building dividends?

Let's get some analyst comment on builder Taylor Wimpey's results.  

As we reported earlier, the company said trading during the second half of this year had been strong, with good levels of customer confidence and demand underpinned by a wide range of mortgage products.

Shares rose 3% following the announcement and the promise of a generous dividend.

We don’t think much has changed in the housing market since the referendum, yet. Brits still want to own homes, whether in or out of the EU, and the UK still faces a major housing shortage. That should support demand for housing in the long run. At the moment interest rates look set to stay lower for longer; supporting mortgage affordability. If that continues to be the case the housebuilders should be able to deliver the hefty shareholder returns they have planned. Having said that we also generally believe in the market adage that “nothing yields 8%” and Taylor Wimpey currently offers investors over 9%. Even after today’s results the market is clearly nervous about the viability of the generous dividend plans in the longer term.

Nicholas HyettEquity analyst, Hargreaves Lansdown: