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Summary

  1. Michael Sherwood, Goldman Sachs's co-head of Europe, quits
  2. Theresa May waters down proposals to put workers on boards
  3. FTSE 100 ends day up by 0.03% at 6,777.96
  4. Essentra and Mitie shares sink on profit warnings
  5. Get in touch: bizlivepage@bbc.co.uk

Live Reporting

By Karen Hoggan

All times stated are UK

Get involved

Good night

That's it for another day on Business Live. It's been a day dominated by news from the CBI conference, but also the hike in the oil price. Plus we've had the news that Michael Sherwood, one of the UK's highest-paid investment bankers is to retire as joint head of the European arm of Goldman Sachs.

Thank you for staying with us.  

Do join us tomorrow if you can for the latest news, reaction and analysis from the world of business. 

Key US share indexes rise

Wall street traders
Reuters

The three key US stock indexes have ended the day higher, boosted in particular by shares in energy and other commodity-related businesses. 

The increases continue the trend seen since Donald Trump's election victory. Investors hope the President-elect's promised increase in infrastructure spending will benefit firms in those sectors. 

Also on Monday the rise in oil prices pushed up energy shares. 

The Dow Jones closed up 0.47% or 88.76 pints at 18,956.69. 

The Nasdaq was at 5,368.86, a rise of 47.35 points or 0.89%.

And the S&P 500 was 16.28 points or 0.75% higher at 2,198.18. 

Shares in Facebook closed 4.1% higher after the social media giant announced on Friday that it was planning to buy back up to $6bn of its shares early next year.  

Radical tax reform needed says tech boss

The head of the UK's biggest tech company says the government should conduct "a radical reform of the tax system" - including business rates.

Stephen Kelly, chief executive of software giant Sage, says the tax system unfairly benefits multinationals over small entrepreneurs.

Speaking to BBC Newsnight, he said the system is "unfit for the digital age". Read more here

Prime Minister Theresa May has announced a series of measures aimed at supporting British business.

You can find out more about this interview and the story on Newsnight on BBC Two at 22:30 GMT. 

Oil hits three week high

Let's catch up with how oil's doing again, and prices shot up by 4% to a three-week high on Monday, amid growing belief that oil producing countries would agree next week to limit output. 

The benchmark Brent crude briefly touched $49 a barrel. 

Brent has risen 11% in a week since Saudi Arabia, a key player in the Organisation of the Petroleum Exporting Countries, set out to persuade more reluctant members to join its proposals to limit output. 

OPEC members are due to meet on 30 November in Vienna. 

Brent crude futures settled at $48.90 a barrel, up $2.04, or 4.4%.

Alex Salmond holds informal talks with EFTA

Alex Salmond
bbc

Scotland's former first minister Alex Salmond has held informal talks at the European Free Trade Association (EFTA) about the UK's future relationship with Europe.

It is understood the former Scottish first minister recently travelled to the trade group's HQ in Switzerland.

EFTA members currently include Norway, Iceland and Lichtenstein.

Although not members of the European Union, they are signed up to the free movement of goods, services, capital and people alongside the 28 EU countries what is called the European Economic Area (EEA).

The Scottish government would like the UK as a whole to seek a similar arrangement as it prepares to leave the European Union.  

Mr Salmond's successor, Nicola Sturgeon, is exploring ways of keeping Scotland inside the European single market.  

Canada to scrap coal-fired electricity by 2030

BBC World Service

Canada has set out plans to eliminate coal-fired electricity production by 2030, reports BBC World Service.

Ten per cent of Canada's electricity is now produced by coal, and the move is part of its commitment to reduce greenhouse gas emissions under the Paris climate treaty. 

Canada's intentions are in stark contrast with the expected policy to promote coal south of the border once Donald Trump enters the White House. He's promised to revitalise the industry and says he'll pull out of the Paris agreement.  

BuzzFeed gets $200m extra investment

BuzzFeed logo
Getty i

Online media company BuzzFeed - which gets 7 billion views every month - has received an additional $200m (£160m) of investment from Comcast Corp's NBCUniversal.

The money will "expand the strategic partnership between the two companies and fund the growth of BuzzFeed’s industry leading news and entertainment network", said BuzzFeed in a statement. 

The money comes on top of the $200m NBCUniversal put into BuzzFeed last year. 

Jonah Peretti BuzzFeed chief executive and founder said: “The investment allows us to remain a fully independent company but have access to and resources from the strongest and best media company there is.”  

Key economic indicator hits highest level in two years

Containers
AP

The Baltic Dry Index, which is seen by many as a leading indicator of the state of the world economy, is occupying The Daily Telegraph. 

The index has hit its highest level in nearly two years, the paper reports.

The dry bulk shipping index is a key gauge of global trade and tells you how much it costs to move stuff around the world.

It hit an all time high of 11,000 points in May of 2008, just before the global financial crisis.

This year it has hit fresh record lows and skirted around the 300 points mark, but has since come back by 333%.  

The latest leap in the index follows Donald Trump’s election victory on 8 November. Since then it has shot up by 50% to 1,257.

Mr Trump has said he will spend $1 trillion on infrastructure projects, which would give a boost to the owners of vessels shipping commodities around the world, and that has helped the Baltic index climb over the past couple of weeks. 

CBI responds to Labour leader's speech

Carolyn Fairbairn, CBI director general
Getty Images

CBI director general Carolyn Fairbairn has been reacting to Labour leader Jeremy Corbyn's speech at Monday's conference. 

“He is right to highlight that a regional focus within industrial strategy, underpinned by investment in innovation and infrastructure, will be vital to increasing living standards across all parts of the UK," she said. "All efforts must be made to improve business competitiveness without adding further cost complexity.

“The CBI is committed to working with politicians of all parties to make the best of Brexit. Businesses are clear that maintaining tariff and barrier-free access to the Single Market will be vital for their future success."

Mr Corbyn also warned of "real problems" in today's jobs market, citing low wages, insecure temporary contracts and the gender pay gap. He said that Labour would increase the National Minimum Wage to £10 by 2020 if it won power.

In her response Ms Fairbairn said: “Fair wages are a vital part of a fair and prosperous society, and the independent Low Pay Commission is well positioned to ensure future rises do not come at the expense of people’s jobs. The vast majority of businesses are committed to eliminating poor practices, though this should not be confused with certain types of contracts which allow the flexibility many workers value."

Diageo workers vote for industrial action

Workers at the drinks giant Diageo have voted to take industrial action in a dispute over pensions.

Unions said the action could affect all of Diageo's 50 sites in Scotland, as well as other locations in Northern Ireland and Cheshire.

The dispute is over plans to move staff from a final salary pension scheme.

Diageo described the move as "clearly disappointing", adding that it was "premature" as talks between the company and unions were ongoing.

Bottles of whisky
Getty Images

What to expect from the Autumn Statement

The BBC's economics, business and political editors spell out what to look for in Wednesday's Autumn Statement.

Autumn Statement: BBC editors on what to look for

Oil still rising

The London benchmark has risen 11% in a week since Saudi Arabia, the biggest and most influential member of Opec started trying to persuade the group to join it in limiting output.

Opec meeting 'went well'

Those pinning their hopes on a cut - or more likely a freeze -  in oil output may take some encouragement from these words from the Libyan oil governor: "We are discussing. We are not disagreeing," he said after the first day of the two-day Opec setting up talks. Asked whether the day had gone well, Reuters reports "he said 'Yes'". The oil price shot up on Monday by 4.5% to leave Brent at $48.97 a barrel.  Opec actually meets formally on November 30.

US 2-year bond yields at 7 year high

Bonds continue last week's fall. The US  Treasury Department on Monday sold $26bn of two-year government debt at a yield of 1.085 percent -  the highest yield at an auction for this maturity since December 2009. The ratio of bids to the amount of two-year notes offered was 2.73, up from 2.53 at the prior two-year auction in October and the strongest reading since August.  

Lufthansa strike again

Lufthansa pilots will strike again this week on Wednesday as part of their long-running dispute with the airline's management.  The strike will run for 24 hours from midnight and affect short-haul and long-haul flights. The two sides are trying to agree contracts dating back to 2012 and the union is calling for a pay increase of an average 3.7% a year over a five-year period. Lufthansa has offered 2.5%. 

Lufthansa planes
Getty Images

Labour would 'clamp down' on cheats

Jeremy Corbyn
BBC

"All we ask is that for the investment we make for you, from building better infrastructure, to delivering a high-skill workforce, that you make your contribution to help the next generation of workers, the next entrepreneur, or the next business coming down the road, said Mr Corbyn. 

"And in return we’ll clamp down on the people cheating our economy with aggressive tax avoidance and evasion by doubling the number of investigators to chase payment and ending the payment of excessive dividends to offshore owners.

"Aggressive tax avoidance and evasion is a burden and deadweight on us all and we will work at home and internationally to bring it to an end," he added.

Jeremy Corbyn: Minimum wage of £10 an hour by 2020

Labour’s offer is to work together with business to deliver prosperity for the whole country. We want everyone, and every community, to share in that prosperity. Under a Labour government, there’ll be no more exploitative zero hours contracts - we’ll put an end to them. There’ll be no more poverty pay for those in work. We’ll raise the minimum wage to £10 an hour by 2020. And we’ll make sure businesses, including small businesses, are supported to deliver those goals in a sustainable way.

Jeremy CorbynLabour leaders

Labour calls for steps to boost economy

Jeremy Corbyn has reiterated three things - first set out last week by Shadow Chancellor, John McDonnell - that the Labour Party wants the government to do to support the UK economy. 

First he said: "We need a credible fiscal framework that ends austerity and supports investment crucial to make our whole country successful post-Brexit. 

"Second, we need real support for those in work on low and middle incomes who will struggle as prices rise. 

"Third, we need secure and properly funded public services," he adds.

Jeremy Corbyn: 'businesses plunged into uncertainty'

Jeremy Corbyn turns his focus on the Brexit vote in his speech to business leaders at the CBI conference

"Following the British people’s decision to leave the European Union, businesses have been plunged into huge uncertainty by a Government which has no plan at all," he said. 

"I believe when it comes to Government there’s bad intervention and good intervention.

"Bad intervention wants to name and shame you on the basis of how many foreign workers you employ.

"Bad intervention wants to punish you with a shambolic Brexit that limits our ability to trade with the world’s largest trading bloc on our doorstep," he added.

 "As Carolyn has said, a Brexit deal without tariff-free access to the Single Market would 'close the door' on an open economy'". 

Jeremy Corbyn recognises women at top

Jeremy Corbyn
BBC

Jeremy Corbyn, Labour leader is speaking at the CBI conference and he has congratulated director general  Carolyn Fairbairn on her first year as the organisation first female DG.

"Six years ago, the CBI, TUC and the Equality and Human Rights Commission jointly issued the Talent Not Tokenism report to promote greater diversity in business," he said.  

"Not only because it was the right thing to do but because it’s good for business. And thanks to those companies which have delivered real results since.

 "Now the TUC, under my friend Frances O’Grady, and the CBI are both led by women.

 "And I’d also like to congratulate Paula Nickolds on becoming John Lewis’ first female managing director," he added. 

FTSE 100 ends day higher - just

London Stock Exchange sign
PA

The FTSE 100 has ended the day little changed today, following its jump above 6,800 earlier in the day after Prime Minister Theresa May spoke to reassure businesses at the CBI conference.

It closed at 6,777.96, a rise of 2.19 points or 0.03%.

Meanwhile the  FTSE 250 finished the day lower at 17,527.55, a fall of 131.67 points or 0.75%.  

Cigarette packaging manufacturer Essentra was down 20.43% and outsourcing firm Mitie down 9.52% having both issues profits warnings on Monday. 

Larry Summers: Phase high value notes out don't withdraw them

1,000 rupee notes
AFP

Earlier this month Indian Prime minister Narendra Modi ordered the withdrawal of the 500 and 1,000 rupee notes.to clamp down on corruption and illegal cash holdings. 

The ensuing chaos has seen queues at banks as people try to swap their old notes for vaild currency.

Now former US Treasury Secretary Larry Summers and Natasha Sarin have written an article in which they describe the move as the "most sweeping change in currency policy in the world in decades".

After the European Central Bank announced the phasing out of the 500 euro note because of concerns it was often used by criminals -  a move which Mr Summers had apparently long back - the authors say they had expected the same to happen to the US100 note and the 1,000 swiss franc note. 

But the important difference is that they were advocating phasing out the notes not withdrawing them overnight. 

They say nothing that has happened in India changes their view that phasing the notes out would be a good idea, but they say withdrawing notes is not a good idea. "The ongoing chaos in India and the resulting loss of trust in government fortify us in this judgement," they conclude. Read the full article here

Bank compensation limit hike causes 'uncertainty'

Graphic £ sign in Union Jack colours
Thinkstock

The maximum compensation payable to account holders and savers if their bank collapses is to return to its previous limit of £85,000.

The Bank of England said the change to the Financial Services Compensation Scheme (FSCS) would happen by 30 January 2017.

The compensation limit was lowered to £75,000 in July 2015, following sterling's rise against the euro.

But since the Brexit vote, sterling has fallen more than 10% against the euro. Read more here

The announcement today of another change to the deposit protection limit - there have been about seven in the last decade - is a recipe for yet more uncertainty. These recent changes have not been the fault of the PRA. They are an EU requirement, imposed by the European Commission. The absurd situation, in which the UK is left vulnerable, at the discretion of the European Commission, to frequent changes in our deposit scheme, must be brought to an end," he said. Brexit should give the UK the opportunity to set its own level of protection. We should take it.

Andrew Tyrie MPChairman of the Treasury Committee

South Africa sets out planned minimum wage level

Protesters South Africa
AFP / Getty Images

South Africa's government has proposed a national minimum wage of 3,500 rand ($242; £199) a month.

About 47% of working South Africans earn less than the wage, which is being introduced to combat income poverty and inequality.

But critics say it could put more people out of work as employers might not be able to afford the higher wages.

The government says it will consult on the issue, but hopes to introduce a minimum wage within two years.

Read more.

Sterling jumps 1% in one minute

Graph showing pound climbs nearly 1% in one minute
Bloomberg

The pound rose by 1% against the dollar - with a lot of the gains coming during just one minute of trading, as this Bloomberg graphic shows. 

The increases followed Prime Minister Theresa May's speech at the CBI conference in which she tried to reassure businesses fearing a sudden change in rules once the UK leaves the EU.

Mrs May promised early agreement on the status of UK nationals in Europe and EU nationals in the UK.

"People don't want a cliff-edge; they want to know with some certainty how things are going to go," she said.

Last week the pound fell by 2% against the dollar. 

Wall Street heads higher

Shares on Wall Street have risen in the first hour or so of Monday's trading. 

A short while ago the Dow Jones was at 18,897.93, that's a rise of 30.00 points or 0.16%.

At one point the technology-heavy Nasdaq hit an intra-day high of 5,350.56 before easing back to 5,338.73, up 17.22 points or 0.32%.

Facebook rose 1.24% to $118.47 after announcing a $6bn (£4.8bn) share repurchase programme, and Amazon and Microsoft were also trading higher.     

And the S&P 500 was at 2,189.59, up 7.69 points or 0.35%.

It's not about the money

The Financial Times has more on Michael Sherwood's departure from Goldman Sachs.

It's reporting that last week, Goldman said Mr Sherwood had sold $184,810 (£147,924) of shares in the bank, leaving him with 361,978 shares, worth $76.1m at Friday’s closing price.

Mr Sherwood has been paid nearly $95m in the past eight years, according to US regulatory filings.

“I stopped working for money a long time ago - when we went public,” he said. He wouldn't give any details of his departure deal, but said he hoped to get a bonus for 2016 because "I worked the full year".

'Richard Gnodde to become sole boss of Goldman in Europe'

More on the news that Michael Sherwood is to retires as co-head of Goldman Sachs in Europe.

Reuters is quoting a memo sent on Monday which apparently says Richard Gnodde, currently co-chief executive with Mr Sherwood, will become sole head of Goldman Sachs International, the European arm of the Wall Street bank. 

Listen: Siemens boss urges firms to listen to workers

The World at One

BBC Radio 4

The government has made clear it will not force companies to put workers on their boards but the UK boss of industrial giant Siemens has suggested that firms should do so anyway. 

Juergen Maier said workers had successfully been on the boards of German firms for more than 40 years. 

He encourages British businesses not to wait for legislation, but to "do the right thing, just listen to your workers and be socially responsible". 

Goldman Sachs co-head in Europe quits

Goldman Sachs logo
Reuters

Michael Sherwood, Goldman Sachs's co-head of Europe, is quitting the investment bank after a three-decade career in which he became one of the industry’s highest earners, reports the Financial Times. 

He has been tipped to succeed Lloyd Blankfein as chairman and chief executive of Goldman. 

Mr Sherwood has been with the company since he was 20 and since he took joint charge of its European operations 11 years ago, they have grown rapidly. 

Widely known as “Woody”, Mr Sherwood is to stay with Goldman as a senior director during a handover period of about six months.    

Three US banks told to increase their capital buffers

Citi Bank
Getty Images

Three of the biggest US banks have been judged to pose greater risks to the financial system and had their capital requirements increased , the FT reports

Citigroup, Bank of America and Wells Fargo all had their capital buffers increased by several billion dollars, after an analysis by the Financial Stability Board (FSB) - an international body that monitors the global financial system.

Every year the FSB ranks the world’s banks into five categories based on factors such as their size, complexity, interconnectedness and sustainability. 

Those deemed to be systemically risky are required to hold larger capital buffers to reduce the chances of taxpayer bailouts.

FTSE pares gains

The FTSE 100 has fallen back below the 6,800 mark as afternoon trading has progressed. .

A short while ago it was at 6,777.92, which is a rise of 2.15 points or 0.03%. 

Meanwhile, the FTSE 250 has fallen further - it's now down by 0.90% or 160.41 points. It's been dragged down in part by 20% slide in Essentra and a near 10% fall for Mitie. Both companies issued profit warnings today. 

Listen: TUC fears May is breaking promises

The World at One

BBC Radio 4

The Trades Union Congress says it is concerned that Theresa May "looks in danger of breaking the very clear promises she made". 

Kate Bell, the TUC's head of economic and social affairs, said it was "important workers are trusted to represent their own interests in the boardroom". 

The Trades Union Congress say workers need to be able to "speak for themselves"

Listen: CBI says there are 'other ways' to hear workers' voices

The World at One

BBC Radio 4

In the summer, before she became Prime Minister Theresa May suggested that she wanted to see workers directly represented on company boards. Now, she says this should not be compulsory and direct representation may not be the best model.

The director-general of the CBI, Carolyn Fairbairn, has welcomed the move, calling it a "clarification" of policy, and not a reversal. "There are other ways of doing it", she told BBC Radio 4's The World At One.

The director-general of the CBI, Carolyn Fairbairn, welcomes greater flexibility about putting workers on company boards.

Fillon's economic challenges

Andrew Walker

World Service economics correspondent

Francois Fillon
Getty Images

On Sunday, Francois Fillon did the unexpected - beating ex-president Nicolas Sarkozy to become the French conservatives' nominee for the presidential election. But should he win in 2017, he'll face some considerable economic challenges. 

France was never on the edge of the abyss in quite the way that some Eurozone economies were, but it has some serious and long-standing problems in the job market and the government finances.

Unemployment went to 10% in October 2012 and has dipped below that rate in only two months since.  

For young people under the age of 25 it’s not far short of one in four.  The law restricts employers' flexibility to such an extent, critics say, they are reluctant to take new people on.  

The government finances are stretched with debt that’s about as large as Italy’s in cash terms and equivalent to about 100% of the size of the national economy. 

The public sector accounts for a larger share of national income than any other Eurozone country.

BT's 4G auction challenge

Phone mast
Thinkstock

Ofcom has proposed a cap on some of the newly available 4G spectrum it is preparing for auction, which would prevent BT from bidding.

The spectrum, formerly used by the Ministry of Defence, will provide 4G services for mobile companies.

The communications watchdog has suggested that a 42% share could be the largest one mobile company could own.

BT, which includes mobile network EE, currently owns 45%. Vodafone owns 28%, Three 15% and O2 12%.

Read more here.

Hammond fire sale urged

Channel 4 logo
Getty Images

Chancellor Philip Hammond has been urged to sell off a range of government assets to fund tax cuts as part of his Autumn Statement this week. 

The Chancellor is under pressure to help JAMs - "just about managing" families - but is constrained by ballooning government borrowing and slowing economic growth. 

However, pressure group the TaxPayers' Alliance claims he could ease the burden on taxpayers by selling assets such as Channel 4, the Land Registry, the Met Office and the Government's 73% stake in the Royal Bank of Scotland.

John O'Connell, chief executive of the alliance, said: "Every deal must, of course, deliver best possible value for money for taxpayers but, almost invariably, organisations and assets operate more efficiently in private hands."

According to Press Association analysis, a total of £26.4bn was made through privatisations last year, beating the previous record set in 1987.