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Summary

  1. Get in touch: bizlivepage@bbc.co.uk
  2. Further 452 jobs to go at Carillion
  3. New car sales fall 6.3% in January
  4. UK shares slide after big falls in Asia
  5. UK service sector slows in January
  6. New Fed chair set to be sworn in

Live Reporting

By Daniel Thomas

All times stated are UK

  1. Good night

    Thanks for reading Business Live. We'll be back at 6am tomorrow.

  2. Dow Jones close down 1,100 points

    The Dow Jones industrial average has close down 1,100 points in its worst trading day since 2008.

    It ended 1,175.11 points lower at 24,345.85, or off 4.6%.

    It is the biggest drop in points since 29 September 2008 when US Congress rejected a $700bn bank bailout plan after Lehman Brothers collapse earlier that month.

  3. Trump tax plan will hit US investment abroad - UN

    BBC business producer tweets...

    US tax reforms could reduce badly needed investment by US firms abroad, the UN's trade arm has warned.

    UNCTAD said some $2trn of overseas investment could be repatriated to the US.

    Almost half of global investment stock is either located in the United States or owned by US multinationals, it said.

    In a statement it said: "Repatriations could cause a large drop in the outward FDI stock position of the United States, from the current $6.4 trillion to possibly as low as $4.5 trillion, with inverse consequences for inward FDI stocks in other countries.

    "About one quarter of United States outward stock of FDI is located in developing countries. However, it is likely that a large part of the stock located in developing countries is invested in productive assets and therefore not easily repatriated."

    View more on twitter
  4. Dow Jones index dives more than 1,000 points

    US traders

    US stocks are hitting the buffers. A short while ago the Dow Jones had lost some 4.4% to 24,393.37 points.

    The S&P 500 was down 2.5% to 2,693.21 points while the Nasdaq had shed 2.9% to 7,033.52 points.

  5. 'Joint commitment needed' - Bailey

    Speaking during the Future of the City dinner, FCA boss Mr Bailey said: "The best solutions are mutually agreed and enacted so that they are consistent.

    "And to achieve this, we need by the end of March a joint commitment by the political authorities to a well-defined implementation or transition period which will create the space and support for the regulators to work with firms and political authorities to put practical solutions into place.

    "It can be done, and I think there is a growing consensus on both sides that it must be done. I sense this view increasingly taking hold from my discussions around Europe.

    "But it needs support in the form of a timely commitment to a transition agreement which will allow the regulators to get on and tackle these issues. "

  6. FCA boss calls for Brexit transition assurances

    The boss of Britain's financial watchdog has urged the government to give firms, markets and regulators "much-needed assurance" over the Brexit transition period.

    Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), has called on UK and EU regulators show their commitment to the process by drawing up a memorandum of understanding to underpin a "stable and orderly" change.

    The UK and the European Union have already agreed to honour a two-year transition period to avoid disruption.

    But the two parties remain divided over what the "implementation phase" should look like, with Britain wanting to maintain full-membership rights and the EU wanting to strip the UK of its decision-making powers.

  7. Draghi warns on Bitcoin

    Hand holding a Bitcoin

    It seems everyone is laying into Bitcoin today.

    Now Mario Draghi, the head of the European Central Bank, has warned that the coin and other virtual currencies are “very risky assets” that should be bought with caution.

    “Virtual currencies are indeed subject to high volatility. Their price is entirely speculative,” he told the European Parliament in Strasbourg.

    More regulation of crypto-currencies was needed, he said - but recent developments like the listing of bitcoin futures contracts could lead to European banks holding positions in bitcoin in future.

    He said the ECB’s regulatory arm was working “to identify potential prudential risks that these digital assets could pose to supervised institutions”.

  8. Lloyds to cut 930 jobs

    Lloyds Bank

    Lloyds Banking Group is to cut 930 jobs as a part of a restructuring.

    The lender, which had just over 70,000 staff at the end of June 2017, said most of the cuts would be “within commercial banking, the chief information office, risk, community banking and insurance and wealth”.

    It also plans to hire an extra 465 people to new roles.

    The cuts reflect changing customer behaviour as more people bank online and shun high street branches.

    The bank said: "The group’s policy is always to use natural turnover and to redeploy people wherever possible to retain their expertise and knowledge within the group.

    "Where it is necessary for employees to leave the company, we will look to achieve this by offering voluntary redundancy. Compulsory redundancies will always be a last resort.”

  9. Production resumes at one Russell Hume site

    Steaks

    Production has been allowed to resume at one Russell Hume site, two weeks after the meat supplier was put under investigation over food hygiene standards.

    The firm, who supplied Jamie's Italian and others, will be allowed to resume production and distribution from its Liverpool site, the Food Standards Agency said.

    This is because certain "assurances" have been met, although other sites remain on lock-down for now.

    The FSA said: "This decision has been taken on the basis that we are now assured that the food being produced at the Liverpool site complies with the relevant legislation. The action taken has been proportionate and we recognise the potential impact on the business and peoples’ livelihoods."

  10. US stocks head lower

    US trader

    After paring their losses, US stocks have taken a turn for the worse again.

    The Dow Jones index is down more than 1.5% at 25,125.61 points, while the S&P 500 is 1.1% lower at 2,730.02.

    The Nasdaq - which turned positive earlier - is 1% lower at 7,166.74.

  11. East Coast Mainline a 'monumental misjudgment'

    Shadow Transport Secretary Andy McDonald

    Responding to news that the East Coast Mainline could be terminated in "a matter of months", shadow transport secretary Andy McDonald accuses the government of a "monumental misjudgment".

    He says the Transport Secretary has favoured private companies over passengers and the rail industry. He also says the "bailout culture at the Department for Transport is alive and well".

    He accuses the operators of "gaming" the system of millions of pounds of public money and says the government has failed to stand up to them.

  12. Stagecoach may bid again

    Mr Grayling said he had not yet decided which company would be awarded the East Coast Franchise but that, for the time being, Stagecoach could be permitted to continue to operate the franchise on a short term and not-for-profit basis.

    Another option would be for the line to be run directly by the Department of Transport via an "operator of last resort".

    In terms of the re-tendering in 2020, Mr Grayling said there were no legal grounds to prevent Stagecoach from bidding for current or future franchises.

    But he said he would keep Stagecoach's eligibility for future contracts under "constant review".

  13. Stagecoach 'overbid' for East Coast Mainline

    Mr Graying also said the problems on the East Coast Mainline were very simple: Stagecoach, one of the operators, "got its sums wrong and overbid".

    He said the taxpayer had continued to profit from the franchise and the operators had invested in the network.

    He said Stagecoach would not be receiving a "bailout" and had suffered a "significant" loss for its mistake.

  14. Grayling: East Coast Mainline contract could be replaced in 'very near future'

    Chris Grayling

    In an update to the House of Commons, the Transport secretary has said that the loss-making East Coat Mainline contract - run by Virgin and Stagecoach - will be replaced (in its current form) imminently.

    Back in November the operators Virgin and Stagecoach said they would cut short the contract by three years, ending in 2020, due to mounting losses.

    But Chris Grayling today told MPs the situation was much worse than initially thought and the contract can only last a "matter of months" as it is.

    He said this news would not "impact on the railway's day to day operations" and it would be "business as usual" for passengers and staff."

    But he does need to put in a successor contract in the "very near future".

  15. FTSE 100 closes lower

    A trader

    The London market ended lower after a turbulent day for global stocks driven by fears about potential US rate rises.

    The FTSE 100 ended Monday 1.465% lower at 7,334.98 points, while the FTSE 250 lost 1.36% to 19,690.49.

    The worst blue-chip performers included Randgold Resources, which lost 7.4%, Vodafone Group, down 4% and G4S, 3.4% lower.

    David Madden of CMC Markets said: "European markets are firmly in the red as the global sell-off in stocks has taken hold.

    "Ever since the US posted strong average earnings last Friday, traders have been rattled by the prospect of tighter monetary policy around the world. Economic indicators in the US, Europe and Asia point for a need to tighten up monetary policies from various central banks."

  16. Virgin bans cryptocurrency purchases

    Virgin Money has banned cryptocurrency purchases on its credit cards, following similar moves by Lloyds and other issuers.

    A spokesman said: "Following a review of our policies, I can confirm customers will no longer be able to use their Virgin Money credit card to purchase cryptocurrencies. This only applies to our credit cards and not our debit card."

    Concerned by the fluctuating value of cryptocurrency, issuers fear that those who buy it on credit could run up huge debts.