Business Live: US markets tread water

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China is hoping that Britain and the EU can reach a deal everyone is happy with on the UK's exit from the single market.

A spokeswoman for China's foreign ministry says: "We hope that Britain and the EU can reach a win-win agreement via negotiations." 

Reuters reports that China supports the European integration process, and believes a prosperous, stable and open EU is in everyone's interests. 

However, the ministry spokeswoman, says: "At the same time, we also attach great importance to relations with Britain, we set store on Britain's position and role, and are willing to continue strengthening mutually beneficial, win-win cooperation in all areas with Britain."

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A New York City councillor whose district contains Trump Tower as well as hundreds of other businesses says the cost of increased security to the city is "continuing to be a challenge".

Speaking to 5 live, Dan Garodnick, who's represented the 4th District for 11 years, said many businesses have reported a drop in sales because access to their premises is restricted due to heightened measures to protect the president-elect, including barricades.

The jewellery chain Tiffany & Co reported a 14% decline at the company's flagship store on Fifth Avenue, which it linked in part to "post-election traffic disruptions".

Mr Garodnick said compensation was "on the table" for some affected businesses.

Following prime minister Theresa May's Brexit speech, we gauge reaction in Europe. Pieter Omtzigt is a Dutch member of parliament and offers us his thoughts. 

Also in the programme, the BBC's Joe Miller reports from the World Economic Forum in Davos, Switzerland, where the twin shocks of Brexit and the election of Donald Trump are making life a little less comfortable for the global elites gathered there. 

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US stocks ended flat on Wednesday, having been little moved by a speech from Federal Reserve chief Janet Yellen that suggested the US would get a "nasty surprise" if it waits too long to raise interest rates again. 

The Dow Jones lost 22.12 points, falling to 19,804.65, the S&P 500 gained 3.99 points, rising to 2,271.88, and the Nasdaq 16.93 rose 16.93 points to 5,555.65.

Analysts say stocks have been in a holding pattern in recent weeks, as investors await the inauguration of Donald Trump as president.

This brought to an end a two-month rally that was spurred by Mr Trump's surprise victory in November. 

Katie Nixon of Northern Trust Wealth Management said: "It's natural after such a remarkable run post-election to have a bit of a flat, quiet period as investors wait for some more tangibles. 

"We know directionally where Donald Trump wants to go, and with a Republican Congress he's got a higher probability of success than otherwise, but we don't have the details." 

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Nissan says it still plans to invest further in its UK plants, despite confirmation from the Prime Minister on Tuesday that the UK will leave the single market.

The Japanese car-maker in October committed to building new Nissan models at its Sunderland factory, after receiving unspecified assurances from the government.   

In an interview with Bloomberg, chief executive Carlos Ghosn said Mrs May's plans did not "change the decision”. However, he said he would continue to monitor the UK's competitiveness after Brexit closely. 

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Donald Trump will formally ask for the Nafta free trade pact with Canada and Mexico to be renegotiated within days of taking office, a newspaper has reported. 

Canada's Globe and Mail said that incoming US Commerce Secretary Wilbur Ross had already informed the Canadian government of the administration's intentions. 

It is understood the US will seek a new dispute resolution mechanism and tighter country of origin rules in any revised pact - a move likely to lead to tariffs. 

A spokeswoman for Canada's foreign minister declined to comment on the claims, but said: "We have a constructive working relationship with Mr Trump's transition team and talks are in progress."

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The dollar has climbed after Federal Reserve chief Janet Yellen suggested the US could be in for "a nasty surprise" if it waits too long to raise interest rates again. 

The currency is up by about 0.5% against the euro at £0.93790.

At a speech in San Francisco, Ms Yellen said she could not say when the next US interest rate would occur or how high it might be. 

However, repeating previous comments, she said the Fed expected to raise rates "a few times a year" until the end of 2019, pushing the Fed's benchmark rate close to 3%.

The rate currently stands in a range of 0.5% to 0.75%.

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US share markets are little changed ahead of a speech by Janet Yellen, the Federal Reserve chair, at 8pm GMT. 

The major share indexes are largely flat, with the Dow Jones down 0.2% at 19,787.70 points; the S&P 500 up 0.05% at 2,268.94; and the Nasdaq down 0.06% at 5,542.26.

We'll keep you apprised of any changes. 

Elvis Presley, ABBA and Bob Marley are helping to revive the economic fortunes of small outback towns in Australia. Their enduring music and legend have spawned festivals that are apparently helping to reverse the demoralising effects of drought and decline. Perhaps the most glittering takes place this week in Parkes, a farming community about 350 kilometres west of Sydney, as the BBC's Phil Mercer reports. 

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The Trump administration's top trade priority is to renegotiate the Nafta trade deal with Canada and Mexico, according to commerce secretary nominee Wilbur Ross.

He was speaking to US senators at a confirmation hearing on his nomination.

Mr Ross said China was the "most protectionist" country among large economies.

But "Nafta is logically is the first thing for us to deal with," he said.

Read more.

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It seems that HSBC wasn't bluffing. The day after Theresa May confirmed the UK will be leaving the single market, HSBC confirmed plans to move 1,000 bankers to Paris.

We always knew how many but today we learned how much business they would take with them from London. Those bankers generate 20% of HSBC's European banking revenue - a number that HSBC wouldn't split out but is in the billions.

Revenue is not the same as profit but the move will dent government tax receipts, as will the loss of income tax from a thousand highly paid investment bankers.

Read Simon's commentary in full.

However, on the thorny subject of Donald Trump's threat to place tariffs on Chinese imports and his accusation that China has manipulated its currency - the yuan - Jack Ma is diplomatic, saying they didn't talk about that.

Mr Ma says he's proud of China President Xi Jinping's passionate speech defending free trade yesterday, and makes a call for "inclusive globalisation".

"China is transforming from exporting to importing. It's a huge change to China and the world," he adds. 

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It's standing room only at the Jack Ma talk in Davos.

The founder of e-commerce giant Alibaba is the closest thing China has to an international rock star. He's particularly interesting because earlier this month he was pictured meeting Donald Trump, and subsequently pledged to create a million jobs in the US by using his website to sell to China.

Ma claimed he initially turned down the invite because he didn't know what to talk to the president-elect about.

Now he says he's glad he went. 

"It was a very productive meeting, much better than I thought."

His verdict on Trump: "He's very open-minded".

McDonalds is launching two new variations of the Big Mac, according to Bloomberg. In other burger news the Economist's Big Mac index, which compares the cost of the burger around the globe, indicates the Swiss franc and Norwegian Krone are overvalued against the dollar. The index shows that a Big Mac currently costs $5.06 in America but just 10.75 lira ($2.75) in Turkey, implying that the lira is undervalued.

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US investment Bank Goldmans Sachs says it disagrees with the markets' "positive take" on the Prime Minister's Brexit speech on Tuesday.  

Quote Message: The Prime Minister's speech painted a rosy future for the UK outside the European Union and at the centre of the global economy, but the near-term implications of the speech look to us quite different and more negative than the interpretation embraced by markets. Our forecast remains the pound will be worth $1.20, in three months.

The Prime Minister's speech painted a rosy future for the UK outside the European Union and at the centre of the global economy, but the near-term implications of the speech look to us quite different and more negative than the interpretation embraced by markets. Our forecast remains the pound will be worth $1.20, in three months.

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Some 79 branches of Clydesdale and Yorkshire Bank (CYB) are to close resulting in more than 400 job losses.  

It is the largest closure programme in the bank's history and follows a decision to shut 26 branches last year. 

Unite the union said it was "bitterly disappointed" by the announcement.

National officer Rob MacGregor said: “The union has called on the bank to give a commitment to mitigate compulsory redundancies where possible and that they will reconsider closing any bank branches that are the last bank in a town." 

Norway’s EU Affairs Minister Frank Bakke-Jensen has said Britain's decision to leave the single market is "wise", according to Politico.

This, he explained, was because Britain would struggle to get a deal as good as the one Norway has with the bloc. 

The Nordic country has access to most of the EU’s internal market through its membership of the European Economic Area, but it has to adopt a large number of EU laws without having a formal say in how they are shaped.

Bakke-Jensen said Norway had negotiated its deal in 1992, when the EU had only 13 members, but added: “The EU has grown so much and it is much more complicated today”.