We're closing a little earlier than usual today, as US markets are shut for Labour Day. Thanks for tuning in.
We'll be back tomorrow at 6am with more news and views on the markets - hope to see you then.
CEOs will listen to globalisation fears, says PwC chair
DavosCopyright: Davos
Company bosses are ready to listen to the public's concerns over globalisation - as expressed through the votes for Donald Trump and Brexit - the global chair of PwC, Bob Moritz, has said.
Speaking from Davos, he told the BBC: "CEOs can see the benefits of free trade and they need to do a better job of communicating those benefits.
"But they can also see the negatives around income inequality and climate change, and they realise that they have to do something. What they do is the question... But they will be judged over whether they acted," he said.
Mr Moritz, however, said that country leaders also had to play a big role - chiefly by improving their education systems in order to up-skill their labour forces.
Convincing countries such as China to back away from free trade would also be a tough ask, he said.
US 'needs to build better cars', says Germany
Getty ImagesCopyright: Getty Images
As we reported earlier, Donald Trump has threatened to heavily tax German car firms if they continue to build vehicles in Mexico for sale in the US.
In an interview with the Times, he added: “When you walk down Fifth Avenue, everybody has a Mercedes-Benz parked in front of his house. How many Chevrolets do you see in Germany? Not many... it’s a one-way street.”
But Sigmar Gabriel, Germany’s economy minister (pictured), hit back this afternoon, saying that the US should focus on building more attractive cars, rather than penalising competition.
“The American car industry is getting worse, weaker and more expensive,” Gabriel told Bild on Monday. If US buyers are choosing German models, as Trump suggests, then “that’s why the US needs to build better cars,” he said.
UK trade slips
The UK's exports slipped 12% between January and November last year, the EU's statistics agency has said.
According to Eurostat, exports to other EU countries were down 5% while those to non-EU countries dropped 17%.
At the same time, the bloc's total exports to the rest of the world grew by 6%.
Video caption: Correctiv is the German organisation which has been tasked with checking the facts.Correctiv is the German organisation which has been tasked with checking the facts.
Post-truth and fake news are buzz phrases which have filled social media streams and newspaper column inches over the past few months. The fear is that objective facts have become less influential in shaping public opinion.
Instead it's claimed that made up stories shared online are shaping people's beliefs and voting intentions. Now Facebook is introducing new tools in Germany to help combat the spread of fabricated news.
Consumer headwinds expected in 2017, says Governor
Getty ImagesCopyright: Getty Images
Mr Carney said the bank would be monitoring the impact of inflation carefully this year, as currency weakness linked to Brexit continues to push up the cost of living.
“Recently, there have been signs of continued solid consumer momentum domestically and a stronger growth outlook globally,” he said.
However, he warned consumption-led growth “tends to be both slower and less durable” as it eventually overtakes earnings, leaving demand more sensitive to household employment and income changes.
Carney's aptitude questioned
LSE-educated economist Sean Richards is less than impressed with Mark Carney's speech at the university tonight.
Tolerance for high inflation 'has limits' - Carney
Mr Carney's comments follow numerous forecasts that inflation will rise above the bank's 2% target as a result of the pound's weakness since the Brexit vote.
In his speech, the governor said the bank recognised bringing inflation back to target too rapidly could cause undesirable "volatility in output and employment".
However, he warned: "There are limits to the extent to which above-target inflation can be tolerated."
He also said that following the decision to leave the EU, the UK would "redefine its openness to the movement of goods, services, people and capital".
BreakingInterest rates could rise or fall - Carney
Getty ImagesCopyright: Getty Images
The next move in UK interest rates could be up or down, Bank of England governor Mark Carney has warned.
At present, UK households appeared to be "entirely looking through Brexit-related uncertainties", he said in a speech at the London School of Economics.
However, the country was "entering a period of somewhat higher consumer price inflation", he added.
As a result, monetary policy could respond "in either direction".
The Bank of England's Monetary Policy Committee (MPC) is required to achieve price stability, defined by the government as an annual inflation rate of 2%.
UBS has 'flexibility over Brexit' - Davos
Getty ImagesCopyright: Getty Images
Swiss bank UBS has said it would have a degree of flexibility after Brexit, even if its UK outpost lost the right to continue trading across the EU.
Chief executive Sergio Ermotti told the World Economic Forum in Davos: "We have a Frankfurt base where we house our wealth management operations and not just that... We have a framework in place and infrastructure that can be expanded if needed."
However, he also said the uncertainty around Brexit was a risk.
"We need a higher degree of certainty in order to take action, it will be extremely expensive otherwise."
Mr Ermotti has previously said that about 20-30% of UBS' 5,000 London staff could be affected if the bank decided to relocate some its UK operations.
Profits unlikely to be dented - Rolls-Royce
Rolls Royce has said the penalties handed down to it are unlikely to cause financial dire straits for the firm.
It said the combined impact of the fines in the first year of all three agreements would be £293m.
"Rolls-Royce will report full year 2016 results on 14 February 2017 and an appropriate update on the implications of these agreements will be provided at that time," it said.
"Early indications are that the group has had a good finish to the year with both profit and, in particular, cash expected to be ahead of expectations."
The UK's Serious Fraud Office (SFO) began its formal investigation into the firm in 2013, following claims about possible bribery in China and Indonesia. Some of the allegations dated back more than 10 years.
They involved Rolls-Royce's "intermediaries", which are local companies that handle sales, distribution, repair and maintenance in countries where the British firm does not have enough people on the ground.
Rolls Royce reaches £671m settlement over bribery claims
Getty ImagesCopyright: Getty Images
Engineering giant Rolls Royce has reached a £671m settlement with British, US and Brazilian authorities over bribery and corruption claims.
In a statement it said: "These are voluntary agreements which result in the suspension of a prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty."
If finalised, the agreements will result in it paying the US justice department $169.9m; Brazil's Ministério Público Federal $25.5m; and the UK Serious Fraud Office £497.2m (plus a payment in respect of the SFO's costs).
Risks remain for the pound
BBCCopyright: BBC
Jeremy Stretch, head of currency strategy at CIBC Markets, says that the pound may not fall much further tomorrow but that risks remain for the currency.
"There are further risks ahead, particularly as investors start to weigh rather negatively the growth forecasts for the UK economy in 2017 and 2018," he said. "And that's despite the slightly better news from the IMF today."
He added: "The consumer is still powering the economy - the question is what happens when spending power starts to be squeezed throughout the course of this year as prices go up and average earnings don't keep pace."
The UK government launches a review of Scotland's law on limited partnerships following reports it is being exploited as a money-laundering front for organised crime.
The FTSE 100 ended a record run today after shares in banks and oil companies slipped.
The index had achieved its 12th consecutive record close on Friday, but finished Monday 0.15%, or 10.68 points, lower at 7,327.13 points.
Financial firms were hit after reports suggested that the Prime Minister would reveal her preference for a "hard Brexit" in a speech tomorrow.
RBS, Standard Life, insurer Prudential, and Lloyds were among the top fallers, shedding 2.8%, 2.18%, 2.11 and 2% respectively.
Oil companies were hit by fresh doubts over whether Opec countries will stick to an agreed output cut announced last year.
BP was down by 1% while Shell lost 0.3%.
BA's statement in full
Getty ImagesCopyright: Getty Images
Here's BA's statement in full:
"We have further strengthened our schedule for January 19-21, the days for which Mixed Fleet Unite has called strike action, and will fly all customers to their destinations.
"We will operate all our long-haul services to and from Heathrow and all services to and from Gatwick, London City and Stansted.
"We will merge a small number of our short-haul services at Heathrow, resulting in the cancellation of only 1% of our total scheduled flights across the three days. Customers affected will be able to fly slightly earlier or slightly later."
Live Reporting
Daniel Thomas
All times stated are UK
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Video caption: Correctiv is the German organisation which has been tasked with checking the facts.Correctiv is the German organisation which has been tasked with checking the facts. 
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Latest PostPost update
We're closing a little earlier than usual today, as US markets are shut for Labour Day. Thanks for tuning in.
We'll be back tomorrow at 6am with more news and views on the markets - hope to see you then.
CEOs will listen to globalisation fears, says PwC chair
Company bosses are ready to listen to the public's concerns over globalisation - as expressed through the votes for Donald Trump and Brexit - the global chair of PwC, Bob Moritz, has said.
Speaking from Davos, he told the BBC: "CEOs can see the benefits of free trade and they need to do a better job of communicating those benefits.
"But they can also see the negatives around income inequality and climate change, and they realise that they have to do something. What they do is the question... But they will be judged over whether they acted," he said.
Mr Moritz, however, said that country leaders also had to play a big role - chiefly by improving their education systems in order to up-skill their labour forces.
Convincing countries such as China to back away from free trade would also be a tough ask, he said.
US 'needs to build better cars', says Germany
As we reported earlier, Donald Trump has threatened to heavily tax German car firms if they continue to build vehicles in Mexico for sale in the US.
In an interview with the Times, he added: “When you walk down Fifth Avenue, everybody has a Mercedes-Benz parked in front of his house. How many Chevrolets do you see in Germany? Not many... it’s a one-way street.”
But Sigmar Gabriel, Germany’s economy minister (pictured), hit back this afternoon, saying that the US should focus on building more attractive cars, rather than penalising competition.
“The American car industry is getting worse, weaker and more expensive,” Gabriel told Bild on Monday. If US buyers are choosing German models, as Trump suggests, then “that’s why the US needs to build better cars,” he said.
UK trade slips
The UK's exports slipped 12% between January and November last year, the EU's statistics agency has said.
According to Eurostat, exports to other EU countries were down 5% while those to non-EU countries dropped 17%.
At the same time, the bloc's total exports to the rest of the world grew by 6%.
Where are the 'non elite' at Davos?
George Magnus, senior economic adviser at UBS, tweets...
Carney jobs claim 'remarkable'
Economist Gerard Lyons tweets...
Pound still down against dollar
A quick update on the pound, which is still down after reports that Theresa May will outline plans for a hard Brexit tomorrow.
It's currently 1.13% lower against the dollar, at $1.20550, and 0.81% lower against the euro at €1.13690.
Facebook to roll out fake news tools in Germany
World Business Report
Video content
Post-truth and fake news are buzz phrases which have filled social media streams and newspaper column inches over the past few months. The fear is that objective facts have become less influential in shaping public opinion.
Instead it's claimed that made up stories shared online are shaping people's beliefs and voting intentions. Now Facebook is introducing new tools in Germany to help combat the spread of fabricated news.
Hear World Business report's take here.
Consumer headwinds expected in 2017, says Governor
Mr Carney said the bank would be monitoring the impact of inflation carefully this year, as currency weakness linked to Brexit continues to push up the cost of living.
“Recently, there have been signs of continued solid consumer momentum domestically and a stronger growth outlook globally,” he said.
However, he warned consumption-led growth “tends to be both slower and less durable” as it eventually overtakes earnings, leaving demand more sensitive to household employment and income changes.
Carney's aptitude questioned
LSE-educated economist Sean Richards is less than impressed with Mark Carney's speech at the university tonight.
Tolerance for high inflation 'has limits' - Carney
Mr Carney's comments follow numerous forecasts that inflation will rise above the bank's 2% target as a result of the pound's weakness since the Brexit vote.
In his speech, the governor said the bank recognised bringing inflation back to target too rapidly could cause undesirable "volatility in output and employment".
However, he warned: "There are limits to the extent to which above-target inflation can be tolerated."
He also said that following the decision to leave the EU, the UK would "redefine its openness to the movement of goods, services, people and capital".
BreakingInterest rates could rise or fall - Carney
The next move in UK interest rates could be up or down, Bank of England governor Mark Carney has warned.
At present, UK households appeared to be "entirely looking through Brexit-related uncertainties", he said in a speech at the London School of Economics.
However, the country was "entering a period of somewhat higher consumer price inflation", he added.
As a result, monetary policy could respond "in either direction".
The Bank of England's Monetary Policy Committee (MPC) is required to achieve price stability, defined by the government as an annual inflation rate of 2%.
UBS has 'flexibility over Brexit' - Davos
Swiss bank UBS has said it would have a degree of flexibility after Brexit, even if its UK outpost lost the right to continue trading across the EU.
Chief executive Sergio Ermotti told the World Economic Forum in Davos: "We have a Frankfurt base where we house our wealth management operations and not just that... We have a framework in place and infrastructure that can be expanded if needed."
However, he also said the uncertainty around Brexit was a risk.
"We need a higher degree of certainty in order to take action, it will be extremely expensive otherwise."
Mr Ermotti has previously said that about 20-30% of UBS' 5,000 London staff could be affected if the bank decided to relocate some its UK operations.
Profits unlikely to be dented - Rolls-Royce
Rolls Royce has said the penalties handed down to it are unlikely to cause financial dire straits for the firm.
It said the combined impact of the fines in the first year of all three agreements would be £293m.
"Rolls-Royce will report full year 2016 results on 14 February 2017 and an appropriate update on the implications of these agreements will be provided at that time," it said.
"Early indications are that the group has had a good finish to the year with both profit and, in particular, cash expected to be ahead of expectations."
What was Rolls Royce accused of?
Rolls Royce's settlement relates to claims of corruption involving intermediaries in a number of overseas markets.
The UK's Serious Fraud Office (SFO) began its formal investigation into the firm in 2013, following claims about possible bribery in China and Indonesia. Some of the allegations dated back more than 10 years.
They involved Rolls-Royce's "intermediaries", which are local companies that handle sales, distribution, repair and maintenance in countries where the British firm does not have enough people on the ground.
Rolls Royce reaches £671m settlement over bribery claims
Engineering giant Rolls Royce has reached a £671m settlement with British, US and Brazilian authorities over bribery and corruption claims.
In a statement it said: "These are voluntary agreements which result in the suspension of a prosecution provided that the company fulfils certain requirements, including the payment of a financial penalty."
If finalised, the agreements will result in it paying the US justice department $169.9m; Brazil's Ministério Público Federal $25.5m; and the UK Serious Fraud Office £497.2m (plus a payment in respect of the SFO's costs).
Risks remain for the pound
Jeremy Stretch, head of currency strategy at CIBC Markets, says that the pound may not fall much further tomorrow but that risks remain for the currency.
"There are further risks ahead, particularly as investors start to weigh rather negatively the growth forecasts for the UK economy in 2017 and 2018," he said. "And that's despite the slightly better news from the IMF today."
He added: "The consumer is still powering the economy - the question is what happens when spending power starts to be squeezed throughout the course of this year as prices go up and average earnings don't keep pace."
Review of limited partnerships launched
The UK government launches a review of Scotland's law on limited partnerships following reports it is being exploited as a money-laundering front for organised crime.
Read moreFTSE ends record run
The FTSE 100 ended a record run today after shares in banks and oil companies slipped.
The index had achieved its 12th consecutive record close on Friday, but finished Monday 0.15%, or 10.68 points, lower at 7,327.13 points.
Financial firms were hit after reports suggested that the Prime Minister would reveal her preference for a "hard Brexit" in a speech tomorrow.
RBS, Standard Life, insurer Prudential, and Lloyds were among the top fallers, shedding 2.8%, 2.18%, 2.11 and 2% respectively.
Oil companies were hit by fresh doubts over whether Opec countries will stick to an agreed output cut announced last year.
BP was down by 1% while Shell lost 0.3%.
BA's statement in full
Here's BA's statement in full:
"We have further strengthened our schedule for January 19-21, the days for which Mixed Fleet Unite has called strike action, and will fly all customers to their destinations.
"We will operate all our long-haul services to and from Heathrow and all services to and from Gatwick, London City and Stansted.
"We will merge a small number of our short-haul services at Heathrow, resulting in the cancellation of only 1% of our total scheduled flights across the three days. Customers affected will be able to fly slightly earlier or slightly later."