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Summary

  1. ECB launch €60bn per month bond buying scheme
  2. Day two of World Economic Forum in Davos
  3. Balfour Beatty announces more construction losses

Live Reporting

By Howard Mustoe and Tom Espiner

All times stated are UK

  1. Post update

    Howard Mustoe

    Business reporter

    That brings us to the end of another eventful day. Davos's usual service was overshadowed by the European Central Bank's €1.14trn bond buying spree. Join us for more tomorrow from 06:00.

  2. Davos 2015

    pierre

    Pierre Moscovici, European economic and financial affairs commissioner spoke to Newsnight's Evan Davis earlier. With the US economy recovering and China coming to terms with its own slowdown, is Europe "the problem," asks presenter Evan Davis? "Europe now is not the problem" and hasn't been for two years, says Mr Moscovici. "We are out of it" (trouble, he means), but growth is needed, he says.

  3. Via Email

    Davos 2015

    Emily Young

    Business reporter

    Schmidt

    Google chairman Eric Schmidt reckons nearly all of the problems debated here at Davos could be solved by more broadband. Education, human rights, health. Wire up the citizens and they will take care of the rest, he says.

  4. Market update

    The FTSE 100 index reached a four-month high after the European Central Bank launched a massive sovereign bond purchase programme to extinguish deflation and spur growth. The index touched a peak of 6,797.01 points before closing at 6796.63, up 1%. France's Cac rose 1.5% and Frankfurt's Dax rose 1.3%.

    • Royal Mail rose 3% after saying sales for the nine months to Dec. 28 rose 1%
    • Insurer RSA rose 3% after Credit Suisse raised its recommendation on the stock
  5. Davos 2015

    Emily Young

    Business reporter

    poster

    This advice in Davos spotted by the BBC's Emily Young. Avoid taxis, helicopters and private jets in getting from your hotel to the conference appears to be the message. Or if you must take your Bentley or Maybach, maybe car share. This after various commentators pointed out that around 1,700 private jets are expected to ferry the great and the good to and from Davos this week.

  6. ECB stimulus and central banks

    Reuters has some interesting comparisons about how central banks have factored the prospect of ECB bond buying into their equations: "The Swiss National Bank had to remove its cap on the value of the franc last week, Denmark has pushed rates deeper into negative territory and two British rate setters at the Bank of England have dropped calls for a rate hike," it said.

  7. Davos 2015

    The world's central banks are all competing to weaken their currencies, according to Goldman Sachs president Gary Cohn. Money printing and bond buying depresses a currency's value which helps a country's exporters compete with cheaper prices. "We're in currency wars," he told a debate in Davos.

  8. Huawei founder on spying accusations

    Ren

    The founder of Chinese telecom tech firm Huawei has denied being instructed to spy on UK communications by the Chinese government in a rare interview. Ren Zhengfei told BBC chief business correspondent Linda Yueh that the firm had "never taken instruction from the Chinese government to spy on other governments".

  9. Via Twitter

    David Buik

    Panmure Gordon analyst

    tweets: At 4pm who would have believed the FTSE 100 would be up 78 points at 6806 - up 6.3% since 6th January 2015, after oil & political turmoil

  10. ECB stimulus plan

    oil

    Oil prices dropped after the bond buying programme was announced, with the benchmark Brent crude oil futures falling below $49 a barrel. But they were lower earlier in the day. "The ECB bond buying programme was larger than expected," said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland. "It was largely priced in."

  11. Davos 2015

    Padoan

    Italian Economy Minister Pier Carlo Padoan has been interviewed by the BBC's Robert Peston in Davos. The ECB bond buying programme is "ambitious, it has done something good for the eurozone," he says. Italy and other nations need to "free up markets" to provide investment opportunities, he adds.

  12. Via Email

    ECB stimulus plan

    Nigel Cassidy

    BBC Europe business correspondent

    "Arriving somewhat breathless for his news conference thanks to broken lifts, ECB president Draghi finally produced a QE package for Europe that received an initial thumbs-up from the financial markets. On the question of sharing some of the risks of his bond-buying spree with the 19 national banks, Mr Draghi came out fighting, saying such arrangements were quite normal, and he started to sound irritated when his questioners kept bringing it up. Yet for many, the Eurozone is not a true monetary union if its liabilities are not shared equally."

  13. Via Twitter

    Vegetarian haggis?

    Douglas Fraser

    Business and economy editor, Scotland

    haggis

    tweets: If your job's getting you down today, you could be doing this.

  14. Via Email

    ECB stimulus plan

    Ben Brettell

    Senior Economist, Hargreaves Lansdown

    "Will QE work? This is the sixty-four thousand euro question, but the answer is uncertain. A Bank of England study suggests QE in the UK did little to increase bank lending. However, the size of the ECB's programme, combined with its potentially open-ended nature, should convince markets that Mario Draghi is committed to fighting deflation."

  15. ECB stimulus plan

    One more nugget from Mr Draghi's press conference Q&A on inflation: "Annual HICP [Harmonised Index of Consumer Prices] inflation is expected to remain very low or negative in the months ahead. Such low inflation rates are unavoidable in the short term, given the recent very sharp fall in oil prices and assuming that no significant correction will take place in the next few months."

  16. Via Twitter

    ECB stimulus plan

    Nouriel Roubini

    Professor at Stern School, NYU

    tweets: ECB went for a larger QE program (over 1tr euros) in exchange for low risk sharing (only 20% of bonds purchased by ECB, 80% by NCBs [national central banks]) #WEF

  17. ECB stimulus plan

    mario

    That's it from Mr Draghi. We will bring you more analysis of his bond-purchasing splurge as it arrives.

  18. ECB stimulus plan

    Mr Draghi said among ECB governing members "there was a large majority on the need to trigger it [bond buying] now, and so large that we didn't need to take a vote". Is hyperinflation a risk with bond buying, he's asked? "Have we seen lots of inflation since the QE programme started?", he asks in return. Cheap money for banks didn't cause inflation last time, he adds.

  19. Via Email

    ECB stimulus plan

    Colin McLean

    Managing director

    "Coming later in the cycle, it is less clear if the measures will make the same impact as those in the US, UK and Japan. The US and UK were dealing with a cyclical downturn, not deep-seated structural failure. In the Eurozone, QE might further delay the need for structural reform in France, Greece and others - particularly in labour flexibility and the public sector."

  20. ECB stimulus plan

    draghi

    The maturities of the bonds to be bought range from two to 30 years, says Mr Draghi. Will he buy bonds with negative yields? "Yes," says Mr Draghi. On buying Greek bonds, "there's no special rule" for Greece.

  21. Via Email

    ECB stimulus plan

    Marc Ostwald

    Strategist, ADM Investor Services International

    "So far, the market is impressed by €60bn per month, but details are a little bit sparse, loss sharing is very limited... it's almost as though they have made this so complicated that markets cannot react! On balance this does smack of a very convoluted and complex compromise."

  22. Via Twitter

    ECB stimulus plan

    Gavin Hewitt

    Europe editor

    tweets: 5 years into the euro zone crisis the ECB announces a €1.1 trillion quantitative easing programme to boost economy. Bolder than expected.

  23. ECB stimulus plan

    draghi

    Low inflation was one of the main reasons the ECB decided to launch the bond buying programme, Mr Draghi says. The sharp fall in oil prices could have a knock-on effect on wage and price setting, he said.

  24. Via Twitter

    Joe Lynam

    BBC Business Reporter

    tweets: If earn in £ or $ and youre planning a cheeky weekend in Paris, Rome or Dublin etc, it's literally getting cheaper by the second

  25. Via Email

    ECB stimulus plan

    John Cridland

    CBI Director-General

    "At the moment, flagging eurozone economies are dragging on UK and world growth. Quantitative easing will give the eurozone recovery a much needed boost, which should also have a positive economic effect in the UK. To gain maximum effect though, this action must go hand-in-hand with structural reform. France needs to work with the business community to modernise its labour rules and Germany should invest more in infrastructure."

  26. ECB stimulus plan

    Mr Draghi is being asked about the risks associated with this bond-buying spree. His programme won't buy more than 25% of any given bond issue or more than 33% of any given borrower's debt, he says.

  27. Via Twitter

    ECB press conference

    Aaron Heslehurst

    Presenter, World Business Report

    tweets: Europe whips out the big bazooka! European Central Bank launches stimulus program. Injecting 60bln euros a month - till end of 2016!

  28. Via Twitter

    ECB press conference

    ECB twitter account

    ECB : Draghi: Today's measures will decisively underpin the firm anchoring of medium to long term inflation expectations

  29. Via Twitter

    ECB press conference

    ECB twitter account

    tweets: Draghi: Purchases until sustained adjustment in inflation path consistent with aim of inflation close to, but below 2% over the medium term

  30. Via Twitter

    ECB press conference

    Michelle Fleury

    BBC business correspondent, New York

    tweets: Draghi on potential losses : "will be subject to loss sharing" #ECB #QE

  31. ECB press conference

    euro

    The euro fell a cent against the dollar to $1.1518 as Mr Draghi announced the €60bn per month asset buying programme.

  32. Post update

    ECB press conference

    draghi

    Mr Draghi is now talking about the "expanded asset purchase programme." They are buying €60bn per month until the end of September 2016 or until there's a "sustained adjustment in the path of inflation" to get it close to 2%.

  33. ECB press conference

    European Central Bank chief Mario Draghi has sat down to begin his news conference. He's 7 minutes late.

  34. Via Twitter

    Ian Bremmer

    Professor, NYU

    Europe's youth unemployment (15-24): Greece 58% Spain 57% Italy 40% Portugal 38% France 24% UK 20% Germany 8%#wef15 #equalgrowth?

  35. Via Twitter

    Linda Yueh

    Chief business correspondent

    Renault-Nissan CEO Carlos Ghosn tells me #Brexit is bad for businesses like his & would re-consider UK investments if UK leaves EU #WEF2015

  36. Eurozone stimulus

    BBC World News

    Stephanie Flanders, JP Morgan Asset Management

    "It's quite a high risk moment for the ECB especially having stoked expectations around this meeting," says Stephanie Flanders from JP Morgan Asset Management and, formerly the BBC's Economics Editor, in Davos. She thinks the important thing is that we come away from the meeting thinking "the ECB can still do its job, can pursue its inflation target".

  37. ECB interest rates

    The European Central Bank maintains its main interest rate at 0.05%. "Further measures" will be communicated at the press conference being held by ECB chief Mario Draghi at 13:30 London time, the ECB said.

  38. Only at Davos

    Sir Richard Branson and Will.i.am

    Sir Richard Branson enjoys a quiet chat with rapper, record producer and entrepreneur will.i.am at Davos, presumably accompanied by TV crews, producers and PR people. According to Sir Richard they discussed business, tech, space, music and breakfast.

  39. Johnson pays US tax bill

    London Mayor Boris Johnson

    London mayor Boris Johnson has settled a US tax bill he had previously described as "absolutely outrageous". Mr Johnson, holds dual nationality and faced a demand from the US to pay capital gains tax on profit from the sale of his house in North London.

  40. Canada cuts interest rates

    Canada's central bank has cut overnight interest rates to 0.75% from 1%. The first rate move since September 2010 is an effort to stimulate the country's economy. The central bank's statement that lower oil prices would be "unambiguously negative" has sent the Canadian dollar into a slump.

  41. Via Twitter

    News Hound

    Joe Miller

    Business Reporter

    Davos dog

    Say hi to Kris, the BBC's #Davos2015 dog, complete with security badge. #WEF15

  42. BP's Gulf spill bill

    Gulf of Mexico coast line June 13, 2010

    The cost to BP of the Deepwater Horizon disaster could be higher than the "actual" costs of Hurricane Katrina, BP chief executive Bob Dudley told BBC Business Editor, Kamal Ahmed at Davos. Read more on the BBC Business pages.

  43. Via Email

    Davos 2015

    Emily Young

    BBC Business reporter, Davos

    In Davos former head of the European Commission Jose Manuel Barroso says he blackmailed countries to send female candidates to Brussels, by offering them the least important commissioner roles unless they came back with a woman.

  44. Microsoft HoloLens

    Windows Holographic

    Microsoft has revealed Windows 10, the latest generation of its computer operating software. It will run on all devices, from smartphones to desktops. There is much excitement over the HoloLens system, a headset which will project elements of the operating system on the real world. You can find out more on the BBC technology pages.

  45. Eurozone stimulus

    BBC World News

    Robert Shiller, Yale University economics professor

    From Davos Yale University professor and Nobel prize winner, Robert Shiller tells World Business Report that an ECB bond buying scheme could work. But there's "always a worry" that QE could create an asset bubble because QE makes it easier to borrow. But right now there is a greater need to encourage people and businesses to spend money before worrying about prices rising, he says.

  46. Unemployment figures

    Official figures on Tuesday told us that the employment rate was at about 73.0%, while that for unemployment was at about 5.8%. Why don't the numbers add up to 100%? The BBC's head of statistics Anthony Reuben explains.

  47. Plain cigarette packaging

    BBC News Channel

    Simon Clark, Forest

    Simon Clark is from the pro-smoking group Forest. He's not at all happy that plain cigarette packaging could come into force in 2016. "It's about ostracising smokers from normal society," he says. Mr Clark thinks the public health lobby is so powerful that it might move on to other products, like sugar.

  48. Via Email

    Davos 2015

    Emily Young

    BBC Business Reporter, Davos

    Prof Yunus (Grameen bank founder and Nobel Peace Prize winner) says he tells young people 'jobs are old fashioned, forget about them. You're an entrepreneur, job creator ..."

  49. Oxford instruments shares plunge

    Oxford Instruments

    Shares in Oxford Instruments have plunged by more than a quarter after the company was hit by problems in Russia. "We now assume that no sales can be made to Russia for the remainder of this year and we are also assuming no sales to Russia next year," the company said in a statement.

  50. Payment to European Union

    Pound coins

    The public sector borrowing figure for December records a £2.9bn contribution to the European Union budget. The UK gets a £1.2bn refund on that contribution so the final bill will be £1.7bn. You might remember that this bill caused an outrage last year. The payment was deferred until 2015, but the debt is recorded in the December accounts. For more detail see section 8 of the ONS release.

  51. Public sector finances

    From April to December 2014, public sector net borrowing was £86.3 billion. It's worth pointing out that the government's borrowing target for the year to April 2015 is £91.3bn. So in order to achieve that, borrowing will have to fall considerably in the coming months.

  52. Public sector finances

    Public sector net borrowing in December was £13.1bn up £2.9bn on the same month a year earlier official figures show.

  53. Via Email

    'Great big racket'

    Simon Wakerley

    Live page reader

    offers this opinion on QE: "A great big racket that mostly just benefits those with existing wealth by maintaining and increasing asset prices whilst doing nothing to help those in lower income groups who haven't managed to buy a house due to ridiculous rents and stagnating wages."

  54. Big brains on QE

    If you want to really get your teeth into the arguments for and against quantitative easing then listen to the BBC World Service discussion with Joerg Kraemer, chief economist at Germany's second biggest bank Commerzbank and Roger Bootle of Capital Economics.

  55. Wealth inequality

    BBC Radio 4

    Mike Meyers And Verne Troyor Star In 'Austin Powers: The Spy Who Shagged Me.'

    "We've all met a few Doctor Evils," says BBC's economics editor Robert Peston. He says the world is creating a new generation of billionaires and immensely wealth families and dynasties in a way that we haven't done for over 100 years but not all of them will use that wealth for good. "The wealthier these people become the harder it becomes for politicians to hold them in check."

  56. Newspaper review

    Business pages

    The Guardian reports that US tech firms are lobbying hard against international tax reform, which would eliminate tax avoidance schemes. The Times financial editor says pensioner bonds are terrible value for taxpayers and will cost far more than the March estimate of £325m. The Telegraph business section leads with "ECB eyes €1 trillion last ditch QE blitz". The FT says the ECB has debated a plan to buy roughly €50bn of bonds a month.

  57. Bill Gates

    BBC Radio 4

    Bill Gates

    Bill Gates wants the super-rich to give more of their money away to philanthropic ventures. He tells Todayfrom Davos that global wealth inequality has fallen but that individual countries are seeing greater inequality, which has a lot to do with tax policy and a lack of philanthropic activity.

  58. Via Twitter

    Davos 2015

    Kamal Ahmed

    BBC Business editor

    Christine Lagarde says Fed will raise interest rates this year, probably mid-year, rather than end. Gary Cohn, President Goldman Sachs, warns Fed interest rate rise wd strengthen dollar, cd have risks #wef15.

  59. Eurozone stimulus

    BBC Radio 4

    Axel Weber, chairman of UBS bank

    The former head of Germany's central bank Axel Weber says an ECB bond buying scheme will not solve Europe's problems. In particular it won't help unemployment which he argues is a structural problem caused by inflexible labour markets, pensions systems, medical systems amid an aging population he says. Governments need to tackle those problems he adds.

  60. Via Email

    Rebranding QE

    Gary Fry

    Live page reader

    offers "fiscal viagra" as another alternative to quantitative easing. That's good Gary. That's very good. It may well even be up there with "cash laxative".

  61. The future of movies

    BBC World News

    Rich Gelfond, chief executive IMAX

    IMAX is rolling out new laser technology which can project movies on to a 120 feet screen with "phenomenal" contrast and brightness, says Rich Gelfond the chief executive of IMAX on World Business Report from Davos. Responding to plans by Dolby to launch its own cinema chain he says: "I don't see it as a threat at all".

  62. Via Email

    Rebranding QE

    Eric Tyler

    Live page reader

    offers "Mourn day Money" as an alternative to quantitative easing and, yes, he says the spelling is appropriate. That's pretty good Eric, but we're not sure it beats front runner "cash laxative".

  63. Eurozone stimulus

    BBC Radio 4

    The symbol of the Euro, the currency of the Eurozone

    Does the size of the ECB's expected QE programme matter? "No," says Neil Shearing from Capital Economics on Today. The key question is the structure of the QE package, he says. Will it sit on the ECB's balance sheet or those of national central banks (Germany's preferred method of implementation)? It will "blunt the instrument" if national central banks implement QE in the eurozone.

  64. Royal Mail update

    The biggest contribution to Royal Mail's 1% rise in revenue came from its European operation, GLS, which saw an 8% rise in both parcel volumes and revenue. Despite the 3% rise in parcel volumes in the UK, revenue was flat. Royal Mail adds that it has made £111m from the sale of its Paddington sorting office which was completed in December.

  65. Balfour Beatty profits hit

    Thameslink

    Balfour Beatty expects a further £70m hit to profits at its construction business due to problems with contracts. The accountants KPMG have been reviewing the firm's construction business and found that it had been bidding with "optimistic assumptions" and had not been managing contracts effectively. Back in September it announced a £75m profit shortfall at that unit.

  66. Royal Mail update

    A Royal Mail employee sorts through mail

    Royal Mail letter volumes declined 3% in the nine months to the end of December while parcel volumes increased by the same amount. It says Christmas parcel volumes rose 4% to around 120m parcels in December alone, compared with a year earlier, it adds. Underlying revenue in the first nine months was 1% higher.

  67. Davos 2015

    Exhibition from the NGO Action2015

    Our Business live page is extended again today until 18:00 to cover the World Economic Forum in Davos. There's an impressive line-up of guests on BBC World Business Report today including Yale economics professor Robert Shiller, Russian billionaire Oleg Deripaska and the boss of IMAX Rich Gelfond, who's always a good talker.

  68. Eurozone stimulus

    BBC Radio 4

    The former president of Germany's central bank Axel Weber says he doesn't think "there is a problem QE will fix". "It will just continue to compress bond yields into negative territory," Mr Weber says. "The question is, will we gain European growth momentum and will labour markets pick up, in particular outside of Germany."

  69. Eurozone stimulus

    BBC Radio 4

    The ECB will have a hard time trying to hit a 2% inflation target at the moment, UBS chairman and former Bundesbank president, Alex Weber tells Today. The strong effect of the fall in oil prices on inflation means "re-anchoring inflation expectations" at 2% is very hard.

  70. Scotland tax

    Radio 5 live

    Scottish flag

    The UK government will publish more details today about how they will deliver more powers to Scotland. A big part of that will be control over taxation. Isobel d'Inverno director of corporate tax at Brodies in Edinburgh, says that the control of £5bn in income tax will be transferred to the Scottish parliament. But Scotland will not get control of corporation tax, she says on Wake Up to Money.

  71. 'Quantitative teasing'

    Radio 5 live

    Jane Foley, senior currency strategist at Rabobank says that the ECB has already been engaged in "quantitative teasing" by hinting at a stimulus, which has helped keep rates low and has been driving down the euro. She says there is a danger that QE will add to inequality as it will flood the financial markets with money and drive up asset prices.

  72. Football finance

    Radio 5 live

    Vincent Kompany (C) celebrates with the Premiership trophy

    All of the English Premier League teams are in the top 40 of the world's richest football clubs, according to a report today. The bottom club in the top English league can make around £60m from TV, which is more than most football clubs in the world, says Andrew McHale, a sports lawyer, on Wake Up to Money. But financial fair play "is really starting to bite," he adds.

  73. 'Cash laxative'

    Radio 5 live

    Wake Up to Money asks its listeners to come up with a new name for quantitative easing, which let's face it is hard to say, let alone spell. The best so far is "cash laxative". Can our live page readers beat that? Email bizlivepage@bbc.co.uk or tweet @bbcbusiness.

  74. Eurozone stimulus

    Radio 5 live

    euro sign

    "It is not the environment where QE is going to be effective," says Andrew Sentance a former member of the Bank of England's Monetary Policy Committee on Wake Up to Money. He says the ECB will struggle to get much traction with any bond buying programme as long term interest rates are already very low and confidence is weak.