The FTSE 100 has reversed its earlier losses and is now up 15 points, partly because the pound’s earlier gains have largely been erased.

The FTSE tends to do better when the pound is weaker, because so many of the companies listed have significant overseas earnings.

Here are the current scores across Europe:

• FTSE 100: +0.2% at 7,402

• Germany’s DAX: +0.1% at 13,065

• France’s CAC: +0.2% at 5,345

• Italy’s FTSE MIB: -0.2% at 22,158

• Spain’s IBEX: -0.3% at 10,058

• Europe’s STOXX 600: -0.1% at 384

Carillion shares plunged as much as 60% in early trading after the construction group involved in HS2 and Battersea Power Station issued its third profit warning of the year:

The group now expects that a combination of delays to certain PPP disposals, a slippage in the commencement date of a significant project in the Middle East and lower than expected margin improvements across a small number of UK Support Services contracts, partially offset by cost savings initiatives realised in the fourth quarter, will lead to profits for the year to 31 December 2017 being materially lower than current market expectations.

Shares are now down 37% at 26p.

The company, which is struggling to cope with a large debt pile and badly-performing contracts, said the board expects a covenant breach at the end of December and will need to implement a recapitalisation plan.

Keith Cochrane, interim chief executive, said:

Whilst we continue to target cash collections, reduce costs, execute disposals and focus on delivering for our customers, it is clear that significant challenges remain and more needs to be done to reduce net debt and rebuild the balance sheet.

Constructive dialogue is continuing with our financial stakeholders, and I am grateful for their support. I remain focused on addressing this issue before my successor, Andrew Davies, takes up the role on 2 April 2018.

Related: HS2 contractor Carillion in fresh profit warning amid debt concerns

Here comes the “but” part of the ECB president’s speech.

Mario Draghi says that despite solid growth and rising employment, inflation is not at the point where it will pick up without stimulus from the central bank. (Eurozone inflation dipped to 1.4% in October from 1.5% in September.)

He says the recovery thus far has been highly dependent on the bank’s support.

The key quote:

We are not yet at a point where the recovery of inflation can be self-sustained without our accommodative policy. A key motor of the recovery remains the very favourable financing conditions facing firms and households, which are in turn heavily contingent on our policy measures.

An ample degree of monetary stimulus remains necessary for underlying inflation pressures to build up and support headline inflation over the medium term.

The ECB announced last month that it would slow its bond-buying programme to €60bn to €30bn a month starting from January.

However, it extended the support for at least another nine months to the end of September 2018, “or beyond, if necessary,” Draghi says.

The key message here is that ECB policy is likely will remain supportive for some time to come.

Related: ECB to halve bond buying as it plans to scale back quantitative easing

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Draghi is running through stats to illustrate how much the employment picture has improved in the eurozone.

He says it “a remarkable success story” that unemployment has come down in the single currency-bloc at the same time that participation in the labour market is rising, as more women and older people enter the workforce.

Consumption is being supported by a virtuous circle between rising labour income and rising employment. Employment in the euro area has reached its highest level ever, while unemployment has fallen to its lowest rate since January 2009.

Importantly, this has taken place against the backdrop of a rising participation rate, which is now 2 percentage points above its pre-crisis level. This has been driven in particular by the increased entry of women into the workforce, whose participation rate has risen by 4 percentage points since 2008 and reached an all-time high.

It has also been strongly driven by older people. Since the start of the crisis, the participation rate has increased by 3.6 percentage points for people aged 50-54, 13.6 percentage points for 55-59 year olds and 17.1 percentage points for 60-64 year olds.

Mario Draghi, president of the European Central Bank, is speaking in Frankfurt at the European Banking Congress.

He begins on a positive note on the outlook for the eurozone economy:

The euro area is in the midst of a solid economic expansion. GDP has risen for 18 straight quarters, with the latest data and surveys pointing to unabated growth momentum in the period ahead.

From the ECB’s perspective, we have increasing confidence that the recovery is robust and that this momentum will continue going forward.

The FTSE 100 is down 17 points this morning, and the biggest faller among its major European peers:

• FTSE 100: -0.2% at 7,370

• Germany’s DAX: +0.2% at 13,074

• France’s CAC: -0.02% at 5,335

• Italy’s FTSE MIB: -0.01 at 22,204

• Spain’s IBEX: -0.1% at 10,074

• Europe’s STOXX 600: +0.02% at 385

Joseph Stiglitz, the Nobel prize-winning economist, has been interviewed by the Guardian’s economics editor, Larry Elliott, and it’s well worth a watch if you missed it:

Related: Joseph Stiglitz: ‘Trump has fascist tendencies’

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The pound has a spring in its step this morning, hitting a two-week high against the dollar of $1.3252.

Sterling is benefitting from a sharp sell-off of the dollar triggered by reports in the US that special counsel Robert Mueller served President Trump’s election campaign a subpoena in mid-October, requesting documents relating to Russia.

As CMC Markets’ Michael Hewson explains, positive sentiment earlier in the day (generated by the passing of a bill in the House of Representatives aimed at cutting US company rates from 35% to 20%), quickly evaporated:

The passing of yesterday’s bill helped the US dollar close near its intraday peaks yesterday, while also helping push up US yields with the 2 year yield hitting its highest level since October 2008.

These US dollar gains were pretty short-lived and soon gave way to selling on reports that Trump officials had been subpoenaed by special attorney Robert Mueller as part of the investigation into Russian involvement in the Trump Presidential campaign.

This sent the US dollar sharply lower against the yen, dragging on the Nikkei as well as pushing the euro above 1.1800 and the pound to a two week high above 1.3200.

The pound is currently up 0.3% at $1.3229 and is up 0.1% against the euro at €1.1223.

The dollar index – which measures the greenback against a basket of other major currencies – is down 0.2%.

Also coming up today…

• 8.30am GMT: Mario Draghi, president of the European Central Bank, is giving a keynote speech at the European Banking Congress in Frankfurt

• 1.30pm GMT: Housing starts data for October will give the latest snapshot of the US property market