Cyprus defended on Saturday the decision to halt flights by its national carrier, calling the closure of debt-laden Cyprus Airways "unavoidable", as pilots vowed action against the government.

Government spokesman Nicos Christodoulides told state radio that authorities had tried to rescue the stricken carrier, but that its problems were "long standing" and irreversible. 

Fitch Ratings cut Russia's credit grade Friday to just one notch above junk level, saying plunging oil prices and Western sanctions will force a four percent economic contraction this year.

Fitch lowered its rating for Russian government debt by one step to BBB-, the lowest possible investment grade, and added a negative outlook on the rating.

The dollar fell against the euro and the yen Friday after an otherwise buoyant U.S. December jobs report showed wages sagging even as the unemployment rate fell to 5.6 percent.

The greenback reversed course from recent gains as the slowdown in wage growth in December to 1.7 percent year-on-year, barely keeping up with inflation, pointed to some frailty in consumer spending power.

U.S. Secretary of State John Kerry left late Friday for India on his first foreign trip of 2015, with a heavy focus on trade and investment with the South Asian economic giant.

His tour will also take him to Geneva for talks Wednesday with his Iranian counterpart on Iran's nuclear program, before he makes his first visit as the top U.S. diplomat to Bulgaria later in the week.

International Airlines Group (IAG), the parent company of British Airways and Iberia, said Friday it had made a fresh attempt to bid for Irish carrier Aer Lingus which was rejected.

It said it submitted a second takeover approach last month, offering 2.40 euros per share, up from 2.30 euros which it offered earlier in the month.

Cyprus scrapped Friday its last controls on businesses transferring funds abroad, another step toward abolishing draconian measures imposed in 2013 to avoid a run on banks.

The finance ministry issued a decree that transfers above two million euros ($2.4 million) no longer need approval. This comes a month after the ceiling on free transfers was raised to that level.

Cyprus announced Friday an immediate halt to flights by its national carrier, spelling its demise, after EU regulators ordered Nicosia to recover illegal state aid granted to the holiday island's ailing airline.

Cyprus Airways ticket-holders will be offered alternative arrangements, the government of the small recession-hit EU member state said.

The U.S. unemployment rate fell to 5.6 percent in December, the lowest level in six and a half years, as the country capped its best year for job creation since 1999.

In a fresh sign that the United States is creating more distance with the weakness in Europe and elsewhere, the Commerce Department said Friday that the economy churned out 252,000 jobs last month.

Oil prices fell Friday with analysts predicting further pressure on the market owing to a glut of global supplies and weak demand.

Markets were awaiting a U.S. jobs report due Friday, with forecasts for another sharp rise in new positions giving the Federal Reserve more ammunition to lift interest rates.

German automakers BMW, Daimler and Volkwagen said Friday their leading brands attained record sales in 2014, driven by rising demand in all regions.

Top-of-the-range maker BMW said in a statement it delivered more than two million vehicles to customers last year, "the company's fourth record year in a row."