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Pound rises as Bank signals limited Brexit fallout - business live Pound rises as Bank signals limited Brexit fallout - business live
(35 minutes later)
1.23pm BST
13:23
Sports Direct minimum wage investigation to cover shop workers
The Guardian understands the official investigation into Sports Direct’s failure to pay its warehouse workers the national minimum wage has been widened to include the sportswear chain’s 13,000 retail workers.
Here is the full update from Simon Goodley:
Related: Sports Direct minimum wage investigation to cover shop workers
1.18pm BST
13:18
Returning to the labour market data, the number of people claiming jobless benefits rose by 400 in June to almost 760,000.
It was far smaller than the 3,500 increase predicted by economists but the figure for May was heavily revised to show a 12,200 jump over the month, compared with the 400 fall the ONS previously estimated.
12.25pm BST12.25pm BST
12:2512:25
As we move into afternoon trading European markets are up.As we move into afternoon trading European markets are up.
Investors are cheered by evidence from the Bank of England that so far, the Brexit vote does not appear to have triggered a slowdown.Investors are cheered by evidence from the Bank of England that so far, the Brexit vote does not appear to have triggered a slowdown.
12.10pm BST12.10pm BST
12:1012:10
Wolfgang Schaeuble, Germany’s no nonsense finance minister, will meet the new UK chancellor Philip Hammond on Saturday on the sidelines of the G20 meeting in China.Wolfgang Schaeuble, Germany’s no nonsense finance minister, will meet the new UK chancellor Philip Hammond on Saturday on the sidelines of the G20 meeting in China.
As well as bilateral talks between the two men, G20 finance ministers will discuss the aftermath of Brexit and how policymakers can ease concerns.As well as bilateral talks between the two men, G20 finance ministers will discuss the aftermath of Brexit and how policymakers can ease concerns.
11.50am BST11.50am BST
11:5011:50
TUC: self employment is behind jobs increaseTUC: self employment is behind jobs increase
The TUC has a different take on the unemployment report, arguing that it’s not all good news.The TUC has a different take on the unemployment report, arguing that it’s not all good news.
Specifically it points to the sharp rise in self-employment, which has increased by 300,000 people over the past year and now represents 15.1% of the workforce (4.8 million).Specifically it points to the sharp rise in self-employment, which has increased by 300,000 people over the past year and now represents 15.1% of the workforce (4.8 million).
TUC General Secretary Frances O’Grady says:TUC General Secretary Frances O’Grady says:
While it’s good to see more people in work, the huge increase in self-employment raises questions about the nature of these jobs.While it’s good to see more people in work, the huge increase in self-employment raises questions about the nature of these jobs.
These newly self-employed workers are not all budding entrepreneurs. Many don’t choose self-employment, being forced onto contracts with fewer rights, less pay and no job security.These newly self-employed workers are not all budding entrepreneurs. Many don’t choose self-employment, being forced onto contracts with fewer rights, less pay and no job security.
We need more decent jobs. Not working conditions like those exposed at the courier firm Hermes these week, where workers were pushed on to self-employed contracts with fewer rights.We need more decent jobs. Not working conditions like those exposed at the courier firm Hermes these week, where workers were pushed on to self-employed contracts with fewer rights.
UpdatedUpdated
at 11.54am BSTat 11.54am BST
11.32am BST11.32am BST
11:3211:32
Economists at Capital Economics still expect the Bank of England to inject fresh stimulus into the economy in August, despite the better-than-expected UK jobs figures.Economists at Capital Economics still expect the Bank of England to inject fresh stimulus into the economy in August, despite the better-than-expected UK jobs figures.
Paul Hollingsworth at Capital Economics:Paul Hollingsworth at Capital Economics:
Despite the relatively upbeat assessment of the labour market overall, we still expect the Bank’s Monetary Policy Committee to follow through with its (loose) commitment to ease policy at its next meeting on 4th August.Despite the relatively upbeat assessment of the labour market overall, we still expect the Bank’s Monetary Policy Committee to follow through with its (loose) commitment to ease policy at its next meeting on 4th August.
After all, the vote to leave the EU will almost certainly now cause some firms to put hiring decisions on hold or cut back headcounts altogether. Indeed, we expect the unemployment rate to drift up over the coming quarters.After all, the vote to leave the EU will almost certainly now cause some firms to put hiring decisions on hold or cut back headcounts altogether. Indeed, we expect the unemployment rate to drift up over the coming quarters.
He adds however that comments from the Bank’s regional agents support his view that the short-term impact of the Brexit vote will be less severe than many think.He adds however that comments from the Bank’s regional agents support his view that the short-term impact of the Brexit vote will be less severe than many think.
Today’s Bank of England agents’ report showed that a majority of firms did not expect a near-term impact from the referendum outcome on their investment or hiring plans.Today’s Bank of England agents’ report showed that a majority of firms did not expect a near-term impact from the referendum outcome on their investment or hiring plans.
Accordingly, for now we remain content with our view that the damage to the economy in the short term will be rather less severe than many others are anticipating.Accordingly, for now we remain content with our view that the damage to the economy in the short term will be rather less severe than many others are anticipating.
Related: Bank of England agents report business as usual after BrexitRelated: Bank of England agents report business as usual after Brexit
11.13am BST11.13am BST
11:1311:13
Not everyone agrees that the fallout from Brexit is limited so far.Not everyone agrees that the fallout from Brexit is limited so far.
UK households think the outlook for their finances is the worst in two-and-a-half years following the decision to leave the UK.UK households think the outlook for their finances is the worst in two-and-a-half years following the decision to leave the UK.
The indicator dropped to 47 in July from 49.3 in June according to Markit’s latest survey. Anything below 50 signals a deterioration.The indicator dropped to 47 in July from 49.3 in June according to Markit’s latest survey. Anything below 50 signals a deterioration.
People are also becoming more concerned about their jobs, Markit said.People are also becoming more concerned about their jobs, Markit said.
Philip Leake, economist at Markit:Philip Leake, economist at Markit:
The survey suggests that the Brexit vote has badly affected households’ views on their finances. With future prospects clouded by uncertainty, July data pointed to the worst financial outlook in two-and-a-half years.The survey suggests that the Brexit vote has badly affected households’ views on their finances. With future prospects clouded by uncertainty, July data pointed to the worst financial outlook in two-and-a-half years.
Household concerns also intensified as workplace activity fell for the first time since May 2012, with employers awaiting a clearer picture following the Brexit vote.Household concerns also intensified as workplace activity fell for the first time since May 2012, with employers awaiting a clearer picture following the Brexit vote.
10.33am BST10.33am BST
10:3310:33
Pound rises as Bank signals limited Brexit falloutPound rises as Bank signals limited Brexit fallout
The comments from the Bank of England agents - as well as the better-than expected employment data - are supporting the pound.The comments from the Bank of England agents - as well as the better-than expected employment data - are supporting the pound.
It was down against the dollar before the two reports were published but is now up 0.6% at $1.3193.It was down against the dollar before the two reports were published but is now up 0.6% at $1.3193.
James Smith, economist at ING, says there may be trouble ahead, despite the upbeat tone struck by the Bank’s agents:James Smith, economist at ING, says there may be trouble ahead, despite the upbeat tone struck by the Bank’s agents:
The latest update from the Bank of England’s Agents suggests that there is little evidence of a knee-jerk reaction from businesses post-Brexit, but the medium/long-term outlook is more uncertain.The latest update from the Bank of England’s Agents suggests that there is little evidence of a knee-jerk reaction from businesses post-Brexit, but the medium/long-term outlook is more uncertain.
The main message was that firms, for the time being, were seeking to maintain “business as usual” and this suggests that it may be a while before we see any material Brexit impact show up in UK data.The main message was that firms, for the time being, were seeking to maintain “business as usual” and this suggests that it may be a while before we see any material Brexit impact show up in UK data.
Further down the road, the outlook appears to be less certain. On investment, approximately a third expected some negative impact over the next 12 months, echoing the sentiment of recent surveys.Further down the road, the outlook appears to be less certain. On investment, approximately a third expected some negative impact over the next 12 months, echoing the sentiment of recent surveys.
UpdatedUpdated
at 10.44am BSTat 10.44am BST
10.16am BST10.16am BST
10:1610:16
Bank of England agents: no clear sign of Brexit slowdownBank of England agents: no clear sign of Brexit slowdown
There is “no clear evidence” that a UK slowdown is underway since the Brexit vote, according to the Bank of England’s network of regional agents.There is “no clear evidence” that a UK slowdown is underway since the Brexit vote, according to the Bank of England’s network of regional agents.
Bank agents talk to businesses around the country to gain clues about how the economy is really doing, and the July report is the first since the 23 June referendum.Bank agents talk to businesses around the country to gain clues about how the economy is really doing, and the July report is the first since the 23 June referendum.
The agents reported that while business uncertainty had “risen markedly”, there was little evidence that consumers were spending less.The agents reported that while business uncertainty had “risen markedly”, there was little evidence that consumers were spending less.
A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff hiring plans.A majority of firms spoken with did not expect a near-term impact from the result on their investment or staff hiring plans.
But around a third of contacts thought there would be some negative impact on those plans over the net 12 months.But around a third of contacts thought there would be some negative impact on those plans over the net 12 months.
As yet there was no clear evidence of a sharp general slowing in activity.As yet there was no clear evidence of a sharp general slowing in activity.
UpdatedUpdated
at 10.44am BSTat 10.44am BST
10.06am BST10.06am BST
10:0610:06
The jobs figures suggest employers were not rattled enough in the run-up to the EU referendum to freeze hiring or cut jobs on a major scale.The jobs figures suggest employers were not rattled enough in the run-up to the EU referendum to freeze hiring or cut jobs on a major scale.
The big question is whether that will change following the Brexit vote.The big question is whether that will change following the Brexit vote.
10.03am BST10.03am BST
10:0310:03
The UK unemployment rate has fallen to 4.9% in the three months ending May, from 5%. The last time it was as low as that was 2005.The UK unemployment rate has fallen to 4.9% in the three months ending May, from 5%. The last time it was as low as that was 2005.
He's hardly flavour of the month - but today's unemployment figs are one hell of a sign off for George OsborneHe's hardly flavour of the month - but today's unemployment figs are one hell of a sign off for George Osborne
UpdatedUpdated
at 10.04am BSTat 10.04am BST
9.55am BST9.55am BST
09:5509:55
Chancellor: strong jobs figures prove UK strengthChancellor: strong jobs figures prove UK strength
These better-than-expected jobs figures are a gift to the new chancellor, Philip Hammond, who wasted no time commenting on them:These better-than-expected jobs figures are a gift to the new chancellor, Philip Hammond, who wasted no time commenting on them:
Today’s employment and wage figures are proof that the fundamentals of the British economy are strong.Today’s employment and wage figures are proof that the fundamentals of the British economy are strong.
In the months before the referendum, employment in the UK reached a new record high, unemployment fell to its lowest in a decade and wages continued to rise.In the months before the referendum, employment in the UK reached a new record high, unemployment fell to its lowest in a decade and wages continued to rise.
As the economy adjusts to the effect of the referendum decision, it is doing so from a position of economic strength.As the economy adjusts to the effect of the referendum decision, it is doing so from a position of economic strength.
While the decision to leave the European Union marks the beginning of a new phase for our economy, the message we take to the world is this: our country remains open for business and we are the same outward-looking, globally-minded, big-thinking country we have always been.While the decision to leave the European Union marks the beginning of a new phase for our economy, the message we take to the world is this: our country remains open for business and we are the same outward-looking, globally-minded, big-thinking country we have always been.
9.46am BST9.46am BST
09:4609:46
UK jobs figures stronger than expectedUK jobs figures stronger than expected
The pound rose back above $1.31 after better-than-expected figures from the UK jobs market.The pound rose back above $1.31 after better-than-expected figures from the UK jobs market.
The headline figures:The headline figures:
UpdatedUpdated
at 9.57am BST at 1.19pm BST
9.26am BST9.26am BST
09:2609:26
The Bank of England will shortly publish its agents’ summary of business conditions for July.The Bank of England will shortly publish its agents’ summary of business conditions for July.
It will provide the first snapshot of how businesses around the UK have responded to Britain’s decision to leave the EU following the 23 June referendum.It will provide the first snapshot of how businesses around the UK have responded to Britain’s decision to leave the EU following the 23 June referendum.
9.20am BST9.20am BST
09:2009:20
Figures published later today are expected to show consumer confidence weakened in the eurozone in July, following the Brexit vote.Figures published later today are expected to show consumer confidence weakened in the eurozone in July, following the Brexit vote.
The ‘flash’ indicator from the European Commission is expected to fall to -8 from -7.3 in June.The ‘flash’ indicator from the European Commission is expected to fall to -8 from -7.3 in June.
9.09am BST9.09am BST
09:0909:09
Nintendo shares fall for first time since Pokemon Go releaseNintendo shares fall for first time since Pokemon Go release
Nintendo has lost some of the gains made since the release of its hugely successful Pokemon Go game.Nintendo has lost some of the gains made since the release of its hugely successful Pokemon Go game.
Shares were down almost 15% at one point on Wednesday following reports the release of the game might be delayed in Japan.Shares were down almost 15% at one point on Wednesday following reports the release of the game might be delayed in Japan.
Nintendo’s market value had doubled since the launch of the game - which combines the virtual world with the real one - earlier this month.Nintendo’s market value had doubled since the launch of the game - which combines the virtual world with the real one - earlier this month.
Asian markets were mixed on Wednesday.Asian markets were mixed on Wednesday.
UpdatedUpdated
at 9.12am BSTat 9.12am BST
8.33am BST8.33am BST
08:3308:33
FTSE is back above 6,700FTSE is back above 6,700
The FTSE 100 is up 19 points or 0.3% at 6,716 in early trading.The FTSE 100 is up 19 points or 0.3% at 6,716 in early trading.
The FTSE 250 is roughly flat at 16,902.The FTSE 250 is roughly flat at 16,902.
Most other major European markets are up.Most other major European markets are up.
8.18am BST8.18am BST
08:1808:18
Pound falls below $1.31; euro dropsPound falls below $1.31; euro drops
The pound has dipped below $1.31. It is currently down 0.2% at $1.3085.The pound has dipped below $1.31. It is currently down 0.2% at $1.3085.
The euro is down against both the pound and the dollar. It is down 0.3% against the pound at 83.93p, and hit a two-and-a-half-week low against the dollar of $1.0985.The euro is down against both the pound and the dollar. It is down 0.3% against the pound at 83.93p, and hit a two-and-a-half-week low against the dollar of $1.0985.
The dollar is rising partly on the back of expectations that the Fed will raise interest rates before the end of 2016 following positive data from the US economy (including jobs and the housing market).The dollar is rising partly on the back of expectations that the Fed will raise interest rates before the end of 2016 following positive data from the US economy (including jobs and the housing market).
8.01am BST8.01am BST
08:0108:01
UK jobless claims expected to rise in JuneUK jobless claims expected to rise in June
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
At 9.30 the Office for National Statistics will publish latest figures from the UK jobs market.At 9.30 the Office for National Statistics will publish latest figures from the UK jobs market.
The figures are expected to show the number of people claiming unemployment benefit rose by 3,500 in June, following a drop of 400 in May.The figures are expected to show the number of people claiming unemployment benefit rose by 3,500 in June, following a drop of 400 in May.
The headline unemployment rate will cover the three months to the end of May and is expected to be unchanged at 5%.The headline unemployment rate will cover the three months to the end of May and is expected to be unchanged at 5%.
Wage growth including bonuses is expected to pick up to 2.3% from 2%. Excluding bonuses growth is expected to be unchanged at 2.3%.Wage growth including bonuses is expected to pick up to 2.3% from 2%. Excluding bonuses growth is expected to be unchanged at 2.3%.
The figures should provide some clues about how confident employers were feeling in the run-up to the 23 June referendum.The figures should provide some clues about how confident employers were feeling in the run-up to the 23 June referendum.
Any shock to the downside would undoubtedly trigger a few alarm bells about the outlook for UK jobs in the aftermath of the Brexit vote.Any shock to the downside would undoubtedly trigger a few alarm bells about the outlook for UK jobs in the aftermath of the Brexit vote.