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You can find the current article at its original source at https://www.theguardian.com/business/live/2016/aug/17/uk-jobless-claims-expected-to-rise-following-brexit-vote-business-live
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| UK jobless claims in surprise fall following Brexit vote - business live | |
| (35 minutes later) | |
| 9.34am BST | |
| 09:34 | |
| UK jobless claims in surprise fall | |
| A big surprise in the labour market data: the number of people claiming unemployment benefits fell by 8,600 in July, a month after the Brexit vote. | |
| Economists were expecting a rise of 9,500. | |
| No sign yet then that the Brexit vote is hurting the jobs market... | |
| We will bring all the reaction. | |
| Updated | |
| at 9.35am BST | |
| 9.14am BST | |
| 09:14 | |
| Pound hovers above $1.30 | |
| The pound is managing to hold on above the $1.30 mark, although it is down 0.2%. It is currently trading at $1.3014. | |
| Sterling rebounded on Tuesday following a surprise rise in the UK annual inflation rate to 0.6% in July from 0.5% in June, which in theory makes it less likely that the Bank of England will need to further cut rates. | |
| Economists said however the Bank was likely to ignore a temporary rise in inflation and pump more money into the economy in a bid to limit the slowdown expected following the Brexit vote. | |
| 9.00am BST | 9.00am BST |
| 09:00 | 09:00 |
| Firms advising on tax avoidance could face large fines | Firms advising on tax avoidance could face large fines |
| The government has revealed plans to clamp down on accountants, lawyers and consultants who advise clients on how to aggressively avoid tax. | The government has revealed plans to clamp down on accountants, lawyers and consultants who advise clients on how to aggressively avoid tax. |
| Advisers whose schemes are defeated in the courts might pay a fine of up to 100% of the money lost to the taxpayer. | Advisers whose schemes are defeated in the courts might pay a fine of up to 100% of the money lost to the taxpayer. |
| Our full story here: | Our full story here: |
| Related: Firms giving advice on aggressive tax avoidance could face large fines | Related: Firms giving advice on aggressive tax avoidance could face large fines |
| 8.51am BST | 8.51am BST |
| 08:51 | 08:51 |
| Admiral Group is the biggest FTSE 100 faller this morning by quite some margin. | Admiral Group is the biggest FTSE 100 faller this morning by quite some margin. |
| Shares are down more than 7% after the insurer issued a number of warnings falling Britain’s decision to quit the EU. | Shares are down more than 7% after the insurer issued a number of warnings falling Britain’s decision to quit the EU. |
| Admiral said its solvency ratio had been damaged by the vote, and warned about a weaker economic outlook and interest and exchange rate volatility. | Admiral said its solvency ratio had been damaged by the vote, and warned about a weaker economic outlook and interest and exchange rate volatility. |
| 8.39am BST | 8.39am BST |
| 08:39 | 08:39 |
| US rate rise expectations mount | US rate rise expectations mount |
| In the US, comments by Fed policymakers have brought forward expectations of a interest rate rise. | In the US, comments by Fed policymakers have brought forward expectations of a interest rate rise. |
| The New York Fed President William Dudley said it was “possible” the central bank could hike rates at its next policy meeting in September as the US jobs market strengthens. | The New York Fed President William Dudley said it was “possible” the central bank could hike rates at its next policy meeting in September as the US jobs market strengthens. |
| He told the Fox Business Network: | He told the Fox Business Network: |
| We’re edging closer towards the point in time where it will be appropriate I think to raise interest rates further. | We’re edging closer towards the point in time where it will be appropriate I think to raise interest rates further. |
| The labor market is getting tighter and we’re starting to see signs of wage gains starting to accelerate, so I think we’re getting closer to that point in time when it will be appropriate to actually raise short-term rates again. | The labor market is getting tighter and we’re starting to see signs of wage gains starting to accelerate, so I think we’re getting closer to that point in time when it will be appropriate to actually raise short-term rates again. |
| Meanwhile Dennis Lockhart, President of the Atlanta Fed, said the US economy was potentially strong enough to withstand two rate rises before the end of 2016. Addressing the Rotary Club of Knoxville, he said: | Meanwhile Dennis Lockhart, President of the Atlanta Fed, said the US economy was potentially strong enough to withstand two rate rises before the end of 2016. Addressing the Rotary Club of Knoxville, he said: |
| I would not rule out September. If the meeting were today I think the economic data would justify a serious discussion. It’s conceivable we could have two rate increases this year. | I would not rule out September. If the meeting were today I think the economic data would justify a serious discussion. It’s conceivable we could have two rate increases this year. |
| Early indications of third-quarter GDP growth suggest a rebound. I don’t believe momentum has stalled. I remain confident about prospects in the second half of 2016 and 2017. | Early indications of third-quarter GDP growth suggest a rebound. I don’t believe momentum has stalled. I remain confident about prospects in the second half of 2016 and 2017. |
| Before the comments, market expectations of a US rate hike before the end of 2016 had declined. But according to CMC Markets, Dudley’s comments saw expectations of a move in December climb from 39.1% to 50%. | Before the comments, market expectations of a US rate hike before the end of 2016 had declined. But according to CMC Markets, Dudley’s comments saw expectations of a move in December climb from 39.1% to 50%. |
| At 7pm UK time, minutes of the latest meeting of the rate-setting Federal Open Market Committee (FOMC) will be published. | At 7pm UK time, minutes of the latest meeting of the rate-setting Federal Open Market Committee (FOMC) will be published. |
| 8.06am BST | 8.06am BST |
| 08:06 | 08:06 |
| European markets open higher | European markets open higher |
| The FTSE 100 is up 23 points or 0.3% in early trading, at 6,916. | The FTSE 100 is up 23 points or 0.3% in early trading, at 6,916. |
| 7.50am BST | 7.50am BST |
| 07:50 | 07:50 |
| The FTSE 100 is expected to open slightly higher this morning: | The FTSE 100 is expected to open slightly higher this morning: |
| Our European opening calls:$FTSE 6904 up 10$DAX 10687 up 10$CAC 4465 up 5$IBEX 8616 down 6$MIB 16791 down 2 | Our European opening calls:$FTSE 6904 up 10$DAX 10687 up 10$CAC 4465 up 5$IBEX 8616 down 6$MIB 16791 down 2 |
| 7.47am BST | 7.47am BST |
| 07:47 | 07:47 |
| The agenda: UK jobless claims to offer Brexit insight | The agenda: UK jobless claims to offer Brexit insight |
| 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. |
| The spotlight is on the UK jobs market today. At 9.30am the Office for National Statistics will publish the latest unemployment data. | The spotlight is on the UK jobs market today. At 9.30am the Office for National Statistics will publish the latest unemployment data. |
| Much of the data, including the ILO unemployment rate and total number of people out of work, will relate to the three months ending June - before the 23 June EU referendum. | Much of the data, including the ILO unemployment rate and total number of people out of work, will relate to the three months ending June - before the 23 June EU referendum. |
| But the claimant count data will reveal how many people claimed unemployment benefit it July, a month after the Brexit vote. | But the claimant count data will reveal how many people claimed unemployment benefit it July, a month after the Brexit vote. |
| Economists polled by Reuters are expecting a 9,500 jump in claims last month, following a rise of 400 in June. | Economists polled by Reuters are expecting a 9,500 jump in claims last month, following a rise of 400 in June. |
| On the ILO measure, the unemployment rate is expected to remain unchanged at 4.9% in the three months ending June. Wage growth (including bonuses) is expected to pick up slightly to 2.4% from 2.3%. | On the ILO measure, the unemployment rate is expected to remain unchanged at 4.9% in the three months ending June. Wage growth (including bonuses) is expected to pick up slightly to 2.4% from 2.3%. |