This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/live/2016/oct/19/markets-uk-unemployment-wage-growth-brexit-report-business-live
The article has changed 16 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| UK unemployment rate sticks at 4.9% despite Brexit vote – business live | |
| (35 minutes later) | |
| 9.44am BST | |
| 09:44 | |
| Wages rise by 2.3% | |
| Regular pay grew by 2.3% in the June-August quarter, up from 2.2% a month ago. That’s better than economists had expected. | |
| If you include bonuses, pay also rose by 2.3% - down from 2.4%. | |
| 9.38am BST | |
| 09:38 | |
| Employment rate at 45-year high | |
| Britain’s employment rate is now 74.5% -- the joint highest in over 40 years. | |
| Employment rate (for people 16-64yrs) 74.5% for Jun-Aug 2016, joint highest since records began in 1971 https://t.co/YnuEHGfLh0 pic.twitter.com/0msXeDo8Wv | |
| And at 4.9%, the jobless rate is at a near 11-year low. | |
| #Unemployment rate (for people aged 16+) 4.9% for Jun-Aug 2016, down from 5.4% a yr earlier https://t.co/3ImHCRYDiC pic.twitter.com/Vrh1znkpGA | |
| 9.33am BST | |
| 09:33 | |
| UK UNEMPLOYMENT RATE STICKS AT 4.9% | |
| Breaking: Britain’s unemployment rate has come in at 4.9% in the three months to August. | |
| That’s unchanged from last month, suggesting that June’s Brexit vote hasn’t yet hit the labour market. | |
| The number of people finding new jobs has swelled by 106,000 in the quarter. That’s slower than in previous quarters (when around 170,000 new jobs were created) but better than expected. | |
| And the number of people signing on for unemployment benefits has risen in September, but only by 700 citizens. That’s less than the City feared. | |
| More to follow.... | |
| Updated | |
| at 9.39am BST | |
| 9.28am BST | |
| 09:28 | |
| Analyst: Probably too early to see Brexit effects | |
| Nearly time for the UK unemployment report! | |
| Kit Juckes, currency expert at Societe Generale, predicts that unemployment and wage data will probably be pretty steady. | |
| There still is a visible relationship between wage growth and unemployment but it takes a big fall in the latter to get a small rise in the former these days. | |
| More likely, is that while the effect of Brexit in the labour market comes (much) later, we get no real clues from these figures. | |
| Updated | |
| at 9.28am BST | |
| 9.22am BST | |
| 09:22 | |
| Economists are warning that China’s economy is slowing, even though Beijing met forecasts by posting growth of 6.7% this morning (as flagged in the opening post). | |
| China expert Marcus Wright flags up that the building sector is cooling: | |
| With #China's GDP growth having been so reliant on the property market, cooler activity suggests slower growth. @graemewearden pic.twitter.com/ad3c5Hz7ih | |
| Robin Bew of the Economist Intelligence Unit also points out that China’s housing boom is driving growth, for now... | |
| #China Q3 GDP growth 6.7%, in line with our forecast. Booming housing lifting demand. Reining that in will slow economy sharply by 2018 | |
| 9.03am BST | 9.03am BST |
| 09:03 | 09:03 |
| The pound is bobbing just below $1.23 this morning, as the City await the jobs report. | The pound is bobbing just below $1.23 this morning, as the City await the jobs report. |
| And the FTSE 100 has shed 7 points, dragged down by Travis Perkins after it announced its branch closure plan. | And the FTSE 100 has shed 7 points, dragged down by Travis Perkins after it announced its branch closure plan. |
| Conner Campbell of SpreadEx says traders are keen to see if UK wage growth has picked up. | Conner Campbell of SpreadEx says traders are keen to see if UK wage growth has picked up. |
| The headline unemployment rate is expected to remain unchanged at 4.9% for the fourth month in a row – more pressing will be the wage growth and jobless claims data. | The headline unemployment rate is expected to remain unchanged at 4.9% for the fourth month in a row – more pressing will be the wage growth and jobless claims data. |
| The former (when bonuses are included) is expected to sit steady at 2.3%, a figure that could soon be overtaken by inflation given the jump seen yesterday; the latter, meanwhile, is set to climb to 3.4k new claimants across September, the highest addition since May. | The former (when bonuses are included) is expected to sit steady at 2.3%, a figure that could soon be overtaken by inflation given the jump seen yesterday; the latter, meanwhile, is set to climb to 3.4k new claimants across September, the highest addition since May. |
| 8.57am BST | 8.57am BST |
| 08:57 | 08:57 |
| Laird’s share prices looks like the north face of the Eiger this morning, after that profits warning: | Laird’s share prices looks like the north face of the Eiger this morning, after that profits warning: |
| Apple supplier Laird plunges most on record...cuts outlook for profit as the hoped pick-up in mobile phones production fails pic.twitter.com/enLHX0q8ur | Apple supplier Laird plunges most on record...cuts outlook for profit as the hoped pick-up in mobile phones production fails pic.twitter.com/enLHX0q8ur |
| 8.55am BST | 8.55am BST |
| 08:55 | 08:55 |
| Upmarket estate agent Foxtons continues to suffer from the slowdown in London property since the EU referendum. | Upmarket estate agent Foxtons continues to suffer from the slowdown in London property since the EU referendum. |
| It reported that sales revenue in the last quarter slumped by a third to £12.2m, from £18.5m last year, and blamed: | It reported that sales revenue in the last quarter slumped by a third to £12.2m, from £18.5m last year, and blamed: |
| “a continuation of reduced activity in the London property sales market”. | “a continuation of reduced activity in the London property sales market”. |
| Foxtons has previously blamed the EU referendum for dampening demand for houses in London. | Foxtons has previously blamed the EU referendum for dampening demand for houses in London. |
| But, it’s still optimistic about the “long term fundamentals of the London property market”, and has opened seven new branches in the capital this year. So, no escape from those garish minis.... | But, it’s still optimistic about the “long term fundamentals of the London property market”, and has opened seven new branches in the capital this year. So, no escape from those garish minis.... |
| 8.36am BST | 8.36am BST |
| 08:36 | 08:36 |
| Smartphone supplier Laird posts shock profits warning | Smartphone supplier Laird posts shock profits warning |
| More gloom. Shares in UK electronics firm Laird have almost halved in value, after it hit the City with a profits warning. | More gloom. Shares in UK electronics firm Laird have almost halved in value, after it hit the City with a profits warning. |
| It is blaming problems at its ‘performance materials’ division, whose products protect electronic components from heat and electromagnetic interference. Its two biggest customers are Apple and Samsung. | It is blaming problems at its ‘performance materials’ division, whose products protect electronic components from heat and electromagnetic interference. Its two biggest customers are Apple and Samsung. |
| CEO Tony Quinlan, chief executive, said: | CEO Tony Quinlan, chief executive, said: |
| “We are very disappointed by these adverse developments in the mobile devices market for our Performance Materials division. | “We are very disappointed by these adverse developments in the mobile devices market for our Performance Materials division. |
| It now expects to post profits of £50m this year, down from £73.1m last year, and well shy of the £70m which City analysts had pencilled in. | It now expects to post profits of £50m this year, down from £73.1m last year, and well shy of the £70m which City analysts had pencilled in. |
| According to Laird, it has suffered from a “slower production ramp” – which I think means its customers haven’t been buying as many components as it expected. | According to Laird, it has suffered from a “slower production ramp” – which I think means its customers haven’t been buying as many components as it expected. |
| Pricing and margin pressures are also very tough, it adds. | Pricing and margin pressures are also very tough, it adds. |
| That may be sign that the smartphone market is cooling. Samsung’s decision to scrap its Galaxy Note 7 may also be hurting Laird. | That may be sign that the smartphone market is cooling. Samsung’s decision to scrap its Galaxy Note 7 may also be hurting Laird. |
| Former CEO David Lockwood quit unexpectedly in August, prompting some brokers to warn that Laird wouldn’t hit its financial forecasts for this year. They’ve been proved right. | Former CEO David Lockwood quit unexpectedly in August, prompting some brokers to warn that Laird wouldn’t hit its financial forecasts for this year. They’ve been proved right. |
| Updated | Updated |
| at 8.43am BST | at 8.43am BST |
| 8.17am BST | 8.17am BST |
| 08:17 | 08:17 |
| Travis Perkins cuts 600 jobs | Travis Perkins cuts 600 jobs |
| Britain’s biggest building supplies group, Travis Perkins, has sent a shiver through the sector by announcing plans to shut stores and cut up to 600 jobs. | Britain’s biggest building supplies group, Travis Perkins, has sent a shiver through the sector by announcing plans to shut stores and cut up to 600 jobs. |
| The company is closing 10 distribution and fabrication centres, and 30 branches across its business, having suffered a fall in sales of plumbing and heating products. | The company is closing 10 distribution and fabrication centres, and 30 branches across its business, having suffered a fall in sales of plumbing and heating products. |
| It warned that the UK outlook was ‘uncertain’, and said it suffered from volatile demand in July and softer market conditions in August and September. | It warned that the UK outlook was ‘uncertain’, and said it suffered from volatile demand in July and softer market conditions in August and September. |
| As well as running builders’ merchants, Travis Perkins also owns the Wickes DIY chain. | As well as running builders’ merchants, Travis Perkins also owns the Wickes DIY chain. |
| John Carter, chief executive, warned that: | John Carter, chief executive, warned that: |
| It is still too early to predict customer demand in 2017 with certainty and we will continue to monitor our lead indicators closely. Given this uncertainty we will be closing over 30 branches and making further efficiency driven changes in the supply chain, resulting in an exceptional charge of £40-50 million this year. | It is still too early to predict customer demand in 2017 with certainty and we will continue to monitor our lead indicators closely. Given this uncertainty we will be closing over 30 branches and making further efficiency driven changes in the supply chain, resulting in an exceptional charge of £40-50 million this year. |
| Shares have dropped by 5.5% in early trading, to the bottom of the FTSE 100 leaderboard. | Shares have dropped by 5.5% in early trading, to the bottom of the FTSE 100 leaderboard. |
| 7.38am BST | 7.38am BST |
| 07:38 | 07:38 |
| The agenda: UK unemployment and Chinese growth figures | The agenda: UK unemployment and Chinese growth figures |
| 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. |
| Has the Brexit vote cooled Britain’s labour market, or are firms still shrugging off June’s historic referendum? | Has the Brexit vote cooled Britain’s labour market, or are firms still shrugging off June’s historic referendum? |
| We find out this morning, when the latest unemployment figures are released, covering the period immediately after this summer’s vote. | We find out this morning, when the latest unemployment figures are released, covering the period immediately after this summer’s vote. |
| Economists predict that the UK jobless rate remained at just 4.9% in the June-August quarter, with another 70,000 people finding work. | Economists predict that the UK jobless rate remained at just 4.9% in the June-August quarter, with another 70,000 people finding work. |
| But they also expect wage growth to remain subdued at 2.1%, or 2.3% if you chuck in bonuses too. With inflation hitting 1% yesterday, people’s real wages could soon be squeezed. | But they also expect wage growth to remain subdued at 2.1%, or 2.3% if you chuck in bonuses too. With inflation hitting 1% yesterday, people’s real wages could soon be squeezed. |
| And they also fear that the number of people claiming unemployment benefit rose by 3,200 in September, following a 2,400 jump in August. | And they also fear that the number of people claiming unemployment benefit rose by 3,200 in September, following a 2,400 jump in August. |
| The figures will be eagerly awaited by those who welcome Brexit, and those who fear the consequences of leaving the EU. Until now, firms have stood up to the uncertainty quite well. But the prospect of leaving the single market in 2017 may have a cooling effect soon. | The figures will be eagerly awaited by those who welcome Brexit, and those who fear the consequences of leaving the EU. Until now, firms have stood up to the uncertainty quite well. But the prospect of leaving the single market in 2017 may have a cooling effect soon. |
| Especially as Theresa May has been warned that quitting the EU customs union could wipe out 4.5% of GDP, and bog down Britain’s ports. | Especially as Theresa May has been warned that quitting the EU customs union could wipe out 4.5% of GDP, and bog down Britain’s ports. |
| Wednesday's Guardian front page:Exclusive - May given dire warning over customs union#tomorrowspaperstoday #bbcpapers pic.twitter.com/GjMC7TEsem | Wednesday's Guardian front page:Exclusive - May given dire warning over customs union#tomorrowspaperstoday #bbcpapers pic.twitter.com/GjMC7TEsem |
| Also on the agenda: | Also on the agenda: |
| Chinese growth figures, released early today, have shown that its GDP expanded by 6.7% in the last quarter. | Chinese growth figures, released early today, have shown that its GDP expanded by 6.7% in the last quarter. |
| That’s bang-in-line with estimates (not for the first time), and should reassure investors that China hasn’t suffered a hard landing (yet anyway). | That’s bang-in-line with estimates (not for the first time), and should reassure investors that China hasn’t suffered a hard landing (yet anyway). |
| Construction helped to drive growth, with real estate investment jumping by 7.1% over the last year and infrastructure spending up by 19.4%. The services sector grew by 7.6%. | Construction helped to drive growth, with real estate investment jumping by 7.1% over the last year and infrastructure spending up by 19.4%. The services sector grew by 7.6%. |
| However, China’s National Bureau of Statistics warned that the transition to a consumer-driven economy is challenging, saying: | However, China’s National Bureau of Statistics warned that the transition to a consumer-driven economy is challenging, saying: |
| “We must be aware that economic development is still in a critical period of transformation, with old growth drivers to be replaced by new ones,. | “We must be aware that economic development is still in a critical period of transformation, with old growth drivers to be replaced by new ones,. |
| With unstable and uncertain domestic and external factors, the foundation for continued economic growth is not solid enough.” | With unstable and uncertain domestic and external factors, the foundation for continued economic growth is not solid enough.” |
| So we’ll see how analysts react to that. | So we’ll see how analysts react to that. |
| Also...consumer goods group Reckitt Benckiser, building materials group Travis Perkins, electronics group Laird, and confectionary maker Hotel Chocolat are all reporting financial results. | Also...consumer goods group Reckitt Benckiser, building materials group Travis Perkins, electronics group Laird, and confectionary maker Hotel Chocolat are all reporting financial results. |
| And at 6pm, Bank of England chief economist Andy Haldane is giving a speech at the Cass Busines School. | And at 6pm, Bank of England chief economist Andy Haldane is giving a speech at the Cass Busines School. |
| It will cover a new staff paper, also being released at 4pm today, called “QE – the story so far”. | It will cover a new staff paper, also being released at 4pm today, called “QE – the story so far”. |
| That will be worth checking, given the prime minister’s recent criticism of quantitative easing. | That will be worth checking, given the prime minister’s recent criticism of quantitative easing. |
| We may not get the text of Haldane’s speech, though.... | We may not get the text of Haldane’s speech, though.... |
| Updated | Updated |
| at 8.59am BST | at 8.59am BST |