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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/apr/12/brexit-blow-to-workers-as-real-pay-starts-to-fall-again-business-live
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| Brexit blow to workers as real pay starts to fall again - business live | Brexit blow to workers as real pay starts to fall again - business live |
| (35 minutes later) | |
| 8.47am BST | |
| 08:47 | |
| Connor Campbell, analyst at Spreadex, says that while investors are currently focusing on the UK jobs and wages report due at 9.30am, attention is likely to shift to the US: | |
| The UK jobs report does have a challenger for market dominance this Wednesday: Trump. The President is set to conduct an interview on the Fox Business Network, one that promises to cover everything from healthcare and tax reform to his actions in Syria and the increasingly fractious relationships with Russia and North Korea. | |
| All of this is catnip for investors, and may end up overshadowing the reaction to that British jobs data. | |
| 8.37am BST | |
| 08:37 | |
| FTSE rises 0.5% in early trading | |
| Traders across Europe are in a positive mood so far this morning. | |
| Tesco is leading the FTSE 100 higher, with the index up 36 points or 0.5% at 7,401. | |
| All major European markets are up: | |
| Germany’s DAX: +0.5% at 12,200 | |
| France’s CAC: +0.5% at 5,129 | |
| Italy’s FTSE MIB: +0.8% at 20,278 | |
| Spain’s IBEX: +0.4% at 10,455 | |
| Europe’s STOXX 600: +0.4% at 383 | |
| 8.26am BST | |
| 08:26 | |
| Sports Direct names worker representative to attend board meetings | |
| Sports Direct has named the first worker representative to attend its board meetings as the retailer attempts to address widespread criticism over its treatment of staff and poor record on corporate governance. | |
| Alex Balacki was the successfully elected candidate, and will attend all scheduled meetings of the board over the next 12 months, before a new representative is elected. | |
| Balacki, 30, works for Sports Direct as a store manager in Barnstaple and started at the company 13 years ago as a casual sales assistant on Saturdays. He said: | |
| I’m very proud to be chosen by my fellow members of staff to fulfil this important responsibility. I’d like to thank everybody who took part in the elections, including all of the other candidates. It’s now my role to ensure the people of Sports Direct are heard. | |
| Mike Ashley, the founder and chief executive of Sports Direct, said: | |
| I’d like to be the first to congratulate Alex, who will help us to continue to make a positive difference by ensuring that your voice is heard in the boardroom. | |
| I have said many times that this is a company that was built by the great people who work here. I am therefore delighted that the people at Sports Direct have voted to choose the company’s first UK elected workers’ representative. | |
| However, not everyone is convinced that this will amount to meaningful change at the company. Unite, Britain’s biggest union, last month described the move as little more than a “PR exercise”. | |
| 8.00am BST | 8.00am BST |
| 08:00 | 08:00 |
| Tesco reaction: healthy recovery continues | Tesco reaction: healthy recovery continues |
| Tesco’s results were better than City analysts expected, with a 30% jump in operating profit to £1.28bn in the year to the end of February. | Tesco’s results were better than City analysts expected, with a 30% jump in operating profit to £1.28bn in the year to the end of February. |
| Under chief executive Dave Lewis, the supermarket’s UK chain delivered its first full year of growth since 2009-10, with like-for-like sales (at stores open for more than a year), up 0.9%. Like other chains, Tesco has been losing shoppers to the discounters Aldi and Lidl. | Under chief executive Dave Lewis, the supermarket’s UK chain delivered its first full year of growth since 2009-10, with like-for-like sales (at stores open for more than a year), up 0.9%. Like other chains, Tesco has been losing shoppers to the discounters Aldi and Lidl. |
| Phil Dorrell, partner at the consultancy Retail Remedy, said it was a good result for Lewis, who is trying to push through a £3.7bn takeover of Booker, the cash-and-carry group behind the Londis and Budgens chains. | Phil Dorrell, partner at the consultancy Retail Remedy, said it was a good result for Lewis, who is trying to push through a £3.7bn takeover of Booker, the cash-and-carry group behind the Londis and Budgens chains. |
| Dorrell said: | Dorrell said: |
| It’s a far cry from the £4bn Tesco earned 5 years ago but it is still a very healthy improvement on last years profit. The multi-pronged strategy adopted by Dave Lewis is working on all counts and just needs the Booker deal signed for a full house. | It’s a far cry from the £4bn Tesco earned 5 years ago but it is still a very healthy improvement on last years profit. The multi-pronged strategy adopted by Dave Lewis is working on all counts and just needs the Booker deal signed for a full house. |
| Tesco is a retailer with its finger on the pulse. A clear sense of direction and a team that is fuelling the engine will be giving the competition cause for concern. | Tesco is a retailer with its finger on the pulse. A clear sense of direction and a team that is fuelling the engine will be giving the competition cause for concern. |
| Retail Vision’s John Ibbotson goes further, saying Tesco’s “fairytale recovery” continues: | Retail Vision’s John Ibbotson goes further, saying Tesco’s “fairytale recovery” continues: |
| Tesco’s fairy-tale recovery story continues. And at a time of cut-throat competition, it is all the more impressive. In his relatively short tenure, Dave Lewis has turned a thoroughly demoralised business into one with a clear sense of direction. | Tesco’s fairy-tale recovery story continues. And at a time of cut-throat competition, it is all the more impressive. In his relatively short tenure, Dave Lewis has turned a thoroughly demoralised business into one with a clear sense of direction. |
| Dave Lewis has achieved this turnaround by returning the company to the basics of retail: pricing to match the UK discounters, new and simplified product ranges, better customer service and regained customer trust in Tesco. He has also improved the relationship with suppliers and that’s no small achievement. | Dave Lewis has achieved this turnaround by returning the company to the basics of retail: pricing to match the UK discounters, new and simplified product ranges, better customer service and regained customer trust in Tesco. He has also improved the relationship with suppliers and that’s no small achievement. |
| 7.45am BST | 7.45am BST |
| 07:45 | 07:45 |
| European markets are expected to open higher this morning. Here is what traders are predicting at spread betting firm IG: | European markets are expected to open higher this morning. Here is what traders are predicting at spread betting firm IG: |
| Our European opening calls:$FTSE 7372 +0.09%$DAX 12169 +0.24%$CAC 5109 +0.14%$IBEX 10430 +0.13%$MIB 20151 +0.21% | Our European opening calls:$FTSE 7372 +0.09%$DAX 12169 +0.24%$CAC 5109 +0.14%$IBEX 10430 +0.13%$MIB 20151 +0.21% |
| 7.40am BST | 7.40am BST |
| 07:40 | 07:40 |
| The agenda: Falling real pay and Tesco sales growth returns | The agenda: Falling real pay and Tesco sales growth returns |
| 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 Brexit-related squeeze in living standards is on, official figures on wage growth are expected to show at 9.30am. | The Brexit-related squeeze in living standards is on, official figures on wage growth are expected to show at 9.30am. |
| Pay growth including bonuses is expected to come in at 2.2% in the three months to February. Regular pay growth, excluding bonuses is expected to be 2.1%. | |
| Either way, that would be below February’s inflation rate of 2.3%, signalling a return to falling real pay for UK workers who are just about recovering living standards after the blow dealt by the financial crisis. | Either way, that would be below February’s inflation rate of 2.3%, signalling a return to falling real pay for UK workers who are just about recovering living standards after the blow dealt by the financial crisis. |
| After the 2008 crash, inflation outpaced pay growth for six years. | After the 2008 crash, inflation outpaced pay growth for six years. |
| Inflation is rising as the sharp fall in the value of the pound since the Brexit vote drives up the cost of imported goods and increasingly feeds through to shop prices. | Inflation is rising as the sharp fall in the value of the pound since the Brexit vote drives up the cost of imported goods and increasingly feeds through to shop prices. |
| The figures from the Office for National Statistics are also expected to show the unemployment rate held steady at 4.7%. We’ll bring you all the details and reaction. | The figures from the Office for National Statistics are also expected to show the unemployment rate held steady at 4.7%. We’ll bring you all the details and reaction. |
| In the corporate world, the big news this morning is from Tesco. The UK’s biggest supermarket chain has achieved its first year of sales growth in seven years, with profits back above £1bn. | In the corporate world, the big news this morning is from Tesco. The UK’s biggest supermarket chain has achieved its first year of sales growth in seven years, with profits back above £1bn. |
| Read our full story here: | Read our full story here: |
| Updated | Updated |
| at 8.48am BST |