Sterling was shoved below the psychologically important $1.30 water line today, down -0.54%. Shortly after 3.30pm the pound was at $1.2961 while the euro slumped -0.35% to $1.1752. There was a mix of reasons: new data from the US Labor Department showed a surge in US job openings, boosting the greenback against main currencies.
Specifically, the Job Openings and Labor Turnover Survery (JOLTS) showed the number of US job positions leapt to 6.16m in June compared to an expected 5.75m. Fewer Americans quitting their jobs suggested, also, creeping wage inflation, finally.
Either way, the US numbers supplied an added kick to the dollar which was in danger of losing momentum following Friday’s more encouraging non-farm payroll report.
- UK FTSE 100 7,542.73 +0.14%
- Dow 22,199.54 +0.01%
- S&P 500 2,479.82 -0.04%
- Nasdaq 6,377.20 -0.10%
- Nikkei 225 19,996.01 -0.30%
- DAX 12,250.43 -0.07%
- CAC 40 5,212.10 +0.08%
- Gold 1,264.20 -0.04%
- Oil WTI 49.07 -0.65%
Corporation tax blow for Trump
More bad news for President Trump. A new survey from Deloitte Tax LLP claims only a tiny minority of US finance and tax professionals believe Trump will be able to dramatically lower US corporation tax from 35% to 15%.
Supporters of the policy believe it could bolster economic growth; there is some pressure to get the bill enacted. Almost 40% of those questioned by Deloitte believed that corporation tax will be cut to 25%, some distance from the 15% threshold Trump wants. Just 5.3% thought Trump could achieve his goal.
Countryside Properties to re-purchase 'bad' freeholds
Some good news though for UK leaseholders who thought they were freeholders. Countryside Properties is to buy some leases back, ensuring many home owners are relieved of future ground rent charges. Originally the property company had sold some freeholds to ground rent operator E&J Estates.
Another major property player, Taylor Wimpey, has already put £130m into an emergency pot to deal with any disputes as the issue ripples across the new-build UK property sector – some MPs have described the phenomenon as a "national scandal".
Taylor Wimpey has apologised for the stress some home owners have experienced from the controversial fee arrangement.
Breaking news: The FTSE 100 closes near to a record high of 7,542.73, just five points off its 7,547 best-ever peak. Taylor Wimpey and Worldpay Group saw 1.9% share price rises today while Paddy Power Betfair plunged more than 4% to 7,240p. InterContinental Hotels Group also was down heavily, sinking 4% to 4,235p.
Separately, away from the FTSE 100, Pimlico Plumbers are to appeal a decision by the Court of Appeal that contractor plumber Gary Smith was entitled to workers' rights despite being self employed.