Sterling slipped slightly as UK wage growth and employment numbers landed from the Office of National Statistics earlier. Average weekly earnings edged up +2.2% in August while unemployment dropped 52,000.
The UK wage growth data was a smidge better than anticipated. But wage acceleration at this clip is still lower than midsummer last year. The inflation-adjusted reality is that British earnings have fallen for the sixth successive month.
The grim numbers – weak wage growth is key while a measure of modest inflation is welcome – doesn’t augur well for a (likely) Bank of England rate rise come November: higher mortgage payments, rising petrol and diesel prices and Christmas just around the corner…
Shortly before 4pm sterling was at $1.3175 against the dollar, down -0.12% while the euro was rather stronger against the pound, up +0.20%, at 0.8937.
Across the pound the Dow continued its relentless surge, up more than +0.50%, taking it close to 23,125 points. The lower pound was good news for the FTSE 100, taking the index to 7,550, up +0.41%. The biggest losers were Shire, down -3.2% and Rio Tinto, tumbling -3%. Pearson and ITV saw +3% share price climbs. The FTSE All-Share climbed +0.34% to 4,138.
- UK FTSE 100 7,542.87 +0.36%
- Dow 23,106.09 +0.47%
- S&P 500 2,560.32 +0.04%
- Nasdaq 6,618.36 -0.08%
- Nikkei 225 21,363.05 +0.31%
- DAX 13,051.32 +0.43%
- CAC 40 5,389.18 +0.52%
- Gold 1,282.20 -0.31%
- Oil WTI 52.26 +0.73%
TUI ups flights after Monarch collapse
Travel operator giant TUI AG says it will lay on extra flights to compensate for the Monarch Airlines collapse. “There will be an opportunity to look at putting some new routes on to the market. We've already done that a little for this winter,” TUI UK managing director Nick Longman told Reuters.
The collapse of Monarch – a combination of vicious seat price competition and terrorism volatility – has led to opportunities for BA-owner IAG, Ryanair and easyJet not to mention Norwegian.
TUI isn't thought to be interested in any of the ex-Monarch UK airport slots. Meanwhile TUI has dropped the Thomson brand it operated, avoiding confusion with Thomas Cook for many consumers.
Staveley to bid for Newastle United FC? US hurricanes hit housing starts
While Turkish billionaire Murat Ülker took the headlines yesterday for a possible bid for Newcastle United FC, Reuters claims PCP Capital Partners Amanda Staveley could make a $400m offer. Sports Direct boss Mike Ashley put NUFC up for sale on Monday via a statement through St James Holding Limited.
Staveley has previous form: she was closely linked with Sheik Mansour's buy-up of Manchester City Football Club in 2008. Informal talks are now thought to have taken place with club managing director Lee Charnley. It’s suggested NUFC will need £150m invested in players over the next two years.
The fall-out from Hurricanes Harvey and Irma are reflected from stark US housing data figures, just released: housing starts in the South collapsed by more than -15% between August and September.
However the pace is still upwards, reflecting demand outstripping supply; overall US housing starts were +6.1% higher compared to this time last year. The housing starts data are important measures of US consumer economic strength.
Breaking news: Good news for international tax transparency: Switzerland will commence sharing tax information on multinationals with other countries from 2020.