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.