A summer interest rate cut in the UK looks increasingly likely after today's job market figures show slowing wage growth.
The FTSE 100 index is expected to rise significantly as all eyes turn to US inflation data due later today.
Elsewhere, competition watchdogs have launched formal investigations into the veterinary sector, with Persimmon and Domino's Pizza UK announcing their findings.
FTSE 100 Live Tuesday
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Veterinary chain facing CMA probe
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Job market drives interest rate outlook
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Persimmon profits drop by 50%
DWP secretary says 'our plans are working' as paid workforce increases
07:34 , Daniel O'Boyle
Mel Stride MP, Secretary of State for Work and Pensions, said: Employment is increasing year by year, and the number of employees is at an all-time high.
“But our work is not done yet. Our return to work plan will help 1 million people find, stay and succeed in work. With the next generation of welfare reform, we will reduce the number of people at the top of the incapacity benefit tier – those who would receive back-to-work support – by 371,000.
“And the tax cuts announced in last week's Budget will add 200,000 workers to our workforce and put £900 back into the pockets of 27 million hardworking people.”
'Encouraging signs' for June interest rate cut
07:24 , Daniel O'Boyle
“The moderation in wage growth in January is probably still a bit too late for the Bank of England's liking,” said Paul Dales, chief UK economist at Capital Economics. But there are encouraging signs that a more pronounced economic slowdown is on the horizon, and that a rate cut in June is likely.
“Employment growth moderated from +72,000 in the three months to December to -21,000 in January (consensus +10,000, CE-70,000), with the unemployment rate easing from 3.8% to 3.9% (consensus 3.8 %, CE 4.0%), suggesting that the labor market has loosened slightly more than consensus expectations. ”
“Furthermore, the number of job openings declined further from 928,000 in the three months to January to 908,000 in the three months to February, a 32-month low. “This suggests that the labor market continues to ease beyond the rise in the unemployment rate.”
Persimmon's 2023 profits plummet by more than 50% due to housing market downturn
07:22 , michael hunter
Pre-tax profits at Britain's second-largest housebuilder fell by more than 50% in 2023 as the downturn in the housing market took hold.
Persimmon also said that “trading in southern and eastern counties in 2024 remains challenging due to low prices.” He added: “We are preparing for 2024 to be an even more difficult year.”
Pre-tax profits for FTSE 100 companies in 2023 were £351.8m, down from £730.7m in 2022.
This comes as interest rates rose to a 16-year high of 5.25% by August, following the Bank of England's 14th consecutive interest rate hike. Persimmon completed just over 9,900 of her properties, falling third as demand in the new home market slowed.
Despite this, the average selling price rose by 3% to £255,752.
The York-based company said completions in 2023 exceeded expectations and 2024 started as expected.
CEO Dean Finch said:
“While the near-term outlook remains uncertain, significant pent-up demand for housing remains.
“Customers want quality housing in the places they want to live and work, and affordability is critical. Over the past year, we have continued to take further steps to strengthen our business and this We are poised to meet demand.”
Domino's Pizza aims to expand to 2,000 stores
07:21 , Simon Hunt
Domino's Pizza today announced that it aims to expand its footprint to 2,000 stores and increase annual sales to £2.5 billion by 2023, as it continues its rapid expansion journey. Currently operating 1,300 stores.
The company posted sales growth of 5.8% in 2023 to £1.57bn, with underlying profits flat at around £100m. Net debt has fallen by £20.5m since the start of the year to £232.8m.
CEO Andrew Rennie said: “We are working closely with our franchisees and are attracting a strong and motivated second generation of talent from within our franchisees to drive this growth.” Stated.
Monopoly watchdog hits back at veterans
07:21 , Daniel O'Boyle
The Competition and Markets Authority will launch a formal market investigation into the veterinary sector following an “unprecedented response” to the initial review.
It said it has heard concerns about prices not being displayed or available on the website until treatment is complete and the possibility of overpayments.
In recent years, large veterinary chains have been rapidly acquiring independent practices. The CMA noted that it is not always clear who owns an individual practice, as veterinarians rarely rebrand when this happens.
Sarah Cardell, chief executive of the CMA, said: “We launched our review of the veterinary sector in September last year because it is an important market for the UK's 16 million pet owners, including the public and veterinary professionals. “The unprecedented response we have received from the United Nations is a testament to its strength.” Feelings are high on this issue and why we were right to investigate this issue. ”
FTSE 100 rises ahead of US inflation, Bitcoin hits new record
07:18 , graham evans
London's FTSE 100 index looks set to bounce back from other uncertainties for a strong start as traders await the release of US inflation data this afternoon.
IG Index reports that futures trading is up about 70 points to 7,738, following yesterday's gain of just under 10 points.
The improvement came even as the S&P 500 index fell slightly for the second straight session due to weakness in high-value technology stocks.
Wall Street traders were on the sidelines ahead of inflation, with economists at Deutsche Bank expecting inflation to remain unchanged at 3.1% annually.
Core inflation is likely to be around 3.7%, but the Fed may still consider this too high to allow an initial rate cut.
In Asian trading, the Shanghai Composite and Nikkei Stock Average recorded modest declines, while Hong Kong's Hang Seng Index rose 3%.
Meanwhile, Bitcoin continues to set new records after breaking the $72,000 barrier for the first time.
“The Bank of England may want to see signs of further stabilization before making any moves.”
07:16 , Daniel O'Boyle
George Sweeney of personal finance site Finder.com said that although employment and wage data showed signs of cooling, the Bank of England was likely to need more evidence before cutting interest rates. .
He said: “The UK economy continues to cool and further cold water has just been poured on the UK's smoldering jobs market. The latest ONS research shows annual wage growth (including bonuses) of 5.8 over three months. % by 2019.” It will be 5.6% for the three months from December 2023 to January 2024.
“These figures, when combined with recent news about a technical recession, point to an overall economic slowdown. However, the Bank of England wants to see further signs of stabilization before taking any action on the benchmark rate. The Monetary Policy Committee (MPC) may need more consistent data over the coming months to prove we are out of the crisis, but that will depend on the situation. It could mean more pain before things turn around and interest rates start to fall.”
Vacancies are down but still higher than before the pandemic
07:07 , Daniel O'Boyle
Liz McCune, Head of Economics and Statistics at the ONS, said: “Recent trends in the jobs market continue, with cash earnings growth at a slower rate than in recent years, but real wages continue to rise thanks to lower inflation. ” he said.
“The number of job openings has also been on the decline for the past two years, but remains more than 100,000 above pre-pandemic levels.
“Although there has been little change in the proportion of people employed, unemployed, not working, or not looking for work over the last year, the total number of people working is still increasing.”
UK unemployment rate is 3.9%
07:02 , Daniel O'Boyle
The UK unemployment rate stood at 3.9% in the three months to January.
Wage growth excluding bonuses was only 6.1%.This means an even bigger benefit for employees who have seen the real value of their pay deteriorate last year, but still at a faster pace than the Bank of England would like.
The number of paid employees increased by 20,000, slightly lower than expected.
06:47 , Simon Hunt
Good morning from Standard City Desk.
Two thick reports arrived on Culture Secretary Lucy Fraser's desk yesterday. One from media regulator Ofcom and the other from competition watchdog CMA.
Only she and a few officials know the contents of the book, but no one is talking about it today.
The report on Redbird IMI's takeover bid for Telegraph Media Group was originally commissioned by her in November when she issued a public interest intervention notice against the takeover bid backed by Abu Dhabi's ruling family.
Since then, a chorus of Tory heavyweights, including voices as diverse as former Prime Minister Sir John Major and former Home Secretary Suella Braverman, as well as figures such as the former MI6 chief, have called for recognition of British ownership. I have issued a warning. Significant media assets handed down from Berkeley family to 'dictatorship state'.
For Mr Fraser and his boss Rishi Sunak, this is the hottest potato, landing at a time when the Conservatives cannot afford any more negative headlines.
Given the strong political considerations and timing, it seems very unlikely that the deal will go through in its current form, despite all the assurances the bidders have given about editorial independence.
Here's a recap of yesterday's other top stories:
