Live: Wage growth beats expectations; Tui swings for profit; Representatives warn of nuclear plans

The FTSE 100 index will open at 8am. Among the companies with today’s trading reports and updates is Tui. Read the Business Live blog on Tuesday 13 February below.

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Administration Directorate: Ongoing challenges in the labor market require decisive action by the government

Alexandra Hall-Chen, Principal Employment Policy Advisor at the Institute of Directors:

“Despite a slight decline in the number of job openings, businesses are still struggling to access the workers and skills they need to succeed.

“The increase in economic inactivity over the past year, driven by historically high numbers of people reporting long-term illness, is a particularly worrying sign of structural problems in the UK labor market.”

“Given the Government’s upcoming changes to legal immigration rules, it is clear that urgent action is needed from the Government to increase local labor supply in the upcoming Spring Budget.

“These measures must include delivering on the promised expansion of childcare provision and implementing measures to expand access to occupational health services.”

“It probably won’t be long before interest rate cuts are on the table even if the unemployment rate remains stubbornly low.”

Thomas Pugh, economist at RSM UK:

“We suspect that the new low unemployment rate of just 3.8% will significantly delay the first rate cut. Continued uncertainty over employment statistics means the MPC will place much greater weight on wage growth and survey data than it normally does.

“Here the news is even better – wage growth is slowing rapidly and almost all unofficial data suggests that the labor market is softening. As a result, we continue to believe that the first rate cut is likely to take place in early summer.

The new unemployment rate of 3.8% will undoubtedly ring some alarm bells. However, significant concerns remain about data quality.

“More important to the inflation outlook are wage figures. Private sector wage growth, excluding bonuses, the measure most reflective of underlying wage pressures, slowed from 6.7% to 6.2%. The annual measure fell by 3 million/3 months, which is a better indicator of current wage pressures,” To just 2%, the slowest rate since the pandemic.

Equally important for households, real wages rose by 1.4%. This, coupled with potential tax cuts and rising consumer confidence, could give a boost to spending in the second half of this year, helping to drive the recovery.

“Overall, although wage growth is still twice the 3%-3.5% that the MPC believes corresponds to a 2% inflation rate, there are clear signs that the economy is on the brink of recession. Wage growth is slowing and inflation is It is falling more quickly than expected, so it probably won’t be long before interest rate cuts are on the table even if the unemployment rate remains stubbornly low.

Battery metal mines are taking a hit in Oz as a slowdown in electric vehicle sales coincides with increased supply

Western Australia’s “Golden Mile” was once considered the richest square mile on Earth after prospectors flocked here during the gold rush of the late 19th century.

It is now at the center of a global collapse in battery metal prices, as a slowdown in electric vehicle sales has coincided with an increase in supply.

The Goldfields region has become a magnet for a new wave of prospectors, from local billionaires to global mining giants and small-time speculators – all vying for the lithium bounty that also lies beneath the red dirt.

MPs warn that Britain’s nuclear plans will not help achieve a key green target

A committee of MPs has warned the government that the planned deployment of a fleet of small nuclear reactors is unlikely to help achieve a key decarbonisation target.

The Environmental Audit Committee said the approach to developing factory-built nuclear power stations “lacks clarity” and their role in achieving the goal of transitioning the UK energy grid to clean energy by 2035 is unclear.

Chairman Philip Dunne said: “This uncertainty threatens to have knock-on effects on industry confidence: not only for investment decisions relating to upstream and plant construction to build reactor modules, but also to support and grow supply chains and skills.” .

“We simply do not yet know how much SMEs will contribute to the country’s electricity generation, nor how much their deployment is likely to cost taxpayers.”

US oil companies conclude a £20 billion deal to become the country’s third largest producer

One of the US’s most sought-after private oil production companies has been acquired in a deal worth £21bn.

Shale oil producer Diamondback Energy said it will buy Endeavor Energy, the largest private oil and gas producer in the Permian Basin, the largest U.S. oil field.

Tui swings to make profit

Tui reported a better-than-expected performance in the first quarter, with Europe’s largest travel group turning profitable during the period.

The company reported an operating profit of €6m (£5.1m) against a loss of €153m during the same quarter last year.

Tui was expected to report a loss of €102 million in the first quarter, according to an LSEG analysis.

TUI maintained its forecast of 25 per cent growth in operating profit in financial year 2024 and also set a medium-term target of a compound annual growth rate of 7 to 10 per cent.

European airlines enter 2024 with strong expectations as travel demand is expected to exceed pre-pandemic levels despite economic uncertainty, delays in aircraft deliveries from manufacturers, and rising jet fuel prices.

Aldi opens 500 new stores in £550m expansion drive as supermarket wars heat up

Aldi has pledged to pump more than half a billion pounds into opening stores as the supermarket wars heat up.

The discounter is investing £550m this year as it hopes to open a further 500 stores, taking its total to 1,500. Aldi said its expansion efforts will create more than 1,500 jobs this year.

Wage growth exceeds expectations

British wages before bonuses rose by a higher-than-expected 6.2 per cent in the last three months of 2023 as the unemployment rate fell to 3.8 per cent, according to new data from the Office for National Statistics.

Wage growth exceeded expectations of 6 percent for the quarter, and will heighten the Bank of England’s concerns about the impact on the overall inflation rate.

The Bank of England is watching wage growth closely, as it tries to gauge the extent of inflation pressures remaining in the economy and whether it can start looking at cutting interest rates from their highest level since 2008.

(tags for translation) Daily Mail

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