Fri. Jul 1st, 2022


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The payment pressure is here. British real wages fell in November for the first time since July 2020 year-on-year, the National Statistics Office said this morning. Real average weekly earnings for the month fell by 1 percent as inflation increased.

The rest of the ONS data indicates a thriving labor market (for more on this see my comment selection of the day below). The unemployment rate is almost back to its pre-Covid level, redundancies are at their lowest levels since records began and the number of employees on payrolls now stands at 409,000 above the February 2020 level after increasing by 184,000 in December has. Vacancies are at another record high as employers struggle to fill roles.

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Briefly

Online beauty and nutrition retailer BY said full-year margins would be lower than expected after currency movements, at 7.4-7.7 percent rather than the 7.9 percent analysts had expected. Raw material prices and transportation costs will continue to weigh during the first half of this year, but profit margins should improve during the second half of 2022, it reads. It reported revenue growth in the fourth quarter of 27 percent (driven by acquisitions), an increase over the previous quarter. It is likely to slow to between 22 and 25 percent by 2022.

Petershill Partners, the alternative asset manager who floated last year, said he invested his cash at a faster pace than expected at the time of his IPO. The Goldman-linked vehicle said it bought $ 458 million of stake in the general partnerships of private equity firms in the fourth quarter of the year, just over half of which was funded at the time of the transactions. Petershill said the acquisitions would “immediately contribute to consensus earnings forecasts”.

The payment system regulator has imposed fines totaling more than £ 33 million on five companies, including Mastercard, for cartel behavior in the prepaid card market. The companies agreed not to compete or strip each other’s customers in the market for the cards, which were used by local authorities to distribute welfare payments. Mastercard is responsible for the lion’s share, with a fine of £ 31.5 million. The PSR announced its preliminary findings last year.

Today is also a production update for the fourth quarter of Rio Tinto, a half-year retailer update Hotel Chocolat, which said that trading for the year was marginally ahead of management expectations, and a year-end update of gambling group 888 Hoewes. And the Financial Reporting Board published a three-year plan and budget while preparing to transfer to the Audit, Reporting and Management Authority.

Beyond the square mile

That of BlackRock Larry Fink used his annual letter to CEOs to reject accusations of “waking up”, our asset management team report. BlackRock’s vocal attitude on ESG investment provoked criticism (as did his unwillingness to withdraw from large emitters). “Stakeholder capitalism is not about politics,” Fink said in the letter, entitled The Power of Capitalism. “This is not a social or ideological agenda. It is not ‘awake’. This is capitalism … ”

The outgoing boss of Intelsat is in line for a $ 4m good bye after the company from Chapter 11 bankruptcy protection. It follows a payout of $ 10 million in 2020, the year the satellite operator asked the court for protection to restructure its $ 16 billion debt burden. Peggy Hollinger reported.

And a group of some of the biggest producers in Europe’s metal industry called for the release of gas reserves to curb prices, and urged Brussels to act now or face another wave of plant restrictions and closures. Natural Resources Editor Neil Hume has more.

Lex look at the vibrant City labor market, Brexit – and the potential for a buffer bonus season.

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