The UK labor market slowed slightly in the third quarter
The tight UK labor market saw a slight cooling in the third quarter as the economy entered into contraction.
The unemployment rate was 3.6% in the three months to September, up from a five-decade low of 3.5% recorded between June and August.
Data from the Office for National Statistics indicated that the number of associated employees rose by 74,000 in October to an all-time high of 29.8 million, although the number of jobless claimants rose slightly during the month.
Job vacancies declined for the fourth consecutive quarter, but remained at historically high levels, while wage growth increased, indicating continued inflationary pressures.
Daniel Mahoney, UK economist at Handelsbanken, said the latest figures highlight that the UK labor market remains a “headache” for policy makers.
“Growth in inactivity is a particularly worrisome problem as it has been observed more strongly in the UK than many of its G7 peers. This explains why the UK’s economic performance has been poor in the wake of the pandemic, with GDP remaining below levels,” Mahoney said. before the crisis.
“Growth in sluggishness has also been fueling inflationary pressures as it has contributed to employers often struggling to hire staff. With the UK approaching recession, the Bank of England now has a difficult balancing act between suppressing any signs of locally-led inflation and pressure and ensuring that deflation does not unnecessarily prolonged.”
– Elliot Smith
Stocks on the go: Teleperformance up 5%, Ambu down 11%
French call center company shares Teleperformance It jumped more than 5% to lead the Stoxx 600 after Citigroup upgraded the stock to “buy” from “neutral”.
At the bottom of the index is the Danish healthcare equipment company ambo It fell more than 11% after reporting a quarterly loss.
– Elliot Smith
Credit Suisse sells most of its securities business to Apollo as it accelerates restructuring
Credit Suisse It announced on Tuesday that it would speed up its investment bank restructuring by selling a significant portion of its Securitized Products Group (SPG) to Apollo Global Management.
Credit Suisse said the deal, along with the potential sale of other assets to third-party investors, is expected to reduce SPG’s assets from about $75 billion to $20 billion.
The bank said the move represented “an important step towards an orderly exit from the securitized products business, which is expected to significantly reduce investment bank risks and free up capital to invest in Credit Suisse’s core business.”
– Elliot Smith
Chinese industrial output, retail sales missed expectations in October
China’s industrial production grew 5% in October from a year ago, slowing from a 6.3% increase in September. The latest figures came against an estimate of a 5.2 percent increase expected in a Reuters poll.
Separately, retail sales in China fell 0.5% in October from a year ago, missing expectations.
Analysts polled by Reuters had expected a 1% increase, and retail sales growing 2.5% in September.
– Abigail Ng
CNBC Pro: China is easing its measures against the Covid virus. Here’s how the market pros play it
What stocks could benefit if China reversed its zero-Covid policy? Market pros reveal how reopening is playing out as China relaxes some of its virus controls.
Professional subscribers can Read more here.
– Xavier Ong
CNBC Pro: A Morningstar strategist says stocks are undervalued by 15% and share 6 favorites
With so many stocks in a bear market, stocks could be undervalued by 15%, according to Morningstar.
The chief US strategist at the equity research firm believes that the headwinds that were in place earlier in the year will start to subside early next year and will benefit stocks.
Dave Sekera also shared his “fair value” assessment of six companies with a “wide economic moat” that would outperform in such an economic environment.
– Ganesh Rao
European markets: here are the opening calls
European markets are set to open in mixed territory on Tuesday.
The British FTSE is expected to open 14 points lower at 7374, the German DAX is down 6 points at 14312, the French CAC is up 10 points at 6,617, and the Italian FTSE MIB is down 19 points at 24,464, according to data from IG.
Global markets will be watching events at the G20 summit in Bali, Indonesia, which kicks off on Tuesday.
The latest oil market report from the International Energy Agency is due to be released, as will the earnings of Infineon and Vodafone.
– Holly Eliat