“Corporations have NEVER made as much money as they are making now … Jobs are starting to roar, watch!” Tweeted Donald Trump earlier this week.
We’ll have a better idea about the strength (or otherwise) of the US job market and the wider economy following the release of the closely watched jobs data at 1.30pm (UK time).
According to a poll of US economists by Reuters, non-farm payrolls are expected to have risen by 183,000 in July, following last month’s surprise 222,000 rise. The unemployment rate is forecast to have slipped from 4.4 per cent to 4.3 per cent.
Better-than-expected data could raise expectations that the Fed will increase rates in December, giving the battered dollar some well-needed respite. The greenback is trading close to a two-and-a-half year low against the euro in the wake of recent uninspiring US economic data.
For instant analysis and reaction to the jobs data follow James Dean, our US business editor, on Twitter — @JamesDeanTimes. We’ll have a story later on www.thetimes.com/business.
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The state-owned Royal Bank of Scotland has returned to the black making £680 million net profit in the second quarter, despite having to put aside another £342 million for fines and compensation. Katherine Griffiths, our banking editor, is poring through the results and we have a story on the website.
Elsewhere this morning Hargreaves Lansdown has been told to bolster its capital by the Financial Conduct Authority. As a result, the money manager says, it will not now be paying a special dividend, unlike in previous years.
The troubled publisher Pearson has announced plans to axe 3,000 jobs alongside its interim results this morning. “Savings will come from the simplification of our technology architecture, increased use of shared service centres, standardisation and automation of processes, reduction of headcount with a particular focus on managerial positions, centralisation of procurement and the reduction of office locations,” states the publisher.
Shares in Merlin Entertainments have fallen 13 per cent since the London Bridge terrorist attack at the start of June, amid fears that visitor numbers to its City centre attractions — which include Madame Tussauds and the London Eye — may have been hit. Alongside interim results this morning the theme park operator has warned of a “a more subdued London market”.
“We are making good progress across most of our businesses, although we remain cautious on the near-term outlook for our UK attractions, reflecting the recent terror attacks,” says Nick Varney, Merlin’s chief executive.
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Pre-tax profits are flat at £50 million — in line with expectations — despite a 3.7 per cent rise in like-for-like revenue. We have a report on the Merlin results from Dominic Walsh on the website.
Following the publication of yesterday’s Inflation Report the Bank of England deputy governor Ben Broadbent has been touring the radio studios.
“I think there may be some possibility for interest rates to go up a little bit,” Mr Broadbent told BBC Radio 5 Live’s Wake Up To Money this morning. “One shouldn’t overdo this. If and when it happens there will be a lot of talk about the first rate rise since ‘x’. But it’s just a rate rise and we got perfectly used to rate rises of this size in the past.”
Finally, I am off for a fortnight’s holiday. So for the next two weeks we are combining our morning and lunchtime emails. I’ll be back in your inbox — British Airways willing — bright and early on Monday 21st August.
Have a great weekend,
Richard
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