UK living standards hit by rising prices and weak wage growth

Resolution Foundation says households suffering worse than 1990s recession

Britain’s weak wage growth and rising prices have delivered a hit to living standards of a severity normally only seen during a deep recession, a leading thinktank has said.

While official data has shown a pick-up in real earnings growth in recent months, the Resolution Foundation said household incomes had declined by 0.5% in the period from 2016-17 to 2018-19.

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Pound hits two-year low as City fears of no-deal Brexit intensify

Sterling falls by a cent against dollar after Tory leadership candidates’ backstop remarks

The pound has fallen to its lowest level in more than two years after pledges by both Boris Johnson and Jeremy Hunt to ditch a key part of the UK-EU withdrawal agreement intensified City fears over a no-deal Brexit.

Sterling fell by a cent against the US dollar after a Sun and Talkradio debate in which both the contenders to replace Theresa May in Downing Street said they would not accept a Northern Ireland backstop in its current form.

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Capitalism’s take on creative destruction | Letters

For Schumpeter it was the creation that caused the economy to advance, the destruction was a regrettable consequence, writes Michael Heaslip; while Susanne MacGregor says Schumpeter would have seen the crises relished by Brexiters as a political choices

Joseph Schumpeter might have regretted describing the process of economic development as “creative destruction” had he known that disaster capitalists would misinterpret its meaning and invert cause and effect (Darroch’s fate is a taste of the chaos to come, Simon Jenkins, 12 July). Schumpeter described a process of innovation creating new market conditions which destroyed the old: where are the farriers, loco firemen, telephonists and typists now? For Schumpeter it was the creation that caused the economy to advance; the destruction was a regrettable consequence, not a cause of the innovation. “Destructive creation” would have put the emphasis on the substantive element of the process.

You can’t make an omelette without breaking eggs. But you must have a plan to create the omelette; you can’t just break some eggs and trust that an omelette will then appear as if by magic – unless of course, you live in the looking-glass world of Brexit.
Michael Heaslip
Workington, Cumbria

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Markets await UK unemployment report; Ryanair hit by Boeing 737 Max crisis – business live

Rolling coverage of the latest economic and financial news, including new UK unemployment figures

In Dublin, Ryanair shares have jumped by 1.5% in early trading to €10.30 each.

Traders may be relieved that the airline is taking action to address the Max delays, and perhaps also pleased that the damage isn’t worse. At least Ryanair still expects to grow passenger numbers, if only by 3% not 7% as hoped before.

Neil Wilson of Markets.com says the Boeing 737 Max crisis has “shattered” Ryanair’s 2020 planning.

The airline’s growth plans had been based around getting 58 of the new Max 200 jets – which are more fuel efficient than earlier models, cutting costs.

This will significantly affect passenger growth, which management says will be fall to around 3% for summer 2020 against 7% previously expected. Full year to March 2021 traffic now seen at 157m against 162m previously guided.

We may also see decline in passenger growth this year as Ryanair is planning to cut capacity ahead of the 2019 winter season in readiness.

Some reaction to Ryanair’s announcement:

Ryanair growth stunted by Boeing 737MAX delays. Planning on 30 such aircraft instead of 58 IF they’re approved for flying later this year.
“will necessitate some base cuts and closures for summer 2020, also for winter 2019 schedule” Now negotiating with airports, staff+ unions

Cuts and changes to Ryanair’s winter + summer schedules.

Its after delays in delivery of the Boeing 737 Max – the plane involved in crashes in Indonesia and Ethiopia that killed 346 people.

Ryanair says it will carry 5mn fewer people next year than it expected

More @bbc5live pic.twitter.com/2adEB2TdS6

Ouch. Budget airline Ryanair has announced plans to shutter some services, after being hit by the crisis around Boeing’s 737 Max plane.

This shortfall in aircraft deliveries will necessitate some base cuts and closures for summer 2020, but also for the winter 2019 schedule.

We are starting a series of discussions with our airports to determine which of Ryanair’s underperforming or loss making bases should suffer these short term cuts and/or closures from November 2019.

Related: Ryanair to cut services due to Boeing 737 Max crisis

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Today we discover how Britain’s labour market is faring in the face of continual Brexit uncertainty and a slowing global economy.

Should the wages rate tick up it should bode well for the British economy as workers who earn more usually spend more.

Despite the mess the Brexit process has been in throughout the year, the labor market in Britain continues to showcase a rather robust performance and today’s figures should confirm that.

Economists expect job and wage growth to have picked up marginally last month while the unemployment rate probably remained steady.

Busy day of releases ahead for #markets:

– UK lab mkt report; should show mkt remaining relatively tight but BoE still likely unch for 2019
– German & E/Z ZEW surveys; momentum set to remain weak
– US retail sales; consumer remains healthy, expecting a 4th straight MoM increase

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High street suffers ‘summer slump’ as Brexit and wet weather bite

Footfall drops to seven-year low for June prompting fears UK economy is at a standstill

Shoppers deserted UK high streets during June as the washout weather and continuing Brexit uncertainty helped drive store visits down to a seven-year low for the month.

The “summer slump” took a particularly heavy toll on high streets, with shopping centres also badly affected, according to the British Retail Consortium’s (BRC) monthly footfall tracker for the period from 26 May to 29 June.

What’s the problem?

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Will Mark Carney and George Osborne vie for the top IMF job?

The BoE governor stands more chance than the ex-chancellor but the likely choice may just be a Bulgarian woman

Ever since he set his departure date from the Bank of England, there has been speculation about what Mark Carney will do next. There are not that many bigger jobs around than his current one but one of them has become available after the news of Christine Lagarde’s planned departure from the International Monetary Fund for the European Central Bank.

Carney would certainly like a move to Washington, not least because the other job he has had his eye on – prime minister of Canada – is currently occupied by Justin Trudeau. Asked at a Bank press conference whether he is interested, Carney replied he had lots of admiration for Lagarde and that the proper processes should be followed. What he pointedly didn’t say was “no”.

Christine Lagarde’s nomination to run the European Central Bank has prompted speculation over who could replace her as managing director of the International Monetary Fund.

Related: Labour sounds alarm over George Osborne’s ambitions to run IMF – business live

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Little hope for a summer bounce as no-deal fears drag down GDP growth

The economy expanded just 0.3% in May, and a slump awaits

One swallow doesn’t make a summer, so the old saying goes. For the warm middle months of the year, the British economy looked remarkably frosty, chilled by fears over a no-deal Brexit, until the Office for National Statistics reported a surprisingly strong month for growth in May.

The figures, released last week, were a glimmer of hope that Britain might yet shrug off the worst of the Brexit cold, which has laid the economy low over recent months as companies put their investment plans on ice.

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Business has good reason to fear Boris Johnson’s Brexit plans | William Keegan

The favourite for Downing Street has aggravated the uncertainty that is undermining confidence and hitting sterling

Wimbledon fortnight brings back happy memories of growing up in that pleasant suburb. But the recent news that the leading pretender to the Conservative throne was told by his girlfriend to “get out of my flat” stirs a particular memory: of the number of offenders brought before the courts who would be described in the Wimbledon Borough News as being “of no fixed abode”.

It was therefore a stroke of genius for Private Eye to put a picture of Alexander “Boris” Johnson outside No 10 Downing Street with the caption “I really need somewhere to live.”

His budgetary plans are so wild that he undermines any Conservative arguments about the budgetary dangers of a Labour government

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