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Iron Ore 108.00 down 4%

Workers’ pay is rising faster than expected and at among the fastest paces on record in a sign that the Bank of England will deliver a 14th straight interest rate rise next month, official figures out this morning reveal.

Pay excluding bonuses rose 7.3 per cent over the three months to May on an annual basis, the same rate of increase as the last quarter after an earlier estimate was revised up, according to the Office for National Statistics (ONS)

https://www.cityam.com/shock-record-wage-growth-amplifies-risk-of-14th-straight-bank-of-england-interest-rate-rise/

Https://www.thisismoney.co.uk/money/markets/article-12277855/Saudis-UK-investment-drive-goes-throttle.html

H1 results out on 26th July just hope markets remember to repriced Lloyds in a meaningful way from all the extra earnings

When JD Wetherspoon PLC (LSE:JDW) provides a pre-close trading update on Wednesday 12 July investors will be keen to find out whether any of the soaring costs stunting the industry are abating.

Food and drink prices have remained stubbornly high since the cost-of-living crisis struck more than a year ago.

Prices for hospitality operators lifted by 21.6% year-on-year in May, according to the CGA’s food service price index.

High energy bills and an increase in the national minimum living wage could also play a role in dampening operations.

Despite these headwinds, the pub operator appears confident in reaching record sales for the year.

When reporting third-quarter results the company said a swarm of returning punters post-covid helped boost revenues and it expected profits to be towards the top of the end of market expectations.

Additionally, eccentric boss Tim Martin is likely to make comments on the industry, with his outspoken views previously criticising decisions by the government relating to taxation on alcohol.

In an interview with LBC, he said the fact some brewers had started weakening beer to achieve a tax break was a “crazy move”.

Wetherspoon shares are trading more than 40% higher in 2023 at around 650p.

Https://www.youtube.com/watch?v=L6L4JYVFDvg

British Airways has opened a new call center in Gurugram, near Delhi, to provide round-the-clock support to customers from the US and Europe through to Asia-Pacific.

https://simpleflying.com/british-airways-india-call-center/

Https://www.dailymail.co.uk/sport/formulaone/article-12270219/F1-star-Lance-Stroll-drives-Aston-Martin-car-new-team-facility.html

Lloyds hastily lifts savings rates following FCA meeting

Lloyds screws shareholders again 🥱📉

Bank chiefs are meeting Financial Conduct Authority (FCA) officials on Thursday to discuss concerns surrounding interest rates for savers

They should look after the shareholders first they making all this profits give us a special divi payment

Young & Co’s Brewery provided a cheery update to investors this morning as the pub operator revealed a 8.3 per cent lift in revenues in the first thirteen weeks of the year

The FTSE 100 is expected open lower on Thursday extending yesterday’s falls after the Federal Reserve minutes signalled further interest rate rises were on the way.

Spread betting companies are calling London’s blue-chip index down by around 38 points

With rates at 7% Lloyds profits from net interest revenue is 4.9 billion

Lloyds strong buy 📈📈💰💰🙌🙌

Aston Martin Lagonda Global Holdings PLC (LSE:AML) prompted an air of confidence among shareholders following last week’s capital markets day, Deutsche Bank analysts have noted.

Medium-term targets should be met, alongside wider margins and growth achieved by next year, Deutsche said in the wake of the last Thursday’s meeting.

Aston Martin aims to score revenues of roughly £2bn, £500mln in adjusted earnings and 10,000 wholesales by 2025 - figures Deutsche tipped were achievable.

This would mark prospective growth of 45%, 163% and 56% on 2022’s figures respectively, with “most key performance indicators expected to be reached” this year, the bank said.

“Back-end weighted” seasonal earnings should help the carmaker score a “moderate sequential improvement” in the second quarter of 2023 meanwhile, the bank continued.

Looking further ahead, the FTSE 250-listed carmaker unveiled plans to generate revenues of £2.5bn, alongside £800mln in underlying profit, by 2027 in last week’s investor meeting.

Aston’s position as a luxury manufacturer should mean prices will not need to be slashed, while newer models could well be sold for more, Deutsche said in response to the targets.

This is “given its focus on pricing and mix over volumes,” with luxury makers’ customer bases often less vulnerable to worsening economic trends.

Backing Aston Martin to leave guidance unchanged this year, after a profit warning last November, Deutsche raised the firm’s price target from 195p to 300p, down on Wednesday’s opening of 352p

https://www.proactiveinvestors.co.uk/companies/news/1019823/aston-martin-s-targets-in-sight-after-capital-markets-day-confidence-1019823.html

Tim Moore, Economics Director at S&P Global Market Intelligence, which compiles the survey:

"The service sector showed renewed signs of fragility in June as rising interest rates and concerns about the UK economic outlook took their toll on customer demand. Business activity increased at the slowest pace for three months, while the rate of new order growth eased further from April's recent peak.

"Survey respondents typically cited more cautious decision-making among clients and a loss of momentum for spending on consumer services. Higher borrowing costs were also reported as contributing to more subdued business conditions in June, partly due to weaker spending in the construction and real estate sectors.

"Despite another slowdown in service sector growth, the latest survey indicated that labour market conditions remained relatively strong. Job creation reached a nine- month high as an improvement in candidate availability allowed firms to backfill vacancies and rebuild business capacity.

"Service providers experienced a moderation in overall input price inflation, with business expenses rising at the weakest pace since May 2021. However, cost pressures were still among the strongest seen since the survey began in July 1996 as widespread increases in salary payments offset falling fuel bills and energy prices.”

Dr John Glen, Chief Economist, Chartered Institute of Procurement and Supply (CIPS):

"Concerns that the engine of growth in the UK economy could be showing signs of slowdown were realised last month with the weakest rise in new orders since January. Though the sector remained in expansion mode, customer appetite to spend had decreased with concerns over interest rates and cost of living rises affecting household budgets.

"This in turn impacted on optimism in the sector which was the lowest for five months and charges to customers rose at the second-lowest levels since August 2021. Given there was more competition for orders, services companies were less driven to fill their coffers and improve their margins, even though their input costs remained at historically high levels.

"Salary demands formed the biggest part of their cashflow concerns but with improvements in labour availability, firms were able to hire for skills they were unable to source at the beginning of the year and be in a better position should the marketplace grow stronger.

"With the UK economy still a hair’s breadth away from recession, companies will be making modest plans for future business this year rather than for the highs experienced in the last few months."

Service sector growth loses momentum in June

Key findings

Slower increases in business activity and new work

Job creation edges up to a nine-month high

Input cost inflation eases to its lowest since May 2021

June data indicated a sustained upturn in UK service sector output, but the rate of expansion eased to its weakest for three months amid a much softer rise in new orders. In contrast, staffing levels expanded at the fastest pace since last September as improving candidate availability helped to boost recruitment.

Service providers recorded another sharp increase in their average cost burdens. Rising salary payments offset falling energyandtransportationbills.However,thelatestoverallrise in business expenses was the weakest for just over two years. Prices charged by service companies meanwhile increased at the second-slowest pace since August 2021.

At 53.7 in June, down from 55.2 in May, the headline seasonally adjusted S&P Global / CIPS UK Services PMI® Business Activity Index signalled a slowdown in service sector output growth to its weakest since March. The latest index reading marked five months of continuous business expansion across the service economy. Survey respondents typically noted resilient business and consumer spending, despite pressure on budgets from elevated inflationary pressures. However, there were a number of reports citing weak demand from clients in the real estate and construction sectors, largely due to rising interest rates.

Volumes of new work increased moderately in June, but the rate of growth was the slowest since the current period of expansion began in February. Service providers often commented on longer decision-making among clients in response to concerns about the domestic economic outlook and the impact of higher borrowing costs.

https://www.pmi.spglobal.com/Public/Home/PressRelease/69580b03b6cf48ceb144352f4ec63db2

July 5 (Reuters) - Iron ore futures slipped in rangebound trade on Wednesday, as traders gauged the demand impact of China's top steel-producing city of Tangshan ordering an output cut for the month of July amid deteriorating air quality

https://www.nasdaq.com/articles/iron-ore-futures-slip-as-traders-assess-china-demand-prospects

China's Services Purchasing Managers' Index (PMI) tumbles to 53.9 in June, compared with a 57.1 expansion seen in May, according to the latest data published by Caixin released on Wednesday.

https://www.google.com/amp/s/www.fxstreet.com/amp/news/chinas-caixin-services-pmi-drops-sharply-to-539-in-june-vs-mays-571-202307050146

Megan Greene, who joins the Bank’s Monetary Policy Committee (MPC) tomorrow, said it would be ‘a mistake’ for central bankers to think inflation and interest rates will ‘automatically go back to the low levels we saw before the pandemic.’

💰💰💰📈📈📈🙌🙌🙌

https://www.google.com/amp/s/www.thisismoney.co.uk/money/markets/article-12260299/amp/Higher-rates-stay-says-rate-setting-committees-new-member.html