The UK’s jobs figures revealed a decline in the unemployment rate to 6.4% and a reduction in wages for the first time since late 2008.Figures showed that average earnings, including bonuses, fell to 0.2% in the three months to June.This demonstrated the fact that wages are lower than inflation, which reached 1.9% in June on a positive note labour market is continuing to recover.
For April to June 2014, there were 30.6 million people in work, 167,000 more
than for January to March 2014 and 820,000 more than the same periods last year
Carney's speech weakened off the pound further s after he repeated that when interest rates do start to rise, increases are likely to be gradual and limited. He did also indicate that there was no pre-set course for an interest rate rise , with many investors believing a rate hike may not now come until early 2015 as opposed to late 2014.
Sterling fell to a four-month low against the dollar after Carney's comments and the weaker prospects for wages, as markets interpreted them as a sign that a 2014 rate rise is looking more doubtful.
Yesterday we had figures showing Spain’s consumer price index which fell by 0.3% year-on-year in July, the biggest drop in almost five years. Month-on-month they slipped by 0.9%.In France, prices were up by 0.5% last month compared with July 2013, but fell on a monthly basis by 0.3%.
We also had Eurozone industrial production data yesterday, which fell across the 18 euro zone members by an average 0.3%. Spain over shadowed the remaining members with a 0.8% drop in industrial production. It also suffered the sharpest drop in shop prices for five years, discouraging Madrid's claim that a rebound in employment last month was a sign of the country's return to continual growth.
Retail sales were flat in July, the worst performance in six months, having only risen by 0.2% in June.
Car sales fell, and demand for electronics and home appliances was weak, which demonstrates a low level of consumer confidence. Heavy discounting by large retail chains failed to counter the effect of poor wage growth in the US
10:00 BST- EUR- Eurozone Inflation figures (July) expected to
fall from 0.5% to 0.4%
10:00 BST EUR: Eurozone GDP figures (July) expected to fall from 0.9% to 0.7%.
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