Markets in Europe look set to open slightly lower as we start a new week after US markets closed mixed on Friday, and the latest July trade data for China pointed to weak domestic demand.

Any thoughts that the US Federal Reserve might have to start going soft when it comes to the tightening of monetary policy were dealt a blow on Friday when the July payrolls report blew through even the most optimistic of predictions, City-based Michael Hewson, Chief Market Analyst at CMC Markets UK, said this morning.

A blisteringly good number saw 528k jobs added to the US economy, the second-best performance this year, while June was revised up to 398k. There was more positive news as wage growth jumped to 5.2%, making the prospect of a Fed pivot on rate hikes even more remote in the medium term, as well as putting a 75bps rate rise in September very much back in play. The unemployment rate also fell to 3.5%.

The past two years’ boom in demand for legal services has seen M&A activity in the UK’s legal sector drop to decade lows, research from accountancy firm Hazelwoods shows.

The number of mergers between UK law firms has fallen to its lowest levels in a decade, in plummeting from highs of 278 in 2011 to long-term lows of just 99 last year.

The drop in mergers comes as a boom in the legal sector, due to far-reaching economic impacts of Covid, has led to a drop in dealmaking, as law firm partners seek to enjoy bumper profits rather than selling their firms, Hazelwoods partner Ian Johnson said.

“Over the last two years, law firm partners simply haven’t wanted to sell as they watched the profits roll in,” Johnson said. “Business has been booming and a lot of partners have been enjoying the profit distributions.”

However, the economic downturn forecast to hit the UK in coming months could reverse the downwards trend, as consolidator firms seek...

Global money transfers reached $653bn (£538bn) in the past year, a rise of 60 per cent over the last 10 years as economic trouble hits countries.

Research by remittance provider ACE Money Transfer said the rise began as the world recovered from 2008’s global financial crisis in 2011-2012, with remittances important in aiding developing countries in times of global economic stress. 

The current global economic situation, with slowing growth, dampened outlook, and soaring inflation, highlights their importance. 

“Remittances have a massive impact on people’s lives across the world,” said ACE Money Transfer CEO Rashid Ashraf. “When times are tough and economies are struggling, this is when remittances are particularly important.”

Money transfers from foreign workers back to their home countries are essential for basic needs like food and medical costs. In particular, remittances play a crucial part in supporting troubled economies...

Apple yesterday asked Taiwan-based suppliers to use the ‘made in China’ label, as the firm reportedly wants products to comply with Bejing rule in a bid to avoid disruption from Chinese customs inspections.

According to Nikkei, the company wants manufacturers on the island to label components bound for China as made in “Chinese Taipei” or “Taiwan, China”.

A long-standing Chinese directive requires this label to be applied on all components bound for mainland China, but the rule was previously not heavily enforced.

The firm’s request comes as Chinese customs inspections grew stricter as a result from the visit of the US House speaker, Nancy Pelosi, to Taipei.

Pelosi visited Taiwan last week and met with its president, where she pledged to support the self-ruled island in the face of threats from mainland China.

Chinese officials, including president Xi Jinping, had repeatedly warned against Pelosi’s visit.

US low-cost airline JetBlue is planning to further its expansion into the “old continent” as it expects to post a profit this quarter. 

The carrier made the headlines last week when it reported a loss of $188m in the second quarter of the year due to fuel costs going up by around 30 per cent.

However, JetBlue said it was forecasting to return to profit for this quarter – the first since the pandemic hit. 

Looking ahead, the airline said it will continue to expand both in the US, with the recent takeover of rival Spirit Airlines for $33.50 per share, but also in Europe. 

“We expect in 2023 to add a second European destination, [but we are] still deciding what that is,” chief executive Robin Hayes told City A.M. during an interview. 

“And the UK regional airports like Manchester, Edinburgh and Glasgow are very interesting to us as well.”

Hayes’ remarks come as the company is about to celebrate the first-year...

The planned break-up of ‘Big Four’ firm EY has been pushed back to the end of the year as regional bosses mull the practicalities of proposals to carve up its consultancy and audit practices, according to reports.

Regional heads of the professional services giant are yet to formally approve the decision and a strategic review of the proposal has yet to conclude, according to sources cited by the Sunday Times.

The decision had reportedly initially been slated for last month but is now expected by the end of this month at the earliest. Any plans will also need the approval of the firm’s partners, which could extend the process until November or December.

The professional services giant is set to shake the industry as it becomes the first of the ‘Big Four’ to break off its consultancy and audit practices, after major criticism over conflicts of interest over a series of high profile audit failures.

EY’s rivals PwC, Deloitte and KPMG yet to...

London bus drivers have joined the UK’s “summer of discontent” and announced a strike for 19 and 20 August following a dispute over salaries.

The union Unite said more than 1,600 of its members working for bus operator London United will join the walkout after the company’s parent, RATP Dev Transit, offered a 7.8 pay increase over this year and next. 

The strike will affect seven bus depots, including Shepherd’s Bush and Hounslow. 

“This dispute is of the company’s own making, it can make a fair pay offer to its workers but has chosen not to, so it now faces the prospects of a highly disruptive strike action,” said Unite regional officer Michelle Braveboy. 

City A.M. has approached RATP Dev Transit for comment, while a spokesperson for Transport for London (TfL) called on both parties to reach an agreement.

The walkout is expected to create maximum disruption, as it will coincide with both the TfL and national railway...

Industry body Offshore Energies UK (OEUK) has given its backing Equinor’s plans to develop a major oil and gas field on the UK’s continental shelf.

The Norwegian energy giant has submitted its environmental statement for the Rosebank development to theauthorities.

This has eased fears Equinor was considering ditching the £4.5bn project, following the introduction of the Energy Profits Levy this year.

Rosebank contains up to 300m barrels of recoverable oil, according to industry estimates, and is one of the largest untapped discoveries in UK waters.

At its peak, the Rosebank field, which lies about 81 miles north-west of Shetland, is predicted to produce 69,000 barrels of oil per day.

This would be roughly equivalent to eight per cent of the UK’s entire output between 2026 and 2030.

It would also produce about 44m cubic feet of gas (1.2m cubic metres) per day in its first 10 years – enough to supply a city the size of...

Her Majesty’s Revenue and Customs believes that a “significant number” of Premier League football clubs and players are underpaying tax, new analysis from law firm Pinsent Masons will reveal today.

Pinsent Masons says that 64 per cent of Premier League footballers’ contracts now take a form which HMRC says is open to abuse.

This follows news that the 93 footballers targeted with investigation by the authority for a combined underpayment of £5.8m last year rose to 329 players, 91 agents and 31 clubs in football this year, according to UHY Hacker Young.

For broadcasters, it has become a familiar phrase: “We approached the government for comment, but no one was available.” Journalists such as Emily Maitlis, Kirsty Wark, Cathy Newman and Jon Snow have all intoned it until it hardly means anything – but it has been a hallmark of the Boris Johnson years. Ministers have, to all intents and purposes, withdrawn from appearances on major news programmes – both television and radio. They’ve instead left the field to compliant or obstreperous backbenchers, select committee chairs and the opposition.

This media strategy was originally the hallmark of Johnson’s leadership campaign in 2019. He preferred to avoid set-piece media events, declining invitations from Sky and the BBC. His team had, it seemed, taken the decision that any short-term embarrassment from failing to attend would be outweighed by avoiding potential gaffes or setbacks.

A dismal, reductive, lowest-common-denominator approach, it was carried over...

For broadcasters, it has become a familiar phrase: “We approached the government for comment, but no one was available.” Journalists such as Emily Maitlis, Kirsty Wark, Cathy Newman and Jon Snow have all intoned it until it hardly means anything – but it has been a hallmark of the Boris Johnson years. Ministers have, to all intents and purposes, withdrawn from appearances on major news programmes – both television and radio. They’ve instead left the field to compliant or obstreperous backbenchers, select committee chairs and the opposition.

This media strategy was originally the hallmark of Johnson’s leadership campaign in 2019. He preferred to avoid set-piece media events, declining invitations from Sky and the BBC. His team had, it seemed, taken the decision that any short-term embarrassment from failing to attend would be outweighed by avoiding potential gaffes or setbacks.

A dismal, reductive, lowest-common-denominator approach, it was carried over...

Later this month, young people across the country will be opening their exam results and looking ahead to an exciting future. I hope that many of them will eventually choose to forge a career in the Square Mile, just as I did a few decades ago.

City firms try to attract the best talent to remain competitive and innovate. To make this a reality, however, more needs to be done to ensure individuals can progress to senior levels regardless of their background.

There is a glaring £17,500 class pay gap in financial services, according to the ONS Labour Force Survey. It means those from a professional or managerial parental background earn £17,500 more than those from a working-class background.

Those whose parents were not professionals or managers progress at a 25 per cent slower pace than their peers, with no difference in performance. It takes them four years of their life to make the progress that those whose parents were managers and professionals...

Later this month, young people across the country will be opening their exam results and looking ahead to an exciting future. I hope that many of them will eventually choose to forge a career in the Square Mile, just as I did a few decades ago.

City firms try to attract the best talent to remain competitive and innovate. To make this a reality, however, more needs to be done to ensure individuals can progress to senior levels regardless of their background.

There is a glaring £17,500 class pay gap in financial services, according to the ONS Labour Force Survey. It means those from a professional or managerial parental background earn £17,500 more than those from a working-class background.

Those whose parents were not professionals or managers progress at a 25 per cent slower pace than their peers, with no difference in performance. It takes them four years of their life to make the progress that those whose parents were managers and professionals...

Businesses are scrambling to fill vacancies at a rapid pace despite the UK staring down the barrel of the longest recession since the financial crisis, revealed new figures published yesterday.

A shortage of workers partly driven by people dipping out of the jobs market due to Covid-19 related health issues and Brexit has intensified competition between firms to lure talent.

A shallower pool of available labour has largely shielded the jobs market from the broader economic slowdown.

An employment index produced by consultancy BDO climbed to 114.79 in July, its highest level since January 2019 and up 0.23 points from June.

Research published earlier this month by the Institute for Fiscal Studies found around 110,000 people have stopped working due to long Covid-19. 

Strong demand for staff has pushed UK vacancies to record highs and held the unemployment low at 3.8 per cent.

However, barriers to filling roles and a lack of...

People from around the world come to use the UK’s financial markets to fund their ventures, build their economies and make a return. Yet, for years, the UK has been poor at turning this natural advantage into investment here at home.

For example, the UK has the second largest pension pot in the entire world, with about £2.9tn in assets in 2020, amounting to 126 per cent of GDP. This is a huge pool of capital to use to invest in British infrastructure, British business, and British innovation. This exacerbates a long-standing problem in the UK, which is a lack of institutional and patient capital in the domestic market.

Compared to Canada, another country with a large pool of pension resources and strong financial markets, the UK underinvests in many of the most productive assets. Trusted pension funds in Canada invest about 7.3 per cent of their assets in infrastructure, and 12.7 per cent of their assets in private equity. Yet, in Britain, the occupational...

Global money transfers reached $653bn (£538bn) in the past year, a rise of 60 per cent over the last 10 years as economic trouble hits countries.

Research by remittance provider ACE Money Transfer said the rise began as the world recovered from 2008’s global financial crisis in 2011-2012, with remittances important in aiding developing countries in times of global economic stress. 

The current global economic situation, with slowing growth, dampened outlook, and soaring inflation, highlights their importance. 

“Remittances have a massive impact on people’s lives across the world,” said ACE Money Transfer CEO Rashid Ashraf. “When times are tough and economies are struggling, this is when remittances are particularly important.”

Money transfers from foreign workers back to their home countries are essential for basic needs like food and medical costs. In particular, remittances play a crucial part in supporting troubled economies...

People from around the world come to use the UK’s financial markets to fund their ventures, build their economies and make a return. Yet, for years, the UK has been poor at turning this natural advantage into investment here at home.

For example, the UK has the second largest pension pot in the entire world, with about £2.9tn in assets in 2020, amounting to 126 per cent of GDP. This is a huge pool of capital to use to invest in British infrastructure, British business, and British innovation. This exacerbates a long-standing problem in the UK, which is a lack of institutional and patient capital in the domestic market.

Compared to Canada, another country with a large pool of pension resources and strong financial markets, the UK underinvests in many of the most productive assets. Trusted pension funds in Canada invest about 7.3 per cent of their assets in infrastructure, and 12.7 per cent of their assets in private equity. Yet, in Britain, the occupational...

Her Majesty’s Revenue and Customs believes that a “significant number” of Premier League football clubs and players are underpaying tax, new analysis from law firm Pinsent Masons will reveal today.

Pinsent Masons says that 64 per cent of Premier League footballers’ contracts now take a form which HMRC says is open to abuse.

This follows news that the 93 footballers targeted with investigation by the authority for a combined underpayment of £5.8m last year rose to 329 players, 91 agents and 31 clubs in football this year, according to UHY Hacker Young.

[Re: FCA reveals major consumer regulation shake-up but delays deadlines after industry protest, July 27]

The three-month extension for financial services firms to implement the FCA’s new Consumer Duty requirements is something of a double-edged sword. While extra time has been welcomed by the industry, it may have overshadowed a more pressing part of the announcement – the October 2022 deadline.

Firms now have just three months for their boards or managing bodies to sign off their implementation plans. The position here is clear: although there is more time to action, there is not more time for planning. The FCA will be scrutinising board decisions later this year.

This will require clear roadmaps to show how they will achieve this fundamental shift in culture across financial services organisations – moving from a mindset of preventing poor conduct, to proactively prioritising good outcomes for customers.

With the...

[Re: FCA reveals major consumer regulation shake-up but delays deadlines after industry protest, July 27]

The three-month extension for financial services firms to implement the FCA’s new Consumer Duty requirements is something of a double-edged sword. While extra time has been welcomed by the industry, it may have overshadowed a more pressing part of the announcement – the October 2022 deadline.

Firms now have just three months for their boards or managing bodies to sign off their implementation plans. The position here is clear: although there is more time to action, there is not more time for planning. The FCA will be scrutinising board decisions later this year.

This will require clear roadmaps to show how they will achieve this fundamental shift in culture across financial services organisations – moving from a mindset of preventing poor conduct, to proactively prioritising good outcomes for customers.

With the...

Kenya’s much-anticipated presidential election – taking place tomorrow – could usher in the country’s first-ever female deputy president.

However, rising star Martha Karua says she’s is more focused on the issues that matter than any political office.

Karua, a long-standing member of parliament and an advocate of the High Court of Kenya, as well as a former minister for Justice, says rampant corruption is at the top of her agenda.

Many within Kenya say Karua should not so much be seen as the next deputy president, but as a likely head of state in a few years time, so many many eyes within East Africa follow this remarkable politician with great interest.

Watch the full video report from Nairobi.

Apple yesterday asked Taiwan-based suppliers to use the ‘made in China’ label, as the firm reportedly wants products to comply with Bejing rule in a bid to avoid disruption from Chinese customs inspections.

According to Nikkei, the company wants manufacturers on the island to label components bound for China as made in “Chinese Taipei” or “Taiwan, China”.

A long-standing Chinese directive requires this label to be applied on all components bound for mainland China, but the rule was previously not heavily enforced.

The firm’s request comes as Chinese customs inspections grew stricter as a result from the visit of the US House speaker, Nancy Pelosi, to Taipei.

Pelosi visited Taiwan last week and met with its president, where she pledged to support the self-ruled island in the face of threats from mainland China.

Chinese officials, including president Xi Jinping, had repeatedly warned against Pelosi’s visit.