The FTSE started the day slightly lower with traders digesting negative Brexit headlines as Theresa May headed off for the G7 summit in Canada this weekend. Bourses across Europe are also trading lower, not helped by the surprisingly weak German economic data which showed that the country’s industrial production and exports declined in April.
The euro weakened against the dollar almost immediately, losing 0.225 of its value.
UK starting salaries rise
One of the Brexit effects beginning to bite the UK economy is the lower number of employable staff. A survey showed that the starting salaries for permanent jobs in the UK rose at the fastest pace in three years this May and that the number of positions filled was at their lowest because there was not a sufficient number of candidates available to fill the positions.
The number will be indicative for Bank of England officials as they keep their eye on the labour market and the rising inflation pressures in the UK economy. Last month, BoE Governor Mark Carney put a special focus on stronger wage growth as he discussed the Bank’s new forecasts for the economy.
Lloyds sells stake in Standard Life
Lloyds (LON:LLOY) bank said this morning that it had sold its remaining stake in Standard Life Aberdeen (LON:SLA) for £344 million, sending shares in the Scottish lender spiralling down. The relationship between the two companies soured over a £109 billion asset management contract for a fund management company challenged by Lloyds Bank and its subsidiary Scottish Widows. Lloyds wanted to pull out of the contract on the grounds that Standard Life Aberdeen was in direct competition with Scottish Widows.
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