The UK labor market cooled slightly in the third quarter
The tight UK labor market cooled slightly in the third quarter as the economy contracted.
Unemployment stood at 3.6% in the three months to September, down from a nearly five-decade low of 3.5% recorded between June and August.
Data from the Office for National Statistics said salaried employees rose by 74,000 in October to a record high of 29.8 million, although the number of jobseekers rose slightly in the month.
Job vacancies fell for a fourth consecutive quarter, but remained at historically high levels, while wage growth increased, signaling lingering inflationary pressures.
Daniel Mahoney, UK economist at Handelsbanken, said the latest figures show the UK labor market continues to pose a “puzzle” for policymakers.
“Growth in inactivity rates is a particularly worrying issue given that it has been observed much more strongly in the UK compared to many of its G7 counterparts. This partly explains why the UK’s economic performance United post-pandemic has been lackluster, with its GDP still below pre-crisis levels,” Mahoney said.
“Growth in inactivity has also fueled inflationary pressures as it has contributed to employers all too often struggling to hire staff. As the UK heads into recession, the Bank of England has maintaining a delicate balance between removing any signs of inflationary pressures and ensuring that the recession is not prolonged unnecessarily.”
Stocks in motion: Teleperformance up 5%, Ambu down 11%
Shares of a French call center company Teleperformance climbed more than 5% to lead the Stoxx 600 after Citigroup upgraded the stock to “buy” from “neutral.”
At the bottom of the index, the Danish health equipment company aroma plunged more than 11% after posting a quarterly loss.
Credit Suisse sells most of its securitized products business to Apollo as it accelerates restructuring
Swiss credit announced on Tuesday that it would accelerate the restructuring of its investment bank by selling a significant part of its securitized products group (SPG) to Apollo Global Management.
Credit Suisse said the transaction, along with the potential sale of other assets to third-party investors, is expected to reduce SPG’s assets by approximately $75 billion to $20 billion.
The bank said the move represented “an important step towards a managed exit from the securitized products business, which should significantly reduce investment banking risk and free up capital to invest in Credit Suisse’s core business. “.
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China’s industrial production and retail sales are below expectations in October
Chinese industrial production rose 5% in October from a year ago, slowing from a 6.3% increase seen in September. The latest figure misses estimates of a 5.2% rise predicted in a Reuters poll.
Separately, retail sales in China fell 0.5% in October from a year ago, below expectations.
Analysts polled by Reuters had expected a 1% increase and retail sales rose 2.5% in September.
CNBC Pro: China eases Covid measures. Here’s how market pros play it
What stocks could benefit if China rolls back its zero Covid policy? Market pros reveal how to play a reopening as China relaxes some of its virus controls.
Pro subscribers can learn more here.
— Zavier Ong
CNBC Pro: Morningstar’s top strategist says stocks are 15% undervalued, shares 6 favorites
With many stocks in a bear market, stocks could be undervalued by 15%, according to Morningstar.
The US equity research firm’s chief strategist thinks the headwinds that were present earlier in the year will start to ease early next year and benefit stocks.
Dave Sekera also shared his “fair value” assessment on six companies with a “wide moat” that will outperform in such an economic environment.
CNBC Pro subscribers can learn more here.
European markets: here are the opening calls
European markets are expected to open in mixed territory on Tuesday.
Britain’s FTSE is expected to open down 14 points to 7,374, Germany’s DAX down 6 points to 14,312, France’s CAC up 10 points to 6,617 and Italy’s FTSE MIB down 19 points to 24,464, according to IG data.
Global markets will follow the events of the Group of Twenty summit in Bali, Indonesia, which begins on Tuesday.
The latest IEA report on the oil market is due out, as are earnings from Infineon and Vodafone.
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