Following the EU referendum, the word uncertainty has been figuratively trending amongst pretty much any financial / economic related statement published. Well enter Google to calm the nerves and let everyone know things will be ok (apart from continued inherent uncertainty of course). This of course relates to the news that the tech giant has announced they will open a new HQ in London which could create 3,000 new jobs by 2020, committing what is thought to be around £1bn worth of investment. Google’s CEO has been quoted as saying the UK was still an attractive place to do business, so take that pessimists. For those interested, [sidebar] Google’s ‘’I’m feeling lucky’’ button actually costs them $110m every year. There’s your pointless knowledge quota for the day.
Fresh UK employment figures were released today and they showed that the amount unemployed in the UK fell to 1.6m in the three months to September, which is an 11 year low. The jobless rate now stands at 4.8%, with average earnings rising 2.4% excluding bonuses. Again we have been warned of rising unemployment in the aftermath of the referendum but when this may eventually materialise is a little harder to pin down, yet analysts note that the pace of jobs growth is cooling.
The Rolls-Royce CEO has admitted he’s not happy with the pace of change being seen at the British Engine maker and looks to increase the pace of cost savings. Amid a string of profit warnings it is clear there is a long way to go, despite the fact they’ve recovered from lows early this year. Shares closed the day down 2.12%.
The FTSE today closed down 0.63% after what started as a day lacking direction. Following a positive US session on Tuesday and Asian markets carrying this momentum forward on Wednesday morning, Europe bucked the trend which may suggest the Trump rally has come to an end, even though bonds have continued to slip. As we speak US indices are also lower, with the Dow around 0.5% down.