Key events<\/p>\n
Show key events only<\/p>\n
Please turn on JavaScript to use this feature<\/p>\n
Closing post<\/p>\n
Time to wrap up\u2026<\/p>\n
US consumer sentiment has fallen to a fresh record low on concerns about the impact of inflation on their personal finances, due to the Iran war driving up energy prices.<\/p>\n
US employers added 115,000 jobs in April and the unemployment rate remained steady at 4.3%, a surprisingly robust gain to the labor market as the US-Israel war with Iran continued to drive up economic uncertainty.<\/p>\n
Jobs gains were concentrated in healthcare, transportation and warehousing, retail, and social assistance. Altogether, 106,000 new jobs were added to those four industries.<\/p>\n
In the UK, the pound has gained ground after Keir Starmer pledged not to walk away from 10 Downing Street after a poor local election result for Labour.<\/p>\n
The cost of government borrowing fell too, as bond prices rose and yields fell.<\/p>\n
In other news\u2026<\/p>\n
Global food prices have risen for the third month running<\/a>, with the cost of vegetable oils, meat and cereals all rising in April.<\/p>\n UK house price growth has halved, with prices falling slightly in April:<\/p>\n Toyota has reported a \u00a33bn hit from costs from the war in Iran, as prices of parts and materials soared and sales dropped.<\/p>\n Share<\/a><\/p>\n Britain\u2019s FTSE<\/a> 100 share index has posted its third weekly loss in a row.<\/p>\n The blue-chip FTSE 100 index has closed down 0.4% lower at 10,233.07 points tonight.<\/p>\n Share<\/a>Lender claims human rights being infringed (!) by car finance compension scheme Back in the UK, the City regulator has published a fresh update about the wave of legal challenges threatening its \u00a39.1bn car finance compensation scheme<\/a>, including that one lender is claiming the payout plan breaches its rights under the 1998 Human Rights Act.<\/p>\n The Financial Conduct Authority (FCA) also said that a hearing was unlikely to take place before October, scuppering hopes of a swift summer hearing, and said it was discussing \u201cthe possibility of suspending some elements\u201d of the scheme until the court hearing takes place.<\/p>\n The regulator also gave a high level summary of the arguments that lenders and a consumer had put forward as part of their legal challenge.<\/p>\n Without naming names, the regulator said this included questions over its rulemaking powers, its calculations around redress, and its role in protecting the integrity of the UK\u2019s financial system. It added that one challenge had:<\/p>\n double quotation mark\u201cAlleged unlawful interference with lenders\u2019 property rights under the Human Rights Act 1998.\u201d<\/p>\n The FCA would not go into further detail about how the Human Rights Act was being wielded.<\/p>\n As we reported last month, the Financial Conduct Authority (FCA) is getting challenged by Consumer Voice, which claims that the scheme massively short-changes victims, as well as three lenders: Volkswagen Financial Services, Mercedes-Benz Financial Services and Cr\u00e9dit Agricole Auto Finance.<\/p>\n Share<\/a>US consumer confidence hits record low<\/p>\n Newsflash: US consumer confidence has hit a record low, as Americans worry that the Iran conflict and Donald Trump\u2019s trade wars are driving up prices.<\/p>\n The University of Michigan\u2019s index of US consumer sentiment has dropped to 48.2 this month, according to a provisional reading, down from April\u2019s 49.8 \u2013 which was itself the lowest on record.<\/p>\n An index of \u2018current economic conditions\u2019 fell by 9% month-on-month, as people worried that their household finances were under pressure from soaring prices at the pumps.<\/p>\n Surveys of Consumers director Joanne Hsu explains:<\/p>\n double quotation markWhile the expectations index inched up, current conditions fell back about 9%, owing to a surge in concerns about high prices both for personal finances as well as buying conditions for major purchases.<\/p>\n Real income expectations continued a decline that began in March. About one-third of consumers spontaneously mentioned gasoline prices and about 30% mentioned tariffs. Taken together, consumers continue to feel buffeted by cost pressures, led by soaring prices at the pump. Middle East developments are unlikely to meaningfully boost sentiment until supply disruptions have been fully resolved and energy prices fall.<\/p>\n Share<\/a>WPP CEO suffers revolt over \u00a311m pay deal WPP\u2019s new chief executive has received her first rebuke from investors, after more than a quarter voted against a proposed \u00a311m pay deal at the beleaguered company\u2019s annual shareholder meeting.<\/p>\n Cindy Rose, the former Microsoft executive who swapped a seat on WPP\u2019s board for the role of chief executive in September, could earn as much as \u00a311m annually if she hits her maximum short and long-term incentive targets.<\/p>\n Just over a quarter of investors voted against approving the new pay deal at a brief annual general meeting on Friday which lasted just over 30 minutes and saw a single question asked of the beleaguered company\u2019s<\/a> board of directors.<\/p>\n A WPP spokesman says:<\/p>\n double quotation mark\u201cWe are delighted that the vast majority of our shareholders supported the compensation report and compensation policy at the AGM.\u201d<\/p>\n Mark Read, who resigned last year as WPP faced a mounting exodus of clients to rivals better equipped in the race to harness AI, had a maximum potential annual pay out of \u00a38.6m.<\/p>\n Despite the rebellion the compensation package lined up for Rose, who earlier this year unveiled a multi-year restructure called Elevate28 to make the business more competitive, is dwarfed by that of former chief executive and WPP creator Sir Martin Sorrell.<\/p>\n In 2015, Sorrell, who took a stake in WPP in 1985 and went on to build it into the world\u2019s biggest marketing services group, was paid \u00a370.4m in one of the biggest corporate pay deals in corporate history<\/a>.<\/p>\n Between 2012 and 2018, when Sorrell departed<\/a> after an acrimonious bust up over allegations regarding his conduct, he pocketed almost \u00a3224m as WPP\u2019s share price soared to record highs of more than 1,800p.<\/p>\n They subsequently fell back, and are trading at 275p today.<\/p>\n Influential shareholder proxy advisory groups Institutional Shareholder Services (ISS) and Glass Lewis both recommended that investors vote against Rose\u2019s pay deal at the annual meeting. <\/p>\n The report from Glass Lewis, the largest of the proxy advisory firms, said that the proposed remuneration package is \u201cconsidered out of proportion to the company\u2019s market positioning and its financial performance\u201d.<\/p>\n The report added that there was \u201cno sufficient justification to set her total pay package<\/a> at a premium to her predecessor\u201d. <\/p>\n In December, WPP was relegated from the FTSE 100 index of blue chip companies after 30 years.<\/p>\n The market valuation of WPP<\/a>, once the world\u2019s largest advertising group, has plummeted from about \u00a324bn in 2017 to just under \u00a33bn.<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.46 EDT<\/p>\n Wall Street has opened higher, as US investors welcome today\u2019s solid jobs report.<\/p>\n The Dow Jones industrial average has risen by 145 points, or 0.3%, to 49,742 points.<\/p>\n The broader S&P 500 index is up 0.5%, while tech stocks are also rising, pushing the Nasdaq up by 0.75%<\/p>\n Daniela Hathorn, senior market analyst at capital.com, says:<\/p>\n double quotation markMarkets head into the weekend with a relatively positive tone, though this comes against a backdrop where Middle East tensions have a tendency to escalate when markets are closed.<\/p>\n Despite renewed tensions and the ever-present risk of headlines emerging over the weekend, risk assets remain relatively well supported. That suggests investors are still leaning toward a de-escalation or containment scenario, with limited hedging in place for a more severe outcome.<\/p>\n This creates a degree of asymmetry: if negative developments emerge over the weekend, markets may be more vulnerable to a sharper gap lower given the relatively constructive positioning.<\/p>\n Share<\/a><\/p>\n The US economy has shown its resilient side by adding 115,000 jobs in April, reports Jonathan Raymond, investment manager at Quilter Cheviot:<\/p>\n double quotation markThis is comfortably above the expectations of 65,000 the market expected and with March\u2019s figure also revised upwards, this has clearly been a strong month for the US economy in the face of an increasingly uncertain geopolitical situation.<\/p>\n \u201cThe labour market is not without its challenges, however. Wage growth was slightly subdued compared to expectations at 3.6%, while revisions in February were somewhat negative. But ultimately, the US economy continues to trundle on despite more recent volatile jobs numbers, although how long this position lasts in the face of higher inflation remains to be seen.<\/p>\n Share<\/a><\/p>\n We also have a new jobs report from Canada, and it\u2019s not good.<\/p>\n Canada\u2019s economy shed 17,700 jobs in April, pushing the unemployment rate to a six-month \u200chigh of 6.9%.<\/p>\n Share<\/a><\/p>\n Updated at\u00a008.57 EDT<\/p>\n US federal government employment down 11.5% since October 2024<\/p>\n Today\u2019s US jobs report also shows how the federal government has shrunk since Donald Trump won the presidential election in November 2024, and Elon Musk began his DOGE job cuts in 2025.<\/p>\n Since reaching a peak in October 2024, federal government employment is down by 348,000, or 11.5%, the Bureau of Labor Statistics says.<\/p>\n Share<\/a>Where US jobs were created, or lost.<\/p>\n There were job gains in health care, transportation and warehousing, and retail trade in April, while federal government employment continued to decline.<\/p>\n Here\u2019s the details from today\u2019s non-farm payroll report.<\/p>\n In April, health care added 37,000 jobs, with gains in nursing and residential care facilities (+15,000) and home health care services (+11,000).<\/p>\n Transportation and warehousing employment increased by 30,000 in April, reflecting a gain in couriers and messengers (+38,000).<\/p>\n Retail trade added 22,000 jobs in April. Employment increased in warehouse clubs, supercenters, and other general merchandise retailers (+18,000) and in building material and garden equipment and supplies dealers (+13,000). These gains were partially offset by job losses in department stores (-7,000) and in electronics and appliance retailers (-2,000).<\/p>\n Employment in social assistance continued to trend up in April (+17,000), reflecting a gain of 24,000 jobs in individual and family services.<\/p>\n Federal government employment continued to decline in April, with a drop of 9,000 jobs.<\/p>\n Employment in information continued to trend down in April (-13,000), with telecommunications losing 3,000 jobs, and motion picture and sound recording industries jobs down by 6,000.<\/p>\n Employment showed little change over the month in other major industries, including mining, quarrying, and oil and gas extraction; construction; manufacturing; wholesale trade; financial activities; professional and business services; leisure and hospitality; and other services.<\/p>\n Share<\/a><\/p>\n The US unemployment rate remains static at 4.3%, today\u2019s jobs report shows.<\/p>\n Share<\/a>US economy beats forecasts with 115,000 new jobs added in April<\/p>\n Newsflash: the US economy added more jobs than expected in April.<\/p>\n Non-farm payrolls rose by 115,000 last month, the Bureau for Labor Statistics reports, beating forecasts of a 62,000 increase.<\/p>\n That\u2019s still a slowdown compared with March, though \u2013 where the NFP has been revised up to 185,000 jobs, from 178,000 initially.<\/p>\n But February\u2019s data is even worse than previously thought \u2013 payrolls that month are now estimated to have fallen by 156,000, down from a previous estimate of a 133,000 decline.<\/p>\n Those revisions mean employment in February and March combined is 16,000 lower than previously reported.<\/p>\n Share<\/a><\/p>\n Perhaps surprisingly, the US dollar has weakened against a basket of rival currencies, despite the flare-up in the Gulf between the US and Iran overnight.<\/p>\n The dollar index is down 0.12%, while the greenback is still down half a cent against the pound.<\/p>\n Matthew Ryan, head of market strategy at global financial services firm Ebury, says:<\/p>\n double quotation mark\u201cThe renewed hostilities between the US and Iran in the past few hours should be bullish for the dollar, but the greenback has actually lost ground so far this morning.<\/p>\n Investors seem to be taking the view that this latest flare up is more of a bump in the road, rather than an impenetrable wall.<\/p>\n We suspect that this may be another classic example of Trump\u2019s \u201cescalate to de-escalate\u201d strategy, and potentially a tactic to pressure Iran to compromise prior to next week\u2019s meeting between the president and Xi Jinping.<\/p>\n Share<\/a><\/p>\n On the recovery in UK bond prices today, Craig Veysey, fixed income lead at Guinness Global Investors, says:<\/p>\n double quotation mark\u201cThe local election results add to UK political uncertainty, but they do not appear to represent the worst-case scenario of an imminent leadership challenge.\u201d<\/p>\n Share<\/a><\/p>\n The local election results are likely to trigger another bout of uncertainty, consultancy Oxford Economics<\/a> have warned.<\/p>\n Their economist Alexander Harbey explains:<\/p>\n double quotation mark\u201cThe key risk is that any instability triggered by these results \u2014 such as a leadership challenge \u2014 causes markets to lose faith in the government\u2019s fiscal plans, driving bond yields up further and weakening economic growth dynamics\u201d.<\/p>\n \u201cIn the longer term, an increasingly fragmented political landscape, rising support for parties less committed to fiscal discipline, and the expected success of pro-independence parties in Scotland and Wales all add to the UK\u2019s political uncertainty.\u201d<\/p>\n \u201cThis makes it more difficult for markets to price in political change and will weigh on business confidence and investment.\u201d<\/p>\n Share<\/a>German industry worsens as Middle East war takes its toll<\/p>\n The Iran was is also hurting Germany\u2019s industrial base, which has also been buffeted by Donald Trump\u2019s trade wars and the Russia-Ukraine war.<\/p>\n German industrial production fell by 0.7% in March, weaker than expectations of a 0.5% rise.<\/p>\n Analysts at ING say:<\/p>\n double quotation markGerman industrial production weakened further in March as the war in the Middle East started to take its toll. The just-released industrial data for March illustrate the struggle of German industry to gain momentum in the first quarter of the year.<\/p>\n Not only was the February drop revised downwards, with a 0.7% month-on-month decline in March, but industrial production in the full first quarter was more than 1% weaker than in the final quarter of 2025.<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.26 EDT<\/p>\n Kir Starmer\u2019s vow to stay on as PM has reassured markets somewhat, pushing up the pound and pushing down bond yields, reports Reuters, adding:<\/p>\n double quotation mark\u201cI think it\u2019s an initial relief rally,\u201d said Lloyd Harris, head of fixed income at Premier Miton Investors. \u201cBut ultimately I think the fireworks are still to come.\u201d<\/p>\n \u201cI would say it\u2019s a small net positive for Gilts that actually the Greens haven\u2019t done better,\u201d Harris said, adding that it reduced the chances that the left-wing party, which would likely increase spending, could win a general election.<\/p>\n However\u2026 many results are still to be declared.<\/p>\n Share<\/a><\/p>\n Bond vigilantes are \u201clurking\u201d despite the small recovery in UK gilt prices this morning<\/a>, suggests Neil Wilson, investor strategist at Saxo UK:<\/p>\n double quotation markElection results look very bad for Labour, very good for Reform. We\u2019ll see just how much pressure it brings to bear on the prime minister.<\/p>\n Gilt markets are steady at the moment but the bulk of counting hasn\u2019t even begun. The 10yr gilt yield is holding below 4.9% and the 30yr is also off a few ticks below 5.6%. There\u2019s a chance the political scene goes a bit woo-woo and bond markets are very attuned to this. Yields are not doing much this morning but remember we hit 28-year highs on the 30yr earlier this week and the bond vigilantes are lurking<\/a>.<\/p>\n Political risks associated with a Starmer\/Reeves defenestration are bound up with already rising fiscal and inflationary risks for the UK economy.<\/p>\n Sterling was also pretty steady with GBPUSD holding the 1.360 level as it tracks back within the $1.34-36 range of the last month after a couple of stalled attempts to break out in the last two sessions on the improving macro backdrop which has since taken a bit of a turn south.<\/p>\n![\"Kalyeena](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/Kalyeena_Makortoff,_L.png\")
Kalyeena Makortoff<\/p>\n![\"Mark](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/05\/mark_sweney_140x140.jpg\")
Mark Sweney<\/p>\n