Afternoon summary
Time for a recap:
The eurozone has fallen into recession, revised data this morning showed. GDP across the single currency bloc shrank by 0.1% in the final three months of 2022, and again in the first quarter of 2023.
Earlier growth figures were revised down, with falling GDP in Ireland and Germany pulling the region into recession.There’s been a sharp jump in the number of Americans filing new claims for unemployment support. Ther number of new initial claims rose by 28,000 to 261,000. last week, the highest level since October 2021.
#JoblessClaims (#LeadingIndicator) have now clearly started to turn upward. Not a good sign at all. pic.twitter.com/1xl3TQ195o
— Richard Bernstein Advisors (@RBAdvisors) June 8, 2023
UK surveyors have warned that rising interest rates are casting storm clouds over Britain’s housing market, as higher mortgage rates dampen demand and push down prices
Housebuilding giant Crest Nicholson has warned of a further slowdown in the housing market as it posted a more than 60% slump in half-year profit,
The GMB union has announced more strikes this month at Amazon’s Coventry warehouse, and accused the web giant of drafting in more than 1,000 extra workers to skew attempts to win formal union recognition.
Parliament’s Treasury Committee are urging UK banks to pass on higher interest rates to savers, warning that elderly and vulnerable customers are suffering a loyalty penalty.
The former owners of the Daily and Sunday Telegraph have made an attempt to regain control of their media assets after they were put up for a sale in a bitter row with lenders.
Here are today’s main stories:
Royal Mail blow as government blocks plan to scrap Saturday deliveries
Royal Mail’s plan to stop delivering post on Saturdays has been blocked by the government in a blow to the company, which has claimed a six-day service is financially unsustainable.
The postal company had requested that the government change the universal service obligation (USO) – a condition of its privatisation in 2013.
However, the business department said it had no plans to adjust the requirement to deliver on Saturday as well as the five weekdays, in a response to a report by MPs on the business select committee. MPs would have to vote through any changes to the obligation.
Kevin Hollinrake, a minister at the Department for Business and Trade, wrote:
“We currently have no plans to change the minimum requirements of the universal postal service as set out in the Postal Services Act 2011 … including six-day letter deliveries.”
