Crypto News: The London Rush: The pay growth risk

Morning, I'm Louise Moon from Bloomberg UK's breaking news team, bringing you up to speed on today's top business stories.

As Keir Starmer pitches Britain to executives from the likes of Alphabet and Blackrock in London today, hoping to boost growth, new data indicates the jobs market doesn't seem to want to play ball.

Wages for Britain's lowest paid workers have risen almost 8% in the past year, faster than middle and higher earners. Importantly, good news for families struggling with higher bills.

For hopes for Bank of England rate cuts, however, it poses a risk. Rapidly rising wages could drive inflation, in turn potentially delaying easing. Markets are no longer fully pricing in a cut in November, and further delays will only make Labour's promises of growth more tricky.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Recruiter Pagegroup echoed "challenging market conditions" also noted by peer Hays last week. Confidence is down and permanent hiring is being particularly hit.

The main shareholder in Mulberry has "no interest" in a sweetened bid by Frasers, for £111 million. The handbag maker put out a brief statement this morning saying it is working with advisers. Shares rose 13%.

Starmer will vow to scrap bureaucracy and regulations at the summit today, where more than £50 billion private-sector investments will reportedly be announced.

With growing speculation of plans to raise business payroll tax, Bloomberg Opinion's Marcus Ashworth is wishing for a budget with limited excitement, which he argues would be a relief for bond markets.

China's promises leave economists wanting more to defeat deflation.
World's biggest chipmaker plans more plants in Europe, with AI focus.
US is sending an advanced missile defence system to Israel to deter Iran.

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

China and gambling: two of the things on my mind for UK markets as we head into a busier week of investment summits and important data.

First, China's stimulus announcements over the weekend appeared to disappoint some high expectations. But rather than wipe out China as a driver of sentiment for areas like UK-listed miners and luxury goods, it seems it instead pushes the can down the road and will leave markets once again awaiting details on what kind of stimulus comes next.

The China story is alive, well and rumbling on to the next set of announcements to come.

And second, a Guardian report late last week suggested a new tax raid is coming on the gambling industry. The extent of it, according to analysts, would effectively wipe out profitability in the UK for the sector.

It seems unlikely that Rachel Reeves will pursue that at the same time as the government is trying to turn a negative, tax-dominated narrative into the budget this month into a positive, growth-focused on. But it's a new sector where pre-budget jitters are now going to be baked in before October 30.

— Sam Unsted

Check Bloomberg UK's Markets Today blog for updates all day.

Rio Tinto's third quarter update. Bloomberg Intelligence thinks the miner's production outlook and growth trajectory is beating peers.

Of course, its recent acquisition of Arcadium Lithium will be in focus. Net debt is expected to increase as a result, but CEO Jakob Stausholm doesn't expect dividend payouts to be affected.

Paul Riseborough is UK managing partner at consultancy Capco. Previously, he held senior roles at Nationwide and Metro Bank. We met at Capco's Shoreditch offices.

How do you save time? By saying "no" a lot and "yes" infrequently. I also stopped writing stuff down with a pen... I've lost so much time typing up handwritten notes.

What are you reading? The Sidekick by Benjamin Markovits and The Opposite of Loneliness by Marina Keegan.

What podcasts are you listening to? This American Life and The Tennis Podcast.

On big days, I wear… Norwich City FC socks. And my WHOOP band, which tells me my stress levels.

Your favourite lunch place? The River Cafe in Hammersmith.

The best pub? Tattershall Castle near Embankment. A pub on a boat!

My worst trade was… Buying Manchester United shares.

At the start of my career, I wish someone had told me… That personal effectiveness — understanding your strengths and weaknesses — is just as important as subject matter knowledge.

— Leonard Kehnscherper

Dubai-based DP World plans to invest £1 billion in its London Gateway port, east of London, increasing capacity by 50%. It would put the facility on track to dethrone which UK port as the busiest container facility?

Photographer: Chris Ratcliffe/Bloomberg

[Friday's answer: Rafael Nadal has won 22 grand slams in his career, in second place behind Djokovic.]

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