UK's full-time gender pay gap widens; Wall Street hits fresh record high – as it happened
Rolling coverage of the latest economic and financial news
- Latest: Gender pay gap statistics released
- Full-time pay gap has widened to 8.9% in 2019
- Gap among managers and directors jumps by 2%
- TUC: Too little progress
- No gender pay gap for under-40s
- Real pay STILL below 2008 levels
4.42pm GMT
Anxiety over a general election has helped to pull the London stock market into the red.
As the closing auction ends, the FTSE 100 has finished 25 lower at 7306 points.
Related: BP profits tumble after weaker oil prices and hurricane impact
4.27pm GMT
Over in Washington, Boeing CEO Dennis Muilenburg is being grilled by senators over the two 737 Max aeroplane crashes.
Muilenburg began his hearing by apologising for mistakes made by Boeing, saying:
"We have made mistakes, and we got some things wrong"
"We are sorry, deeply and truly sorry," Boeing CEO Dennis Muilenburg said to families of those killed in the 737 Max crashes during in his opening statement to the Senate Commerce Committee. https://t.co/rAcoxRtxfC pic.twitter.com/8LzWkNPELI
Some members of the Senate Commerce Committee clashed with Muilenburg, cutting him off when they believed he was failing to answer their questions about a key flight-control system implicated in both crashes.
Boeing successfully lobbied regulators to keep any explanation of the system, called MCAS, from pilot manuals and training. After the crashes, the company tried to blame the pilots, said Sen. Richard Blumenthal, D-Conn.
Sen. Blumenthal called the #737max "flying coffins" and that it wasn't pilot error, "the pilots didnt have a chance"
Muilenburg denied that Boeing had ever blamed the pilots.
The hearing was taking place exactly one year after a 737 Max flown by Lion Air crashed off the coast of Indonesia, and about seven months after a second crash in Ethiopia. It is the first congressional testimony by a Boeing official since the first of two Max crashes that together killed 346 people.
Indonesia investigators say Boeing's design of a key flight-control system contributed to the crash of a Lion Air Max last October. Another Max crashed in Ethiopia in March, leading to a worldwide grounding of the plane.
4.09pm GMT
Thanks to the minimum wage, the proportion of low-paid workers in the UK has dropped to record levels:
Related: Proportion of low-paid workers in Britain at lowest level on record
4.05pm GMT
Uh oh.... Reuters is reporting that the US and China may not succeed in signing a preliminary trade deal next month.
That could worry investors; over the weekend there were encouraging noises from Beijing and Washington, fuelling talk that Xi Jinping and Donald Trump could sign this Phase One deal when they meet in November.
* EXCLUSIVE - US-CHINA 'PHASE ONE' TRADE AGREEMENT MAY NOT BE SIGNED AT CHILE APEC MEETING IN NOVEMBER, BUT PROGRESS IS BEING MADE -U.S. ADMINISTRATION OFFICIAL
(via @reuters)
BREAKING: Stocks turn lower on Reuters report that U.S./China 'phase one' trade deal may not be signed at Chile APEC meeting in November https://t.co/myh07z9BTX pic.twitter.com/lNjid4Xalk
3.52pm GMT
In a blow to numismatics fans, the UK government is now melting down the commemorative coins is struck to mark Brexit.
With the Article 50 deadline now extended until 31 January, there's not much call for coins marking Brexit on 31 October, alas.
Related: Brexit meltdown: 50p coins with 31 October date to be recycled
Cracking Brexit commemoration coin, Gromit https://t.co/eidsBrvJW3
3.45pm GMT
Here's our news story on today's gender pay gap statistics:
Related: UK gender pay gap for full-time workers increases
3.24pm GMT
Stocks are rising on Wall Street as investors anticipate another cut in US interest rates tomorrow.
The Federal Reserve began its two-day policy meeting today, and is expected to lower borrowing costs for the third time in 2019 on Wednesday.
"Over in Europe and Japan they have NEGATIVE RATES. They get paid to borrow money. Don't we have to follow our competitors?" @Varneyco Yes we do. The Fed doesn't have a clue! We have unlimited potential, only held back by the Federal Reserve. But we are winning anyway!
2.57pm GMT
Boom! Over in New York, the S&P 500 index has hit a new all-time high.
2.44pm GMT
We reported this yesterday, but it bears repeating...Women are paid just 380,000 on average over their lifetimes compared with 643,000 for men, "thanks" to the gender pay gap.
Related: Women paid 260,000 less than men over their careers - report
2.28pm GMT
As this chart shows, US consumer confidence has cooled in recent months, after a long run upwards.
Etats-Unis
Confiance des consommateurs (Conference Board) --> pic.twitter.com/pUbqSCQc3v
2.12pm GMT
Economic news from America: US consumer confidence has fallen this month, in a sign that the economy may be weakening.
The Conference Board's consumer confidence index has dipped to 125.9 for October, down from 126.3 in September.
#US consumer confidence remains high, both when looking at "present situation" and "expectations"
No negative animal spirit effects present yet! Private consumption remains main growth driver in the US
We still expect the #Fed to ease (risk management!) pic.twitter.com/doq1484EOJ
1.41pm GMT
This chart, from the ONS's gender pay gap report, highlights how older women are hit hardest:
Older women workers face a stubbornly high gender pay gap while for those under 40 it has narrowed to almost zero, latest official figures show.
The Office for National Statistics (ONS) said the gap among all full-time employees stood at 8.9% in 2019, slightly up on 2018 when it was 8.6%.
Gender pay gap remains stubbornly high for over-50s https://t.co/T5PHNWWDit
12.46pm GMT
Jane Gratton, Head of People Policy at the British Chambers of Commerce, says there are several ways to tackle the gender pay gap -- including flexible working and more affordable childcare.
"Employers must identify and remove all barriers to training and career development opportunities to support women into senior level positions and enable parents and carers to thrive in skilled roles.
"As part of our People Campaign, we are working with businesses to promote flexible working, but we need stronger government initiatives to break down the wider barriers. Ensuring access to quality, affordable childcare, better careers advice for young people, and funding for high quality apprenticeships and technical education would go a long way to helping women across all sectors.
Our Head of People Policy @BCC_Jane on today's @ONS gender pay gap data:
"Employers must identify & remove all barriers to development opportunities for women.
"Our People Campaign works with businesses to promote flexible working, but we need stronger government initiatives." pic.twitter.com/kfcEoyk4OX
12.28pm GMT
Sophie Walker, CEO of the Young Women's Trust, disputes the claim that the gender pay gap for under-40s is almost non-existent.
She says many women are forced out of full-time employment, meaning they end up earning far less than male counterparts.
Today's figures suggest the #GenderPayGap is close to zero for under 40s. At @YWTrust we beg to differ. We hear every day from young women forced into part-time work when they take on caring responsibilities or those who have to drop out of the workplace altogether. >
Meanwhile our own research has found a third of employers say they haven't taken action to improve their gender pay gap, while one in in ten admit they illegally pay women less than men for the same job. >
"As we approach the 50th anniversary of the Equal Pay Act next year, it is shameful that women are experiencing a growing pay gap - clear evidence employers and government are not doing enough, despite a lot of talk.>
Without urgent action today's young women face a lifetime of unfair and unequal pay. Government must value young women and see their skills and potential. >
This means making flexible working a day one right, strengthening the law on sexual harassment in the workplace and valuing and investing in care - so often the unpaid and unseen work that society continues to rely on women to do. END #EqualPay
12.18pm GMT
Jon Boys, labour market economist at the CIPD, points out that finance and insurance has a glaring gender pay gap.
"On average, women now earn 91 pence for ever one pound a man earns. However, women working in the finance and insurance sectors earn just 72 pence for every one pound earned by men. In contrast, women working in employment activities, such as recruitment, earned slightly more than their male counterparts.
While we must allow for sectoral differences, the rate of change is slow and it's likely to take years, even decades, before we see real, lasting change across all parts of our economy.
12.11pm GMT
Shares in Britain's utility firms have fallen since Labour announced its backing for a December general election (which MPs will vote on tonight).
United Utilities (-2.2%), Centrica (-2%). Seven Trent (-1.7%) and National Grid (-1.4%) are all among the top fallers on the FTSE 100 today.
A hardish Brexit would probably hinder equities of homebuilders and financials, while Labour's nationalisation plans would hurt equities of utilities.
Both would prevent a huge surge in the pound.
An election could be the much-needed unblocker for the clogged political drain that is Brexit. However, the result needs to be decisive in favour of the pro-leave Conservative Party or the anti-no-deal rainbow of opposition parties.
A narrow Tory victory, requiring support from elsewhere to form a workable government, could simply leave us in the same clogged political situation. However, it is also unclear how a coalition of Labour, Liberal Democrats and the Scottish National Party would coalesce around a target Brexit outcome, let alone wider policy objectives.
12.01pm GMT
The rise in the full-time gender pay gap last year could be a one-off.
ONS statistician Roger Smith points out that there was an upward blip six years ago, which later reversed:
"We also saw an increase in 2013 followed by a return to downward trend in subsequent years. However, the downward trend is a slow one regardless."
11.30am GMT
Back in the markets, the pound has shaken off its early losses after the Labour party decided to back an early general election.
Sterling had been down half a cent this morning, but has now bounced back to $1.286 - unchanged on the day.
The market seems to be making assumptions about the outcome of the UK general election. #Brexit when it comes to UK elections , stranger things have happened. #Forex #GBPUSD pic.twitter.com/i67MICPtBm
Ignore Twitter hype over individual polls, what matters:
1af Big Con lead since Johnson became PM and recently
2af Labour are polling badly
3af LD doing well
4af Brexit Party OK but
5af This is all incredibly volatile and could change quickly https://t.co/GU5T88eWte pic.twitter.com/xMl9wXngmL
Four-party politics, which already exists in Scotland, makes it really, really hard to translate these numbers into seats. This is extremely unpredictable. Welcome to the Wacky Races. pic.twitter.com/m2QjI2r3mF
11.13am GMT
There is some good news this morning: pay rose four times as fast for Britain's lowest earners compared to its high earners.
The ONS's Annual Survey of Hours and Earnings (ASHE) shows that the pay of Britain's 10% lowest paid workers grew by 4.3% in the last year, while the 90th percentile only grew by 1%.
"Pay growth for the typical worker in Britain returned close to pre-crisis norms over the past year, but this follows a disastrous decade meaning pay remains below pre-crisis levels.
"But there have been notable exceptions. Britain's lowest earners enjoyed the strongest pay rises last year as a result of another big increase in the National Living Wage. As a result, their earnings grew at least four times as fast as for Britain's top earners.
11.08am GMT
There's almost no gender pay gap between younger workers (under 40), according to today's survey.
But for older workers, the gap is still significant.
10.57am GMT
TUC General Secretary Frances O'Grady has warned that the gender pay gap will persist for decades, unless there is more action to help women close the gap with male workers.
"Our economy is still stacked against working women. At this rate, it will take decades to close the gender pay gap.
"Government must pick up the pace. It's clear that publishing gender pay gaps isn't enough on its own. Companies must also be legally required to explain how they'll close them.
"The Conservatives have presided over the worst wage squeeze since Napoleonic times.
"Years of austerity and inaction have deepened Britain's cost of living crisis. It's about time politicians deliver for working families and get wages rising."
It's been 11 years since the financial crisis, and pay for the average worker still hasn't recovered. Today's pay figures show that real weekly median pay remains 14 below its 2008 level.
This isn't an accident or an inevitability, but a political choice. Time to change it. pic.twitter.com/Iy4uCprzjj
Real wages are still 14 (2.8%) lower than they were in 2008. This varies by region, with wages in each region except Wales still being lower than they were in 2008.
This contrasts massively to the pay growth we saw across the UK in the 11-year period before the recession. pic.twitter.com/t8MYklZR4Z
10.34am GMT
The gender pay gap is particularly wide among the best-paid workers:
New from @ONS on the gender pay gap. The top 10% highest paid woman earn a fifth less per hour than the 10% highest paid man pic.twitter.com/jE1qtNdtGQ
10.29am GMT
The ONS have created a neat interactive tool that lets examine the gender pay gap across the UK economy.....
10.22am GMT
The largest gender pay gap among all employees is in carpenters and joiners (44%) and energy plant operatives (41%), the Office for National Statistics reports.
The lowest is in archivists and curators (negative 36%), and personal assistants and other secretaries (negative 25%).
10.21am GMT
The pay gap between men and women working as managers, directors, or other senior roles actually widened by 2% in the last year.
That sector of the jobs market has the second-highest gender pay gap, at almost 16%.
10.13am GMT
Just in: the pay gap between men and women working full-time in the UK has widened, despite efforts to tackle the problem.
New figures from the Office for National Statistics show that the UK's full-time gender pay gap has widened to 8.9% this year, from 8.6% in 2018, in men's favour.
#Breaking The gender pay gap for full-time workers in the UK has increased from 8.6% to 8.9%, the Office for National Statistics said
9.55am GMT
The Bank of England's new data also confirms that the UK mortgage market remained subdued.
It says:
Mortgage market indicators point to continued stability in the market. Net mortgage borrowing by households was little changed at 3.8 billion in September.
The stability in the monthly flows has left the annual growth rate unchanged at 3.2%. Growth rates have now remained close to this figure for the past three years.
9.41am GMT
Breaking: UK consumer credit growth has hit its lowest level in five years.
New data from the Bank of England shows that growth in consumer credit slowed to 6.0% in the year to September - the lowest since 2014.
This growth rate has now been falling steadily for nearly three years.
9.29am GMT
Shares in UK housebuilders and banks are all down this morning, hit by Brexit worries and the ongoing house price stagnation.
Royal Bank of Scotland has shed 2% and Lloyds Banking Group has lost 1.6% - they're both vulnerable to fears of an economic slowdown.
A further slowdown in house price growth weighed on the likes of Barratt Developments, Berkeley Group and Taylor Wimpey.
The index's banking sector was also in a bad mood, likely because Boris Johnson, with help from the SNP and Lib Dems, is formulating a new way to get to a December election after losing a vote on Monday.
9.12am GMT
Caveat emptor and all that, but there an argument that now is a good time to launch into the property market - given prices are barely rising.
With Brexit uncertainty weighing down demand, buyers might get a bargain. Or they could conclude that staying on the sidelines makes more sense, in case the UK economy is dragged into recession.
"As the Brexit drama lurches into yet another encore, buyers are splitting into two camps - those who see the current slow market as a threat to be waited out, and those who view it as good time to strike.
"On the 'hold off' side of the argument, there is the understandable reluctance to buy a home that may be cheaper tomorrow.
8.53am GMT
Back on UK house prices...
Nationwide's report also confirms that UK property is still very pricey compared to earnings, although there has been some progress recently (as wages have picked up, and property prices have stagnated).
8.46am GMT
Geopolitical uncertainty and extreme weather also hurt BP's profits, points out Richard Hunter, Head of Markets at interactive investor:
An average oil price of $62 for the quarter compared with $75 the previous year, driven by weak demand and the political situations in the likes of Iran and Venezuela.
While this puts an immediate strain on profit, the level is comfortably above the $55 per barrel number which BP uses as a yardstick to break even. In addition, ongoing maintenance and Hurricane Barry affected Upstream operations in particular, where earnings were sharply lower.
8.35am GMT
Over in the City....profits at BP have fallen sharply as global oil prices tumble amid gloomy forecasts for the global economy.
The oil major reported underlying profits of $2.3bn (1.76bn) for the last three months on Tuesday morning, compared to $3.8bn in the same months last year.
The decline comes just weeks after BP announced that chief executive Bob Dudley will step down after almost a decade at the helm.
8.33am GMT
Marc von Grundherr, director of London estate agent Benham and Reeves, predicts that house price growth will pick up, if political gloom lifts:
While the black cat of Brexit uncertainty continues to cross the path of UK home sellers a chill in the rate of house price growth is to be expected.
We've seen yet more spells of uncertainty cast across the property landscape of late and this, coupled with a seasonal slowdown in the lead up to Christmas, will do little to bring a spark back to the market this side of the New Year.
8.20am GMT
Howard Archer of EY Item Club predicts that house price inflation will remain muted:
With the economy largely struggling and the outlook highly uncertain, we suspect that house prices will remain soft in the near term at least. House prices on the Nationwide's measure may struggle to rise more than 0.5% over 2019 - and house prices are unlikely to rise more than 1% on most other measures.
8.12am GMT
Average house price growth has been falling steadily since the Brexit referendum, as this chart from Nationwide shows:
7.57am GMT
Nationwide also flags up that the number of people taking out mortgages has remained below the long-term average since the financial crisis....
7.44am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Britain's housing market remains firmly in a rut, as Brexit uncertainty and the prospect of a general election deters people from buying their first home, or moving house.
"Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensifying of Brexit uncertainty.
To date, the slowdown has centred on business investment, while household spending has been more resilient.
If Brexit uncertainty lifts in the months ahead, hiring is likely to recover, although there may be some upward pressure on mortgage rates as investors once again contemplate the potential for UK rate increases in the years ahead.
Related: UK retail stockpiling reaches record levels on back of Brexit concerns
Markets have started the week with equities higher, bond yields rising and risk-sensitive currencies having a blast. The Argentine Peso and Turkish Lira lead the charge this week.
Related: Alphabet: Google parent company posts 23% decline in profits as expenses rise
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