They are most likely the individual inside your existence you want to help for your technology needs. So how will you give something best to the tech-savvy part of your existence? Here are a few recommendations for gifts to please individuals who’re always searching in the hottest tech trends and merchandise.
Cost: $999 or more
Cost: $249.99 for 8GB
Cost: $49.99 extra shells are $9.99 each.
The iPhone X coming in shops Friday isn’t only a new design. It’s a brand new relationship.
When compared with your present phone, the tenth-anniversary iPhone is missing a vital element: the house button. The entire front is simply screen. You need to learn new gestures to function it. Rather of checking a finger to unlock it, you now stop and check out it for any second like you’re going for a selfie. This phone recognizes you.
May be the $1,000 iPhone X for you personally? It’s no slam dunk. The zaniest additional features, such as the face unlock, mostly work as billed. Its slimmed-lower giant screen feels simpler to carry than previous iPhones and it is battery lasts two blissful extra hrs. However this year, Apple’s also selling the cheaper iPhone 8 and seven with as much horsepower along with a design — including a trusty home button — you know.
If you purchase an X (pronounced “ten”) now, consider it as being registering for a blind date together with your most significant gadget. Navigating it may be just like confusing as working out when you should hold hands. Your thumb will keep selecting the incorrect place.
I’m a columnist whose job would be to survive the leading edge, as well as I’d describe my relationship (to date) using the iPhone X as “awkward.”
There is a bigger idea behind Apple’s fight against buttons. Apart from to-be-expected enhancements within the camera and processor, the X moves the iPhone forward by removing parts that will get among your message you need to send Mother. In Plastic Valley, they call these barriers the “chrome”: menus and buttons which are the interface between you and also information.
Apple includes a lengthy good reputation for giving us new tech — and taking it away. I am not just speaking concerning the headphone jack Apple taken off the iPhone 7 (and it is still missing in the iPhone 8 and X). Everyone was skeptical from the iPhone in the early years since it axed their beloved BlackBerry keyboards. That switched out to become a useful compromise.
The X tries to help make the iPhone the world’s smartest screen. Not just will it recognize you by face, however with a phalanx of sensors hidden within the notch towards the top of its screen, it may know if you are smiling. It listens to you whenever you on-site visit (to Siri), and attempts to get you to the data you seek.
That’s the next vision which makes sense, considering that huge numbers of people have previously adopted speaking loudspeakers throughout the house. But after coping with the iPhone X for any bit, I rapidly encountered a number of its present-day limits — and near-future challenges.
Full disclosure: I’m still becoming accustomed to the X. Tech companies usually provide reviewers much like me having a week to reside having a flagship phone before publishing assessments concurrently. Using the X, Apple provided us just 15 hrs, should you range from the time I ought to happen to be asleep. (I’ll still make sure share my findings — in addition to bring your questions — possibly following a nap.) It’s been a powerful first date.
What goes on if your cop can make you unlock your iPhone X together with your face?
The sensible help guide to selecting a smartphone
Apple’s most costly smartphone, the iPhone X, offered in under ten minutes upon being provided for pre-order on Friday morning.
The iPhone X – formally pronounced “10” – costs from £999 with 64GB of storage, topping out at £1,149 with 256GB of storage, that is greater compared to beginning price of three of Apple’s fully fledged computers.
Regardless of the cost tag, demand is high. Their web store experienced server issues within the minutes rigtht after the launch of pre-orders, and also the initial allocation of devices, because of arrive on 3 November, had completely offered out by 8:10am within the United kingdom. Under an hour or so later, the waiting list had extended to pay for the whole first month.
The iPhone X quickly selling out might not be entirely great news for Apple. The organization has apparently been concerned it’ll face severe supply constraints for that iPhone X, having a story in Nikkei Asian Review claiming its annual output was likely to be just 20m units, 1 / 2 of what it really had initially planned. Another report, from Bloomberg, claimed that Apple was made to remove some qc components from its production line to be able to increase output for an acceptable level. Within an unusual move, Apple particularly denied that relate, saying the claim “that Apple has reduced the precision spec for Face ID is totally false”.
The iPhone 8 hasn’t offered within the figures previous new iPhones have, as evidenced with a muted opening day’s sales in September. Photograph: Jack Taylor/Getty Images
The prosperity of the iPhone X is just one 1 / 2 of Apple’s concerns for that immediate future. The organization can also be attempting to balance interest in the iPhones 8, the greater conventional smartphones in the selection for 2017. Initial reports suggest the iPhone 8 and eight Plus experienced sluggish sales within their first couple of days on purchase, in comparison to previous iPhone launches.
This time around this past year the iPhone 7 and seven Plus had taken into account 43% of launch quarter sales, based on data from Consumer Intelligence Research Partners. The iPhone 8 and eight Plus take into account just 16% of iPhone sales this quarter, however. The 2-year-old iPhone 6S and iPhone 6S Plus phones offered more units, based on CIRP’s data, creating 24% of iPhone sales, as the 2016 iPhone 7 and seven Plus phones take into account 58% of sales within the quarter to date.
The figures claim that individuals customers who would like what’s perceived as being the very best iPhone on offer are : awaiting the iPhone X, with individuals who’re pleased to accept what’s considered a substandard model deciding to avoid wasting money by purchasing a 1- or more-year-old phone rather from the iPhone 8.
“It appears when Apple announced the the forthcoming iPhone X, it altered the marketplace dynamic, and most likely depressed interest in the iPhone 8 and eight Plus,” stated Mike Levin, co-founding father of CIRP. “Rather than awaiting and purchasing the iPhone 8, it appears as though buyers within this quarter either bought existing models, or made the decision to hold back for iPhone X, later around.Inches
Interest in the iPhone X is because of its advanced facial recognition, a brand new kind of screen and a new depth-sensing camera. The phone will also have the ability to make use of the facial-recognition technology for payments. Additional features include wireless charging, also is on the iPhone 8 and iPhone 8 Plus, and adding “Portrait Mode” towards the front-facing camera. (Which means better selfies, obviously.)
The anticipation for that iPhone X, that will start at $999, has softened sales from the iPhone 8 and iPhone 8 Plus as customers wait to check the models, a pattern that analysts began noting after individuals phones launched last month. A September-October survey from 451 Research discovered that 69 percent of shoppers were thinking about buying an apple iphone within the next 3 months — the greatest number the firm has recorded since Apple redesigned the iPhone 6 in 2014, to have a bigger screen.
The iPhone X opens for preorder on Friday online at 3:01 a.m. Eastern time and will perform purchase in shops a week later. If you wish to land an apple iphone X prior to the holiday season, then it is best to get in around the first hurry of orders. Quite simply, plan your shopping a little sooner than you’d in other years — a minimum of, if you wish to avoid wrapping up an IOU rather of the iPhone X.
Apple’s Tim Prepare has finally spoken out about rumours of delays around the new iPhone X.
For several weeks, in front of the discharge of the brand new iPhone, rumours have recommended there will not be sufficient of these designed to satisfy demand initially. The iPhone X may not be easily available until 2018, they recommended, since demand is going to be a lot greater compared to supply.
Using the release date coming around the new phone, individuals rumours don’t have the symptoms of vanished. And today Tim Prepare has recommended they might be the situation, which people may need to wait for a while until they really acquire them.
Apple unveils the iPhone X
Requested within an interview with BuzzFeed News about if the rumours of stock shortages are true and the way to prepare customers for lengthy wait occasions, Mr Prepare stated “we’ll see what goes onInch.
“But i will be being employed as hard as you possibly can to create as much as possible,” he ongoing, not denying that you will see problems finding the brand new phone.
Pressed on whether that meant people should presume that they must camp outdoors the shop to call the telephone, Mr Prepare chuckled. (Apple sells the telephone on the internet and through its application, and that is regarded as probably the most reliable way to get your hands on any stock that’s going.)
Elsewhere within the interview, Mr Prepare was keen to press the amount of a step forward the brand new iPhone X is. It launched the telephone plus the iPhone 8 recently, and it is special features include facial recognition and new screen technology.
“The iPhone X really sets a dark tone for the following decade in technology,” he stated. “It provides extensive new technology inside it.Inch
Pre-orders for that new phone open on 27 October. The telephone goes on purchase per week next – should there be any left.
There is a muted reaction to Apple’s iPhone 8 and eight Plus happening purchase. You have become familiar with the view of Apple fans queueing in droves to have their latest choices.
As I always thought installed the “i” into idiot, it may be quite cute: some would queue, tooled track of sleeping-bags and, one presumes, Kendal Mint Cake. It had been as if these were involved with a risky quest and weren’t just attempting to get hold of a telephone an entire day or two sooner than everyone else.
However, this time around, there is barely anybody queueing working in london or, indeed, other sites around the globe. You couldn’t really refer to it as a queue working in london – the meagre scrum had the atmosphere of the disused bus stop.
Some research indicates that individuals who queued were outnumbered and applauded by Apple staff once they opened up the doorways. Is that this all related to the imminent arrival of another new iPhone (iPhone X) in only more than a month or perhaps is the dreaded brand fatigue establishing?
Come November, all should become clear whether the Brits have forfeit their appetite for queueing for Apple.
CUPERTINO, Calif. — Apple unveiled three new inclusions in its smartphone selection Tuesday, together with a $999 premium version — a telephone that shows where Apple plans to accept iPhone into its next decade.
The bar for that new phone was high for Apple. Most of their revenue is generated with the smartphone. Overall, analysts appeared to consider the organization hit the objective, but nonetheless wanted a lot of where the organization would go next.
“Apple organized a really competitive group of products because it celebrated the iPhone’s tenth anniversary,” stated Geoff Blaber, research v . p . at CCS Insights. ‘The key question now’s just how much it’ll prioritize software and services because the engine of future growth,” he stated, adding that that may help reinforce Apple’s effective hardware business.
While Apple required time for you to celebrate the iPhone’s background and its late co-founder Jobs, additionally, it made obvious that it is forging a brand new path ahead. For instance, Apple skipped the iPhone 7s name altogether — signaling a cleaner break in the last generation of phones.
The iPhone 8 and iPhone 8 Plus have glass backs, by having an aluminum trim which comes in black, grey and gold. The brand new products are speedier with better cameras and improved battery efficiency. The phones may also accommodate wireless charging, an element on competing phones. Apple’s mind of promoting Phil Schiller stated Apple yet others can make charging pad that will appear at partner coffee houses and stores, as well as in newer and more effective cars.
Apple is bumping in the base storage from the iPhone 8 to 64 GB in a cost of $699. The bigger iPhone 8 Plus will begin at $799. Both is going to be readily available for order on Sept. 15 and ship on Sept. 22.
Yet while Apple touted the characteristics from the iPhone 8 and iPhone 8 Plus, it had been the iPhone X that stole the show. Apple leader Tim Prepare stated the iPhone X — a reputation spoken because the “iPhone 10”— will “set the road for technology for the following decade.”
The iPhone X will begin at $999 — significantly greater than the bottom cost from the other models. It is going to be readily available for pre-order on March. 27th, and ship on November. 3.
The iPhone X comes with an advanced variety of cameras for facial recognition, which enables the telephone to get unlocked simply by searching in internet marketing. The cameras can become familiar with a user’s face and note gradual changes. And you can use it at nite and day.
But Apple guaranteed that it wouldn’t collect the data on all individuals faces. The data would simply be stored around the smartphone, not delivered to Apple servers.
The facial recognition technologies have other applications, too. Apple introduced “animoji” — animated emoji that imitates your facial movements and enables you to record animated messages through texts.
The brand new high-finish smartphone includes a 5.8 inch display that covers the whole top of the phone. Unlike its cheaper brother or sister, the iPhone 10 is available in space gray and silver and sports a “super” retina display, which Schiller stated was much sharper than every other iPhone since it uses OLED display technology.
Particularly, there is also no home button. Users must swipe and employ gestures to shut an application. Calling up Siri is now able to done with a brand new side button.
The iPhone X boasts updated cameras too, and also the battery existence is 2 hrs more than the iPhone 7.
Such as the new iPhone 8, the iPhone X could be billed wirelessly.
Overall, while analysts stated this doesn’t feel as crucial as the very first iPhone, Apple did enough to demonstrate it’s headed within the right direction. “The iPhone X won’t disrupt the smartphone market how a initial iPhone revolutionized mobile and lots of other industries,” stated Thomas Husson, v . p . and analyst at Forrester. “However, along with iOS 11 innovations, it’ll reinforce consumers’ and brands’ loyalty towards the Apple ecosystem in addition to illustrate the evolving role of smartphones within an more and more connected world.”
Apple announced other upgrades and new inclusions in its products line.
The brand new Watch, known as the Series 3, may have its very own cellular connectivity, stated Apple’s chief operating officer, Shaun Johnson, who’s also responsible for Apple’s Watch division. The Timepiece can receive calls — making use of your iPhone’s number — and may support apps including Maps and WeChat. The brand new Apple Watch may also be suitable for Apple Music, meaning technology-not only as an mp3 player by itself.
The Timepiece may have as much as 18 hrs of battery existence across LTE, Bluetooth and Wireless. Beginning Sept. 22, cellular form of the timepiece goes on purchase for $399. Without cellular connection, it’ll cost you $329. The Series 1 Apple Watch’s cost will drop to $249.
Apple can also be creating a big push to produce its very own shows and shore up its position within the family room. The Apple set-top box, Apple TV, has become likely to support 4K HDR video the organization stated. The organization can also be adding live news and live sports sections towards the Apple TV application.
This area is getting faster processors. The organization demonstrated the way it could connect eight people online and ask them to play a relevant video game together.
Versions of flicks and shows filmed in 4K will definitely cost just like HD videos on Apple’s iTunes store. The brand new Apple TV 4K goes on purchase Sept. 15 and ship Sept. 22. It’ll cost you $179. While 4K adoption continues to be slow to obtain began, analysts say it’s starting to achieve a tipping point.
Apple’s stock fell around 2.five percent throughout the event before closing lower just by .40 % to $160.86.
Concerns that Imagination Technologies’ Apple earnings will disappear earlier than expected sent the takeover target sliding as the new iPhone’s delayed release sunk suppliers across the globe.
While some of Imagination’s intellectual property remains in the new iPhone X, Apple stated that it has designed the graphics processing unit (GPU) in the new product, hinting that the company will begin to phase-out its relationship with the Hertfordshire-based company, which had derived around half of its revenues from the Silicon Valley giant.
Nearly £470m was wiped off Imagination’s valuation overnight in April after Apple revealed that it was ditching the company and making its own GPU from 2018.
Decimated by the share price plummet, the company then put itself up for sale with Beijing-backed private equity fund Canyon Bridge Capital Partners rumoured to be in the running. It appears, however, that the world’s largest listed company has fast-forwarded its plans to take full control of its products’ GPU, weakening Imagination 7.3p, or 5.1pc, to 135.8p.
If confirmed, it would mean less per device Apple royalty payments a year earlier than expected, said Stifel analyst Lee Simpson.
The iPhone X’s delayed November release date took the shine off the tech giant’s latest unveiling with unimpressed investors dumping shares in suppliers reliant on a strong Apple sales boost in the fourth quarter of the year.
Tiny Welsh chipmaker IQE, whose share price has tripled since speculation mounted that the company would be integral to the new iPhone’s 3D-tracking technology, was one of Apple’s victims, retreating 10.3p to 136.8p.
Over in the US, Apple continued to fall, shedding another 1pc after the opening bell in New York as traders attempted to decipher the impact of the tech firm’s delayed release on earnings.
Elsewhere, industrial metal producers torpedoed the FTSE 100 as copper slipped to pull down miners Glencore and Rio Tinto 8.9p to 363.6p and 66p to £36.25, respectively.
BP and Royal Dutch Shell ‘B’ climbing 3.5p to 452.4p and 14p to £21.92, respectively, on the price of oil rallying mitigated the blue-chip index’s 20.99-point fall to 7379.70, however. Brent crude prices advanced 1pc to just under $55 per barrel after the International Energy Agency forecast higher demand in 2017 as OPEC’s production begins to ebb, encouraging traders that the oil market is finally beginning to rebalance.
Finally, newspaper publisher Johnston Press popped 0.13p to 12.8p after private equity firm Custos upped its stake in the I and The Scotsman publisher from 5pc to just over 8pc.
Markets wrap: Squeeze on UK households tightens as wage growth figures disappoint
The squeeze on UK households got a little tighter today after the ONS confirmed that wage growth lags far behind rising inflation, knocking hopes of an early interest rate rise.
While unemployment dropped to a fresh 42-year low at 4.3pc, the tighter labour market couldn’t pull up wages, which stagnated at 2.1pc in the three months to July.
Hawkish hopes of an early rate hike were ignited yesterday when inflation jumped to 2.9pc but sluggish wage growth has added another layer of uncertainty with the Bank of England Monetary Policy Committee due to meet tomorrow.
Although no change in policy is expected in tomorrow’s meeting, inflation soaring well ahead of the bank’s 2pc target has cranked up the pressure on Mark Carney and the MPC with chief economist Andy Haldane deemed the most likely to jump ship to the hawks.
The pound coming off a one-year high against the dollar following the job figures couldn’t help the FTSE 100, which has been sunk by miners retreating on the price of copper slipping.
IG market analyst Joshua Mahony explained the miners’ drag on the FTSE 100 today:
“Miners provided a drag upon the FTSE 100 throughout today’s session, as the deterioration in both precious and industrial metals dragged the likes of Antofagasta, Anglo American, Fresnillo and Glencore to the bottom of the leaderboard.
“Copper was today’s big loser amongst a sea of red for metals, while a selloff in gold in the face of equity market weakness saw the precious metal finally trade like a physical commodity rather than just a safe haven asset.”
Hospital drugs firm Clinigen snaps up troubled rival Quantum for £150m
One of the largest companies on London’s junior market Aim, hospital drugs supplier Clinigen, has agreed a deal to snap up troubled rival Quantum Pharma for £150m.
The news sent shares in Quantum Pharma up 18pc. However, its suitor, which has a market cap of over £1.1bn, suffered a 3pc fall as investors mulled over the tie-up.
The offer is for 37p in cash and 0.0405 new Clinigen shares per Quantum share.
Shaun Clinton, chief executive of Clinigen, told the Telegraph the move would boost its ability to supply novel drugs to clinicians and enable it to expand further into continental Europe.
He said further acquisitions could be on the cards, saying: “We would consider further bolt-on deals to add speciality pharma products or to extend our geographical footprint.”
Read Iain Withers’ full report here
US markets lose steam after jumping to record closes
After jumping to record all-time closes yesterday, the Dow Jones and S&P 500 have lost their steam slightly over in the US this afternoon.
Both indices are in flat territory with the tug of war between Apple’s 1.2pc retreat and energy stocks buoyed by stronger prices resulting in a flat finish.
Buyers are running out of steam, according to CMC Markets analyst David Madden.
“Stock markets in Europe are experiencing low volatility as the rally that we saw at the start of the week has lost momentum.
“The bullish sentiment on the back of Hurricane Irma not being as severe as predicted, and no new tensions in relation to North Korea, has been replaced with a lacklustre attitude. You could say traders are pausing for breath, after the positive run.”
Blackpool Airport returns to public ownership after 13 years as Balfour Beatty sells stake
Balfour Beatty has agreed to sell its majority stake in Blackpool Airport to the council, as the local authority looks to protect the future of the site.
Construction company Balfour agreed the deal to sell 95pc of the airport for £4.25m, saying that it “further simplifies the portfolio, in line with the group’s strategy”.
Blackpool Council had originally owned the airport until 2004, when it sold the stake to a consortium led by City Hopper Airports and Mar Properties for £13m. The council retained the remaining 5pc, while the rest was sold to Balfour Beatty in 2008.
However, falling passenger numbers and a legal dispute with operator Jet2 over the opening hours of the airport led to the site falling into administration in 2014.
Read Rhiannon Bury’s full report here
Jobs growth accelerates but pay disappoints in interest rate dilemma for Carney
Unemployment tumbled to a new 42-year low in July, with more Britons than ever before in work.
Private and public hiring picked up in the three months to July with employment rising by 181,364, the fastest pace of jobs growth since 2015. More than 31.2m people are now in work, while joblessness dropped to 1.46m, or 4.3pc – a low not seen since mid-1975.
Employers appear keen to keep on hiring as the Office for National Statistics found 774,000 vacancies in August, a modest rise on the month.
The number of public sector workers also rose for the first time in a year to 5.44m.
Read Tim Wallace’s full report here
Galliford Try avoids large infrastructure projects as charge on legacy contracts hits profits
The developer and construction company Galliford Try has said it will no longer bid for large fixed-price infrastructure contracts after its profits were hit by a charge on legacy contracts.
Pre-tax profits fell nearly 60pc to £59m due to the £98m charge it announced in May, relating to problem legacy contracts for the the Queensferry Crossing and part of a road in Aberdeen. But the company posted a 7pc rise in revenues to £2.7bn in the 12 months to June 30, and a 9pc increase in pre-tax profits excluding exceptional items including the charge.
Galliford added that the amount set aside was unchanged and it was making “good progress” on its target to increase profits by 60pc by 2021.
Its housebuilding arm, Linden Homes, and the regeneration division both reported stronger results, with operating profits up 16pc and 27pc respectively, but the construction side suffered, with margins on its underlying business squeezed to virtually nothing.
Read Isabelle Fraser’s full report here
Pound and dollar await crucial Thursday
Sterling has dipped into the red against the dollar in the last half an hour but today’s movements could be small fry compared to a big day for the two currencies tomorrow.
While sterling has the Bank of England’s Super Thursday to contend with, the US’s own inflation and interest rate hike worries will be the focal point for traders stateside.
Persistently sluggish inflation in the US has dampened hike hopes but a pick-up could reignite expectations that the Federal Reserve will raise rates for a third time in the cycle before the end of the year.
Lukman Otunuga, research analyst at FXTM, said this on tomorrow’s US figures:
“Thursday’s CPI report is a big deal, especially when considering how concerns over stubbornly low inflation rates remain one of the key culprits weighing heavily on US rate hike expectations.
“Price action suggests that dollar bears still remain in control, as investors become increasingly sceptical over the Federal Reserve’s ability to raise interest rates again before the end of the year. A soft inflation figure on Thursday that falls below market estimates is likely to dent the prospect of higher US rates, consequently punishing the vulnerable dollar further.”
Brent crude rallies close to $55 per barrel on upgraded demand forecast
Oil demand will pick-up faster than expected this year, the International Energy Agency has forecast today, boosting the price of Brent crude to close to $55 per barrel.
The IEA said that the market is beginning to rebalance as oil demand grows and production among OPEC members begins to fall.
Brent crude jumped 0.8pc to its highest level since late May after the report bumped up its demand growth forecast by 1.6m barrels per day.
Oil stocks have lagged behind crude’s rally in recent months but today the two oil giants on the FTSE 100, BP and Shell, have advanced 0.5pc and 0.6pc, respectively.
UK funds back DNA data miner that can diagnose disease
A biotech offering artificial intelligence that can diagnose diseases by mining hundreds of thousands of patients’ DNA data has completed a $30m (£22.6m) fundraising, backed by names including UK venture capital giant Balderton Capital.
Sophia Genetics said it would use the cash to expand its network of hospital tie-ups, which already stands at 330 hospitals in 53 countries, including nine in the UK. The push will be focused on expansion outside Europe.
It will also help fund a move into cancer diagnostics, with the latest therapies from drugmakers increasingly being tailored to suit a patient’s genetic profile.
Swiss-based Sophia Genetics has already analysed the genomic profiles of over 125,000 patients, providing a database that aids doctors in diagnosing a range of conditions from cystic fibrosis and hereditary heart problems.
Read Iain Withers’ full report here
Halfords names Dixons Carphone software boss as new chief executive
Halfords has appointed the boss of Dixons Carphone’s software business as it new chief executive.
Graham Stapleton has been hired to replace Jill McDonald, who is taking the reigns at Marks & Spencer’s clothing, home and beauty business next month.
Mr Stapleton, who joins the company in January, has previously served as chief executive of Dixons Carphone’s Connect World Services division. Prior to that, he was chief executive of Carphone Warehouse UK & Ireland.
Earlier in his career he held senior positions at Kingfisher and Marks & Spencer.
Read Sam Dean’s full report here
Lunchtime update: Squeeze on households confirmed by stagnant wage growth
The squeeze on UK households got a little tighter today as the ONS confirmed that wage growth lags far behind rising inflation.
Unemployment dropped to its lowest level in 42 years but the tighter labour market failed to translate to earnings with wage growth stagnating at 2.1pc.
The fall has knocked hawkish hopes of an earlier-than-expected interest rate rise at the Bank of England and the pound has pared its early gains on the currency markets. Sterling remains at a one-year high against the dollar, however, trading at $1.3274.
The FTSE 100’s losses have eased but it is still stuck in the red, bucking the trend on markets. Miners weighed heavily on the blue-chip index as copper slipped to a three-week low while Tesco is the sharpest faller on a broker downgrade.
Spreadex analyst Connor Campbell commented on this morning’s action:
“While sterling’s slide took the edge off the FTSE’s losses it couldn’t fully lift it out of the red. Instead the index is still down 30 or so points, weighed down by its mining stocks. As for the Eurozone, the euro’s bounce against the pound meant there was little for the DAX and CAC to enjoy, instead both indices sitting flat as the morning went on.
“Looking to this afternoon and for now the Dow Jones seems to have stalled at 22100. The index is set to start the US session flat at that level, with little on the agenda – bar the latest PPI reading – to help it on its way to a fresh all-time high.”
Slow wage growth a global problem
Today’s wage growth figures are proving a bit of a head scratcher for economists. The normal connection between a tight labour market and wage growth just hasn’t been feeding through into the figures recently.
Real wage growth has fallen in almost all sectors with only a handful, including finance and arts, enjoying a rise.
Looking at the employment figures by region, Northern Ireland lags behind with just 68.2pc of its population in work compared to 79.6pc in the South East.
Investec economist Philip Shaw points out that slow wage growth is not just a UK problem:
“Both basic economic theory and common sense suggest that pay growth is likely to be bid up as labour becomes scarcer and shortages become more commonplace.
“However, soft wage growth is not just a feature of the UK economy, but an international phenomenon, with the authorities in the US, the euro area and Japan attempting to make sense of similar developments, despite tight, or at least tightening labour markets there.”
Ashurst employment partner Crowley Woodford believes that confidence is key to sluggish wage growth:
“There is still a lack of confidence amongst employers with regards to the longer term future whilst workers still feel insecure in their jobs. This dampens the pressure on employers to offer higher pay and employee representative bodies to demand it.”
Apple’s iPhone X unveiling pulls down European suppliers
Unless you’ve been living under the rock or taken a vow against capitalism, you may have noticed that Apple unveiled its new iPhone X yesterday and the markets are of course not immune to the latest release from the world’s largest listed company.
Disappointment that the iPhone X will not hit stores until November dragged down Apple shares 0.4pc last night in the US with the new £999 phone available to buy on November 3, a considerable delay compared to previous releases.
Given that Apple left its fourth quarter guidance in tact, it suggests that the tech giant expects to compensate for the delay with sales of its new iPhone 8, which will be released later this month.
Apple’s share price knock has had a read across to its suppliers with British semiconductor firm IQE falling nearly 6pc while in Europe suppliers AMS and Dialog have both retreated. Imagination Tech shares, which have plummeted since Apple announced that it would soon stop using the company’s chips, have fallen 4.5pc.
Markets update: easyJet jumps on new long-haul booking service
All that wage growth excitement has led me to neglect the big movers in London this morning so let’s take a quick look at the laggards and leaders.
On the FTSE 100, easyJet has been propelled to the top of the leaderboard after making the move into long-haul through a new service that allows passengers to book connecting flights on partner airlines.
At the other end, Tesco has dropped 1.9pc on a broker downgrade from Exane BNP Paribas while mining stocks are struggling as the price of copper falls to a three-week low.
On the mid-cap FTSE 250, homeware store Dunelm has popped over 7pc after it told shareholders of a strong start to its financial year while wholesale retailer Booker has retreated 2.5pc following a broker downgrade.
Dunelm sales drop as it warns of difficult trading climate in the UK
Homewares retailer Dunelm has warned that it expects trading conditions to remain difficult in the UK as it reported a drop in like-for-like sales.
In its full-year results, Dunelm said like-for-like sales in its stores were down 2.4pc in the year to the start of July.
Overall like-for-like sales were down 0.5pc, and pre-tax profits fell to £92.4m from £128.9m in the previous year.
The decrease came despite an 8.5pc jump in total revenues, from £881m to £956m.
The FTSE 250 company said the sales drop in its stores was the result of lower footfall as a result of “unusually warm weather”.
Shares jumped 40p to 650.5p, a 6.6pc increase, following the update.
Read Sam Dean’s full report here
Job figures reaction: link between wages and unemployment weakening
The link between wages and unemployment is weakening, according to Deloitte’s chief economist Ian Stewart.
“Job creation is a huge UK success story. Despite Brexit uncertainties and slower growth, the UK continues to generate ever lower unemployment and ever more jobs. “
“But the recession, and its aftermath, has weakened the link between unemployment and wages. In the past this degree of tightness in the jobs market would be pushing wages higher. Instead earnings growth has flat lined in the last couple of years.”
Here’s the reaction of the Minister for Employment Damian Hinds to today’s job figures:
“The strength of the economy is helping people of all ages find work, from someone starting their first job after leaving education, to those who might be starting a new career later in life.
“Britain’s employment success is largely about a growth in full-time and permanent work, as employers invest in Britain and offer quality job opportunities that put more money into people’s pockets.
“But there is more to do, and we will continue to build on our achievements through our employment programmes and the work of Jobcentre Plus.”
Unfortunately that extra money in people pockets is being pinched by high inflation.
Job figures reaction: high inflation and weak wage growth muddies BoE decision
The Bank of England is stuck between a rock and a hard place ahead of tomorrow’s monetary policy meeting after wage growth failed to keep up with inflation.
While high inflation boosts hopes that the central bank will soon take a hawkish turn, today’s poor wage growth figures in a tight labour market has added another layer of uncertainty.
Ranko Berich, head of market analysis at Monex Europe, believes today’s figures have put the central bank in an uneviable position:
“Looking at the across the board inflation increase reported in August and low unemployment rate, you’d be forgiven for thinking that the BoE’s policy decision will be a no brainer in favour of higher rates at some stage in the next 12 months. But today’s miss on average earnings highlights the fact that this is just not the case: wage growth remains sluggish, and real wages are in deep contraction in the UK.
“The BoE is in an unenviable position heading into tomorrow’s MPC meeting, given that inflation is above target but the latest wage and investment data show that the economy is hardly going through a demand driven boom that needs an immediate monetary response.”
Wage growth failing to keep pace with inflation has muddied the decision at the Bank of England, according to ETX Capital analyst Neil Wilson.
“At the same time inflation is exchange rate rather than demand driven and therefore expected to retreat soon enough. Hopes of a hike by year-end may well be dashed on the rocks of economic uncertainty.
“In the short-term, cable may find it hard to hold onto gains if there is no additional indications from the Bank that it is prepared to hike this year. Today’s wage growth data would appear to temper any hawkish inclination, proving bearish for sterling in the near-term.”
Wage growth reaction: today’s disappointing figures pull down early interest rate hike hopes
Has today’s disappointing wage growth wounded hopes of an early interest rate hike?
The chance of an early rate rise have been dealt a blow this morning, according to Jake Trask, FX Research Director at OFX.
“Before this morning’s data, there had been some speculation that the Bank of England’s Chief Economist would switch tack tomorrow, and address above-target inflation by voting for a rate hike.
“But this morning’s sluggish reading will likely see him sit on his hands a while longer, to avoid adding pressure to consumers already facing rising prices.”
Pantheon Macro UK economist Samuel Tombs agrees that today’s job figures weaken the argument of monetary policy hawks.
“The latest labour market data are, on balance, a setback for the hawks on the MPC arguing for higher interest rates. Admittedly, employment rose by 181K, or 0.6%, in the three months to July, the fastest growth since the end of 2015.
“But the three-month average number of job vacancies in August was 0.9% lower than in the previous three months, pointing to a slowdown in employment growth ahead.”
Gap between wages and inflation widens
Today’s wage growth figures will reignite concerns that the tightening labour market is still failing to feed through to wage growth.
Wage growth was expected to nudge up to 2.2pc but the figures remained steady at 2.1pc.
The figures mean that the gap between wages and inflation, which rose to 2.9pc yesterday, has widened even further to tighten the squeeze on UK households.
London Capital Group analyst Ipek Ozkardeskaya believes the pound’s retreat following today’s data could be short-lived, however.
“The widening price-wage inflation gap is becoming a serious headache for the Bank of England (BoE) policymakers as lower wages require a dovish monetary policy, but only as long as the inflation allows.
“Despite the slow improvement in wages and street protests from several sector workers, the rising inflationary pressures could encourage some Monetary Policy Committee (MPC) members to vote in favour of an interest rate hike in the coming months.”
Job figures key takeaways
- Wage growth remains steady at 2.1pc, lower than expectations. The disappointing figures widen the gap between pay and rising prices.
- Unemployment nudges down to 4.3pc, its lowest rate since 1975.
- 32.14m people were in work in the three months to July, 181,000 more than the period between February to April.
- Pound retreats back to flat territory on the currency markets following sluggish wage growth data.
Wage growth disappoints; unemployment nudges down to 4.3pc
Wage growth disappoints, remaining steady at 2.1pc to widen the gap between rising prices and pay.
Unemployment nudges down to 4.3pc, a 0.1 percentage point drop.
Pound slips back towards flat territory against dollar, trading 0.1pc higher at $1.3280.
Pound eases off morning highs; still firmly in positive territory against most major currencies
The pound’s ascent on the currency markets has eased off a little as we approach the job figures at the bottom of the hour with sterling flirting with flat territory against the euro.
The FTSE 100 is continuing to suffer at the expense of the stronger pound, according to Spreadex analyst Connor Campbell.
“With the UK jobs report on the way the FTSE continued to suffer in the shadow of sterling’s September rise. The FTSE plunged more than 50 points after the bell, swiftly falling to a 7350-grazing near one week low. The miners have all moved lower, while BP and Shell are both down half a percent.
“However, the main reason for the UK index’s decline was the pound’s latest climb. Though only up 0.2%, that takes cable to a fresh, $1.33-plus one year peak; it has also risen 0.1% against the euro, cementing a 6 week high.”
Job figures preview: what the experts say
Let’s have a quick round-up of what the experts are saying ahead of today’s job figures.
CMC Markets analyst Michael Hewson believes strong figures today will lift interest rate hike hopes.
“A solid wages number could shift the calculus on the MPC further towards a rate rise with Chief economist Andrew Haldane likely to join the other two hawks Michael Saunders and Ian McCafferty in pushing for a rate rise, given recent comments he made during the summer, when inflation ticked up to the same level it is now.
“He suggested that “beginning the process of withdrawing some of the incremental stimulus provided last August would be prudent moving into the second part of the year”, though the caveat was that the data supported such a move.”
He added that it would have been a “delicious irony” if inflation had pushed past 3pc and Bank of England governor Mark Carney had been forced to write a letter to chancellor Philip Hammond to explain why the figures had so badly missed the central bank’s 2pc target.
Many blame Mr Carney and co’s emergency monetary policy change after the EU referendum for knocking down the value of the pound and pushing up inflation.
Disappointing wage figures will only complicate matters at the central bank, according to Accendo Markets head of research Mike Van Dulken.
“Following yesterday’s much hotter than expected inflation prints, the Bank of England will be hoping for a reciprocal surprise from wages too.
“A disappointment, however, will add yet another level of complexity to their current interest rate quandary, with policymakers hesitant to increase rates which consumers are subject to an extended pinch on their pockets.”
Job figures preview: what to expect
Yesterday’s jump in inflation reignited hawkish hopes of an interest rate hike before the end of the year, sending the pound soaring on currency markets.
There are concerns at the dovish end of the Bank of England’s Monetary Policy Committee, however, that the UK economy is too fragile to withstand a rate rise. Could today’s figures be enough to persuade wavering MPC members, such as chief economist Andy Haldane, to back a hike?
What to expect
Wage growth is expected to nudge up to 2.2pc in the three months to July, a 0.1 percentage point rise on last month’s figures and lagging far behind inflation.
Meanwhile, unemployment will remain unchanged at 4.4pc, a 42-year low, according to economists.
Agenda: Pound pushes past $1.33 against dollar ahead of wage growth data
Lagging wage growth is the focal point for the markets this morning with the ONS’ figures expected to show the gap between pay and rising prices continuing to widen.
Average earnings growth will nudge up to 2.2pc, according to the consensus of economists, cranking up the pressure on households and marking another knock-back for real wages.
The pound this morning has built on yesterday’s post-inflation data gains against the dollar, rising 0.4pc at $1.3326, a one-year high.
The FTSE 100 under pressure from the buoyant pound missed out on the relief rally pulling up equities globally yesterday. This morning it has lurched into the red while European stocks’ rally has stuttered with the CAC 40 in flat territory and the DAX nudging down.
Galliford Try’s full-year results are the highlight on a slightly lighter corporate calendar. The housebuilder, which was hit by a £98m provision to cover legacy contract costs earlier this year, posted profits at the upper end of estimates, pushing its shares 1.3pc higher earlier on.
Interim results: Alliance Pharma, Ten Entertainment Group, Just Group, Soco International, Gaming Realms, Ingenta, Epwin Group, SQS Software Quality Systems AG, Advanced Medical Solutions Group, Columbus Energy Resources, MyCelx Technologies Corporation
Full-year results: Wilmington, Dunelm Group, Town Centre Securities, Galliford Try, Haynes Publishing Group
AGM: Marechale Capital, Versarien, Tricorn Group, Argo Group, Games Workshop Group, Intercede Group, Hardy Oil & Gas
Economics: Unemployment Rate (UK), Claimant Count Change (UK), Average Earnings Index 3m/y (UK), PPI m/m (US), Industrial Production m/m (EU)Employment Change q/q (EU)
2010 iPhone launch event hit a rocky patch when Apple executive Craig Federighi visited demonstrate the iPhone X’s facial recognition technology, Face ID, which replaces the fingerprint scanner like a security mechanism.
iPhone have been revealed with huge fanfare, caused a brief crash in Apple’s market price. The stock soon rallied, however, as analysts described 2010 launch event as putting Apple within an “extraordinarily strong” position.
Held the very first time inside a 1,000-seat auditorium within the company’s recently-built “space ship” campus, Apple Park, the annual product showcase unveiled three new iPhones, our prime-finish iPhone X, iPhone 8 and iPhone 8 Plus, plus an upgraded Apple Watch and 4K Apple TV.
Prior to the product bulletins, there is a extended portion of the keynote focused on Apple’s retail strategy, where the company’s mind of retail Angela Ahrendts stated the organization no more describes its shops as “stores” but “town squares”. This, she stated, was simply because they host a lot of occasions and workout sessions they have become “gathering places”.
Best of luck attempting to hold a protest or picnic during these corporate “town squares”.
The iPhone X was brought to the crowd by Chief executive officer Tim Prepare while using “one more thing” format that former Chief executive officer Jobs accustomed to surprise and delight people throughout his keynotes. Regrettably for Prepare, hardly any within the announcement was surprising because of major leaks within the preceding days.
“If there hadn’t been all of the leaks there will be a large amount of big surprises and individuals might have leave amazed. The leaks required the advantage from the bulletins, but we’ve still seen a really strong group of items that re-establish Apple’s lead in many groups,” stated Apple analyst Jan Dawson.
The iPhone X includes some striking features, such as the an advantage-to-edge screen, no desltop button (since the screen now spans the whole front from the device), and also the infrared-powered facial recognition system that Apple states is 20 occasions safer than Touch ID (when it’s working). Face ID isn’t just employed for unlocking the telephone, but additionally paying and logging into banking apps.
“The iPhone is locked until your perception also it recognizes you,” stated senior vice-president of worldwide marketing Phil Schiller, adding it recognizes the face even though you improve your hair do or are putting on glasses or perhaps a hat.
New iPhone models displayed in the Apple launch event in Cupertino, California. Photograph: Stephen Lam/Reuters
Plus the iPhone X, Apple launched the iPhone 8 and iPhone 8 Plus, which have a more effective processor, better, bassier loudspeakers as well as an upgraded camera with portrait lighting to match better images of people. All the phones could be billed wirelessly utilizing a Qi standard charging pad.
Additionally towards the iPhones, the Plastic Valley titan unveiled a brand new form of its smartwatch, Apple Watch Series 3, with cellular connectivity, and that means you may take calls without getting to pair it having a phone, enhanced fitness monitoring and training tools, and streaming service Apple Music.
Additionally, it upgraded its TV streaming box, Apple TV, with 4K resolution – a business standard Apple continues to be slow to consider.
Analysts noted that Apple continues to be heavily dependent on the iPhone for the majority of its revenue, but acknowledge that the organization is diversifying into spaces including health, home automation and content.
“The iPhone will be the headline,” stated Dawson. “Everything else hangs off it.”
Nevertheless, analyst Geoff Blaber from CSS insight stated that Apple is within “an extraordinarily strong position”.
“In hardware terms, it’s really towards the top of the smartphone market. Samsung is really a fierce competitor but Apple is constantly on the lead and differentiate in the way the hardware, software and services get together. That is why Apple is constantly on the define the.Inches