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The Financial Times
Economists say increase unsustainable without productivity improvements
Real wages are growing at their fastest rate in nearly eight years but economists warned that the recovery in incomes cannot be sustained without an improvement in productivity.
Average weekly pay for employees rose 2.7 per cent in the three months to April, according to official data published yesterday. With consumer price inflation at minus 0.1 per cent, which excludes the cost of home ownership, that means real earnings growth of 2.8 per cent – a rate last exceeded in September 2007.
The CBI has nominated Paul Drechsler, the chairman of a family-owned shipping to financial services business, as president as it gears up for a potentially turbulent period ahead of a referendum on UK membership of the EU.
Companies and Markets
Risk seen of precedent as California ruling finds plaintiff was ‘employee’
Uber has lost a legal case in its home state of California that found its drivers should be classed as employees, not independent contractors, a decision that could disrupt its entire business model if other agencies follow.
South Korean construction equipment makers struggle to expand into new markets
Boris Johnson’s silver-tongued charm has deserted him in a confrontation with a London taxi driver, whom he told to “f*** off and die”.
Growth in Britain will be depressed “for some time” by the government’s austerity programme, the Bank of England has warned.
The disclosure was made in the minutes of the Bank’s rate-setting meeting this month, when all nine monetary policy committee members again voted to leave policy unchanged.
A key part of Ford’s commercial vehicle production is overseen by a woman.
The Daily Telegraph
A surge in earnings growth might be even stronger than official data have shown, with British workers enjoying the largest pay rises since the middle of 2008.
BP is understood to be squeezing its contractors and suppliers in the North Sea as it strives to drive down costs amid weaker oil prices.
The Daily Express
A woman motorist was caught eating a bowl of cereal- at the wheel of her luxury off-roader.
The Daily Mail
Sterling powered higher yesterday after bumper employment and earnings figures boosted the chances of an early rise in interest rates.