Retail sales grew rapidly in July, thanks to the heatwave and the World Cup. New figures from the Office for National Statistics (ONS) showed that UK retail sales increased 0.7 percent in July. “Many consumers stayed away from some High Street stores in July, but online sales were very strong, supported by several retailers launching promotions,” said ONS statistician Rhian Murphy. “Food sales remained robust as people continued to enjoy the World Cup and the sunshine.” The strong retail sales are compared to the 0.5 percent decline in June. Total spending online reached a new record and hit 18.2 percent in July. Clothing sales also recorded their strongest year-on-year growth since December, according to the ONS. “Of course, retail sales only account for about a third of total household spending, so the strength of spending on the High Street could be offset by households reducing their outlay elsewhere,” said Andrew Wishart, UK economist at Capital Economics. “Admittedly, still-weak real wage growth will weigh on consumer spending,” he added. “Nonetheless, the retail sales data provides reason to think that consumer spending growth could post a slightly improved performance in the third quarter,” he added. Following the news, the pound was up 0.24 percent against the dollar at $1.2727. “The reaction from the pound… has been muted, suggesting that the wider view of the UK economy is still bleak,” said Hamish Muress, the currency analyst at OFX. “With the chances of a no-deal Brexit scenario high, wage growth shrinking and inflation rising, the Bank of England may find it difficult to follow through on any previous notions of further interest rate hikes in the future.” “As long as this outlook remains, the pound will continue to be under sustained pressure.”  

For the first time, the Competition and Markets Authority (CMA) has published details of banks compare with rivals. The competition watchdog ordered lenders in August 2016 to collate the figures twice a year to measure how customers rate their services. “For the first time, people will now be able to easily compare banks on the quality of the service they provide, and so judge if they’re getting the most for their money or could do better elsewhere,” said Adam Land, senior director at the CMA. “This is one of the many measures – including Open Banking and overdraft text alerts – that we put in place to make banks work harder for their customers and help people shop around to find the best deals for them.” With the results published on Wednesday, it was found that Royal Bank of Scotland Group PLC (LON:RBS), Lloyds Banking Group PLC (LON:LLOY) and HSBC Holdings PLC (LON:HSBA) were among the worst performers of the survey. In first place was First Direct, with 85 percent. First Direct was followed by the Metro Bank (LON: MTRO), where 83 percent of the lender’s customers recommended the bank. Nationwide (LON: NBS) was third with 73 percent recommending the bank. RBS (LON:RBS) was ranked joint last in the table. “We are aware we have more work to do in order to improve our service standards and deliver a better experience for our customers,” said a spokesperson. The Financial Conduct Authority (FCA) has also set out new requirements for information that banks must provide to customers. Information includes details of available services. “Getting a good deal isn’t just about pricing. It’s also important for customers – including individuals and small businesses – to be able to judge the quality of service around their current account and to see whether other providers could offer something that suits them better. This information should encourage providers to offer the services that people value,” said Christopher Woolard, the executive director at the FCA.  

South Korea has announced plans to ban 20,000 BMW (ETR: BMW) cars following public fears surrounding engine fires. Almost 30 engines have caught fire in 2018 and the ban will apply to those vehicles that have not yet been sent to BMW for safety checks. Transport Minister Kim Hyun-mee said on Tuesday: “The ministry will ask mayors to order owners of unchecked BMW vehicles to have their cars’ safety checked or to stop driving them.” “The order will take effect as soon as the owners receive letters from mayors,” he added. Those who own the affected vehicles are able to drive to the safety checks as the ban is intended for quick safety checks rather than punitive action against those owning the cars. Officials from the German car-maker have apologised for the engine fires and are carrying out investigations along with the South Korean government. The group have blamed the fires on to defects in the exhaust gas recirculation system. The car manufacturer has already recalled 300,000 vehicles this year, extending a UK recall following the BBC’s Watchdog programme that reported the vehicles could cut-off whilst being driven. In 2017, BMW recalled 36,000 petrol cars over safety issues.

Pay of the UK’s top executives has risen 11 percent over the course of the last year, according to a recent survey. Overall, Britain’s top chief executives received an 11 per cent increase in remuneration last year, with median salary rising to £3.93 million. The survey reviewed average salaries of FTSE 100 bosses, including base salary and bonuses. Despite the increase, pay of average full-time workers in the UK rose by a mere 2.5 percent across the same period. In particular, Large payouts to bosses from Persimmon and Melrose Industries swayed the mean pay figures. The highest paid boss for the financial year was Persimmon CEO Jeff Fairburn, who received £47.1 million pounds. The gap between executive and employee pay has widened considerably in recent years, as wage levels continue to stagnate despite rising levels of inflation. In fact, Wednesday’s ONS figures revealed that inflation rose to 2.5 percent in July, placing further pressure on everyday workers. The figures comes amid a crackdown by the government on “excessive” executive pay. In an article for the Mail on Sunday, The Prime Minister denounced “excesses” of business bosses, which was “damaging the social fabric of our country”. The study was collated by the Chartered Institute of Personnel and Development (CIPD) and the High Pay Centre thinktank. Peter Cheese, chief executive of the CIPD, said: “Despite increased investor activism and the planned introduction of pay ratio reporting, the evidence suggests that very little is changing when it comes to top pay in the UK. “It’s disappointing to see that CEO pay has held up in the face of increasing pressure when average pay across the workforce has barely shifted in recent years. “Given the ongoing issues of trust in big businesses and a push for greater transparency, it really is time businesses and boards put greater scrutiny on high pay, and that they think much more objectively about what they are rewarding CEOs and how.”  

Premier Veterinary Group shares (LON:PVG) soared after the company said it had completed a major US contract signing. The company said that on an initial basis, the contract is set to introduce PVG’s preventative healthcare programme for pet to 15 of the Customer’s animal hospitals. According to the statement, the customer operates over 140 hospitals across 25 States, signalling significant potential for PVG to reach its target market. Following the pilot period, which is expected to last between three and six months, the contract may be extended to a 3-year term with a full roll out to all of the customer’s animal hospitals. Dominic Tonner, Chief Executive Officer of Premier Veterinary Group, commented on the news: “I am delighted to announce this deal which will help propel the business forward with a large and well respected US corporate consolidator. It is clear vindication and reward for the unswerving focus the team have for the business and the changes we have implemented to satisfy the US market.” Back in June, Premier Veterinary Group said that first-half losses for the year worsened as business in the US continued to disappoint. According to the results, Premier Veterinary Group said losses for the period came to £1.9 million. Meanwhile, revenue increased 33 percent to £1.54 million. Following the news, Premier Veterinary Group shares rose as much as 10 percent.

Admiral Group Plc. saw a better-than-expected rise in first-half pre-tax profit, although the insurer cautioned over risks surrounding a hard Brexit. The motor and home insurer posted results on Wednesday showing a nine percent rise in profits to £211 million, up from £195 million a year earlier. Analysts expected a pre-tax profit of £207.8 million, according to the company-supplied consensus from 11 analysts. Admiral also saw an increase in customer numbers, which increased from 5.46 million in 2017 to 6.23 million in the for the six months to June. The insurer, which competes with firms such as Aviva (LON: AV), RSA (LON: RSA) and Direct Line (LON: DLG), has said it expects risks to the company in the event of a no-deal Brexit. The group has chosen Madrid as it’s EU base following the UK’s exit from the EU. Admiral’s UK motor profits grew to £249.5 million, up from £224.2 million. UK Household also saw a growth in turnover and customer numbers, despite the £1.9 million loss due to the poor weather during the period. The UK household saw a £1.6 million profit a year earlier. Shares in Admiral (LON: ADM) are currently trading up 3.35 percent at 2,065.00 (1129GMT).  

UK inflation rose to 2.5 percent in July, marking the first increase since November. The Office for National Statistics (ONS) said that the Consumer Priced Index rose by 2.4 per cent year on year in June, in line with analyst expectations. After holding steady for the start of 2018, July’s figures reveal that UK inflation rose once again. However, the Retail Prices Index (RPI) measure of inflation fell to 3.2 percent. This figures is used by the Department for Transport uses the measure to set the annual maximum increase for rail fares. Wednesday’s figures show that increases in computer games and transport were slightly mitigated by a fall in the price of clothing. Inflation was particularly impacted by rises in oil prices, which rose more than 50 percent across the period. Commenting the figures, Ed Monk, Associate Director for Personal Investing at Fidelity International, said: “Only four months ago we were celebrating the first increase in real wages for a year, yet sadly the party has been all too brief. With inflation creeping up to 2.5% and yesterday’s data showing a dip in wage growth, UK workers must once again stand by and watch their income diminish in real terms.” Moreover, Mr Monk emphasised that adverse impact on savers of the Bank of England’s move to raise interest rates. He added: “To make matters worse for households, the Bank of England’s decision to raise interest rates this month will already be hitting the pockets of millions through increased mortgage rates, while at the same time, many banks have yet to pass the rate hike onto savers.”

According to newfigures from the Office for National Statistics (ONS), UK unemployment has hit the lowest figure in 40 years. Between April and June this year unemployment in the UK fell by 65,000 to 1.36 million, reaching just four percent. The figures have also shown a record fall in the number of EU nationals working in the EU, which has fallen since the 2016 Brexit vote. Matthew Percival, CBI head of employment, has said that the government needs to guarantee the protection of EU workers in the UK in the event of whatever Brexit scenario may occur. A senior ONS statistician Matt Hughes said in a statement: “The number of people in work has continued to edge ahead, though the employment rate was unchanged on the quarter.” “However, the number of vacancies is a new record high, while the unemployment rate is now at its lowest since the winter of 1974-75,” he added. Wages were also seen to grow in the three months to June by 2.7 percent. “Average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) increased by 0.4 percent excluding bonuses, and by 0.1 percent including bonuses, compared with a year earlier,” the ONS said. Productivity also increased and the output per hour worked was up by 1.5 percent, which is the biggest increase since 2016. Earlier this year, the Bank of England raised interest rates, which according to Suren Thiru, the head of economics at the British Chambers of Commerce, was a premature move. “Achieving sustained increases in wage growth remains a key challenge, with sluggish productivity, underemployment and the myriad of high upfront business costs weighing down on pay settlements,” he said. “As such, there remains precious little sign that wage growth is set to take off – undermining a key assumption behind the Monetary Policy Committee’s recent decision to raise rates.”

Homebase has announced plans to close 42 stores by early 2019 resulting in 1,500 job losses. The amount of store closures is less than feared last week, however, the DIY retailer will ask for rent cuts for 90 percent on a further 18 more stores. “Launching a CVA has been a difficult decision and one that we have not taken lightly,” said Damian McGloughlin, the chief executive of Homebase. “Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.” “The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead,” he added. Hilco, the company that Homebase for £1 earlier this year, confirmed plans to carry out a Company Voluntary Arrangement (CVA). The CVA will require the vote of the landlords, which will take place on August 31. Homebase has already closed 17 stores this year and a total of 303 jobs have been cut at the head office in Milton Keynes. CVAs have been carried out by a number of retailers this year including Carpetright (LON: CPR) and Mothercare (LON: MTC). “These situations are never easy, as property owners need to take into consideration the impact on their investors, including those protecting pensioners’ savings, as they vote on the CVA proposal,” said Stephanie Pollitt from the British Property Federation (BPF). “Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase,” she added.  

Mike Ashley has vowed to keep most of the 59 House of Fraser stores he purchased last week in a £90 million deal. The Sports Direct (LON: SPD) owner said that he plans on keeping 47 of 59 House of Fraser stores open by converting larger stores into Sports Direct. “In a year’s time you can hold my feet to the fire on that,” said Ashley in an interview with the Sun. “Give us a chance and we will try to keep as many open as we can. We are here to get House of Fraser back to where it once was.” Ashley shared plans to bring in “cool brands of the moment” to the House of Fraser stores. “We think the biggest and most important thing House of Fraser is missing is luxury brands. We think it will make a big difference,” he said. House of Fraser fell into administration last week before being bought by Ashley in a £90 million deal soon after. The department store employs 17,000 people in the UK. Following the deal, there is growing speculation that Ashley will carry out a merger between Debenhams (LON: DEB) and House of Fraser. He has a 29.7 percent stake in the Debenhams.