The US economy created 223,000 new jobs in May, despite Donald Trump’s concerns for steel and car manufacturing workers. According to the country’s latest employment report, the unemployment rate fell 3.8 percent compared to the month previously and is at an 18 year low. “The job numbers are very strong, widespread, or broad-based, that was an indication of strength from the report,” said Michael Arone of State Street Global Advisors. “The really good news for markets is the average hourly earnings continues to be very steady and does not signal a buildup in inflationary pressures, so overall a very solid report.” Wall Street analysts predicted the creation of 188,000 jobs in non-farm payroll. Job gains were seen across all job sectors in the US. 25,000 were created in construction and 18,000 jobs were gained in manufacturing. As well as the lower unemployment rate, the average hourly pay of private-sector workers increased by 2.7 percent in May, compared with 2.6 percent the month previously. On Friday, the US government imposed tariffs on steel and aluminium imports from the European Union, Mexico and Canada due to “national security” threats they placed on the US industry. Paul Ashworth of Capital Economics said: “Trade wars could be damaging but, in a relatively closed economy where exports account for only 12 per cent of GDP, things would have to get a lot worse for the White House’s protectionist sideshow to alter the interest rate outlook.” Trump hinted at the positive news before the data was released, tweeting: “Looking forward to seeing the employment numbers at 8:30 this morning.” It is the lowest unemployment rate seen in the US since 2000. Michael Gapen, the chief United States economist at Barclays, has predicted rates to fall to as low as thee percent by the end of 2019 – the lowest rate since the economic boom post World War Two.

In attempts to restructure, Carluccio’s has announced plans to close up to 30 restaurants and risk 500 jobs. On Thursday, 91 percent of the restaurant chain’s creditors voted for a company voluntary agreement (CVA), allowing the group to continue trading while dealing with debts. “We are pleased that our proposal for a CVA has been approved by our creditors. This vote was vital to protect our strong core business and the Carluccio’s brand,” said Mark Jones, the chief executive. Will Wright, a restructuring partner at KPMG and joint supervisor of the proposed CVA, said: “This is an important step forward for the business, allowing Carluccio’s to complete its financial restructuring plan and embark on a comprehensive transformation programme.” Carluccio’s is the most recent high street retailer to be hit by the casual dining crunch. Byron, and Italian-style chains Jamie’s Italian, Prezzo and Strada have all had to close restaurants this year. “With the support of our new owners, Three Hills Capital, I’m confident that a new Byron can begin to take shape. Byron’s brand and offer remains strong and distinctive, and with a smaller and more efficient restaurant estate we can continue to provide an outstanding burger experience for our customers and to develop and grow a sustainable and innovative business for the long term,” said Simon Cope, the chief executive of Byron. As well as dining chains, retailers including New Look, Carpetright (LON: CPR) and Mothercare (LON: MTC) have turned to CVAs in 2018.    

The Bank of England (BoE) have announced its new appointment to the Monetary Policy Committee. Prof Jonathan Haskel has been announced as the new member of the committee, as of September of this year. Prof Haskel is professor of economics and Imperial College Business School, one of the UK’s leading universities. However, the appointment has been met with criticism, amid concerns that the Bank is not doing enough to address the under-representation of women. The Treasury said four women and one man were shortlisted for the post. Currently, only one woman, Silvana Tenreyo, sits on the monetary committee. Earlier this month the bank came under fire after the Deputy Governor used the term “menopausal” to describe the British economy. Ben Broadbent said the comments in a Daily Telegraph interview about economies that were, as he described, “past their peak, and no longer so potent”. Ben Broadbent since apologised for the offensive remark, however, the bank is still under scrutiny for its lack of proactivity with with respect to addressing gender imbalances.

FirstGroup (LON:FGP) announced the departure of Chief Executive Tim O’Toole, after the transportation operator reported substantial losses for the year. The company reported a £326.9 million pre-tax loss for the year ending March 31, a steep decline from the £152.6 million pre-tax profit reported last year. Adjusted pre-tax profit totalled at £197 million, down on already pessimistic analyst forecasts of £199 million. This marked a 4.8 percent plunge from year before, disappointing investors and causing shares to slide on Thursday morning. “The time is right for me to step aside,” O’Toole said. “Today’s results clear the way for the new approach sought by our chairman and the board.” Mr O’Toole has been at the helm of the struggling bus and train operator for eight years. He is set to be replaced by current chairman, Wolfhart Hauser. Matthew Gregory, will assume the role of interim chief operating officer as well as chief financial officer. Mr Hauser said: “This year’s results fell short of our ambitions – we are disappointed that we did not make the further progress we intended based on the trends we saw at the end of the previous financial year.” The company, which owns Great Western Railway (GWR), is exploring its options and potentially considering a sale of its US bus group GreyHound. Most recently, the company’s reporting revealed that profits at Greyhound fell 39 percent to £25.5 million, amid increased competition from ultra low-cost airline operators in the US. Ultimately, Greyhound has struggled to “overcome the structural shift taking place in its long-haul markets, as ultra low-cost airlines significantly increase capacity and extend into new markets”, commented Mr Gregory. Alongside Great Western Railways and GreyHound, FirstGroup operate London Tram Link, Aircoach, alongside various First services across the UK. Shares in FirstGroup are currently trading -12.73 percent as of 11.34AM (GMT).

The Financial Conduct Authority (FCA) have announced plans to crackdown on the issuing of high interest loans. The independent financial watchdog launched an 18 month review into high-cost credit. It has now put forward a set of recommendations with regards to rent-to-own schemes, doorstep lending and catalogue shopping, alongside a review into bank overdraft fees. Initially, campaigners sought a cap on the £2.3 billion overdraft fees, however the FCA decided against the move amid concerns of opposition by the banks. Specifically, the FCA recommended that banks send mobile text alerts warning of potential overdraft charges, alongside suggesting greater clarity with respect to these loans. The suggestions included stopping including overdraft as “available funds”, as well as emphasising the customers that overdrafts are in fact classified as credit or borrowing. It said that it expects the crackdown initiative to save customers around £200 million in total per year. Moreover, the FCA noted it would consider imposing price caps on rent-to-own, where shops such as BrightHouse sell cookers and household appliances on weekly payments. Its findings revealed that customers ended up spending more than £1,500 for cookers that retail in other high street stores for less than £300. “The FCA believes the harm identified in this market is sufficient in principle to consider a cap on rent-to-own prices. It will now carry out the detailed assessment of the impact that a cap could have on the rent-on-own sector and how it might be structured,” the regulator said. It is expected that the cap is set to come into force next April. The FCA is a financial regulatory organisation in the UK, which succeeded its previous incarnation the FSA in 2013.