Show only key events Please enable JavaScript to use this feature A JD Sports store in London, UK. Photo: May James/Reuters Retail news: JD Sports has hired ex-Morrisons chairman Andrew Higginson as its new chairman, succeeding Peter Cowgill who was sacked in May. Cowgill resigned suddenly six weeks ago after 18 years at the helm. This came after many mistakes, including

  1. JD Sports fined more than £4m for breaching competition regulator rules with secret takeover meetings.
  2. a shareholder revolt over pay after nearly £6m in bonuses were paid to Cowgill, despite the company receiving more than £100m in government pandemic support; Cowgill had also opposed the board’s plan to split the roles of chairman and CEO, which he has held jointly since 2014, my colleague Sarah Butler reported here. Higginson is recruiting experience for the FTSE 100-listed retailer, as Victoria Scholar, chief investment officer at Interactive Investor, explains: Higginson is the previous chairman of supermarket Morrisons when it was taken over by private equity last year and has worked at Tesco in top positions for many, so he has plenty of experience of working at a high level in FTSE 100 companies. However, the company is still searching for a CEO, so uncertainty remains in the C-suite for Morrisons after the roles of chairman and chief executive were split last year. JD Sports shares initially topped the FTSE 100 but have since made gains. The market is welcoming Higginson’s appointment, but shares are down nearly 50% from November highs.

Ashley Alder was appointed to run the city watch

Mark Sweney The Financial Conduct Authority’s headquarters in London. Photo: Toby Melville/Reuters The Financial Conduct Authority (FCA) has appointed Ashley Alder, head of Hong Kong’s securities watchdog, as its new chairman. Alder, who has led the Securities and Futures Commission (SFC) since 2011, joins as the UK’s financial watchdog remains mired in infighting amid staff strikes over pay and conditions. Alder, who two years ago was in the running to become FCA chief executive, will become chairman in January for a five-year term. He replaces interim chairman Richard Lloyd, who ran consumer watchdog Which? for five years until 2016, who was appointed after Charles Rudel stepped down as chairman of the FCA in May – a year before his five-year term officially ended. The appointment of Alder, who also chairs the Board of the International Organization of Securities Commissions (IOSCO), follows a turbulent year for the FCA. The City watchdog, which is responsible for overseeing thousands of firms, has been criticized for its handling of two major consumer scandals in 2019: the £236m collapse of London Capital & Finance, which sold unregulated mini-bonds to investors, and the failure of Neil Woodford’s equity fund. . The FCA has also found itself battling with staff since the appointment of Nikhil Rathi as chief executive in 2020, replacing Andrew Bailey who became governor of the Bank of England. This led to him leaving this summer, in a row over pay. Updated at 08.31 BST The labor market is not the only part of the slowing economy. Consumers are cutting back on in-store spending as high inflation and the cost of living take a toll on their budgets. The BDO High Street Sales Tracker shows retail sales have grown at their slowest pace since February 2021, with June like-for-like sales up 8.4% on a year ago. An 8.8% drop in home goods sales suggests consumers are putting off big purchases. Lifestyle sales through online channels fell for an eighth consecutive month as consumers cut back on discretionary spending in the sector (which has seen the lockdown boost fade). Sophie Michael, head of retail and wholesale at BDO, says retailers face a worrying prospect: With consumer confidence at historic lows, real wages falling to a 20-year low and interest rates expected to rise further, there is little sign of encouragement for retailers. All four English regions monitored by KPMG and REC saw a slowdown in permanent job placements, with the North of England only seeing a fractional recovery. London saw the biggest increase in temporary jobs in June, while the mildest expansion was recorded in the Midlands. Headline wage inflation fell to the lowest level since August 2021, while temporary wage growth fell to a 12-month low. Photo: Graeme Wearden/KPMG/REC Starting wages continued to rise last month, KPMG and REC’s UK jobs report shows. Shortages of qualified candidates have forced companies to raise their starting pay — good news for workers looking for help keeping the cost of living down. However, wage pressures eased slightly, with headline wage inflation falling to a ten-month low. That could ease the Bank of England’s concerns about a wage-price spiral breaking out. The report states: The continued imbalance between the supply and demand for workers led to further sharp increases in starting pay rates in June. Although sharp and well above the series average, the pace of headline wage inflation fell to the lowest level since August 2021, while temporary wage growth fell to a 12-month low. Updated at 07.57 BST

Introduction: The UK job market is losing steam

Good morning and welcome to our rolling coverage of business, the global economy, financial markets and the cost of living crisis. The UK jobs market is losing momentum, in a sign of the challenge the next government will face to shore up the struggling economy. British employers slowed their hiring through recruitment agencies again in June, with vacancies growing at the weakest rate in more than a year. The slowdown is due to growing economic uncertainty, rising costs and a shortage of candidates, according to the UK Jobs Report by KPMG and the REC (Recruitment & Employment Confederation). The survey shows that permanent staff appointments and temporary positions both expanded at the slowest rates for 16 months in June as the labor market lost some strength. UK Jobs Fair Photo: KPMG and REC Recruiters also reported another sharp drop in overall candidate availability. This is partly due to a decline in foreign applicants… and a reluctance to change jobs in the current climate as the so-called Great Resignation wears off. Recruiters often attributed lower applicant numbers to a generally low unemployment rate, fewer foreign workers, strong demand for staff and reluctance to change roles in the increasingly uncertain economic climate. The report follows a slowdown in May…. …and it shows we’re past the peak of the ‘post-pandemic hiring spree’, as Neil Carberry, CEO of REC, explains: This growth rate was always going to be temporary – the big question now is what effect inflation has on wages and consumer demand over the rest of the year. Whether we will see the market settle near normal levels or see a slowdown is unpredictable at this point. “Part of the reason for the unpredictability in the market is a slower economy accompanied by severe labor and skills shortages. These are already proving limiting to growth in many businesses. The government should consider how to ensure that all its departments enable greater participation in the labor market and encourage business investment capital to help tackle this problem.

Also coming today

After recovering on Thursday, the pound is hovering around $1.20 as the City waits to see who will succeed Boris Johnson as prime minister (a process that could take several months). There could be paralysis in the wake of yesterday’s dramatic resignation announcement, with Johnson promising no major policy, tax decisions or other changes in direction during his tenure. Daniele Antonucci, chief economist and macro strategist at Quintet Private Bank, says: The Conservative leadership election is likely to start within days. While his resignation could add near-term uncertainty, so far the market response has been fairly muted. Looking further out (beyond the current loss of growth momentum), the UK economy and its financial markets could perhaps benefit from more certainty. In other news, Britain’s competition watchdog, the Competition and Markets Authority, is due to publish its report on the retail fuel market today, at the request of Business Minister Kwasi Kwarteng. The latest US jobs report, June’s non-farm payrolls, is expected to show that job creation slowed last month. Economists forecast NFP to rise by 268k, lower than the 390k US jobs created in May. A weak reading could lead to more worries about a possible US recession. Strong odds for economic data surprise tomorrow from non-farm payrolls. Consensus expects a monthly increase of 0.17% in payrolls, while annual and quarterly trends exceed this estimate. Our position is in danger of a surprise here, so important to watch: pic.twitter.com/v8KLQ0IJUq — Prometheus Research (@prometheusmacro) July 7, 2022 GOLDMAN SACHS: “We estimate that non-farm payrolls rose by 250k in June, somewhat below consensus of +268k … We estimate an unchanged unemployment rate of 3.6% – in line with consensus – reflecting a steady an increase in household employment offset by an increase of 0.1 p.m. on labor force participation” — James Pethokokis (@JimPethokokis) July 8, 2022 European stock markets rallied yesterday but are on track for a subdued open today.

THE AGENDA

Morning: The CMA is expected to release a report on the UK fuel market 9 a.m. BST: Italian industrial production for June 12.55pm: ECB President Christine Lagarde attends a meeting at the Les Rencontres Economiques event in Aix-en-Provence, France 1:30 p.m. BST: US nonfarm payrolls report for June

Updated at 07.52 BST