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FTSE 100 down as US jobs market stalls in August

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FTSE 100 down as US jobs market stalls in August



The FTSE 100 gave back early gains to close lower on Friday as a weak US jobs report boosted hopes of rate cuts, but also raised fears the world’s biggest economy was slowing.

“The [US] labour market is in a precarious position,” said analysts at Wells Fargo, putting the Federal Open Market Committee in a position “where it will imminently start cutting the federal funds rate”.

The FTSE 100 index closed down 8.66 points, 0.1%, at 9,208.21. It had earlier traded as high as 9,253.53.

The FTSE 250 ended 100.86 points higher, 0.5%, at 21,575.54 and the AIM All-Share finished up 3.63 points, 0.5%, at 765.63.

For the week, the FTSE 100 rose 0.2%, the FTSE 250 fell 0.1% and the AIM All-Share firmed 0.2%.

In New York, at the time of the London equities market close, the Dow Jones Industrial Average was down 0.7%, as was the S&P 500, while the Nasdaq Composite dropped 0.5%.

Friday saw another weak jobs report in the US with growth in non-farm payrolls well below market expectations, while the unemployment rate moved higher.

According to the Bureau of Labour Statistics, non-farm payroll employment increased by 22,000 in August, easing from 79,000 in July.

The July reading was upwardly revised from 73,000, however, June’s reading was knocked down to a net loss of 13,000 jobs from a gain of 14,000 previously reported.

The latest data fell short of the FXStreet cited consensus of 75,000.

The jobless rate edged up to 4.3% in August, as expected, from 4.2% in July.

Thomas Feltmate, senior economist at TD Economics, said: “There’s no escaping that the labour market is softening, and quickly.

“Fed officials have become increasingly concerned about the downside risks to the labour market, and this morning’s report will not assuage those fears.

“We maintained an out-of-consensus view since April that the Federal Reserve would need to deliver 75 basis points in rate-relief this year, and our conviction remains high that it will occur.”

Wells Fargo said the jobs engine, that has been integral to US economic growth defying expectations for the past four years, is “stalling”.

“With elevated risk of further downward revisions, the recent pace of hiring is dangerously close to crossing into negative territory, where job market weakness quickly becomes self-reinforcing,” the broker warned.

The report put pressure on the dollar and saw bond yields ease further.

The pound jumped to 1.35 dollars late on Friday afternoon in London, compared to 1.34 at the equities close on Thursday. The euro firmed to 1.17.

The yield on the US 10-year Treasury was quoted at 4.07%, narrowed from 4.20% on Thursday. The yield on the US 30-year Treasury was quoted at 4.79%, eased from 4.90%.

In Europe, the Cac 40 in Paris ended down 0.6%, while the Dax 40 in Frankfurt closed 0.9% lower.

Shares in Cobham-based housebuilder Bereley rose 3.0% as it said it is on track to report pretax earnings in line with its £450 million forecast for the financial year ending April 30, 2026, and down 15% from £528.9 million in financial 2025.

Berkeley said it has already secured 85% of its guided pretax earnings through exchange sales contracts, and that the firm remains on target to achieve a similar level of profit in financial 2027.

Berkeley’s update came as the Halifax house price index found that the average UK house price increased by 0.3% to a new record high of £299,331 in August.

“Affordability remains a challenge, but there are signs of improvement,” said Amanda Bryden, head of mortgages at Halifax.

Other housebuilders took heart from the news. Persimmon rose 2.8%, Barratt Redrow by 2.1% and Taylor Wimpey by 2.2%.

Aviva climbed 1.6% as Goldman Sachs restarted coverage of the insurer with a ‘buy’ rating and 736 pence price target.

But Admiral fell 3.0% as Peel Hunt downgraded to “sell” from “reduce” believing the outlook for underwriting margins in the UK motor space is “starting to deteriorate”.

A sharp drop in the oil price saw BP and Shell drop 2.6% and 2.3% respectively. A barrel of Brent traded at 65.14 dollars late Friday afternoon, down from 67.02 on Thursday.

Next rose 0.8% after UK retail sales accelerated ahead of expectations in July following continued good weather.

Total retail sales volumes are estimated to have risen by 0.6% in July, accelerating from an increase of 0.3% in June and comfortably beating an FXStreet-cited consensus for 0.2% growth in July.

Food store sales rose 2.5% in July to their highest level since February 2022, boosted by good weather and events such as the Women’s Euro 2025 tournament. Food store sales had increased 0.7% in June.

The ONS noted that the UK had its fifth-warmest July on record this year, according to the Met Office climate summaries.

The biggest risers on the FTSE 100 were Entain, up 28.00p at 864.40p, Berkeley Group, up 108.00p at 3,690.00p, Ashtead, up 152.00p at 5,538.00p, Persimmon, up 30.00p at 1,100.00p and Melrose, up 16.00p at 616.00p.

The biggest fallers on the FTSE 100 were Admiral, down 102.00p at 3,342.00p, BP, down 11.25p at 415.65p, Barclays, down 9.20p at 361.05p, NatWest, down 12.00p at 506.00p and Shell, down 60.50p at 2,627.50p.

Monday’s local corporate calendar has half-year results from insurer Phoenix Group.

The global economic calendar on Monday has China trade data.

Later in the week, US inflation figures and the ECB interest rate decision, both on Thursday, will be closely watched.



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70% of adults without a licence say learning to drive is unaffordable

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70% of adults without a licence say learning to drive is unaffordable



Some seven in 10 British adults without a full driving licence say learning to drive is currently unaffordable, according to a survey.

The figure is even higher among younger people, with 76% of 18 to 29-year-olds without a licence saying driving lessons are financially out of reach, the poll for car insurer Prima found.

Overall, 38% said the cost of driving lessons was the biggest deterrent to learning to drive.

Some 32% were put off by the price of buying a car and 15% said the cost of car insurance was the main barrier to learning to drive.

Almost half (45%) said they would consider learning to drive if it became significantly cheaper.

Nick Ielpo, UK country manager at Prima, said: “For a growing number of people, driving is no longer a symbol of freedom – it’s a financial stretch too far.

“Between lessons, buying a car and insuring it, the upfront and ongoing costs are pricing many people out before they even start.”

Find Out Now surveyed 1,134 adults who do not hold a full driving licence between January 21 and 23.



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Go Digit General Insurance gets GST demand notice of Rs 170 cr – The Times of India

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Go Digit General Insurance gets GST demand notice of Rs 170 cr – The Times of India


Go Digit General Insurance on Saturday said it has received a demand notice of about Rs 170 crore for short payment of goods and services tax (GST) for nearly five years. The company has received an order copy from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate on March 6, confirming GST demand of Rs 154.80 crore levying penalty of Rs 15.48 crore and Interest u/s 50 of CGST Act, 2017 for the period July 2017 to March 2022, the insurer said in a regulatory filing. The company is in the process of evaluating the legal advice on the implications and would file an appeal, it said.



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Iran war threatens $11.7 trillion global travel industry as passengers get caught in crossfire

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Iran war threatens .7 trillion global travel industry as passengers get caught in crossfire


Zoey Gong, a Chinese medicine food therapist, was days away from boarding an Emirates flight from Paris to Shanghai via Dubai, United Arab Emirates, when the U.S. and Israel attacked Iran last Saturday.

Gong, 30, had her flight plans derailed as a result, and she told CNBC that she had to pay $1,600 to get to Shanghai, more than double the price of her original ticket.

She’s one of millions of travelers swept up in war and other conflicts from Iran to Mexico this year, problems that are threatening the global tourism industry that’s worth an estimated $11.7 trillion to the world’s economy, according to industry group World Travel & Tourism Council. It’s showing that people who are far from falling missiles, drone attacks and other geopolitical flashpoints aren’t immune to ripple effects.

‘Aviation quagmire’

Stranded passengers wait with their luggage outside the Hazrat Shahjalal International Airport in Dhaka on March 3, 2026 after carriers cancelled flights amid the Middle East conflict.

Munir Uz Zaman | Afp | Getty Images

The U.S.-Israel attack on Iran set off massive aviation, travel, and safety crises.

More than a million people around the world were stranded because of airspace closures that have grounded over 20,000 flights since Saturday, according to aviation data firm Cirium. Some were also stuck on cruise ships. Inquiries for more expensive “cancel for any reason” travel insurance policies surged 18-fold this week, said Chrissy Valdez, senior director of operations for Squaremouth, an online insurance marketplace.

Since the Feb. 28 attacks on Iran, that country has launched retaliatory strikes on the United Arab Emirates — home to Dubai International Airport, the world’s busiest for international passenger traffic, according to Airports Council International — as well as Qatar, Jordan, Israel and Cyprus. The back-and-forth attacks have left airlines with little recourse to repatriate travelers.

Days after the attack, the U.S. State Department told citizens in a large part of the region to leave immediately, with few options at hand. The department said it is organizing charter flights for U.S. citizens who want to return from Saudi Arabia, Israel, UAE and Qatar.

“This has spiraled into an aviation quagmire,” said Henry Harteveldt, a former airline executive and founder of travel consulting firm Atmosphere Research Group.

Other sectors of the travel industry are also dealing with the war’s impact. Debris rained down near Accor‘s Fairmont The Palm Hotel in Dubai over the weekend. The company said four people were injured, but none were guests, visitors, or staff. Meanwhile, the iconic Burj Al Arab hotel had a fire earlier this week after it was hit by debris from an Iranian drone.

(L to R) The Malta-flagged cruise ships Aroya Manara and MSC Euribia are anchored at the port of Dubai on March 4, 2026.

Giuseppe Cacace | AFP | Getty Images

MSC Cruises’ more than 6,300-passenger MSC Euribia ship has been stranded in Dubai and the company is trying to get flights for affected guests, it said. “We are requesting priority for our guests from our partners,” the company said in a statement.

“In order to speed up the repatriation, we are working on other options such as chartering flights” from Dubai, Abu Dhabi, UAE, or Muscat, Oman, but the situation on board “remains calm,” the cruise company said.

Earlier this week, MSC said it would cancel its remaining sailings from Dubai for the winter. “We understand that this will be disappointing, but we are sure that guests impacted will understand this decision,” it said.

Putting aside the Covid-19 health crisis that ground most international travel to a halt, Harteveldt called this week “the most chaotic event we’ve seen frankly since 9/11 when the U.S. chose to close its airspace. We haven’t seen anything that has had such a long and geographically widespread impact on travel.”

Global conflicts

Flightradar24 still of flight traffic across the Middle East on March 4th, 2026.

Source: Flightradar24.com

Read more about military conflicts’ impact on commercial flights

Then in February, flights were grounded in parts of Mexico, including in the coastal resort city of Puerto Vallarta and in Guadalajara, after violence broke out following the Mexican army’s killing of a cartel leader.

Executives have already had to make costly changes: rerouting or cancelling sailings, issuing flexible booking and refund policies, grounding planes and changing flight plans altogether, or discounting hotel rooms.

The cost of these conflicts is still being tallied, including for fuel, one of the biggest expenses for cruise companies and airlines, along with labor, and is usually passed along to consumers, but signs are emerging on how customers will be affected.

First: Pricier tickets and stays are in the cards.

Higher airfare

United Airlines CEO Scott Kirby said on Thursday that jet-fuel prices, which have surged 60% since the U.S. and Israel’s first strikes on Iran last week, would hit first-quarter results, if not the second quarter as well. That will likely translate quickly to higher airfare, he added.

Despite the higher fuel, which accounted for 20% of United’s operating expenses last year, according to a securities filing, with few flights operating in the Middle East, bookings have jumped from regions like Australia for United flights because it offers different routes to the U.S., he said.

Speaking outside an event at Harvard University, Kirby said that demand overall has remained resilient since the conflict broke out.

Airlines around the world have been forced to take longer, more costly routes because of airspace closures.

Australian carrier Qantas, for example, told CNBC that its flight from Perth, Australia, to London will now take a route that requires it to refuel in Singapore, though that will also allow it to pick up another roughly 60 passengers. 

Best year ever?

Passengers look at departure screens showing cancelled flights to Puerto Vallarta at Benito Juarez International Airport after authorities reinforced security following roadblocks and arson attacks carried out by organized crime in several states, after a military operation in which a government source said Mexican drug lord Nemesio Oseguera, known as “El Mencho,” was killed in Jalisco state, in Mexico City, Mexico, February 22, 2026.

Luis Cortes | Reuters

Travel executives started off 2026 as they often do: upbeat. Some airline executives, including those at the most profitable U.S. carriers, Delta Air Lines and United, forecast record earnings within reach this year.

The war and other incidents erupted as the travel industry has been leaning on premium options to woo wealthier customers, who make up a greater share of spending overall. Losing the base for more expensive trips could be extra disadvantageous to those companies and local economies.

In Mexico, for example, tourism makes up close to 9% of the economy and international tourist arrivals rose 13.6% last year to 98.2 million people, who spent close to $35 billion, according to the country’s Tourism Ministry.

Now, airlines are pulling back on traveling to Puerto Vallarta, at least from the United States in the near term. Delta cut routes from April 3 through the end of the month to the city, except for once-daily flights from Los Angeles and Atlanta, according to the Cranky Network Weekly newsletter, which covers the airline industry’s network changes. Alaska Airlines and Southwest Airlines also cut service in March.

“Perhaps people will forget about the PVR [Puerto Vallarta International Airport] concerns now that headlines will shift to the Middle East and bookings will rebound, but we will be watching capacity changes as leading indicators,” Brett Snyder and Courtney Miller, the newsletter’s authors, said in the March 1 edition.

Smoke billows amid a wave of violence, with torched vehicles and gunmen blocking highways in more than half a dozen states, following a military operation in which a government source said Mexican drug lord Nemesio Oseguera, known as “El Mencho,” was killed, in Puerto Vallarta, Jalisco, Mexico, February 22, 2026.

@morelifediares via Instagram | Reuters

The recent issues also come three months ahead of the FIFA World Cup, which is set to be hosted by cities in Canada, Mexico and the United States.

Some hotels in Mexico are starting to notice a change, too.

Victor Razo, manager at the Rivera del Rio hotel in Puerto Vallarta, told CNBC that bookings are down around 10% compared with last year.

“We’ve had some promotions given what had happened,” he said, adding it brought down rates between 10% and 20% ahead of the busy spring break and Holy Week period in the coming month.

He added that the hotel wasn’t near the problems, which included road blockades, and that bookings have since stabilized.

“It’s not like the beginning of the pandemic,” he said. “There is no comparison.”

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