Business
Unemployment rate hits highest outside Covid years for almost a decade
The UK’s jobless rate has hit its highest level outside the pandemic era for nearly a decade as experts said the further evidence of a weakened labour market made a year-end interest rate cut more likely.
Official figures showed the rate of unemployment surged to 5% in the three months to September, up from 4.8% in the three months to August.
The Office for National Statistics (ONS) said that, with the skewed levels seen during the Covid-19 years stripped out, this was the highest seen since August 2016.
The ONS said average regular wage growth also pulled back again, to 4.6% in the three months to September, down from 4.7% in the previous three months.
Experts said the weaker-than-expected figures reinforced the case for the Bank of England to cut interest rates next month.
Martin Beck, chief economist at WPI Strategy, said: “With pay growth slowing further, the data strengthen the case for the Bank of England to cut interest rates next month.”
He warned that the “prospect of new tax rises in the upcoming Budget poses further risks to employment, particularly if the Chancellor again looks to raise taxes on businesses”.
Mr Beck added: “But this time, Rachel Reeves is more likely to target earners rather than employers.”
The pound slipped back, down 0.4% to 1.313 US dollars and 0.4% lower at 1.135 euros, as financial markets increasingly bet on a year-end rate cut.
The ONS said earnings are still outstripping inflation, although by a smaller margin, with real wages 0.8% higher after taking Consumer Prices Index (CPI) inflation into account, down from 0.9% in the previous three months.
In further evidence of a tough jobs market, the ONS estimated the number of workers on UK payrolls fell by 32,000 during October to 30.3 million, following an upwardly revised 32,000 drop the previous month, although the numbers are subject to further revisions.
This was the largest two-month drop since late 2020, economists said.
ONS director of economic statistics Liz McKeown said: “Taken together these figures point to a weakening labour market.
“The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months.”
There was one bright spot in the data, with vacancies rising for the first time in more than three years – estimated to be up by 2,000, or 0.2%, to 723,000 in the three months to October.
Mr Beck said the sharp drop in payrolls data pointed to caution among businesses ahead of the November 26 Budget.
“Signs of renewed weakness in the UK labour market suggest the real economy is starting to feel the chill of Budget tax uncertainty,” he said.
Investec Economics said the jobs data and easing in wage growth – both of which are being watched carefully by the Bank of England – made a December cut in rates from 4% to 3.75% more likely.
“What will be key however to the December debate, and the path for rates looking further forward, are the two CPI reports, and of course the details of the Budget, which we will receive before the December 18 rate announcement,” said Investec economist Ellie Henderson.
James White, at EY Item Club, said the figures, and slowing in private sector pay growth to 4.2% in the three months to September, removes “one potential roadblock to a pre-Christmas rate cut”, and also boosts the chances of “further rate cuts in 2026”.
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Indian equity benchmark indices, Sensex and Nifty, are expected to open higher on Tuesday, tracking strong global cues.
Indian equity markets
Benchmark equity indices staged a strong rebound on Tuesday, closing higher on the back of solid gains in IT and auto stocks.
The BSE Sensex recovered 747 points from the day’s low of 83,124.03 to settle at 83,871.32, up 335.97 points or 0.40 per cent. Similarly, the Nifty50 climbed 120.6 points, or 0.47 per cent, to end at 25,694.95 after bouncing back 245.7 points from its intraday low of 25,449.25.
On the BSE, Bharat Electronics (BEL), Adani Ports and Mahindra & Mahindra (M&M) emerged as the top gainers, while Bajaj Finance, Bajaj Finserv and Tata Motors PV were among the biggest drags.
Across the NSE, IndiGo, BEL and M&M led the gainers’ pack, whereas Bajaj Finance, Bajaj Finserv and ONGC were the top losers.
Broader markets ended mixed — the Nifty Midcap 100 gained 0.50 per cent, while the Smallcap index slipped 0.21 per cent.
Sectorally, Nifty IT and Auto were the best performers, advancing 1.20 per cent and 1.07 per cent, respectively. On the other hand, Nifty PSU Bank was the only notable laggard, slipping 0.39 per cent.
Among sectoral indices, Nifty Financial Services fell 0.7%, and Nifty PSU Bank declined 0.5%, dragging the overall market sentiment.
Global Cues
Global sentiment improved after US President Donald Trump said his administration is working on “a very different deal” with India compared with past negotiations. “They don’t love me, but they will love us again. We are getting a fair deal — just a fair deal,” Trump said on Monday.
Across Asia, markets advanced following Wall Street’s strong overnight rally. Japan’s Nikkei 225 gained 0.56%, South Korea’s KOSPI rose 2.24%, and Hong Kong’s Hang Seng was up 0.4%.
In the U.S., equities surged on Monday, led by AI-heavyweights Nvidia and Palantir, as optimism grew over progress toward ending the record U.S. government shutdown. The S&P 500 climbed 1.54%, the Nasdaq Composite jumped 2.27%, and the Dow Jones Industrial Average added 0.81%.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 11, 2025, 09:13 IST
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New Delhi: Chartered Accountant Abhishek Walia believes investments increase in value over time. Walia asserts that the only way to create wealth quickly is “staying long enough to let compounding do its job.”
Walia, the founder of Zactor, pointed out on LinkedIn that most people think luxury cars and fancy holidays drain their money. He said that our short-term mindset and not fancy spendings actually drain our money. “You think expensive cars and holidays drain your money? No. Your short-term mindset does,” he wrote on LinkedIn.
According to Walia, the majority of people lose money because they expect instant results, panic sell and delay SIPs. “We want quick returns. We panic-sell when markets dip. We delay SIPs because “this month is tight.” And then we wonder why wealth never compounds,” he wrote.
Through an example, Walia shared how a simple delay in investment can make a massive difference. “Let’s put numbers on it. If you invest Rs 10,000/month for 20 years at 12%, you will have Rs 92 lakh. But if you start 5 years late, you will end up with Rs 47.5 lakh. That delay those few “I will start next months” just cost you Rs 45 lakh,” he wrote.
According to Walia, not making decisions is the “most expensive thing you will ever do.”
Walia said that true success in investing comes from patience. If you invest for a long enough period of time, compound interest will gradually increase your wealth, he said. “Patience is the new alpha. Because the only shortcut in wealth creation is staying long enough to let compounding do its job,” Walia wrote.
Business
Nvidia, Palantir power market rebound as US shutdown nears resolution | The Express Tribune
AI giants lead Wall Street higher as investors cheer progress in Washington to end record federal shutdown
Wall Street ended sharply higher on Monday, led by big gains in Nvidia, Palantir and other heavyweight AI-related companies following progress in Washington to end a record government shutdown.
The longest government shutdown in US history could end this week after a compromise that would restore federal funding cleared an initial Senate hurdle late on Sunday, though it was unclear when Congress would give final approval.
“The government shutdown was continuing a lot longer than people had expected. There were concerns around the economy, about flights potentially being cancelled and having a wider impact on the economy,” said Chris Zaccarelli, Northlight Asset Management’s chief investment officer.
Heavyweight tech stocks rebounded from some recent losses. Last week, the S&P 500 technology sector index (.SPLRCT) tumbled 4.2%.
Nvidia (NVDA.O), the world’s most valuable company, rose 5.8%. AI data analytics firm Palantir (PLTR.O) jumped 8.8% and Tesla (TSLA.O) climbed 3.7%.
“This is a rebound after being slightly oversold last week. It’s another example of the “buy the dip” mantra really acting quickly in the tech and AI space,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
“There is nothing structural hitting the AI theme. In fact, a lot of earnings reports have been really strong in that sector.”
S&P 500 components so far in 2025
The S&P 500 climbed 1.54% to end the session at 6,832.43 points.
The Nasdaq gained 2.27% to 23,527.17 points, its biggest one-day percentage gain since May 27.
The Dow Jones Industrial Average rose 0.81% to 47,368.63 points.
The small-cap Russell 2000 (.RUT) gained 0.9%, while the PHLX semiconductor index (.SOX) jumped 3%.
Volume on US exchanges was relatively light, with 17.9 billion shares traded, compared with an average of 20.8 billion shares over the previous 20 sessions.
Airlines came under pressure as government-directed flight cuts and air traffic staffing absences disrupted US air travel. United Airlines (UAL.O) dipped 1.3% and American Airlines (AAL.O) fell 2.5%.
On betting website Polymarket, the probability of an end to the shutdown this week stood at 88%.
The longest federal shutdown in history has created a data gap for the Federal Reserve and markets alike, leaving them dependent on private data that has given a mixed picture of the economy.
Some Fed officials reiterated their caution regarding the monetary policy decision at the central bank’s next meeting, while Fed Governor Stephen Miran repeated his call for a big rate cut.
Optimism around artificial intelligence has fueled a bull run in US stocks this year, but concerns around monetisation and circular spending within the sector drove a bout of selling recently. The Nasdaq (.IXIC) last week marked its worst performance in over seven months.
Meanwhile, the third-quarter earnings season is nearly complete. Of the 446 S&P 500 companies that have reported, 83% have delivered better-than-expected earnings, according to data compiled by LSEG.
Shares of health insurers dropped after the U.S. Senate struck a deal to end the 40-day federal shutdown without extending Affordable Care Act subsidies, setting up a December vote on the issue instead.
Centene (CNC.N) dropped 8.8%, Humana (HUM.N) fell 5.4% and Elevance Health (ELV.N) declined 4.4%.
Metsera (MTSR.O) slumped 14.8% after Pfizer won a $10 billion bidding war to acquire the company.
Eli Lilly (LLY.N) rose 4.6% to a record high after Leerink Partners upgraded its rating on the stock.
Advancing issues outnumbered declining ones within the S&P 500 (.AD.SPX) by a 1.7-to-one ratio.
The S&P 500 posted 32 new highs and 8 new lows; the Nasdaq recorded 106 new highs and 128 new lows.
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