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There has been a surge in the pace of wage growth but a rise in the jobless rate following a big drop in the number of payrolled employees, according to the latest official figures.

The Office for National Statistics (ONS) reported that both basic pay excluding bonuses, and average weekly earnings, rose at an annual rate of 5.6% in the three months to November.

That was up from a rate of 5.2% reported the previous month.

The ONS said the unemployment rate rose to 4.4% from 4.3%.

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The employment figures were the first to take in possible early reaction to the budget, and may suggest some employers were eager to retain key staff through strong pay awards while others sought to cut costs amid the tough outlook and ahead of looming tax rises.

HMRC payroll data and ONS survey data both pointed to lower employment.

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The number of payrolled employees was estimated to have fallen by 47,000 during the 12 months to December to 30.3 million – the biggest drop since November 2020 – according to the taxman’s figures.

That was up on the 32,000 figure recorded the previous month.

The data was seen as supporting recent private sector survey findings of a firing spree ahead of Christmas due to the impact of the budget.

The report was released against a backdrop of recent financial market turmoil, partly linked to concerns over the state of the UK economy following the 30 October budget but mainly the potential impact of a fresh Donald Trump presidency.

Sterling has lost 12 cents versus the dollar since September while government borrowing costs have risen generally, placing a big strain on Chancellor Rachel Reeves’ spending rules and bringing her stewardship of the economy under greater focus.

Last Friday, following data showing weak retail sales during the crucial Christmas month, sterling fell again but on the back of growing expectations that the mounting evidence of a flatlining economy would give the Bank of England more room to cut interest rates.

Some market commentators, and even the Bank’s newest rate-setter, believe borrowing costs will be cut four times this year though the market has currently only fully priced in two reductions.

Investors currently see an 84% probability of a Bank rate cut at the next meeting on 6 February, from 4.75% to 4.5%.

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Inflation eases to 2.5%

The last set of inflation figures, which showed a surprise easing in the headline figure, will have given the Bank some encouragement but economists see a rate back above 3% by April given expected increases in many costs, including energy and water bills, from that month.

While the budget tax measures on business sparked warnings of rising prices to offset billions of extra costs, it could also be the case that threatened hits to wages and jobs will help Bank policymakers make the argument for rate cuts.

Yael Selfin, chief economist at KPMG UK, said of the outlook: “We expect pay growth to trend downwards over the coming year, with the backdrop of slowing labour market activity.

“Forward looking indicators suggest a significant weakening in hiring intentions due to the upcoming tax rises in April. We expect this to act as a headwind for labour market activity in the near term, likely translating into a small pick up in headline unemployment over the coming months. Nonetheless, once the impact of the budget passes together with the expected improvement in economic activity, conditions should stabilise in the labour market.

“Wage growth is expected to return closer to levels consistent with the inflation target this year, despite the recent increase. The rise in business costs due to the Budget measures should have a cooling effect on labour market activity and make higher wage settlements less likely. As a result, it is anticipated the Bank of England will opt for an interest rate cut next month, and two further rates cuts in 2025.”

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Net worth of Trump inauguration attendees tops $1 trillion with world’s richest in the crowd

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Net worth of Trump inauguration attendees tops  trillion with world's richest in the crowd

One of the things that made President Donald Trump’s inauguration distinctive was the prominence of Silicon Valley elite.

Easily identifiable were the world’s three richest men – Elon Musk, Jeff Bezos and Mark Zuckerberg. And that’s not to mention some of the billionaires not placed directly in view of the cameras.

When the riches of the billionaire tech founders, millionaire business people and wealthy politicians are totted up there was more than $1trn – over a thousand billion – in the rotunda of the Capitol on Monday morning.

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Elon Musk spoke after the ceremony, saying he would plant the US flag on Mars

The richest of them all, topping the Forbes real-time billionaires list, was Elon Musk.

The South African serial entrepreneur makes his money through ownership of electric car company Tesla and space exploration company Space X.

His fortune is $433.9bn, according to Forbes.

Lauren Sanchez and Jeff Bezos.
Pic: Reuters
Image:
Lauren Sanchez and Jeff Bezos. Pic: Reuters

Next on the rich list is Amazon founder Jeff Bezos, worth $239.4bn through his ownership of company shares.

Mr Bezos’ part-ownership of The Washington Post led to some speculation he played a role in the paper saying it would not endorse a candidate in the US election for the first time in 36 years.

Meta CEO Mark Zuckerberg and Priscilla Chan in the Statuary Hall of the U.S. Capitol before the luncheon on the inauguration day of U.S. President Donald Trump.
Pic: Reuters
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Meta CEO Mark Zuckerberg and his wife Priscilla Chan. Pic: Reuters

Third-richest on Forbes’ list is Meta founder Mark Zuckerberg, worth $211.8bn.

His company owns social networks Facebook, Instagram and WhatsApp.

The influence of changing political winds could be seen in Meta’s recent decision to roll back fact-checking.

Bernard Arnault during the inauguration.
Pic: reuters
Image:
Bernard Arnault at the inauguration. Pic: Reuters

While there was no sign of the world’s fourth-richest man – Oracle founder Larry Ellison – the man who occupies the fifth spot, Bernard Arnault, was there with his family.

The Frenchman’s luxury goods giant LVMH owns brands including Dior, Louis Vuitton, Moet & Chandon and Sephora, with his net worth estimated by Forbes at $181.3bn.

Miriam Adelson arrives before the 60th Presidential Inauguration in the Rotunda of the U.S. Capitol in Washington, Monday, Jan. 20, 2025.(Saul Loeb/Pool photo via AP)
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Miriam Adelson arrives before the 60th presidential inauguration. Pic: AP

Less familiar to a UK audience – but still hugely wealthy – is Miriam Adelson, who along with her family is ranked 55th richest in the world by Forbes.

Their net worth of $31.9bn was garnered through casinos. Her husband Sheldon Adelson founded the Las Vegas Sands casino and resort company.

A supporter of the new president, Ms Adelson was awarded the Presidential Medal of Freedom by Mr Trump in 2018.

Former Executive Chairman of Fox Corp Rupert Murdoch and Elena Zhukova attends the inauguration.
Pic: Reuters
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Rupert Murdoch and his wife Elena Zhukova. Pic: Reuters

On the lower end of the Forbes rich list – coming in 89th – is media magnate Rupert Murdoch, valued at $22.2bn.

His Fox network is a favourite of the US president but he made a chunk of his wealth in the UK, where he bought The Times and The Sun newspapers.

Aside from Fox, in the US he owns The Wall Street Journal and the New York Post.

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Who was at Trump’s inauguration?

If these six people were the only attendees, there would be more than $1.12trn in the room.

That’s about a third of the entire economic output of the UK. The UK’s gross domestic product (GDP) – the standard measure of an economy’s value and everything it produces – is $3.73trn, according to the International Monetary Fund.

Apple chief Tim Cook was also among the tech billionaires in attendance. Pic: Reuters
Image:
Apple boss Tim Cook was also among the tech billionaires in attendance. Pic: Reuters

Added to that are the billions and millions owned by tech royalty such as Apple founder Tim Cook, Google chief executive Sundar Pichai and OpenAI founder Sam Altman.

And none of this is to mention the riches of the political dynasties in attendance – the Bushs, Clintons and Trumps.

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Chancellor Rachel Reeves to join celebrities and world leaders at WEF Davos to drum up support for UK economy

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Chancellor Rachel Reeves to join celebrities and world leaders at WEF Davos to drum up support for UK economy

Chancellor Rachel Reeves will travel to the World Economic Forum (WEF) in Davos this week to court potential investors in UK growth projects, joining hundreds of political and economic leaders gathering in the Swiss Alps in the shadow of Donald Trump’s inauguration.

Ms Reeves will join political leaders including German chancellor Olaf Scholz, European Commission President Ursula von der Leyen, Volodymyr Zelensky, the Ukrainian president, and a vice premier of the Chinese Communist Party, with the agenda likely to be set by Mr Trump’s opening gambits in office.

The incoming president had promised the imposition of tariffs on imports, and while they did not feature in the day-one commitments at his inauguration, his second term carries the threat of upending global trade and fundamentally altering America’s security commitments.

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Mr Trump will address the event remotely at the end of proceedings on Thursday, and before then the WEF will provide a platform for the first public reaction from international political leaders to his plans.

Perhaps as important for the 4,000 or so delegates is the opportunity it provides for private meetings and bilateral conversations.

The chancellor’s focus during a 36-hour visit will be on drumming up investment and reassuring potential partners about the stability of the UK economy and the viability of her plans for growth.

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Davos has become increasingly popular with Israeli Jewish tourists. Pic: AP
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Davos Pic: AP

Those plans have been under scrutiny since the turn of the year after fluctuations in debt markets forced the cost of government borrowing up, in turn threatening the fiscal rules Ms Reeves says are central to her credibility.

While largely driven up by international factors, particularly the impact of Mr Trump’s policies, borrowing costs receded at the end of last week after better-than-expected UK inflation figures, easing the short-term political pressure.

What’s on the agenda?

Ms Reeves does not feel she has anything to apologise for following the bumpy start to 2025, but Davos offers her an opportunity to make the case publicly and privately for her plans, with the hope of securing some tangible investment commitments.

She will meet leading financiers convened by JP Morgan and its chief executive Jamie Dimon, investors including the chief executive of OTTP, a leading Canadian pension fund, and address the country strategic dialogue, a private meeting of more than 80 executives, and attend a lunch arranged by business lobby group the CBI.

She will also give a round of interviews to international media outlets in which she will stress her plans to stabilise the economy, reform public services, and begin the structural supply-side reforms she believes are fundamental to encouraging growth.

She will not be alone in seeking to leverage the unique convening power of the annual meeting to her advantage. More than 50 heads of state and as many finance ministers will be in Davos, drawn by the presence of three times as many chief executives and chairs of major companies, corporations and wealth funds.

While public sessions will be dominated by discussion of current opportunities and challenges, including the ubiquitous AI, privately the event offers the 4,000 delegates a chance to speed-date with their peers.

David Beckham and fashion designer Diane von Furstenberg will lend a little celebrity to an event that remains overwhelmingly earnest and self-assured.

Now in its 54th year, the WEF has been a crucible for the principles of globalisation and the liberal economic consensus, which maintains that only open markets and cooperation can deliver profit, prosperity and social justice.

Its immodest mission, set out by founder Klaus Schwab and featuring on the merchandise handed to participants, remains “committed to improving the state of the world”.

Not on the agenda is the question of whether the annual gathering of the billionaire class – Davos’ private jet traffic is notorious- has achieved that goal.

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Reeves to meet US financiers as Trump presidency kicks off

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Reeves to meet US financiers as Trump presidency kicks off

Rachel Reeves will hold talks with some of Wall Street’s leading financiers in Davos this week, less than hours after Donald Trump’s second US presidency gets underway.

Sky News understands that the chancellor will attend a breakfast hosted by JP Morgan on Wednesday amid speculation about the threat of US tariffs being imposed on the UK as well as the prospects for a bilateral trade deal between the two countries.

Among those attending the meeting will be Filippo Gori, JP Morgan’s European chief; Richard Gnodde, who runs Goldman Sachs’s international operations; Sharon Yeshaya, Morgan Stanley’s chief financial officer; and Jenny Johnson, president and chief executive of Franklin Templeton.

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The talks, to be held during the annual World Economic Forum, will come amid growing concern about the impact of the chancellor’s October budget on sentiment among international investors in Britain.

Despite hailing £63bn of investment committed at a key summit, weeks before Ms Reeves’s first fiscal event, the government’s non-dom reforms have sparked fears about an exodus of wealth creators from the UK.

The chancellor will use Wednesday’s event to talk up the government’s economic agenda, even after a torrid period which saw a spike in the cost of government borrowing, sparking brief comparisons with the aftermath of the Liz Truss administration’s mini-budget in 2022.

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City sources said that Alexandra Soto, Lazard’s chief operating officer; David Livingstone, Citi’s chief client officer; and Philip Freise, KKR’s co-head of European private equity would be among those also attending the meeting.

Ms Reeves will hold other meetings with bankers, foreign governments and British company chiefs during her trip to Davos.

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‘We need to grow our economy’

Earlier this month, she travelled to China for the first formal financial summit between the two countries for about six years.

The Treasury has been contacted for comment, while none of the firms represented at Wednesday’s summit who were contacted by Sky News would comment.

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