Key events
Introduction: Pound holds steady as business calls for ‘fresh start’ under Labour
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
We’ve woken up to a landslide Labour victory in the UK.
Keir Starmer has pledged that it is “now time for us to deliver” as his party’s election victory brings an end to 14 years of Conservative rule. The Labour leader is expected to become prime minister later today.
Rishi Sunak’s party is on track to record its worst ever performance in a general election.
As the results are broadly as expected and already priced into financial markets, the pound held steady. It is up 0.1% against the dollar at $1.2770, and against the euro at €1.18.
The London Chamber of Commerce said the business community looks forward to a “fresh start” under Labour.
Chief executive Karim Fatehi said:
We look forward to working with government over the coming years to build a London where businesses of all sizes thrive.
Now is the time for the new government to quickly make the changes businesses need to succeed. As laid out in our manifesto this includes the introduction of policies that protect and support the capital’s businesses, enhance London’s international competitiveness, and simplify and enable infrastructure and planning. These policies will lay the foundations for future growth, address long term skills shortages, and foster greater innovation in our capital.
The CBI business group said “business stands ready to bring its innovation, ideas, and investment to make that shared mission a reality”.
Rain Newton-Smith, CBI’s chief executive, said:
The new prime minister has been given a clear mandate to take the tough decisions on areas like planning reform and boosting grid capacity needed to get the economy firing on all cylinders. What firms need now is a government that’s ready to hit the ground running and is laser-focused on delivery.
Households and businesses across the UK have shown incredible resilience through Brexit, Covid and war in Europe. With the economy picking up steam, now is the moment to get behind growth. Setting out a positive vision for the UK economy and leaning into our international leadership should be top priorities for the first 100 days.
The TUC said Labour has a “historic opportunity” to “repair and rebuild Britain”.
The union’s general secretary Paul Nowak said:
The trade union movement stands ready to work with this new government to deliver the change working families desperately need.
This means tackling the scourge of insecure work and boosting living standards. It means fixing our crumbling public services. And it means reversing over a decade of Tory stagnation with a proper plan for growth and industrial revival.
And this is the country following 14 years of Conservative rule:
The Agenda
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7am BST: Halifax house price index for June
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7am BST: German industrial production for May
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7.45am BST: France trade and industrial production for May
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10m BST: Eurozone retail sales for May
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1.30pm BST: US non-farm payrolls for June (forecast: +190,000), unemployment rate (forecast: unchanged at 4%)
