(Bloomberg) — Hi, I’m Leo from Bloomberg’s UK Breaking News team, catching you up on this morning’s business stories.

How confident are you that you’ll keep your job over the next six months? If you think you’re rather safe, you’re on a par with most of the country, Spotify’s announcement that it’s cutting headcount by 17% nothwithstanding.

Put it another way: *Should* you be worrying about your job given that most economists predict Britain’s economy will stagnate in the near-term? Of course, everyone’s situation is different, but it’s striking that workers are so confident in this environment, according to recruitment consultancy Robert Half.

While the Robert Half findings will come as a relief to Rishi Sunak, as the economy is set to be a key battleground in next year’s general election, they’re likely to be a warning to the Bank of England — which is still battling to get inflation down from the current level of 4.6% to the target of 2%.

That said, about half the impact of the BOE’s rate increases has yet to filter through and more announcements like those of Spotify might well dent workers’ confidence in the months to come.

What’s your take? Ping me on X, LinkedIn or drop me an email at lkehnscherpe@bloomberg.net. 

Key Business News

Speaking of stagnation: Fifteen years of it have left the typical UK household £8,300 poorer than peers in countries like France and Germany. The finding from a major report by the Resolution Foundation and the London School of Economics could help shape the agenda for a Labour government under if they win the next election. Read Markets Today’s snap analysis further down.

Petrofac is looking to shore up its balance sheet by doing, well, pretty much anything possible — including selling assets — as it no longer expects to meet its full-year cash flow guidance. The oil services provider, whose stock has fallen about 80% from this year’s peak in August, has struggled with low profits on a backlog of legacy projects and approaching debt deadlines. It will update further Dec. 20.

November passenger numbers from Ryanair and Wizz Air gave us the latest update on how the Israel-Hamas war is affecting travel. Ryanair last month cancelled over 960 flights due to the conflict. Europe’s biggest discount carrier operated more than 66,000 flights. Wizz Air said it had suspended operations in Israel until early January.

Playtech, the FTSE 250 gambling technology firm, made an unsuccessful £700 million bid in July for William Hill owner 888, the Sunday Times reported. The bid of 156 pence a share was rejected because 888 assessed that it undervalued the company, according to the report. That’s pepping up the floundering international sports betting and gambling company’s shares this morning, which might please Jonathan Mendelsohn, the Labour peer who’s chaired 888’s board since March 2021. The stock jumped as much as 18% at the open.

Finally, Britain should start building houses like Teslas to fix our homes shortage, says Bloomberg Opinion’s Matthew Brooker.

Markets Today’s Take

The UK economy has stagnated over the past 15 years while many comparable countries have overtaken it, leaving UK households some £8,300 poorer than peers in countries like France and Germany. Think tank Resolution Foundation says tough choices must be made by the government in order for the UK to catch up, and that means public spending funded by higher — not lower — taxes.

The problem with relying on the government’s coffers to boost productivity is that it puts the burden on the domestic public sector but does little to encourage private investment. But encouraging innovation from the top down is a difficult thing to do and can perpetuate the productivity problem. A high tax environment won’t attract the brightest minds to work here, nor the top employers to move their headquarters here, unless wages are already high enough or there are other incentives in place. You can’t kickstart a productive and innovative economy if people in the private sector aren’t motivated to keep working harder. And the UK needs to attract capital from abroad.

— Sofia Horta e Costa

For more news and analysis throughout the day, follow Bloomberg UK’s Markets Today blog. 

What’s Next? 

We’ll get updates from equipment rental firm Ashtead, gifting platform Moonpig, pub chain Marston’s, and Thames Water.

Investors are set to scrutinise Thames Water’s debt levels after auditors warned that the utility’s parent company may run out of money by April if shareholders don’t pump in more equity.

Results from Drax Group will be in focus as well. The power producer’s shares have come under pressure this year after several investors disclosed bets against the firm.

 

–With assistance from Alexandria Arnold.

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