Here is what you need to know.
Britain’s job market is shrugging off Brexit, for now. Data from the Office for National Statistics showed the number of people claiming jobless benefits in the UK unexpectedly fell by 8,600 in July when economists were expecting the tally to climb by 9,500. Additionally, the UK’s unemployment rate held at a record low 4.9%. The British pound is down 0.3% at 1.3000.
Subprime credit card lending is making a comeback. TransUnion’s Q2 2016 Industry Insights Report shows 11% of the 10 million new customers entering the credit card marketplace in the past year were subprime borrowers. Additionally, the data suggests subprime borrowers are seeing the biggest increase in balances, up 14% versus a year ago. However, Nidhi Verma, senior director of research and consulting in TransUnion’s financial services business unit, says delinquency levels are not “alarming.”
A Deutsche Bank exec says their bonuses should be waived. “What’s clear is that if we don’t pay our shareholders a dividend, then our own bonus must be put up for debate,” retail bank head Christian Sewing told German newspaper Bild. The investment bank eliminated its dividend back in February.
Barnes & Noble’s CEO is out. Ronald Boire is on his way out as Barnes & Noble CEO after less than a year on the job after it was determined he’s not a “good fit” for the company, Reuters reports. Boire’s duties will be divvied up between executive chairman Leonard Riggio, who is postponing his retirement, and other executives until a replacement is named.
Cisco Systems is readying for job cuts. The company is expected to eliminate 14,000 jobs, or about 20% of its labour force, beginning in the next few weeks, CRN reports, citing sources close to the company. The announcement will come after tech giants Microsoft, HP, and Intel all announced big jobs cuts within the past year or so.
Urban Outfitters beat on the top and bottom lines. The retailer earned an adjusted $0.66 per share on revenue of $890.6 million, easily beating the $0.55 and $885.6 million that analysts were expecting. Comparable-store sales unexpectedly rose 1%, outpacing the 1.2% decline that was expected. “These results were driven by a positive retail segment ‘comp’ and substantial improvement in merchandise margins,” CEO Richard Hayne said in the earnings statement.
The iPhone 7 might be coming soon. That’s according to a leaked photo spotted by 9to5Mac of “reset hours” at AT&T stores for September. The website speculates the photo shows September 9 as the date AT&T will begin advertising the iPhone 7 and September 23 is when the phone will go on sale.
Stock markets around the world are mixed. Japan’s Nikkei (+0.9%) led the gains in Asia and Germany’s DAX (-0.9%) paces the decline in Europe. S&P 500 futures are down 0.50 points at 2,176.25.
Earnings reports trickle out. American Eagle Outfitters, Lowe’s Staples, and Target report ahead of the opening bell while Cisco Systems and L Brands release their quarterly results after markets close.
US economic data is light. US crude oil inventories will be announced at 10:30 a.m. ET and the minutes from the July FOMC meeting will cross the wires at 2 p.m. ET. The US 10-year yield is up 1 basis point at 1.58%.