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No imminent US rate cuts?

Richard Flynn, the UK managing director at Charles Schwab, says: "Today's disappointing job numbers come hot on the heels of last week’s GDP figures, where economic growth was revised down, albeit by less than expected.

"However, in general the US economy has remained robust in recent months in spite of escalating trade tensions and global headwinds.

"Markets are now expecting the Federal Reserve to cut interest rates twice by late January to counter concerns about slowing global growth.

"However, we think it is unlikely there will be a cut following next week's FOMC meeting, and investors will be more focused on the quarterly forecasts and dot plot projections."

BreakingUS economy adds 75,000 jobs in May

US car production
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The US economy added 75,000 jobs last month, well below expectations of about 175,000. In addition, the job creation estimates for March and April were revised down by a total of 75,000.

The US unemployment rate remained unchanged at 3.6%.

Annual wage growth slowed to 3.1% from 3.2%.

Funds 'are not cash machines'

cash machines
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Lord Myners, who spoke to BBC Radio 4's Today earlier about the Neil Woodford fund, also has a letter in today's Financial Times discussing the fall-out of one of the fund's suspension.

It is here and says that "equity investment funds can’t be treated as an alternative to an ATM".

"Daily dealing is not appropriate for anything other than the most liquid large-cap portfolios. The Financial Conduct Authority needs to give serious consideration to mandating that investors must give managers, say, seven days’ notice of redemption to ensure that redemptions can be met without disadvantaging continuing investors in a fund.

"Too many financial firms have businesses based on perpetuating the myth that trading and liquidity are a public good for this to be volunteered as a response by fund providers."

Industry lobby group on overdrafts

The industry is working on a voluntary agreement to make the cost of overdraft borrowing easier to understand for consumers which will be implemented in April 2020. This will build on the range of measures already introduced by the industry, such as text alerts which have been shown to reduce overdraft charges by 25%. Overdrafts can provide a convenient way for customers to smooth their short-term cashflow, and there is a highly competitive market in the UK with over 96 products on offer. We would always urge customers to speak to their bank and arrange an overdraft in advance to ensure payments are honoured.”

Eric Leendersmanaging director of personal finance at UK Finance.