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[Quick Facts]

1. U.K. job market cools in July.

2. The U.S. rig count continues to fall and hasn't bottomed out.

3. U.K. retail sales decline more than expected.

4. Russian Foreign Minister: There are no prospects for Ukraine talks between Russia and the West.

[News Details]

U.K. job market cools in July

A survey released on Monday showed that Britain's labor market is losing some of its inflationary heat with vacancies and advertised starting salaries falling in July for the first time this year. The number of job seekers per vacancy edged up in July, but overall conditions in the labor market remain tight.

While it is normal for vacancies to fall over the summer months as firms typically slow down their hiring during this period, the preliminary data on July employment will demonstrate to UK policymakers that inflation should indeed be on a downward trajectory.

The U.S. rig count continues to fall and hasn't bottomed out

The overall U.S. rig count is down 12 rigs during the week ended Aug. 18, suggesting that oil and gas producers are keeping drilling activity in check despite a recovery in oil and gas prices. So far this year, the rig count has declined by 17% to 642 rigs. The model shows that 700 rigs will be in service by the end of 2023, implying that the trend will stabilize by the end of the third quarter and begin to recover in the fourth quarter.

U.K. retail sales decline more than expected

U.K. retail sales fell more than expected in July after a spell of cool and rainy weather kept people out of shops. Data released last Friday showed that U.K. retail sales fell 1.2% in July from June after seasonal adjustment, beating economists' expectations of a 0.5% decline. The figures mark the first time in four months that sales have fallen short of expectations and could indicate that consumers are starting to buckle under the pressure of soaring prices and interest rates. Breaking it down, U.K. clothing sales also fell last month, which the Office for National Statistics attributed to the wet weather that swept across the country, leading to a drop in traffic to stores. Food sales were also weaker, which customers said was due to higher prices.

Russian Foreign Minister: There are no prospects for Ukraine talks between Russia and the West

In an interview with The International Affairs journal, Russian Foreign Minister Sergey Lavrov said that he sees no prospects for Ukraine talks between Russia and the West at the time. Meanwhile, Western sponsors keep pushing the Kyiv regime to raise the stakes. In our view, the West's hypocritical calls for negotiations are a tactical ruse to buy time once again, to give the exhausted Ukrainian army a chance to take a rest, and to replenish them with weapons and ammunition, said Sergey Lavrov. But this is the way of war, not a peaceful solution.

[Focus of the Day]

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