Good morning. Today we're talking about rising UK unemployment, Apple’s AI launch and fired bank workers.

Big Stories

Unemployment hits two year high

UK unemployment unexpectedly rose to 4.4%, its highest level since September 2021 according to official figures. The news comes amid a heated general election campaign in which the economy is a key battleground. Despite the increase, wage growth remained strong, with earnings continuing to rise faster than prices. There was another increase in the inactivity rate, bringing it to its highest level in nearly a decade, with more than a fifth of working-age people deemed not to be actively looking for work. The number of inactive workers due to long-term sickness rose to a new record high of 2.3m. The prime minister Rishi Sunak has promised to tighten sickness benefit rules if re-elected, a reform his Conservative Party has said would eventually save £12bn a year - a goal that economists think would be hard to achieve.

Apple joins AI race

In a high-stakes move to catch up in the booming AI market, Apple revealed "Apple Intelligence," a new set of AI features designed to prioritise user privacy. This collaboration with OpenAI, the creators of ChatGPT, will integrate the popular language model into iPhones, iPads and Macs. However, this partnership raised security concerns from Elon Musk, who threatened to ban Apple devices from his companies if OpenAI integrates too deeply with Apple's operating system. Apple, known for its focus on user privacy and a sometimes slower adoption of new technologies, aims to regain ground lost to rivals like Google and Microsoft who have already launched their own AI features. Despite these challenges, and recent sluggish iPhone sales, Apple hopes its loyal customer base and user-friendly interface will propel them back into the AI race. This announcement was met with enthusiasm by investors, sending Apple shares to record highs.

Banking mouse jigglers fired

US bank Wells Fargo fired over a dozen wealth management employees for allegedly simulating keyboard activity to appear busy in an incident reported to financial regulators. The ability to easily acquire devices like "mouse jigglers" that create an illusion of activity raises questions about employee ethics and the effectiveness of remote work monitoring. This news comes after Wells Fargo faced prior scandals involving employee misconduct, including the creation of fake customer accounts. The situation adds to a growing trend within major banks. Institutions like Bank of America and Goldman Sachs have recently advocated for stricter in-office work policies, with JP Morgan CEO Jamie Dimon famously suggesting employees who dislike commuting could find new jobs.

Elsewhere...

Bumper pay: Tesla shareholders have approved a $45bn pay deal for CEO Elon Musk, following a fiercely contested referendum on his leadership.

Retail rebound: Tesco said that confidence is beginning to return to shoppers after it reported "strong" sales growth.

Sickly sandwiches: Two sandwich makers supplying UK supermarkets have recalled products because of an E.coli risk, the Food Standards Agency has said.

Box office hit: Pixar's Inside Out 2 has broken box office records over the weekend as it brought in an estimated $295m around the world - the strongest global opening by an animated film of all time.

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$100 million

How much the average worker at Nvidia is now worth in shares thanks to the company’s incredible stock market rally.

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