LONDON: The number of people in work in Britain unexpectedly rose in the three months before the missed Oct. 31 deadline for Brexit, according to data which suggests the labor market was retaining some of its strength.
The number of people in employment rose by 24,000 to 32.8 million in the August-to-October period, bucking the median forecast for a drop of 10,000 in a Reuters poll of economists.
The employment rate hit an all-time high of 76.2 percent while the unemployment rate fell back to its lowest level since the three months to January 1975 at 3.8 percent.
“The larger-than-expected rise in employment in October suggests the labor market is not getting any worse and may have even started to turn around,” said Andrew Wishart at Capital Economics.
The increase in jobs was driven by a rise in the number of self-employed workers and full-time staff, while the number of part-time employees fell.
British government bond prices fell by a small amount as investors viewed the chance of a Bank of England interest rate cut next year as slightly lower.
Britain’s labor market has stayed strong even as the economy slowed following the 2016 referendum vote to leave the European Union.
That is due in part to employers, who are uncertain about what Brexit will bring, hiring staff who can be laid off easily rather than making longer-term commitments to invest in equipment.
But there had been signs recently that the jobs boom was weakening.
These prompted two interest-rate setters at the Bank of England to vote for a cut to borrowing costs last month, and they are expected to do so again this week.
Prime Minister Boris Johnson last week reduced some of the uncertainty hanging over the economy by winning a big majority in a national election, ending any doubts about whether Britain would leave the European Union on the new date of Jan. 31.
But nerves about Brexit could return soon.
Johnson plans to pass a law ruling out any extension of the Brexit transition period beyond the end of 2020, saying he is confident he will clinch a free trade deal with the European Union by then.
There were some signs of caution among employers in Tuesday’s data.
Vacancies were the lowest since the three months to August 2017 at 794,000.
The Office for National Statistics also said average earnings rose by an annual 3.2 percent, the weakest increase in more than a year and slowing sharply from growth of 3.7 percent in the three months to September.
The ONS attributed much of the slowdown, however, to high bonus payments in October 2018 which distorted the comparison.
Excluding bonuses, pay growth slowed less sharply to 3.5 percent from 3.6 percent in the three months to September and was above the Reuters poll forecast of 3.4 percent.
UK jobs growth resumes, unemployment rate near 45-year low
https://arab.news/pjktd
UK jobs growth resumes, unemployment rate near 45-year low
- Number of people in employment rose by 24,000 to 32.8 million in the August-to-October period
- Britain’s labor market has stayed strong even as the economy slowed following the 2016 referendum vote
Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit
RIYADH: Lebanon has finalized 22 cooperation agreements with Saudi Arabia, setting the stage for a high-level visit next month to strengthen economic ties.
The delegation could be led by President Joseph Aoun, Prime Minister Nawaf Salam, or both, according to Lebanese Deputy Prime Minister Tarek Mitri in an interview with Asharq.
This comes as Saudi Crown Prince Mohammed bin Salman hosted President Aoun at the Royal Court in Al-Yamamah Palace on March 3 — Aoun’s first foreign visit since taking office — where they discussed Lebanon’s ongoing crisis and regional developments.
The agreements, covering sectors from agriculture to intellectual property, are seen as crucial to securing broader international aid for Lebanon’s struggling economy.
“This is a legitimate approach, and we must earn the trust of Arab nations and the international community,” Mitri said, emphasizing that Saudi Arabia’s support is vital for unlocking further international aid. He confirmed that the 22 agreements are fully drafted and ready for signing.
On his arrival, Aoun had expressed hope that his talks with the crown prince would pave the way for a follow-up visit to sign agreements aimed at strengthening cooperation between the two nations.
The deals cover a wide range of sectors, including intellectual property, consumer protection, and environmental management, as well as agriculture and water resources, Rabih El-Amine, chairman of the Lebanese Executives Council, told Arab News earlier this month.
El-Amine also pointed to agreements involving the Ministry of Information, the General Directorate of Civil Aviation, and Banque du Liban.
Mitri further revealed that Lebanon is working on an independent fund — separate from government institutions handling refugee affairs — in partnership with international organizations to oversee post-war reconstruction efforts. This move aims to boost credibility with donors, especially in the wake of the recent Hezbollah-Israeli conflict.
A World Bank report commissioned by the Lebanese government estimates the country needs roughly $11 billion for recovery and reconstruction. The report assessed damage across 10 key sectors, projecting infrastructure repairs at $3 billion to $5 billion in public sector funding, while housing, trade, industry, and tourism would require $6 billion to $8 billion in private investments.
Mitri also noted that France has expressed willingness to host a conference to support Lebanon’s recovery. French officials have proposed preparatory meetings or merging them into a single event, though no date has been set. The conference would prioritize humanitarian aid and reconstruction, while a separate investment-focused event aims to attract international figures.
Qatar to supply gas to Syria with US nod: sources
BEIRUT: Qatar is set to begin supplying Syria with gas via Jordan to boost the nation’s meager power supply, three people familiar with the matter said, in a move that a US official said had Washington’s approval.
PIF-backed Scopely acquires Pokemon GO maker for $3.5bn
RIYADH: Scopely, a US-based firm backed by Saudi Arabia’s Public Investment Fund, has signed a deal worth $3.5 billion to acquire the video game division of Niantic Labs.
In a press statement, Scopely said that the team employed to make games such as Pokemon GO, Monster Hunter Now and Pikmin Bloom are included in the acquisition.
This takeover aligns with the Kingdom’s ambitions to establish itself as a global gaming destination, with a national strategy aiming to ensure that the sector will contribute $13 billion to gross domestic product by 2030.
In April 2023, Savvy Games Group, wholly owned by PIF, acquired Scopely for $4.9 billion.
“Few games in the world have delivered the scale and longevity of ‘Pokemon GO,’ which reached over 100 million players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokemon GO live events attracting millions of attendees,” said Tim O’Brien, chief revenue officer and board member of Scopely.
Despite being launched nearly a decade ago, Pokemon GO is still one of the most popular games in the world, with over 20 million weekly active players.
O’Brien added: “After spending time with the Niantic team, it quickly became clear that this organization shares our inclination to create industry-leading outcomes and exceptional player experiences. We look forward to a bright future ahead.”
The games business of Niantic Labs generated over $1 billion in revenue in 2024, according to the statement.
In a separate release, the US-based firm said it would distribute an extra $350 million to its equity holders under the deal, yielding a total value of approximately $3.85 billion for the company’s shareholders.
Niantic added that it will also spin off its geospatial AI business into a new firm named Niantic Spatial, under the leadership of its founder and CEO, John Hanke.
The company will be funded with $250 million of capital, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely.
“I’m confident our games will thrive with Scopely. I’ve often talked about building ‘forever games,’ and I believe they will continue to be just that,” Hanke wrote on his LinkedIn page.
Since the launch of Vision 2030, Saudi Arabia has been actively promoting the gaming industry, with PIF already holding stakes in major companies such as Nintendo, Electronic Arts, and Take-Two Interactive.
In 2024, the Kingdom also hosted the eSports World Cup, which carried a prize pool of over $60 million.
IEA sees global oil market surplus for 2025 as demand disappoints
LONDON: Global oil supply could exceed demand by around 600,000 barrels per day this year, the International Energy Agency said in a monthly oil market report on Thursday, after a downward revision to its 2025 demand growth forecast.
That surplus could grow by a further 400,000 bpd if OPEC+ extends its unwinding of output cuts, and fails to rein in overproduction against quotas, the Paris-based agency said.
The IEA revised down its 2025 oil demand growth forecast by 70,000 bpd to around 1 million bpd, with growth driven largely by Asia, specifically China’s petrochemical industry.
It added that demand for the last quarter of 2024 and the first quarter of this year had come in below expectations amid “an unusually uncertain macroeconomic climate.”
“New US tariffs, combined with escalating retaliatory measures, tilted macro risks to the downside. Recent oil demand data have underwhelmed, and growth estimates for 4Q24 and 1Q25 have been marginally downgraded,” said the agency.
Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations
LONDON: Oil prices slipped on Thursday after a surge in the previous session on a larger-than-expected draw in US gasoline stocks, as markets weighed macroeconomic concerns against firm near-term demand.
Brent futures fell 5 cents to $70.9 a barrel by 7:26 a.m. Saudi time, while US West Texas Intermediate crude futures shed 10 cents to $67.58 a barrel.
Both benchmarks rallied about 2 percent on Wednesday as US government data showed tighter-than-expected oil and fuel inventories.
US gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel draw expected by analysts, while distillate stocks also dropped more than anticipated — despite gains in crude stocks.
“Declining US gasoline inventories raised expectations for a seasonal demand increase in spring, but concerns about the global economic impact of tariff wars weighed on the market,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.
“With strong and weak factors progressing simultaneously, it has become difficult for the market to lean decisively in one direction or the other,” he added.
Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on EU goods, as major US trading partners said they would retaliate for trade barriers already erected by the US president.
Trump’s hyper-focus on tariffs has rattled investors, consumers and business confidence and raised US recession fears.
Meanwhile, the Organization of the Petroleum Exporting Countries said on Wednesday that Kazakhstan led a sizeable jump in February crude output by the wider OPEC+, highlighting a challenge for the producer group in enforcing adherence to agreed output targets.
Worries about fumbling jet fuel demand weighed further on markets, JP Morgan analysts said, adding that US Transportation Security Administration data showed passenger volumes for March have decreased by 5 percent year-over-year, following stagnant traffic in February.
However, firm demand expectations limited overall market weakness.
Signs of robust US demand and Ukraine’s deployment of 377 drones targeting Russian energy infrastructure and military installations supported prices, said JP Morgan analysts in a client note.
“As of March 11, global oil demand averaged 102.2 million barrels per day, expanding 1.7 million barrels per day year-over-year and exceeding our projected increase for the month by 60,000 barrels per day,” they added.
