Oil prices stabilise amid Middle East tensions

Oil prices stabilised on Monday after a seven per cent decline last week due to concerns about Chinese demand and reduced worries about supply disruptions in the Middle East.

Brent crude futures increased 0.11 per cent to $73.14 a barrel, while US West Texas Intermediate crude futures rose by 0.14 per cent to $69.32 a barrel.

Last week, Brent and WTI experienced their largest weekly declines since early September, falling by more than seven per cent and eight per cent, respectively.

The contracts saw their largest weekly declines since Sept. 2 due to slowing economic growth in China and decreasing risk premiums in the Middle East.

President Joe Biden mentioned a chance to resolve issues between Israel and Iran. However, the conflict in the Middle East escalated as Israel announced plans to target Hezbollah’s financial operations in Beirut.

In response to its economic challenges, China announced a cut in benchmark lending rates on Monday morning. This move is part of a broader stimulus package aimed at reviving the economy.

On the supply side, the number of oil and natural gas rigs operating in the United States decreased for the fourth time in five weeks, according to a Baker Hughes report. The rig count declined by one to 585.

Attribution: Reuters

Subediting: M. S. Salama

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Indian rupee slumps as dollar gains on tariff jitters

The Indian rupee and other regional currencies weakened on Tuesday due to comments on trade tariffs by US President Donald Trump, which boosted the dollar following a selloff in US technology stocks.

The rupee ended the day at 86.5225 against the dollar, marking a 0.2 per cent decrease, its largest one-day percentage decline since Jan. 16.

Most Asian currencies weakened, with the offshore Chinese yuan falling 0.4 per cent to 7.28, while the dollar index increased 0.1 per cent to 107.9.

The dollar rose following reports that US Treasury Secretary Scott Bessent is advocating for a gradual increase in universal tariffs on US imports, starting at 2.5 per cent and increasing by the same amount monthly.

Attribution: Reuters

Subediting: Y.Yasser

Sisi: Egypt solidifies position as outsourcing hub with Concentrix expansion

President Abdel Fattah El-Sisi has commended US technology services company Concentrix for its significant expansion in Egypt. This expansion, the president explains, aligns with the country’s ambitious goal of becoming a global hub for digital services, fostering economic growth, and creating new job opportunities for Egyptians.

During a meeting with Concentrix CEO Christopher Caldwell, attended by Minister of Communications and Information Technology Amr Talaat, ITIDA CEO Ahmed Al-Zaher, and Concentrix Egypt CEO Amr Sobhy, President Sisi emphasised the government’s commitment to developing a highly skilled digital workforce. This includes implementing comprehensive training and qualification programmes to equip young Egyptians with the necessary skills to thrive in the growing ICT sector. The president also underscored the government’s efforts to create an attractive investment climate for both domestic and international companies, offering a wide range of incentives to foster the growth of the outsourcing industry in line with the Digital Egypt Strategy for Offshoring Industry.

The meeting explored Concentrix’s ambitious expansion plans in Egypt, including increasing its workforce across existing branches and establishing new centres in various governorates. This strategic growth will not only create numerous job opportunities for Egyptians but also contribute significantly to Egypt’s goal of becoming a global hub for digital services. The anticipated expansion will also drive the growth of outsourcing service exports, enabling foreign companies to leverage Egypt’s skilled workforce to provide digital services to clients worldwide.

Concentrix’s Caldwell expressed his admiration for the remarkable progress made in Egypt’s ICT sector. He commended the Egyptian government’s efforts in driving digital transformation and creating a conducive environment for international companies like Concentrix to thrive. He emphasised the company’s commitment to capitalising on the opportunities presented by Egypt’s burgeoning ICT sector, including its robust technological infrastructure and access to a highly skilled workforce. Notably, Concentrix’s workforce in Egypt has grown exponentially from 150 specialists in 2009 to 20,000 to date, solidifying Egypt’s position as the largest outsourcing centre in Africa and the Middle East. The company aims to further expand its workforce to 35,000 specialists by 2028.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

China’s net gold imports via H. Kong plummet 84%

China’s net gold imports through Hong Kong dropped by 84 per cent in December compared to November, according to data from the Hong Kong Census and Statistics Department.

The top gold consumer in the world imported a net of 5.26 metric tons in December, a decrease from the 33.074 tons imported in November, according to the data.

Attribution: Reuters

Subediting: Y.Yasser

China’s PBC issues 298b yuan off reverse repo

The People’s Bank of China (PBC) announced on Monday a 14-day 298-billion-yuan reverse repo at an interest rate of 1.65 per cent.

Reverse repo is a tool used by central banks to manage liquidity. The PBC purchases securities from commercial banks through a bidding process, with an agreement to resell them back in the future.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser

China’s state-owned enterprises profits 0.4% up YoY in ’24

Profits at China’s state-owned enterprises (SOEs) increased 0.4 per cent in 2024 compared to the previous year, according to a statement released by the Ministry of Finance on Sunday.

This modest growth represents a significant slowdown from the 7.4 per cent rise recorded in 2023, highlighting the challenges faced by the sector amid broader economic pressures.

Attribution: Reuters

Subediting: Y.Yasser