UK's Loosening Jobs Market, US-Iran Nuclear Talks, More

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Unknown 0:00
The UK stands apart as a place to do business, not because of one advantage, but many working together. Over £10 trillion in capital, four of the world's top universities, a 10-year industrial strategy in action, its stability with dynamism, global reach with local depth. It all adds up to greater growth. Find out more at business.gov.uk slash growth.
Stephen Carroll 0:28
News when you want it with Bloomberg News Now. I'm Stephen Carroll.
Caroline Hepker 0:32
And I'm Caroline Hepker.
Stephen Carroll 0:34
The UK's jobless rate has risen to its highest in five years as more signs emerge of the labour market weakening. Official data for December showed the unemployment rate ticking up to 5.2% in the last three months of 2025. Wage growth also slowed with the Bank of England's preferred measure of private sector pay slowing to growth of 3.4%. That's the lowest level in over five years. Bloomberg's chief UK economist Dan Hanson says it's not yet time to ring alarm bells.
Dan Hanson 1:01
Look, the jobs market is still loosening. There's no doubt about that. But I think we're not yet at a stage where this looks like it's, well, I would say snowballing, which is what can happen with the jobs market. It can move very, very quickly. So I think that's the main takeaway. Obviously, we have wages cooling, but that was broadly as expected. I think the main surprise this morning is on the unemployment rate.
Stephen Carroll 1:23
Dan Hanson was speaking as traders have increased bets on rate cuts from the Bank of England with two 25 basis point reductions now priced in for this year. The pound has also weakened against the dollar.
Caroline Hepker 1:34
Two high profile sets of negotiations are taking place today in Geneva. The US and Iran are holding a second round of nuclear talks. US Secretary of State Marco Rubio says he's hopeful Tehran and Washington can broker an agreement. On Air Force One, President Trump said that he will be following the talks closely.
Donald Trump 1:53
So I'll be involved in those talks indirectly, and they'll be very important, and we'll see what can happen. Specifically, Iran's a very tough negotiator. I think they want to make a deal. I don't think they want the consequences of not making a deal. They want to make a deal.
Caroline Hepker 2:10
President Trump has moved forces to the region and threatened to strike Iran unless it agrees to a deal curbing its nuclear programme. Tehran has begun conducting military drills around the Straits of Hormuz, according to the Tasnim news agency. And Iran's foreign minister, Abbas Araghchi, did hold talks with the head of the UN's atomic watchdog on Monday, but facing that American pressure, he said in a social media post that there would be no submission before threats.
Stephen Carroll 2:38
Meanwhile, expectations are low for any breakthrough on discussions to end the war in Ukraine also taking place in Geneva.

What factors are contributing to the UK's rising jobless rate?

Stephen Carroll 2:45
Western officials and analysts say President Vladimir Putin believes time is on his side and that support for Ukraine will peter out. Spokesperson for President Putin, Dmitry Peskov, says Russia is taking the talk seriously.
Dmitry Peskov 2:58
This time we intend to discuss a broader range of issues related to the territories and other matters connected to our demands. The presence of the chief negotiator, that is Medinsky, is now essential. Indeed, the delegation will now be expanded this time. In addition to Medinsky, Deputy Foreign Minister Galuzin and other officials will be there.
Stephen Carroll 3:22
Dmitry Pashtov speaking via a translator. Russia has spent months repeatedly striking Ukrainian cities, leaving hundreds of thousands without power in a bid to bring the country to its knees. But Bloomberg analysis suggests the war's human and economic cost to Russia is rising, especially in border regions. Both sides say any potential progress today would need to be agreed by their respective leaders.
Caroline Hepker 3:45
In other news, India and Germany have become the latest countries to discuss placing age limits on social media use. India's technology minister says New Delhi is talking to tech companies about the issue. It comes as Germany looks to set limits to access when it comes to social media platforms for people under 16.

How is wage growth affecting the UK labor market?

Caroline Hepker 4:05
After the Chancellor Friedrich Merz's coalition partners announced their support for the proposal,

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