We’ve summarised the top stories of the last week into an easily digestible briefing, so that you can stay up to date on what’s happening around the world. You can subscribe to receive the briefing in your inbox each week.

Business & Economics

1. Consumer prices in the USA have increased by 6.2% this October compared with prices this time last year. This is the highest rate of inflation seen in the US since 1990. Supply chain bottlenecks and major surges in demand, due to monetary and fiscal injections, are at the root of this increase. This brings into question when the Federal Reserve might increase interest rates for the first time since Covid-19 struck.

2. Uber is currently facing a major driver shortage in the UK, caused mainly by surging demand coupled with Brexit and Covid difficulties. Last week, Uber CEO Dara Khosrowshahi flew into London for 24 hours in order to tempt more drivers into the job. Many factors are contributing to the shortage: notably a lack of immigrant workers post Brexit and the rising costs of fuel.
   
   
3. Economists predict that a Christmas-induced consumer spending spree is unlikely to materialise this year, despite expectations. Consumer sentiment is at a low and although the levels of savings are extremely high (over £150 billion on deposit), they are unlikely to be spent until expectations for the economy’s future improve.

4. The UK hospitality sector has not yet recovered to pre-pandemic levels. Sales in bars and restaurants are still down 10% versus 2019 volume. Profit margins have decreased by a third throughout the industry with the costs of labour increasing by over 10% due to worker shortages.

5. When deciding whether to sell 10% of his Tesla stake, Elon Musk took to Twitter to poll his followers. The majority voted yes, and he has thus pledged to follow through. Since then, Tesla stock has had its worst week in 20 months, and Musk has already offloaded $5 billion worth of his shares (representing about 3% of his stake).

6. One of the world’s biggest conglomerates, General Electric, will be split into 3 separate companies. One focussed on healthcare, one on energy and power, and one on aviation. This is due to investors having complained that the size of the company was hindering profits. These changes will all have taken place by the end of 2024.

7. Johnson & Johnson has announced plans to spin off its consumer division to focus on medicines and medical devices. The consumer division is known for Band-Aid plasters and Listerine mouthwash. The trend of demerging Big Pharma companies is not new – GSK and Pfizer are planning to spin off their consumer health brands next year.

Politics

1. The COP26 global conference concluded last week, as a global deal was signed by participant nations. The Glasgow Climate Pact is the first climate deal to actively reduce coal, recommending more emission cuts and more climate funding towards developing countries. However, critics say that the agreement does not go far enough to limit temperature rises to 1.5^oC.

2. The Tory sleaze saga is continuing, with Andrew Bowie MP stepping down as Conservative Party vice-chair. Geoffrey Cox MP was found to have conducted legal work from his state office and Douglas Ross MP admitted to not reporting earnings that he had received from second jobs. These scandals may spell real political change, since the Labour Party seems to be ahead of the Tory party in the polls.

3. Russia and Belarus are in a tense stand-off due to a growing migrant crisis at the Belarus-Poland border. The EU has condemned Belarus, accusing dictator Alexander Lukashenko of deliberating provoking the situation. Lukashenko has also threatened to cut off gas supplies to Europe.

4. Sara Duterte, daughter of Philippines President Rodrigo Duterte, has announced her candidacy for vice-president in next year’s elections. Duterte, currently mayor of the city of Davao, is planning to be running mate for Ferdinand Marcos Jr, son of the former dictator Ferdinand Marcos.
   
   
5. Former Trump aide Steve Bannon has been indicted for contempt of Congress. Bannon had refused to comply with a subpoena issued in the Capitol attack investigation. The charges against Bannon could lead to up to $2,000 total in fines and up to one year in jail. Merrick Garland, the attorney-general, said this indictment showed his dedication to provide equal justice under the law.

6. Australia issued a statement indicating that it was “inconceivable” that they would not support the United States in defending Taiwan from China. In case of direct Chinese aggression, Australia would be ready to join the US in military action as well. This comes after the controversial AUKUS deal to provide Australia with nuclear-powered submarines.

7. Chinese President Xi Jinping has issued a “historical resolution” to mark the 100th anniversary of the Chinese Communist Party. This announcement, a summary of the party’s history, achievements, and aspirations, was passed at the sixth plenary session. President Xi is only the third Chinese leader, after Mao Zedong and Deng Xiaoping, to have published this resolution. Observers note that this is an attempt by Xi to cement not only his current power but also his historical legacy.

8. Austria and the Netherlands have tightened their Covid-19 restrictions in order to prevent further outbreak. Austria has suggested plans to impose curbs on unvaccinated residents, while the Netherlands is going back to another national lockdown. Austria’s chancellor, Alexander Schallenberg noted that the rights of the vaccinated should be protected. Currently, the Austrian vaccination rate is under 67%, one of the lowest rates in the EU.

Written by Ollie Weldon and John Chang