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.

UK Business & Economics

1. The Bank of England has increased the bank rate from 0.75% to 1%; the highest level seen in 13 years. This makes it the fourth consecutive increase in interest rates, despite the UK central bank’s previous warning that a recession and an unprecedented squeeze on household incomes was due later this year. 
2. UK households struggling with the cost of living crisis are having to resort to “increasingly desperate” measures to cover most basic expenses, with a recent surge in the popularity of “buy now, pay later” financing schemes. However, debt and energy advice groups have warned UK consumers that a better alternative is to reach out to their energy suppliers to renegotiate payments.
3. The British pound plummeted to a low of 1.2393, its lowest since July 1st 2020, after the Bank of England warned of a recession risk and that inflation could peak at 10% later this year. BOE Governor Andrew Bailey said the UK was set for a “very sharp slowdown”, but that the country might not meet the technical criteria for a recession (two straight quarters of contraction).

International Business & Economics

1. 2021’s data for US retail sales have been revealed, showing that the ecommerce sector saw 14.2% jump in sales, bringing growth in the retail sector back to pre-pandemic levels. Amazon alone has accounted for more than 40% of the total $870.78 billion spent by consumers online in the past year according to Digital Commerce 360. 
2. Sri Lanka’s finance minister has announced that the country’s usable foreign reserve level has dropped to below $50million. In recent weeks, the nation has plummeted into a devastating economic crisis forcing businesses shut and leaving millions of citizens with limited food security. On Thursday, student-led riots began in protest against the government’s handling of the situation, resulting in the use of tear gas by federal police.
3. The upcoming US consumer price index (CPI) is expected to show inflation that inflation rose at a rate of 8.1% per year in May compared to 8.5% in March – although these figures would keep inflation close to four-decade highs, it would show the first slowdown since August 2021.
4. China’s lockdowns, part of Xi Jinping’s zero-Covid Strategy, have caused major supply chain delays for both countries and companies worldwide . Tesla and Apple are among those affected from the closure of the world’s largest port in Shanghai, and there remains uncertainty over the long term effects of the stagnation of China’s economy.
5. OPEC+ has agreed to another production increase, raising its production targets by 432,000 barrels per day for the next month. This decision has been consistent with their strategy of gradually unwinding its record supply cuts, yet it is very unlikely the decision will have any significant effect on the price of oil, which remains above $100 per barrel.

UK Politics

1. Dominic Raab, the UK’s Deputy Prime Minister, has accused Sir Keir Starmer of “hypocrisy” after an investigation was launched by the Metropolitan Police into whether he broke Covid rules in 2021. The Labour leader has ruled out resigning himself, despite his calls for Boris to resign earlier this year.
2. The Scottish National Party is preparing for a second independence referendum, with the party leader Nicola Sturgeon promising a vote before the end of 2023. The UK government has so far refused to support the idea, yet Sturgeon has claimed “it is not up to them, it is up to the people of Scotland”.
3. The number of Conservative councillors elected in London has hit a new low, with fewer than 440 councillors winning seats. The party has lost power over key boroughs, including Westminster which has been held by the Tories since its creation in 1964.

International Politics

1. In the United States, abortion was made legal in 1973 under the famous case “Roe v Wade”. However, a leaked document, written by Justice Samuel Alito, was obtained by Politico news and suggests that the US Supreme Court might be in favour overturning the act to make abortion illegal in 22 US states.  
2. A rift between Russian and Israeli politics last weekend deepened on Tuesday, with Moscow claiming Israel is supporting a “neo-Nazi regime” in Kyiv. These comments provoked outrage in Israel, and the Israelis have since demanded an apology from the Russian ambassador.
3. The likelihood of a conflict in the South China Sea has increased as an arms race between China and its surrounding nations has arisen, says weapons expert Nan Tian. The remark comes as worldwide military expenditure has surpassed $2 trillion in 2021 for the first time ever, and the region is arming itself at an “alarming rate” in wakes of a “greater threat perception” created by China’s increased military spending.
4. Hungary has warned that they will veto the EU’s planned ban on Russian Oil imports as it would be an “atomic bomb” for the eastern-European nation’s economy. Almost 65% of the nation’s oil is sourced from Russia, yet EU sources have indicated Hungary would be willing to reach a unanimous agreement if it met country’s interests.
5. John Lee, former security minister, has been confirmed as Hong Kong’s next Chief Executive. It is claimed that Beijing supported his election and that no one else ran for the position after Carrie Lam announced she will not run for a second 5 year term. Lee won 1,416 votes from a selection committee consisting of mostly pro-Beijing politicians.

Written by Philip Weaver and Rob Webb