UK Economics

1. On 12 November the Office for National Statistics announced that the UK unemployment rate rose to 4.3% in the three months to September, up from 4% last quarter. Uncertainty surrounding the recent budget, particularly the increase to employer national insurance, has been blamed by some for this rise in unemployment.
2. Figures released on 15 November also suggest that the UK economy grew by just 0.1% in the three months to September, and shrank in the month of September itself. This marks a sharp downturn compared to Q2 of this year, which witnessed 0.5% growth. 
3. On 13 November Rachel Reeves announced a major reform of public sector pensions. The government now intends to merge the UK’s 86 council pension schemes, which hold assets worth £354bn, into a few “pension megafunds”. The move is intended to improve efficiency and unlock an additional £80bn worth of investment into the UK.
4. On 14 November, in his annual Mansion House speech, Bank of England Governor Andrew Bailey stated that the UK ought to “rebuild relations” with the EU, though clarifying that “I take no position on Brexit”. The threat of a new Trump administration applying tariffs on UK exports has led some to call for a better trading relationship with Europe.

World Economics

1. Hungary has become Europe’s top recipient of Chinese investment, with major projects like EV factories boosting the economy amid EU funding cuts. Hungary’s Prime Minister Orbán faces challenges balancing ties with China and the US while dealing with a recession and criticism over neglected infrastructure, particularly the rail system.
2. European markets are lagging behind US stocks, with the Stoxx Europe 600 up only marginally and the euro at a one-year low. Investors fear Trump’s tariffs and the ECB’s rate cuts will hurt Europe’s economy, while US stocks thrive on growth and deregulation. European companies, particularly in manufacturing, face increased costs and uncertainty.
3. Mexico’s government plans a 3.9% GDP deficit for 2025, higher than expected, amid an economic slowdown and Trump’s tariff threats. The budget cuts spending in areas like healthcare but boosts social programs and debt payments for Pemex. Analysts are sceptical about the budget’s credibility, citing low tax revenues and investment cuts. Congress still needs to approve the plan.
4. TSMC (Taiwan Semiconductor Manufacturing Company) has secured over $11bn in US grants and loans for its Arizona chip factories, marking the largest foreign manufacturing investment in US history. The deal supports the Chips Act’s goal of boosting US chip production. However, the future of such subsidies is uncertain with Trump’s election.

UK Politics

1. On 11 November Keir Starmer became the first Prime Minister since Churchill to attend Armistice Day commemorations in Paris. In a joint statement with President Emmanuel Macron, the two leaders pledged to support Ukraine for as long as necessary “to thwart Russia’s war of aggression”.
2. Also on 11 November, Labour MP Kim Leadbeater introduced a bill which aims to legalise assisted dying in the UK. If passed, the bill would allow those with terminal conditions to end their lives if they receive independent approval from two doctors.
3. On 12 November the SNP’s Westminster leader, Stephen Flynn, announced that he intends to stand in the 2026 Scottish Parliament elections in the Aberdeen South and North Kincardine seat. He has sparked controversy by stating that he would not give up his Westminster seat should he win the election.
4. Also on 12 November, Sue Gray announced that she would not take up her post as the Prime Minister’s ‘Envoy to the Nations and Regions’. Keir Starmer’s former chief of staff had been offered the role after being forced out of her Downing Street position in October.

World Politics

1. On 13 November, the American Republican Party was declared to have retained their majority in the House of Representatives. The result means that the Republicans have secured a governing trifecta, having already won the presidency through President-elect Donald Trump and the Senate. On 13 November, Mr Trump met with President Joe Biden at the White House to discuss the ‘peaceful’ transfer of power.
2. Earlier this week, President-elect Donald Trump selected former congresswoman Tulsi Gabbard to be director of national intelligence, as well as choosing businessmen Elon Musk and Vivek Ramaswamy to lead a new government efficiency department. In a major rebuke to Mr Trump, Senator John Thune was elected as the next Senate majority leader. Mr Thune has been a vocal critic of the former President’s attempts to overturn the results of the 2020 election.
3. The Lebanese government is reportedly considering a US-drafted ceasefire proposal which aims to halt the war between Israel and Hizbollah. A Lebanese government official outlined that the proposal entails an initial 60-day ceasefire period, which is based on UN Resolution 1701 that also ended the 2006 war between Israel and Hizbollah.
4. German Chancellor Olaf Scholz spoke to Russian President Vladimir Putin for the first time in two years on 15 November. Ukrainian President Volodymyr Zelenskyy has deemed the exchange to be “a Pandora’s box”, reasoning that resuming contracts with Western countries would end Russia’s global isolation since the start of the war in February 2022. 

Written by Edgar Brown, Shreyas Veturi and Keshav Hajarnavis