UK Economics

1. On 20 November the ONS announced that UK CPI inflation in the twelve months to October 2024 came in at 2.3%. This marks an increase from September where the rate stood at 1.7%. 
2. The ONS also announced that retail sales volumes fell by 0.7% in October, with fashion retailers particularly affected. This marks a reversal of fortunes for retailers, who had seen sales volumes increase by 0.8% in the August-October period.
3. On 25 November Rain Newton-Smith, Director General of the Confederation of British Industry, blamed Labour’s recent tax-raising budget for fuelling a decline in business confidence in recent months.
4. However, speaking to the same CBI conference Rachel Reeves defended the government’s budget, stating that she is “not coming back with more borrowing or more taxes” going forward. 

World Economics

1. Mexico’s President Claudia Sheinbaum warned of retaliation against US President-elect Donald Trump’s proposed tariffs on Mexican exports, particularly targeting US carmakers. The Mexican peso weakened by 1.7% amid the trade tensions. Sheinbaum emphasized Mexico’s efforts on migration control and drug seizures, rejecting tariffs as a solution. 
2. Eurozone inflation rose to 2.3% in November, surpassing the ECB’s 2% target, mainly due to energy price base effects. Economists predict the ECB will cut rates by 0.25% to 3% in December, as underlying inflation trends remain weak, especially in services.
3. China’s long-term bond yields have fallen below Japan’s for the first time, reflecting concerns over entrenched deflation in the Chinese economy. Despite monetary and fiscal stimulus, yields continue to drop as investors seek safer assets, echoing Japan’s 1990s stagnation.
4. The Bank of Korea cut interest rates to 3%, citing slowing growth and potential risks from Donald Trump’s re-election and tariff threats. South Korea faces challenges from weaker exports, a strong US dollar, and rising inflation due to its reliance on imports.

UK Politics

1. On 27 November, the UK Supreme Court retired to consider their ruling in the long-running legal battle between the Scottish government and the campaign group For Women Scotland. Their decision is expected to determine how transgender individuals are treated under the Equality Act.
2. On 29 November, the assisted dying bill introduced by Labour MP Kim Leadbeater passed the Commons with a majority of 55. The bill will now move forward to the Lords before it can pass into law.
3. Also on 29 November, Transport Secretary Louise Haigh resigned from the cabinet, after it emerged she had pleaded guilty to a fraud offence in 2013. Heidi Alexander has been appointed as her successor. 
4. The newly elected Prime Minister of Mauritius, Navin Ramgoolam, has asked for an independent review of the deal, still unsigned, under which the UK will relinquish sovereignty over the Diego Garcia archipelago in the Indian Ocean. 

World Politics

1. American President-elect Donald Trump has threatened to impose a 100% tariff on countries part of BRICS – a geopolitical bloc involving nine countries, including Russia, China and India – if they pursue creating a common new currency.
2. On 29 November, Ukrainian President Volodymyr Zelenskyy suggested that unoccupied parts of Ukraine should be taken “under the NATO umbrella” in order to end the war in a Sky News interview. Ukraine is currently not a NATO member.
3. On 26 November, a U.S. Court dismissed the last remaining federal criminal case against President-elect Donald Trump concerning his handling of classified documents. Special Prosecutor Jack Smith, who was appointed in November 2022 to investigate Trump, has clarified that the case was dismissed because the Justice Department is banned from prosecuting a sitting president.
4. Yamandú Orsi, candidate of the Frente Amplio (Broad Front) coalition, was elected as Uruguay’s 43rd president on 25 November. Mr Orsi, a former history teacher who will assume office in March, beat his conservative opponent Álvaro Delgado by more than three percentage points in the run-off election.

Written by Edgar Brown, Shreyas Veturi and Keshav Hajarnavis