UK Economics

1. Retail sales volumes fell by 0.7% in October 2024 within the UK, with fashion retailers being affected the most. This decline follows the 0.8% increase in sale volume observed in October 2024 – shedding light on challenges in the retail industry.
2. According to the ONS, the UK’s Consumer Price Index (CPI) in October 2024 was at 2.3%, up from the 1.7% reported in September 2024; Rising inflation has raised concerns about consumer spending and its potential effect on the cost of living. 
3. Chancellor Rachel Reeves defends the government’s budget and declared that there would be no further borrowing or taxes, aiming to reassure businesses and markets amid economic uncertainties. This statement comes as a result of recent data revealing the expected real domestic growth of the UK was lower than the expected growth (0.9% instead of 1.1%).
4. January has been proven to be challenging for retailers across the UK as a result of Labour’s recent tax-raising budget, which won’t be changed until 2026. Retailers are also closing as a result of the rise of online shopping, says Ashley Armstrong (The Sun’s business editor).

UK Politics

1. The UK government is considering increasing the limit of foreign state ownership of British news outlets from 5% to 10%. This potential policy change aims to address concerns about foreign influence over UK media while facilitating media industry deals. Labour’s new policy contrasts with the Conservatives, who used to ban foreign states from owning stakes in the UK news sector.
2. Nigel Farage has contacted Prime Minister Keir Starmer, offering to act as an intermediary with US President Donald Trump, as he stated he has the new US regime “on speed dial”. Farage emphasizes the importance of a strong relationship for intelligence, defense, and trade, offering his assistance in navigating future US-UK challenges. 
3. Chancellor Rachel Reeves is attending the World Economic Forum in Davos to attract investment for green energy projects in the UK, following her trade mission to China last week. She plans to meet with sovereign wealth funds, American private equity firms, as well as Gulf states, who are seeking to diversify away from oil investments.
4. Dan Carden, Labour MP, is the first to raise a national inquiry into the mass rape of young women by ‘grooming gangs’, saying that we should “question and challenge the orthodoxy of progressive liberal multiculturism that led to authorities failing to act”; His call gained international attention, as Elon Musk praised his integrity. 

World Economics

1. The prospects of the South Korean economy are fading. The further weakening of the Won against the dollar – a 10 per cent decrease in the fourth quarter of 2024 – has brought the exchange rate to a 15-year low in early January, inducing plummeting consumer confidence. In hopes of a stronger currency, the Bank of Korea has maintain the policy rate at 3 three per cent against low economic growth 
2. With growing competition from China in various industries such as that for semiconductors, the Korean economy has taken a great hit in export markets on which it is highly reliant. The fall in derived demand for exports has caused various problems for the labour market, resulting in low job growth.
3. Having undergone decelerating economic growth in the first three quarters 2024, the Chinese economy recovered in the final quarter with 5.5%, hitting its growth target. With Trump’s aggressive tariff hikes on Chinese imports, China aims to steer away from an export-driven economy to domestic consumption.
4. The release of the $TRUMP meme coin saw an increase in market capitalisation of $5.5 billion in the short span of its introduction. With Trump-affiliated organisations such as CIC Digital LLC acquiring 80 percent of total stock, Mr Trump’s net worth rose steeply by $200 million on the day of release.

World Politics

1. As of 12:01 a.m. EST on January 19, TikTok was officially made inaccessible to its US users. The ban, upheld by a unanimous decision by the Supreme Court with sufficient rationale over concerns of data security and data collection practices, was put into effect. However, President-elect Trump has recently shown his boisterous support for the continuation of the app, saying that he will “most likely” grant a 90-day extension when he assumes office; this is in stark contrast to his stance in opposition during his first term when he advocated for the ban. Yet the provisions of the law condition that divestiture opportunities must be proven for the extension to be enacted. 
2. TikTok CEO Show Zi Chew has shown gratitude for Trump’s support and plans, under invitation by the President-elect himself, to attend the presidential inauguration on Monday along with Elon Musk, Jeff Bezos, and Mark Zuckerberg.  With donations from them and various corporate donors, the inaugural committee expects to surpass its $107mn record donation sum set by Trump in 2017.
3. Anti-corruption protest rages on in Belgrade, Serbia, after a deadly canopy collapse at a railway station in Novi Sad, killing 14. The government – under the leadership of President Aleksandar Vučić – is accused of partiality towards loyal members of Vučić’s Serbian Progressive party over those more competent for the position and being equivocal in reporting the incident.