World Economics: 

• Investors, analysts, and policymakers are watching US economic data closely at the start of September. There is mounting pressure on the Federal Reserve to cut rates after weak job growth (only 22,000 jobs added in August) and rising unemployment. The Fed’s September 16th-17th meeting is expected to result in a modest rate cut (25 basis points) which may hurt the US dollar. 
• OECD Secretary General Mathias Cormann criticised both China and US President Trump for undermining the global trading system. Cormann highlighted Chinese industrial subsidies and US tariff policies as major disrupters to “fair markets,” merely escalating costs and threatening trust.  
• Investors have a lot riding on Thursday’s August US inflation report, which will likely affect Federal Reserve policy, particularly if the Consumer Price Index rises more than 0.3% expected after July’s 0.2% rise. The ECB is set to hold rates on Thursday, and the EU-US trade deal combined with better-than-expected data have wiped bets on further easing. Commodity markets also remain sensitive, with analysts predicting the run isn’t quite over for the ultimate safe haven, after spot gold prices hit a record high of $3,578.50 in recent days. 
• Whilst institutions such as the IMF have flagged increasing economic uncertainty, business sentiment has held surprisingly resilient. Surveys from Oxford Economics show that most firms delayed, but did not cancel, investment. Reduced tariff escalations and a dip in retaliation have helped avoid persisted stagflation.  
• On the 7th of September, The Guardian reported that China has surged as the most dominant global force in green energy, now installing more wind and solar capacity than the rest of the world combined. China now commands the majority share in clean technology manufacturing and exports. 

UK Political 

• Angela Rayner resigned on 5 September after underpaying around £40,000 in stamp duty, breaching the ministerial code. Keir Starmer responded with a reshuffle: David Lammy became Deputy PM, Yvette Cooper moved to Foreign Secretary, and Shabana Mahmood was appointed Home Secretary. Rayner’s exit may lead to a further blow to Labour’s working-class appeal and internal cohesion, building pressure on Starmer’s leadership ahead of November’s Budget. 
• Around 1,000 migrants arrived via small boats in a single day last weekend, the highest surge in weeks. The government is considering housing asylum seekers in military or former MOD sites, including Napier Barracks. 
• UK asylum applications hit a record 108,100 in 2024, rising to about 111,100 by mid-2025. Small-boat arrivals now make up roughly 30% of all asylum claims since 2018. 
• Nigel Farage rowed back on his pledge to stop small-boat crossings within two weeks if elected, admitting it would likely take months. Reform UK continues to gain voter momentum. 
• Ministers from the Five Eyes alliance, which includes Britain, America, Canada, Australia, and New Zealand—met in London to coordinate new cross-border initiatives to dismantle international people-smuggling networks and strengthen global border security. 

UK economics 

• Nearing the Autumn Budget, the UK government is dealing with unfavourable numbers. Recent turmoil in UK politics has sparked investor uncertainly and driven the 10-year guilt yield to 4.66 per cent. For long-term borrowing costs, the 30-year guilt hovered over 5.5 per cent, now the highest in the G7 countries and the highest since 1998.  
• The public finances continue to face deficits with spending occupying around 44 per cent of GDP against the 40 per cent in revenue. The increasing spending on interest payments, pensioner spending and health spending poses challenges for the chancellor as the UK battles with an ageing population. Recent failures in passing welfare reforms raises additional questions on the UK’s ability to suppress the deficit.  
• UK general government gross debt, as a percentage of GDP, is set to reach 104 per cent at the end of this financial year, rousing speculation over potential need for an IMF bailout.  

World Politics 

• A major military parade and diplomatic event in Beijing saw Presidents Xi Jinping, Vladimir Putin, Kim Jong Un, and India’s Prime Minister Narendra Modi assemble in a show of multipolar alignment, signalling a strategic challenge to the U.S.–led order.
• In France, Prime Minister François Bayrou is teetering ahead of a confidence vote on his government’s €43.8 billion in budget cuts—failure would deepen political instability, marking a fourth PM change in just two years. 
• U.S. President Trump signalled possible escalation in sanctions on Russia, including snap tariffs on countries buying Russian oil such as China and India. This comes amid criticism of his hosting of Putin in Alaska, a move that drew ire from Ukraine’s president. 
• Volodymyr Zelenskyy’s outreach for international support continues amid Russia’s intensified attacks—recent strikes on Ukrainian cities have galvanised allies to discuss bolstered defence collaboration, even as Putin avoids direct negotiation. 
• Norway held tightly contested parliamentary elections. While results remain close, the vote highlighted divisions over wealth taxes and the use of sovereign oil funds, reflecting wider public concerns over economic direction and social equity.