Today’s Top Stories
The UK economy shows faster recovery than expected from the pandemic and is no longer the worst G7 performer, according to revised official statistics. GDP in the three months to June was 1.8% above pre-pandemic levels, compared to the previously estimated 0.2% below.
The world’s financial stability watchdog is launching an investigation into the build-up of debt outside traditional banks in an effort to limit hedge funds’ borrowing and increase transparency.
HSBC’s head of public affairs is stepping down after making a public apology for criticizing the UK government’s dealings with China and US pressure.
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Bond markets globally rebounded after heavy losses as signs of inflation easing in the US and Eurozone emerged.
The US “core” personal consumption expenditure index fell from 4.3% to 3.9% in August, indicating weakening consumer spending due to high interest rates. US stocks and government bonds were set for their worst month of the year before this data release.
Eurozone inflation fell from 5.2% to 4.3% in September, with the core figure dropping to 4.5% from 5.3%. This has fuelled expectations that the European Central Bank might end its programme of interest rate rises.
Germany also experienced a drop in inflation to a two-year low of 4.3% from 6.4% in August. France’s inflation was lower than expected at 5.6%.
Need to Know: UK and Europe Economy
Two UK data points highlight the impact of higher interest rates on lending: money supply contracted for the first time since at least 2010, and mortgage approvals fell to a six-month low.
Alberto Núñez Feijóo, Spanish opposition leader, failed in his attempt to form a government following an inconclusive general election. Acting prime minister Pedro Sánchez will now get a chance to secure another term, but will need the support of hardline Catalan separatists.
Businesses are preparing for the EU carbon border tax, which will impose new costs on imports into the bloc starting from October 1.
The European Central Bank is experimenting with generative artificial intelligence to speed up various activities such as drafting briefings, summarising banking data, writing software code, and translating documents.
Novo Nordisk’s Wegovy anti-obesity drug has prevented Denmark from falling into recession, but authorities are concerned about the country’s over-reliance on a single company.
Need to Know: Global Economy
Goldman Sachs predicts a 90% chance of a US government shutdown starting on Sunday.
The Biden administration plans to hold a record low number of offshore drilling leases over the next five years, which is a blow to the oil and gas industry.
China is undergoing a reshuffle of top officials, with a new finance minister, head of the People’s Bank of China, and leader of the National Development and Reform Commission.
Economists warn of hyperinflation in Argentina following its October election due to a spending spree and pledges to dollarise the economy.
In Lebanon, despite the banking and economic crisis, wealthy individuals continue to party by withdrawing their money from banks and transferring funds abroad.
Need to Know: Business
Western companies operating in Russia are facing difficulties repatriating profits and an increasing risk of state seizure.
The European travel sector remains optimistic after a summer boom, but demand is starting to weaken in the US.
Former Apple designer Sir Jony Ive is in talks with ChatGPT creator OpenAI to develop the “iPhone of artificial intelligence”, backed by over $1bn in funding from SoftBank.
Global dealmaking is at a 10-year low due to high interest rates and strengthened antitrust laws.
Science Round-Up
A Nasa spacecraft has returned to Earth with rock and dust samples from the 4.7 billion-year-old asteroid Bennu, providing clues to the origin of the solar system.
Molnupiravir, a Covid antiviral drug, has produced permanent mutations of the coronavirus, raising questions about its usefulness and the spending on its procurement.
“Inverse vaccines” have the potential to revolutionise the treatment of autoimmune diseases such as multiple sclerosis and type 1 diabetes.
Investment in businesses spun out from UK universities has declined in 2022 and the first half of 2023, sparking a call for action to encourage funding.
Intellectual property is a significant stumbling block in discussions about a new global pandemic agreement at the World Health Organization.
The State of Nature report paints a bleak picture of the continued deterioration of wildlife in the UK, with 16% of surveyed plant and animal species threatened with extinction.
Some Good News
As an antidote to depressing environmental news, scientists have discovered a new species of bird of paradise in Indonesia.
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