ECONOMY

Many economists have warned that Trump's campaign proposals, which included imposing sweeping import tariffs and overseeing the largest deportation in US history, could cause a spike in inflation, forcing the Federal Reserve to keep interest rates higher for longer.

Britain's finance minister Rachel Reeves is expected to address parliament Tuesday to try and regain the confidence of markets in the face of rising pressure over the country's struggling economy.

Consumer prices picked up to 2.4 percent last month, as predicted by analysts for Bloomberg and financial data firm FactSet, and up from 2.2 percent in November.

The country has struggled this year to climb out of a slump fueled by a property market crisis, weak consumption and soaring government debt.

The 115.5 trillion yen ($730 billion) budget for the year from April 2025, greenlighted by the Cabinet, includes 8.7 trillion yen in defense spending.

Since ordering an invasion in February 2022, Russian President Vladimir Putin has repeatedly touted the "failure" of sanctions and hailed strong growth in the face of unprecedented uncertainty.

The Fed has made significant progress tackling inflation through interest rate hikes in the last two years, and recently began paring rates back in a bid to boost demand in the economy and support the labor market.

Economic output in the Gaza Strip plummeted by 86 percent in the first half of this year, and by 23 percent in the West Bank, according to recent Bank data, leaving the Palestinian economy on track to contract by 26 percent in inflation-adjusted terms this year.

The ECB cut rates again last week as inflation looked to be coming under control and the eurozone economy showed signs of weakness.

The agriculture industry was the biggest factor in the decline on the supply side of the economy, with transport, trade, and government services also contributing to the slowdown.

German third-quarter growth was downgraded Friday with official data showing it expanded even more weakly than previously thought, in a new blow for Europe's top economy as it battles multiple headwinds.

Among the woes facing policymakers are slumping domestic consumption resulting in deflationary pressure, a property sector bust and geopolitically fraught trade disputes.

Confronted with the return of Donald Trump, EU leaders on Friday are set to commit to deeply reform Europe's economy and tackle challenges highlighted by a blockbuster report.

Economists predict Beijing will approve hundreds of billions of dollars of help, with a focus on indebted local governments as well as cash for banks aimed at writing off non-performing loans.

Beijing has set a growth target of around five percent for 2024, but in the third quarter the country saw its slowest expansion in a year and a half as its post-pandemic recovery remained stubbornly uneven.

The economy ministry has said it expects "a renewed slight decline" after gross domestic product already shrank by 0.1 percent in the second quarter.

Britain's annual inflation rate fell to a three-year low in September, official data showed Wednesday, fuelling speculation that the Bank of England will resume cutting interest rates next month.

Officials have in recent weeks unveiled a string of measures to reignite the world's number-two economy and bring an end to years of depressed business activity with an eye to achieving five percent annual growth.

Gross domestic product grew 0.2 percent in the reported month compared with July, when output stalled, the Office for National Statistics said in a statement.

The consumer price index (CPI) slowed to 2.4 percent in September from a year ago, down from 2.5 percent in August, the Labor Department said in a statement.

The European Council president met Chinese Premier Li Qiang on the margins of a Southeast Asian summit in Laos as Beijing and the European Union impose tit-for-tat penalties on each other's imports in a row about subsidies and protectionism.

Policymakers voted 11-to-1 in favor of the larger cut to boost demand and bolster the labor market amid signs inflation was falling toward the bank's long-term two percent target, with Fed governor Michelle Bowman the only voting member of the committee to publicly back a smaller cut.

Authorities last month unveiled several stimulus policies -- from interest rate cuts to relaxing home-buying rules -- after struggling since the end of Covid restrictions to reignite growth and get business activity back on track.

The two are major economic partners but have butted heads in recent months over Beijing's generous subsidies for its domestic industries.

Beijing has struggled to kickstart the economy as officials target around five percent growth this year -- a goal analysts say is optimistic given the numerous headwinds, from a prolonged housing crisis to sluggish consumption.

The strike -- which involved 45,000 workers, according to the ILA -- paralyzed 36 ports from Maine to Texas, which handle an array of goods from food to electronics.

Minister of Finance Jack Chambers announced a 10.5-billion-euro ($11.6-billion) 2025 budget package, which included higher public infrastructure investment and social welfare support.

The United States is set to see inflation cool further towards policymakers' target, Federal Reserve chair Jerome Powell said Monday, with interest rates likely to come down over time, too.

Year-on-year consumer price increases in the single currency area slowed to 1.8 percent in September, down from 2.2 percent in August, thanks to falling energy costs.