Elections and inflation loom over holiday season

6 hours ago

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Greetings and welcome to the start of the week!

As the holiday season kicks in, many of you may be out of the workplace. Whether you're enjoying mince pies or latkes in the coming week, you’ve probably felt the sting of inflation in your rising grocery expenses and the long lists of gifts you need to buy. This week, especially on Boxing Day, expect detailed coverage about consumer spending as reporters explore how sustained high interest rates are impacting people's budgets.

Although the festive mood will take center stage in the news, there are significant happenings to keep an eye on globally, as the three key themes for 2024—elections, conflict, and rising prices—remain important topics in the background.

On Tuesday, Maia Sandu, Moldova's newly elected president who supports EU alignment, will be sworn in. She won a tight election last October, even with claims of Russian interference, which positions the former Soviet nation toward joining the EU. Meanwhile, Georgia is set to inaugurate Mikheil Kavelashvili, a strong pro-Russian leader, as its president this Sunday. Additionally, Croatia will kick off its presidential election with the first round of voting on Sunday. Despite the challenges, democracy remains resilient and determined.

Kazuo Ueda, the governor of the Bank of Japan, is set to give a speech on Christmas Day. Economists will closely analyze his remarks for insights into how the tariffs proposed by president-elect Donald Trump might influence Japan's monetary policy moving forward. Additionally, the minutes from the Australian central bank's latest meeting on interest rates, which will be published on Tuesday, will provide more context on how decision-makers are considering geopolitical risks.

On Monday, the UK will release its GDP figures for the third quarter, following several months of unsatisfactory economic reports for Chancellor Rachel Reeves. Economists expect yet another weak performance, which may undermine the government's ambitions for economic growth.

There's not much corporate news available, as most Western stock markets are shut on Christmas Day. Still, investors are keen to see if the "reality check" that Wall Street experienced last week will persist. The UK market will also be closed on Boxing Day.

In my family, Christmas Day is all about one thing: board games. This week, I’m heading up to Leeds with Catan and Ticket to Ride in hand. (I’m a bit worn out from always winning at Scrabble against my siblings.) For as long as I can recall, I’ve cherished the time spent playing games together at the table. It’s unfortunate that not all FT writers feel the same.

What games are you diving into this week? I'd love to hear about it at [email protected].

Essential Economic And Company Reports

Here's a detailed overview of the company reports and economic information you can anticipate this week.

UK: Third Quarter GDP Data Released

The Reserve Bank of Australia has published the notes from its most recent policy discussion.

Bank of Japan chief Kazuo Ueda delivers a speech.

Christmas Day: Markets in the UK, US, and other regions are closed.

UK: The London Stock Exchange is shut for Boxing Day.

Russia has published information regarding unemployment rates, wage levels, and retail sales figures.

To wrap things up, here’s a summary of additional happenings and significant moments from this week.

Mozambique: The highest court is expected to issue a ruling on the nation's contested election next month.

Albania: Opposition groups plan to obstruct roads in their call for Prime Minister Edi Rama to step down.

Moldova: Ceremony for the swearing-in of president-elect Maia Sandu

Vatican: Pope officiates Christmas Eve service

UK: King Charles shares his yearly Christmas address

Commemorating the 20th anniversary of the Indian Ocean tsunami, memorial services took place throughout Asia.

South Korea: The nation's constitutional court has conducted its initial public hearing regarding the impeachment proceedings against President Yoon Suk Yeol.

The Celebration of the Holy Innocents

Croatia: Voting begins for the initial round of the presidential election.

Georgia: Inauguration Ceremony for Newly Elected President Mikheil Kavelashvili