Global lender to 191 member states, focused on financial stability and growth.
Prime Minister Andy Burnham has offered a "structured dialogue" with countries and campaign groups affected by the transatlantic slave trade and has said he is open to calls for a formal state apology, while rejecting proposals for financial reparations and proposing international debt-relief measures ahead of the Commonwealth summit.
The euro has fallen to near 17-month lows after investors have pushed up French borrowing costs and bond spreads. France has faced rising yields, mass protests and a political stalemate over deficit cuts ahead of the presidential election. Markets are pricing greater contagion risk across the eurozone and the ECB is under pressure to act.
The IMF and UN officials have warned at annual meetings in Bangkok that rising energy prices from the US–Iran war, the strongest El Niño on record and higher global interest rates have pushed low‑income, energy‑importing countries toward fiscal crisis. AI investment has bolstered rich economies while poorer nations are paying more of their revenue to service debt and losing fiscal space.
Germany’s ruling coalition is pursuing reforms to pensions, long-term care, and an income-tax cut as leaders from the CDU and SPD meet in Berlin after constructive talks at the chancellery.
IMF projections show the Middle East and Central Asia contracting 0.3% in 2026, with the Gulf facing deeper contractions in Kuwait, Iraq and Qatar. Saudi Arabia flexes with diversified export routes, while the broader region eyes a rebound in 2027 as supply lines normalize.
AI-related debt issuance is rising amid higher yields and rate expectations. Investors worry about distressed bonds as hyperscalers and AI firms fund data-center buildouts, potentially triggering wider market stress even as equities hold firm. IMF warns of sovereign-bond risks.
The Saudi-led coalition has warned civilians in Sanaa to evacuate the al-Sabah oil facility area ahead of possible strikes. The Houthis have warned of a tough response, while multiple air and missile attacks have targeted Riyadh and other sites, prompting travel advisories.
Zelenskiy has been received in London with strong UK support, while ministers announce accelerated delivery of missile systems and new sanctions against Russia. The visit follows tensions after Trump’s diesel deal with Moscow and aims to reinforce allied unity and arms deliveries for Kyiv.
The CPI has risen to 3.7% over the past year, with a 0.6% monthly gain, driven by higher energy and fuel costs amid the Iran conflict. Core CPI has accelerated to 2.6%, complicating the Fed’s rate decisions as markets price in further hikes.
The UN has set up a taskforce to move fertilisers through the Strait of Hormuz. Moreira da Silva says activation could come within seven to 10 days if Washington and Tehran agree. Five vessels per day could keep fertiliser flowing to countries in need, while a broader deal on navigation remains pending.
Global markets are volatile as AI-linked shares retreat amid funding risks. SK Hynix’s Solidigm reviews have been halted due to market conditions, while other AI infra players face investor scrutiny. The Kospi, Nasdaq, and European indices are all showing declines as inflation and rate expectations fuel selling.
The Houthis have fired multiple missiles at Aden’s Al-Maashiq Palace, the government says the prime minister and cabinet ministers are unharmed. Attacks also target Marib, while government forces push back Houthi fighters around Taiz amid heavy clashes.
The IEA reports tight diesel supply as demand remains fragile amid geopolitical shocks and shale and Gulf disruptions. The U.S. and Europe are considering stock releases to ease prices, while market volatility persists.
The Federal Reserve has shown no clear path for future rate moves as global central banks tighten. Officials emphasise they do not prejudge meetings, while data suggest inflation remains sticky. Markets are pricing in a likely hold at the October meeting, but risks of a December hike persist.
The Treasury has reported that federal net interest costs for the 2026 fiscal year have reached about $1.05 trillion, making debt service the third-largest federal outlay and larger than defense. The fiscal deficit has widened to roughly $2 trillion for the year, driven largely by higher interest payments as Treasury yields have climbed.
The government has signalled that a third Heathrow runway remains central to plans for growth, while ministers study responses to a public consultation. Heathrow’s owners say expansion would boost the economy and create jobs, but critics warn of climate risks and local disruption as planning hurdles loom.
Delegates at the IMF-World Bank meetings in Bangkok have walked out as Russia’s finance minister addressed the room, underscoring Europe’s stance on Moscow and signaling ongoing strain in global economic diplomacy. The incident follows tense debates over Russia’s role at the G20 and broader sanctions dynamics.
The IMF has signaled firm policy and financial support for Iraq and Lebanon during annual meetings in Bangkok, with discussions ongoing and a willingness to back programs as authorities outline priorities.
Egypt has offered "all necessary and possible" support to Saudi Arabia after repeated Houthi drone and missile strikes on airports, oil facilities and cities. President Abdel Fattah el‑Sisi has asked parliament for emergency authorisation to deploy forces if Riyadh requests help and Cairo says any intervention will be defensive and paired with diplomatic de‑escalation.
IMF and Gulf states report that diversified export routes, robust reserves, and swift policy action are keeping Gulf economies resilient amid regional instability and a global energy shock. Saudi investments in energy infrastructure and regional cooperation are key factors in weathering disruption.
China has reported a 4.5% year-on-year GDP growth for Q3, with exports lifting the economy while domestic demand remains fragile. Analysts say the tech sector and AI-related demand underpin the uptick, even as investment and property drag on overall momentum. The government’s target of 4.5%–5% for 2026 appears achievable, aided by export strength and ongoing policy support.
The Future Investment Initiative, often dubbed “Davos in the Desert,” has been postponed to 2027. Organizers say the decision aims to deliver the event’s expected scale, quality, and impact, with new dates to be announced soon. Attendees previously expected speakers from Goldman Sachs, Google, BlackRock and others. The postponement follows regional security strains, including Houthi attacks on Saudi Arabia.
Markets are balancing AI-driven exuberance with rising debt issuance and midterm uncertainty. Morgan Stanley warns of near-term pressure as stocks face three clearing events; margin debt slows from peaks, while Treasuries attract buyers amid debates on the AI boom’s durability.
Elon Musk has said special committees at Tesla and SpaceX are exploring a possible merger and that combining the firms "would be a good idea." He has recused himself from the committees. The proposal would require approval from at least 50% of Tesla shareholders and has sparked stock movement and renewed debate over control, AI and national-security implications.
Sailors aboard Iranian vessels have been brought to Sri Lanka’s Galle port for medical treatment after a distress call. Sri Lankan authorities coordinated the operation with the Iranian Embassy and local shipping agents. After treatment, the sailors were repatriated to Iran as the US-led blockade of the Strait of Hormuz continues.