A week of high drama and significant global developments has seen US inflation data provide a dovish surprise, President Donald Trump wield his executive power with a high-profile pardon and a stunning diplomatic reversal, and Japan make a historic political breakthrough.
These events have reshaped the political and economic landscape, creating a complex and often contradictory picture as markets head into a new week.
Here’s a breakdown of the key events that transpired in the week.
US inflation eases in September, but October data is at risk
The US consumer price index (CPI) rose 0.3% in September, bringing the annual inflation rate to 3%, the Labor Department said on Friday.
The reading was marginally below economists’ expectations.
Core CPI, which excludes volatile food and energy prices, also undershot estimates, a sign of continued moderation in price pressures.
However, the White House warned on Friday that the ongoing government shutdown, now in its fourth week, will likely prevent the release of October’s inflation data, as the funding lapse has forced data surveyors to stay off the field.
President Trump pardons Binance founder Changpeng Zhao
President Donald Trump has issued a pardon to Changpeng Zhao, the co-founder of the world’s largest cryptocurrency exchange, Binance, who had previously pleaded guilty to charges related to inadequate anti-money-laundering controls.
White House Press Secretary Karoline Leavitt described the pardon as a corrective measure against what she termed the Biden administration’s “war on cryptocurrency.”
As part of a 2023 plea deal, Binance itself agreed to pay roughly $4.3 billion in penalties, and Zhao was sentenced in April 2024 to four months in jail.
Trump terminates all US trade negotiations with Canada
President Donald Trump announced on Thursday night that he is terminating all US trade negotiations with Canada.
The stunning move was a direct response to a TV ad from the Ontario provincial government that featured former President Ronald Reagan speaking negatively about tariffs.
Trump seized on a complaint from The Ronald Reagan Presidential Foundation that the ad was “FAKE” and accused Canada of trying to “interfere with the decision of the US Supreme Court” on the legality of his tariff regime.
Trump-Putin summit on the Ukraine war put on hold
An eagerly awaited meeting between US President Donald Trump and Russian President Vladimir Putin has been put on pause after Moscow rejected a US-backed call for an immediate ceasefire in Ukraine.
Officials say the key snag is that the US and its European partners have pressed for a ceasefire along the current front lines as the first step toward talks, while Moscow continues to press for territorial and political preconditions that Kyiv and its allies reject.
Japan’s parliament elects Sanae Takaichi as its first female prime minister
Japan’s parliament has elected the staunch conservative Sanae Takaichi as the country’s first female prime minister.
The 64-year-old won a clear majority in the powerful Lower House on Tuesday as the leader of the ruling Liberal Democratic Party (LDP).
Her path to the top job was secured by a last-minute coalition deal with the right-leaning Japan Innovation Party.
An admirer of the late former UK PM Margaret Thatcher, Takaichi takes over at a challenging economic moment for the world’s fourth-largest economy.
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