Keir Starmer to meet Chinese President Xi

📍Top line: Prime Minister Keir Starmer will meet Chinese President Xi Jinping at the G20 summit in Rio de Janeiro today, marking the first direct engagement between a UK prime minister and the Chinese leader in six years. The planned meeting comes as Starmer seeks to reset UK-China relations amid concerns from human rights groups.

Key Points:

• Historic Meeting: Starmer will be the first UK prime minister since Theresa May in 2018 to meet Xi Jinping, aiming to reframe relations between the nations.

• Economic Focus: The Labour government views improved ties with China as critical to achieving the UK’s growth ambitions, citing China's status as a top trading partner and the world’s second-largest economy.

• Labour’s Diplomatic Shift: Foreign Secretary David Lammy recently visited China, and Chancellor Rachel Reeves plans to travel to Beijing in January to explore economic opportunities.

• Challenges to Engagement: UK-China relations remain strained due to cyber threats, sanctions on UK MPs, and human rights issues in Hong Kong. Concerns also persist over national security risks tied to closer ties.

• Broader Summit Agenda: Starmer’s G20 agenda includes bilateral talks with at least eight world leaders and discussions on climate, economic growth, and international stability.

Shein targets bumper London IPO

📍Top line: Shein, the Chinese-founded online fast-fashion giant, is planning a blockbuster £50 billion initial public offering (IPO) on the London Stock Exchange in the first quarter of 2025, according to The Times. The move marks a significant shift for Shein, which initially aimed to list in the US but pivoted to London following regulatory hurdles. 

Key Points:

• Valuation: The flotation could value Shein at £50.3 billion, making it one of the largest London Stock Exchange deals in a decade.

• Investor Roadshow: The company plans to host meetings with institutional investors in the coming weeks, led by Goldman Sachs, JP Morgan, and Morgan Stanley.

• Pivot from US to UK: Shein abandoned plans to list in the US after the SEC required a public filing, opting for London instead.

• Leadership Engagement: Founder Chris Xu and executive chairman Donald Tang have been meeting investors in the UK and the US to gauge interest.

• Regulatory Concerns: The IPO faces scrutiny over Shein’s supply chain practices, labour conditions, and environmental impact.

• Global Threat: Shein’s low prices and fast-fashion model have disrupted Western rivals like Zara, H&M, and Asos, while newer competitors like Temu are adopting similar strategies.

Elsewhere in business:

🍕 Pizza Hut UK is seeking to raise over £10 million to offset soaring costs from tax hikes and wage increases announced in the Budget. The funds may come from a partial sale or shareholder investment. The company will use the money to develop cost-cutting tech like touch-screen kiosks, which could result on fewer staff longer term.

🚢 A Florida-based cruise company is offering US voters a four-year escape during Donald Trump’s presidency. Villa Vie Residences’ "Tour La Vie" offers four packages, including a journey to over 425 ports in 140 countries, starting at $160,000 per person. The packages, humorously marketed to Democrats, promise a global getaway to avoid the the next presidential term.

‘London-style’ buses to be introduced nationwide

📍 Top line: The UK government has pledged almost £1 billion to deliver ‘London-style’ bus services nationwide, aiming to boost reliability, frequency, and affordability for millions of passengers. Here's how the funding will be used:

Key points:

• Funding details: £712 million for local authorities and £243 million for operators to improve routes and frequency.

• Target areas: Leicester, Isle of Wight, South Yorkshire, Liverpool City Region, and rural communities.

• Buses Bill: Local authorities may gain powers to franchise routes and fares, and the ban on publicly owned bus companies will be lifted.

• Impact on rural areas: Funding aims to bridge gaps in underserved towns and villages.

Transport Secretary Louise Haigh has promised the funding will "vastly improve" services nationwide.

Elsewhere in the economy:

🏠 The UK is on track to see fewer homes built during the Labour government's term than under the previous Conservative administration, according to projections from the Office for Budget Responsibility (OBR). The OBR estimates that 1.3 million homes will be constructed across the UK during the current parliamentary period, compared to the 1.6 million homes built under the Conservatives.

💼 Young people who decline offers of training or apprenticeships may face cuts to their benefits under new back-to-work plans to be unveiled this month.The number of people off work due to long-term illness has reached a record 2.8 million, with the annual cost of sickness benefits surging from £40 billion pre-pandemic to £65 billion last year.

Barclays has opened applications to its 2025 Sales, Trading and Structuring Graduate Programme in London. Successful applicants will begin a career as a salesperson or a trader on a specific desk in one of the firm’s business areas. The scheme is open to graduates and undergraduates expecting to have completed their studies by Summer 2025. Apply now here.

Secret service using robot dog for Trump security

📍Top line: The US Secret Service has added Boston Dynamics' robotic dog "Spot" to its security team at Donald Trump’s Mar-a-Lago resort in Florida. Equipped with advanced surveillance capabilities, Spot bolsters Trump’s security following the two recent assassination attempts.

Key points:

• Deployment: Spot patrols the resort’s perimeter autonomously or via remote control. Secret Service agents also accompany the robotic dog for additional security.

• Technology: Outfitted with cameras, thermal sensors, and 3D mapping tools, Spot can detect threats and navigate tight spaces, stairs, and even open doors.

• Cost and Use: Priced at $75,000, Spot is becoming a popular tool for militaries and law enforcement globally. Similar devices are used for reconnaissance and bomb detection.

• Security Context: Trump’s security has tightened after two recent assassination attempts, including one at Mar-a-Lago in September.

• Controversy: While unarmed, robotic dogs face criticism over privacy and the potential for weaponisation.

Elsewhere in tech:

📱 Chinese smartphone manufacturers are intensifying their efforts to expand in Europe, targeting the premium device market with new innovations like foldable phones, advanced cameras, and superfast charging to attract consumers. Apple and Samsung currently dominate Europe’s premium smartphone market, accounting for 94% of phones priced above $700. The last Chinese brand to approach a 10% share in this segment was Huawei, before US sanctions forced its retreat.

📈 ByteDance, the parent company of TikTok, is valuing itself at approximately $300 billion as it launches its third share buyback program. ByteDance has been conducting share buybacks since 2022 as a means of providing liquidity, with no immediate plans for an IPO. Global revenue grew 30% last year to $110 billion, underscoring the company’s robust financial performance despite ongoing legal battles.

🎉 Tickets for the 2025 Glastonbury Festival sold out in a swift 35 minutes on Saturday, leaving many fans disappointed as they faced the infamous “green bars of doom” while queuing online, only to be told they had missed out. Sales opened at 9am, with all passes gone by 9:35am. Priced at £373.50 plus a £5 booking fee, this year’s tickets saw an £18.50 increase from the 2024 festival.

🥊 Netflix has announced that 60 million households worldwide tuned in on Saturday to watch Jake Paul defeat Mike Tyson in their much-anticipated boxing match. The 27-year-old influencer-turned-boxer faced off against the 58-year-old former heavyweight champion in an eight-round bout streamed live on the platform. While the fight lacked excitement, Tyson, known as “Iron Mike,” went the distance before losing on points to Paul.

🇺🇦 President Joe Biden has authorised Ukraine to use US-supplied long-range missiles to target sites within Russian territory. The decision marks a significant shift in US policy and may increase pressure on Britain, the US, and France to grant Ukraine similar permissions.