UK inflation continued to cool, though not evenly. Nvidia delivered another strong quarter, but markets remain unsettled. And in Japan, regulators are preparing a sweeping change that could reshape how the crypto industry develops globally. Here’s what it all means.
🇬🇧 UK Inflation Edges Down, But Food Prices Push Back
UK inflation eased to 3.6% in October, a small step in the right direction. The fall was largely driven by cheaper energy and utility costs feeding through the system. Wholesale gas prices have been on a gentler trajectory for months, and that’s now showing up in headline CPI. Lower transport costs and slower rises in durable goods also helped.
But the improvement is not uniform. Food inflation ticked up from 4.5% to 4.9%, reversing months of gradual easing (ONS). The rise reflects higher input costs for producers, everything from animal feed and fertiliser to packaging and logistics. Some of this is global, some is domestic. Bad weather earlier in the year disrupted UK crop yields, while higher labour costs continue to ripple through supply chains. Supermarkets may be competing hard on prices, but the underlying pressures haven’t fully faded.
For households, the picture is mixed. General inflation drifting lower means budgets aren’t being squeezed at the same rate as last year, and wage growth is now outpacing inflation for many workers. But staples, the things people buy every week, remain stubbornly expensive. That tension is likely to persist into early 2026.
The Bank of England will welcome the direction of travel but won’t declare victory. A headline rate closer to target helps the case for rate cuts next year, but persistent food inflation complicate the decision and BoE Governor Andrew Bailey has already stated rates are close to levelling out.
The government will point to improving numbers as evidence that its approach is working, but there’s still a gap between national statistics and how the cost of living feels in reality. Until food and services inflation come down more decisively, households won’t feel much relief.
Nvidia’s Blowout Quarter Calms Bubble Fears, but Markets Stay Jittery
Nvidia delivered another blockbuster set of earnings in Q3, beating expectations on revenue and profit. Demand for AI-focused chips remains exceptionally strong, driven by data centres, cloud providers and businesses racing to expand their computing power. For now, the company is proving its critics wrong. Instead of signs of a slowdown, Nvidia is still posting rapid growth and widening margins. The results eased immediate concerns that the AI frenzy was running ahead of reality.
Yet the broader market didn’t hold onto that optimism. On Thursday, equities experienced their most volatile session in months, with swings reminiscent of the turbulence seen during the early Trump-era tariff announcements. Investors welcomed Nvidia’s report but were far more cautious about the wider picture. Concerns over high valuations, global growth prospects and shifting rate expectations kept markets on edge.
This contrast, outstanding performance from the world’s most important semiconductor company but a nervous response elsewhere, captures where markets currently stand. The AI boom is real, but it’s not enough to outweigh every other risk. Bond yields remain unpredictable, US data is uneven, and geopolitical tensions haven’t eased. It’s another reminder that even strong corporate results can get lost when markets are struggling to decide whether they’re in the early stages of a new cycle or the late stages of an old one.
🇯🇵 Japan’s Crypto Overhaul Signals a Major Strategic Shift
Japan’s Financial Services Agency has proposed one of the most significant regulatory changes the crypto industry has seen from a major economy in years. The plan would cut tax on crypto gains from rates as high as 55% down to around 20% and formally classify digital assets as financial products under Japan’s existing investment and securities rules. In practice, that means crypto would be treated in the same way as other regulated investments. Exchanges would face clearer standards and investor protections would be stronger. It’s a decisive attempt to bring clarity to an area where much of the world is still hesitating.
For Japan, this is partly about competitiveness. The country has spent the past few years rebuilding its tech and financial sectors after long periods of stagnation. By lowering tax and tightening regulatory definitions, it aims to attract capital, talent and innovation, particularly from businesses that have felt constrained in the US or discouraged by Europe’s slow regulatory rollout.
For UK and global readers, the move is worth watching. If Japan succeeds in drawing investment, other countries may feel pressure to respond. A clearer, more predictable tax and regulatory framework could encourage institutional participation and reduce the uncertainty that currently defines the sector. For investors, it opens another major market where rules are explicit, and the tax burden is lighter.
💼 Unpacked
Bullish vs Bearish – These are just shorthand for market mood. “Bullish” means investors expect prices to rise and are willing to take on risk; “bearish” is the opposite, a sense that things could fall, so people pull back.
Stock Market Expectations – A company’s share price reflects what investors think will happen, not what has happened. By the time results are officially released, the market has usually priced in what it expects. It’s why Nvidia’s bumper Q3 earnings only had a brief positive impact. Investors expect perfection and have already priced in enormous growth potential.
The Purpose of Crypto – A way to transfer value without intermediaries, like banks or barriers, like strict regulations in some countries. It can also offer a programmable form of money that can automate certain transactions. Whether it fulfils those promises at scale is still an open question, but the idea is to build a financial system that’s faster, more flexible, and less reliant on central intermediaries.
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