Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

The U.S. Congress nearly unanimously passed legislation that would annually require the State Department to verify Hong Kong’s independent state is being upheld and implement sanctions on Chinese officials found to be in violation. The legislation, signed by President Trump, is meant as a demonstration of support for the protestors in Hong Kong but risks increasing tensions in the midst of trade negotiations. China had warned against signing the measure.

The U.S. House of Representatives held impeachment proceedings during the month focused on President Trump’s administration’s handling of aid intended for Ukraine’s security in exchange for political favors. A number of officials from various factions of the U.S. foreign policy establishment testified to corroborate a whistleblower’s report into an alleged quid pro quo. The House will hold a vote on impeachment December 4^th.

Secretary Mike Pompeo announced that the United States will no longer consider Israeli settlements in the West Bank to be a violation of international law. The statement drastically conflicts with decades of international law and precedent and was met with rejections from the EU as well as various countries throughout the Arab world.

The United States formally pulled out of the Paris Climate Agreement earlier this month. Withdrawal from the accord is seen as a detriment towards maintaining any global momentum on tackling the issue of climate change as the U.S. is now the only country not to support the measure. Data earlier this year showed global carbon emissions reached a new record high.

Europe

Venice has suffered the worst flooding in over 50 years, endangering the historic cities structure and causing damage already estimated to surpass 1 billion Euros. The flooding has revealed decades of failures and delays by the government’s approach to maintaining adequate infrastructure in the city. The experience has depressed residents and tourists who worry about the future structural integrity of the city in a world of climate change.

Competing extremes came out on top in Spain’s general elections this month. The Socialist PSOE party won the most seats while the far-right Vox party more than doubled its support finishing third behind the country’s conservative party. No party won a majority and the composition of the top parties makes a functional coalition government exceedingly unlikely, putting the country on a path for its third set of elections in less than a year.

Asia-Pacific

India is renewing momentum for privatizing major government stakes in key industries as a means of revitalizing growth, raising funds, and making the country more amenable to foreign investment. Stakes in Air India, a national airliner, Bharat Petroleum as well as refining companies will be sold down to get the country closer to its target of a 3.3% fiscal deficit. The moves come after a corporate tax cut from 35% to 25% in September.

In the midst of protests Hong Kong went to the polls with record turnout of over 70%. The elections saw pro-democracy politicians win in a landslide, a clear rebuke of Beijing’s influence in the governance of the region. Despite the clear message sent, neither Chief Executive Carrie Lam nor the Communist Party in Beijing has shown any inclination to give into any demands from protestors.

Negotiations between South Korea and the United States on how much the Asian nation would pay the latter to host military personnel and security forces have gone quite poorly. The U.S. wants an increase on the $940 million South Korea spent last year, already an 8% rise from the year before. Defense Secretary Esper has left the possibility of withdrawing forces if an agreement is not reached. The administration’s demands have irked South Korea who subsequently reached out to China to cooperate more closely on defense matters.

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