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Weekly wrap: A US shutdown; a UK terror attack; a Gaza peace plan

by admin October 5, 2025
October 5, 2025
Weekly wrap: A US shutdown; a UK terror attack; a Gaza peace plan

A week of high drama and significant global developments has seen the US government grind to a halt, a deadly terror attack strike a synagogue in the UK, and a major new peace plan for Gaza unveiled by the White House.

Here’s a breakdown of the key events that transpired in the week.

The US government has shut down amid a budget dispute

The US government officially shut down on Wednesday after Republican and Democratic politicians failed to agree on a deal to fund government services.

The impasse means some services are temporarily suspended, with about 750,000 federal workers expected to be put on unpaid leave.

The spending fight is particularly tense, as it comes after President Donald Trump has already drastically reduced the size of the national government.

The Republicans control both chambers of Congress but are short of the 60 votes needed in the Senate to pass the spending bill, giving Democrats negotiating power to demand extensions to healthcare programs.

Two killed in a terror attack at a Manchester synagogue

Two Jewish people were killed and three were left in a serious condition after a car ramming and stabbing attack outside a synagogue in Manchester on Thursday.

The victims have been named as Adrian Daulby, 53, and Melvin Cravitz, 66. Greater Manchester Police said one of the victims, Mr. Daulby, was tragically hit by police gunfire as officers shot the attacker.

The suspect, 35-year-old Jihad Al-Shamie, was shot dead at the scene. The attack, which is being treated as a terror incident, occurred on Yom Kippur, the holiest day in the Jewish calendar.

UK house prices returned to growth in September

The UK property market showed signs of renewed momentum in September, with house prices rising 0.5 percent compared with the previous month, according to data from Nationwide Building Society.

The increase reversed a 0.1 percent decline in August and lifted the average home price to £271,995. Robert Gardner, Nationwide’s chief economist, said the housing market appears to be entering a phase of “broad stability,” supported by low unemployment and rising wages, while the prospect of a Bank of England rate cut could moderate borrowing costs further.

India’s central bank holds its key interest rate steady at 5.5%

The Reserve Bank of India (RBI) decided on Wednesday to keep its benchmark repo rate unchanged at 5.5%, while maintaining a “neutral” policy stance.

RBI Governor Sanjay Malhotra said the inflation outlook has become more benign, with the central bank revising its average inflation projection for 2025-26 down to 2.6% from 3.1%.

The MPC also raised its GDP forecast for the financial year to 6.8 percent.

The governor noted that it would be “prudent to wait for the policy actions to play out before charting out the next round of monetary policy actions.”

Trump unveils a 20-point Gaza peace plan backed by Netanyahu

US President Donald Trump announced on Monday that Israeli Prime Minister Benjamin Netanyahu had agreed to a 20-point plan intended to end the war in Gaza, a development he framed as a “historic day for peace.”

Speaking at the White House, Trump said the plan had already received backing from other Middle Eastern leaders and that he would stand firmly behind Israel if Hamas rejects the deal.

The plan would see all hostages returned within 72 hours, while Israel would release nearly 2,000 prisoners and pledge not to occupy or annex Gaza.

The post Weekly wrap: A US shutdown; a UK terror attack; a Gaza peace plan appeared first on Invezz

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