Your commercial news round-up: UK pound, US midterm elections, China, Canva job cuts

Dimitar Dimitrov is acting senior content and events coordinator at LawCareers.Net

Reading time: three minutes

The pound has climbed to its highest overall level since the Brexit referendum, as renewed confidence in the UK economy boosts sterling. Meanwhile, Elon Musk’s record spending on Republican candidates has failed to prevent sweeping Democrat gains in the US midterms, MPs have warned that the UK is “dangerously” reliant on China for critical minerals and Canva is restructuring its business in a move affecting 22% of its workforce. Read on for LawCareers.Net’s pick of this week’s top commercial stories.

• The pound has climbed to its highest overall level since the Brexit referendum, as expectations of higher interest rates and renewed confidence in the UK economy boost sterling. The most-watched measure of sterling against a basket of 18 major currencies reached 86.4 this week, its joint highest level since the June 2016 referendum, according to Bank of England figures. Sterling has also strengthened notably against the euro and US dollar in recent weeks. Traders have pointed to relative political stability, stronger-than-expected economic growth and the UK’s improving relationship with the European Union as factors supporting the currency. The rise marks a significant recovery from the falls that followed the Brexit vote, with sterling subsequently hitting further lows during the Brexit process, covid-19 pandemic and 2022 mini-Budget. A stronger pound could help ease inflation by making imports cheaper, while also increasing UK consumers’ spending power when travelling abroad.
   
• Elon Musk has spent almost half of a billion dollars backing Republicans in the US midterm elections, but the investment “failed” to deliver as Democrats made sweeping gains across the country. The SpaceX and Tesla CEO contributed at least $446 million to Republican-aligned Super PACs and political groups, surpassing the nearly $290 million he spent in 2024. Much of the funding targeted key Senate contests in an attempt to help Republicans retain control of Congress, according to The Guardian. Democrats won all five Senate races where Musk’s America PAC spent the most heavily in support of Republican candidates. In Texas, where many of Musk’s businesses are based, Republicans also lost the Senate race and governor’s office and are expected to lose control of the state house. The results could have wider consequences for Musk’s businesses, with newly empowered Democrats promising tougher scrutiny of the technology sector and his companies in particular.
   
• The UK is “dangerously” reliant on China for critical minerals needed for defence, AI and the transition to net zero, a parliamentary investigation has found. MPs on the Business and Trade Committee warned that the UK’s dependence on Chinese supplies of critical raw materials poses a growing risk to national security and key industries. They called for a centralised government strategy and a new “critical minerals finance facility” to support mining projects and diversify supply chains. Committee chair Liam Byrne said the UK remained “dangerously exposed” 16 years after China first used its dominance of rare earths as geopolitical leverage. China controls significant parts of the global supply and processing of critical minerals, including refined lithium for electric vehicles and rare earths used in military aircraft. The committee heard that processing represents a particular bottleneck, with China dominating the refining of seven mineral categories.
   
• Canva is restructuring its business in a move affecting 22% of its workforce, with 1,271 employees set to lose their jobs, relocate or change roles following what the company has described as its “hardest year yet”. Co-founder and CEO Melanie Perkins said the changes followed a slowdown in growth for the first time in a decade, describing the decision as “without doubt the hardest moment” in Canva’s 13-year history. As part of the restructure, Sydney will become the primary base for more of Canva’s product teams, while hybrid employees will be expected to work from the office two to three days a week from next year. The changes come amid concerns about the impact of AI on Canva’s business and the rising cost of incorporating the technology into its products. Earlier this year, investors Blackbird Ventures and Airtree reportedly cut Canva’s valuation from A$60 billion to around A$49 billion, while the company also reportedly lowered its own internal valuation amid rising AI-related costs.

Check the News every Thursday for our weekly commercial news round-up. Prefer to listen to your commercial news? Why not check out our Commercial Connect podcast?

Follow LawCareers.Net on LinkedIn and Instagram for regular business news updates.