Analysts at Deutsche Bank forecast a stabilization of the American economy by 2026 following a period of turbulence. Experts led by Matthew Luzzetti underscore the easing of negative factors such as trade policy uncertainty and the strengthening of positive drivers—namely, tax cuts and reduced tariffs as part of President Trump’s budget program. They expect US GDP growth to accelerate to 2.4% next year and remain in the range of 2.00-2.25% in 2027-2028.

The stabilization of the economic environment should support the labor market in the second half of 2026, reducing unemployment from its peak level of 4.5%. However, analysts warn of the vulnerability of employment to risks posed by the mass implementation of artificial intelligence. Inflation is expected to slow down but will remain above the Fed's target level of 2% due to the resilience of the economy and supply shocks. This may encourage the regulator to keep interest rates at their current level at the beginning of 2026.

The Federal Reserve is likely to resume rate cuts in September of next year, following the replacement of Chair Jerome Powell with a candidate who has more dovish views. Despite the constructive outlook, Deutsche Bank sees heightened risks of a recession, uncertainty regarding the impact of AI on productivity and employment, as well as potential market concerns about the Fed's independence and the financial stability of the US.

According to analysts at UBS, inflation in the United States is expected to continue its upward trajectory in the first half of 2026. The primary driver of rising prices remains tariffs, which have already contributed to a noticeable increase in inflation metrics. The bank reports that overall inflation has risen by 46 to 70 basis points from post-pandemic lows, while core inflation has increased by 24 to 30 basis points. Economists foresee an additional rise of 30 to 40 basis points, reaching a peak in the second quarter of 2026.

UBS has adjusted its long-term forecast due to the reduced scale of implemented tariffs and the slower pass-through of their costs to consumers, particularly in the automotive sector. However, potential tariff increases still pose a significant risk. Analysts advise caution regarding November’s consumer price data, citing distortions caused by the government shutdown.

The bank predicts that the core personal consumption expenditures (PCE) price index will peak at around 3.2% in the second quarter of 2026 and will remain above the Federal Reserve’s target of 2% well into 2027. UBS’s forecasts for core PCE are 3.0% in 2025, 2.9% in 2026, and 2.4% in 2027, all exceeding consensus market predictions.

The downturn in the cryptocurrency market has had a significant impact on the investment portfolio of US President Donald Trump's family.

According to Bloomberg, the Trump family's net worth shrank from $7.7 billion in early September to $6.7 billion. The primary losses stemmed from the declining value of tokens and stocks in various cryptocurrency projects in which the family had actively invested over the past few months.

World Liberty Financial, which holds a substantial amount of WLFI tokens, has been hit the hardest. The asset's price plummeted from $0.26 in September to $0.15, leading to a reduction in the family's locked assets from $6 billion to $3.15 billion. Trump Media has also reported significant losses. The company acquired approximately 11,500 Bitcoins at a price of $115,000 each, while the value of BTC then settled at around $86,000. Additional losses came from substantial purchases of CRO tokens, the value of which has nearly halved. Furthermore, Trump Media’s stock has plummeted 66% over the past year and is currently trading near its all-time low.

American Bitcoin, a mining company associated with Eric Trump, has also suffered losses, falling by 50% from its September high of over $9 per share. This drop has reduced Eric Trump's stake by more than $300 million.

Economic advisor to the US President Kevin Hassett has emerged as the leading candidate for the position of the Federal Reserve Chairman, Bloomberg reported. Sources describe him as a close ally of Donald Trump, enjoying the president's high level of trust. Hassett shares the president's views on the economy, particularly advocating for more aggressive rate cuts. Recently, he stated directly that interest rates should be lowered, citing fresh macroeconomic data.

Trump has repeatedly criticized current Fed Chairman Jerome Powell for being slow to ease monetary policy. Following the central bank’s decision in July to maintain the funds rate at 4.25-4.50%, the president publicly labeled Powell a failure and called for his dismissal. Powell's term ends in May 2026, and Trump aims to appoint a successor well in advance.

Treasury Secretary Scott Bessent confirmed that the president would likely announce his decision before the Christmas holidays. Although Kevin Hassett is considered the favorite, sources caution about the unpredictability of Trump's personnel decisions, as he has previously mentioned four potential candidates for the position.

Bank of America forecasts that the Trump administration will adopt a more market-friendly stance by 2026, reducing trade tensions and accelerating deregulation as the midterm elections approach. Although risks will remain elevated, the primary source of uncertainty this year is expected to gradually diminish. Many factors influencing the year 2025, such as tariff shocks and political unpredictability, are likely to take on a more moderate form.

The bank highlights signs of a shifting approach within the US administration. A twelve-month truce agreement between the United States and China and the anticipated Supreme Court ruling on international economic powers are seen as signals of de-escalation. Negotiations surrounding the USMCA (United States-Mexico-Canada Agreement) are also expected to create a more favorable business environment. The electoral cycle prompts the administration to minimize the negative impact on corporate planning and global supply chains.

This reduction in uncertainty has influenced analyst forecasts. BofA has revised its global growth projections to 3.3% for 2026 and 3.4% for 2027, driven by improvements in US-China relations and fiscal stimulus measures. A stable political backdrop diminishes the risk of a K-shaped consumption dynamic triggered by artificial intelligence, excess liquidity, and uneven wealth effects.

However, the bank acknowledges ongoing structural risks, including tightening global liquidity, increased budget deficits, and supply chain pressures related to the AI cycle. The US economy is positioned to benefit from favorable trade conditions, sustained investment in AI, and improved financial conditions bolstered by excess liquidity.

President Donald Trump signed an executive order establishing a nationwide initiative to develop an integrated artificial intelligence platform. Dubbed the Genesis Mission, the program aims to transform scientific research and accelerate discoveries based on federal scientific data. The platform will leverage extensive government scientific archives to train new AI models and create intelligent agents capable of testing scientific hypotheses and automating research processes.

The primary objective of this initiative is to enhance the speed and efficiency of scientific innovations through the application of advanced AI capabilities. The platform is designed to accelerate scientific breakthroughs by automating routine tasks such as data analysis and hypothesis formulation. This approach is expected to significantly shorten the time between formulating a scientific idea and experimentally validating it. The executive order calls for various federal agencies to coordinate their efforts in developing and implementing this platform.

This initiative reflects the Trump administration’s commitment to establishing the United States as a leader in artificial intelligence and scientific innovation. Utilizing government scientific data to train AI systems creates a competitive advantage for American science over other nations. The program has the potential to catalyze advancements in critical fields, including medicine, energy, and materials science. It can also drive progress in other essential areas of research and development.

The largest American banks have revised their financial support plans for Argentina. Instead of the promised $20 billion assistance, JPMorgan Chase, Bank of America, and Citigroup have focused on a more modest short-term credit facility of around $5 billion. The new arrangement includes a repo mechanism, under which Argentina will exchange its investment portfolio for dollars from the banks.

These funds are necessary to repay Argentina's debt in January, totaling approximately $4 billion. The original plan included a $20 billion currency swap with the US Treasury and a separate bank loan mechanism for the same amount, which was announced by Treasury Secretary Scott Bessent and Trump’s administration in the autumn. The banks' new decision indicates a more cautious approach to financing the Argentine government, which remains financially unstable despite the reforms implemented by President Javier Milei. 

In 2026, Japan's economy is set to emerge from a decade of stagnation towards stable growth. UBS Bank forecasts a favorable cycle with synchronized increases in income, spending, and consumer inflation. Despite global risks and demographic pressures, analysts see a chance for economic normalization.

Core inflation is expected to slow down due to falling food prices, but headline inflation will persist. The core consumer price index is projected to drop from 3.1% in 2025 to 2.1% in 2026 and settle around 2% in 2027.

The Bank of Japan will continue to raise the key interest rate from the current 0.50% to 1.25% by the end of 2026 and to 1.50% by mid-2027. With new Prime Minister Sanae Takichi at the helm of the government, fiscal policy is likely to become more accommodative, focusing on enhancing purchasing power and corporate investments. UBS forecasts real GDP growth of 1.10% in 2026. 

A bill titled "Bitcoin for America" has been introduced in the US Congress, allowing citizens to pay federal taxes directly in Bitcoin — with the funds automatically deposited into the recently established strategic Bitcoin reserve. For Washington, this represents one of the most ambitious steps toward integrating cryptocurrency into traditional financial architecture, where the Treasury has recently preferred the dollar as the means of accumulation.

The proposed legislation stipulates that all taxpayer contributions in BTC will be credited directly to the reserve launched early in 2025 by an executive order from President Donald Trump. The base for this reserve has been formed from approximately 200,000 BTC that the government acquired through criminal and civil forfeitures. The reserve is designed as a tool to strengthen the "sovereign position of the US in digital assets."

The bill, put forward by Representative Warren Davidson, effectively transforms the reserve from a passive storage system into a mechanism for systematic accumulation.

This initiative builds on earlier proposals from Bitcoin advocates, including Senator Cynthia Lummis, who promoted a similar idea in 2024. However, the current document advances further by linking federal tax revenues with a long-term strategy for holding digital assets.

Whether Congress will approve this measure remains an open question. Nonetheless, the mere existence of this bill illustrates a significant shift in the authorities’ rhetoric: Bitcoin is losing its status as a purely investment instrument and is increasingly being viewed as a strategic asset capable of finding a place within the country's financial infrastructure.

If this blueprint is implemented, the United States could suddenly become one of the largest institutional holders of Bitcoin thanks to its own taxpayers.

The artificial intelligence boom has left a noticeable mark on the US stock market. However, according to analysts at Capital Economics, it has not yet translated into the economic leap that enthusiasts anticipated. Productivity gains remain concentrated within a narrow technology segment, making the path to a “decade of miracles” seem much longer than optimists had anticipated.

Analysts point out that the impact of AI is now evident not only in stock prices but also in macroeconomic data. The ICT sector, spanning computer hardware, software, and data centers, contributed nearly 0.9% to US GDP growth in the first half of 2025, nearly double the average pace of the last decade. This acceleration is largely tied to investments in AI, with spending on equipment and data centers rising by nearly 40% year-over-year and software investments adding about 0.5% to annual growth.

However, outside the tech core, the overall picture remains modest. A significant productivity breakthrough has yet to be observed in major sectors. Companies report expanding AI adoption, but actual implementation levels remain below 15% in non-ICT industries.

Furthermore, the tech sector is not generating more jobs. In fact, layoffs are outpacing hiring. This reflects rising productivity within the industry but not across the broader economy. 

An increase in output amid declining employment in the ICT sector does indicate a localized boom tied to AI, especially considering that overall job growth in the United States has fallen below 50,000 per month.

Lower prices for tech goods and services have also played a role, deducting approximately 0.5% from the GDP deflator. However, outside the technology sector, inflationary trends have remained largely unchanged, indicating that the effects of AI have yet to permeate the entire economy.

Capital Economics warns that a significant portion of the recent productivity growth may simply be a cyclical reaction to post-pandemic labor market tensions, rather than a result of profound structural changes driven by AI. The true test will come when these technologies start to penetrate larger, less digitized service sectors that comprise about 40% of US GDP.

Despite robust investment growth and optimism on Wall Street, analysts believe that the United States is still in the early stages of the AI boom. While two quarters of accelerated growth appear impressive, it is insufficient to declare a “decade of miracles” officially underway. Currently, AI’s contribution to US growth remains early, localized, and largely confined to the technology sector, with its broader economic impact still classified as “pending.”

Investors are not confident about a rate cut in December: the latest US nonfarm payrolls have been too contradictory to provide the Federal Reserve with a comfortable reason for another step towards monetary easing.

The employment report for September was the first after a statistical pause caused by the shutdown, and it presented a familiar picture from recent months: strong employment growth, but weak fundamental indicators. The economy added 119,000 jobs — more than double the forecast — yet the jobless rate rose to 4.4%, the highest level since 2021.

Such mixed data has kept traders from making aggressive bets on a December rate cut. Some optimism only emerged after comments from New York Federal Reserve President John Williams, who acknowledged the possibility of further adjusting the funds rate. His words added softness to the market but did not change the overall picture: the room for maneuver remains limited.

According to Bank of America, the labor market will determine the fate of any further policy easing. So far, it does not appear weak enough to convince Jerome Powell to continue the cycle. Economist Shruti Mishra notes that the employment weakness seen this year largely reflects imbalances in supply and demand rather than a reversal of the economic cycle. Unemployment is rising but remains historically low.

A key factor ahead is the sharp reduction in labor supply resulting from tougher immigration policies. BofA estimates that net immigration in 2025 will drop to 380,000, while the average over recent years exceeded two million. For the labor market, this means an equivalent minus of approximately 90,000 potential workers each month.

Under these conditions, the breakeven level for job growth — that is, the necessary increase in jobs to maintain stable unemployment — will drop to around 20,000 per month. This will allow the labor market to remain close to full employment even with a moderate slowdown in hiring.

BofA anticipates a mild rise in unemployment, peaking at around 4.5% early next year. Experts believe that the labor market will remain too resilient for the Federal Reserve to justify further rate cuts. Given the ongoing inflationary pressure, the bank concludes that the rate-cutting cycle is likely already over during Powell’s term at the helm.  

Artificial intelligence and energy are swiftly becoming the two leading fronts in a new geopolitical race, where technological power is defined not by the number of missiles but by access to chips and operational power plants. A report from Wells Fargo Securities describes AI as “the center of a geopolitical power struggle between the US and China,” warning that its influence could radically alter the global balance of power.

Currently, the competition increasingly resembles a new type of arms race. Instead of satellites, we have GPUs. Launch pads have been replaced by data centers. Instead of uranium reactors, there is an impending electricity shortage in the United States and a growing deficit of advanced chips in China. The US response has involved a broad industrial policy, including the CHIPS Act, which provides $8.9 billion for Intel and $400 million for MP Materials, aimed at bolstering domestic production and reducing dependence on foreign suppliers. According to Wells Fargo, Washington may introduce additional measures akin to the CHIPS Act to safeguard critical AI infrastructure from potential shocks, particularly those related to China and Taiwan.

Meanwhile, energy is emerging as a strategically vital factor, nearly on par with semiconductors. The International Energy Agency projects that global demand for electricity from data centers will double by 2030, potentially tripling in an optimistic scenario. In the US, the growth of AI infrastructure increasingly relies on natural gas and nuclear power, resources expected to fulfill the lion’s share of industry demands by the middle of the next decade.

These constraints are already creating urgency in the market. Companies are actively securing future capacities, signing long-term agreements, and even negotiating with Bitcoin miners to purchase access to their electricity supply.

In this context, diplomacy is also shifting its tone. A recent agreement between the US and Japan is primarily focused on energy and grid modernization, with a significant portion of Japanese investments directed toward the US energy infrastructure needed to support AI industry growth. Collaborative documents reference firms like GE Vernova, Kinder Morgan, Carrier Global, and Cameco.

Wells Fargo draws historical parallels, comparing the current situation to the Cold War space race when US spending on science and technology reached 0.8% of GDP, almost six times the current level. During periods of major conflicts, defense spending surged even more, highlighting the scale of resources typically required for long-term geopolitical rivalry.

While US vulnerabilities include rare earth elements, pharmaceuticals, and shipbuilding, it is AI and energy that are currently defining who can maintain technological influence. China seeks access to advanced chips, while the US aims to secure its own strategic resource—sufficient electricity to develop and train next-generation models. The new superpower race increasingly boils down to two questions: who has chips, and who has the outlets?

A rally in the US market, driven by the rapid advancement of artificial intelligence, which began in late 2022, has proven to be far less broad-based than the headlines suggest. The bulk of the gains is concentrated in a select few large companies, while the rest of the S&P 500 has been slow to pick up the pace.

John Higgins, chief markets economist at Capital Economics, says that without the AI factor, the S&P 500 would currently be hovering closer to the 5,000 point level, approximately 25% lower than its current value. In other words, the index appears impressive mainly due to a handful of companies propelling its growth at a rate that is not reflected in the broader market.

According to Capital Economics, concentration within the index is intensifying, with technology and communications sectors showcasing returns that other sectors can only envy from afar. Even the consumer sector looks strong primarily due to the dominance of large-cap companies. Equal-weighted indices present a markedly different—and much less impressive—picture.

To assess the impact of AI, Higgins compared the traditional market cap weighted index with its equal-weighted counterpart. Extrapolating from the end of 2022, the analysis indicated that removing the influence of the largest players would indeed result in the S&P 500 being significantly lower. This is supported by disparities between sectors: large caps benefit while mid-cap and small-cap companies have remained sidelined.

However, Higgins emphasizes that despite the dominance of tech giants, which account for more than 40% of the total market capitalization, over a third of the S&P 500 still falls outside this elite group. At present, the impact of AI is hardly noticeable among these companies. Yet, this could change as businesses start to leverage technologies not merely for show but to achieve tangible productivity gains.

Some attempts are already taking shape. Capital Economics cites Walmart as an example, as the retailer integrates AI through its partnership with OpenAI. Even traditional defensive sectors are starting to experiment. Although slowly, they are starting to embrace these innovations.

Natural gas prices in Europe have fallen to their lowest level since May 2024. The market received two signals welcomed by investors: improved weather forecasts and a statement from Volodymyr Zelenskiy regarding his willingness to work on a peace plan suggested by the US and Russia. Both factors have reduced the risk premium, which had been supporting gas prices for months.

Amsterdam-traded TTF futures dropped by 3.1%, down to €30.20 per megawatt-hour. For a market accustomed to surviving under the pressures of geopolitics and unpredictable consumption forecasts, this level feels almost comfortable.

Although the share of Russian gas in European imports is currently just above 10%, even the hint of a potential influx of additional energy supplies is already putting pressure on prices. The market, which has been kept on high alert by shortages for years, reacts promptly even to the theoretical possibility of easing restrictions.

The second factor contributing to the slide in gas prices is the mild weather. Updated forecasts for Northwestern Europe at the end of November and early December predict temperatures around or above normal levels. This alleviates concerns about a spike in consumption, although traders are still hesitant to relax — short-term forecasts have become too volatile in recent years to be trusted blindly.

Meanwhile, the situation with inventory remains tense. Following the recent cold snap, withdrawals from underground storage have accelerated, and the fill level has dropped below 81%. This is still comfortable by historical standards, but the market prefers to remember that winter is just beginning.

As a result, gas prices have decreased, but this has not instilled confidence: forecasts are mild, geopolitics are stern, and storage levels are simply statistics that can easily change in one cold week.

The Argentine Parliament's commission has concluded its investigation into the cryptocurrency scandal, holding President Javier Milei directly responsible for orchestrating the scheme involving the Libra token. According to opposition lawmaker Maximiliano Ferraro, this conclusion was reached through an analysis of technical data, documentation, and witness testimony. The investigation documented meetings between Milei and the token’s creators, indicating his direct involvement in the project.

In February 2025, Milei posted on the social media platform X about the Libra cryptocurrency, urging his followers to invest in it to support small businesses. The name of the token closely echoes that of the president's party, La Libertad Avanza. Milei shared a message linking to an exchange where Libra could be purchased. A few hours later, he deleted the post and denied any involvement, claiming he decided to refrain from disseminating information without first studying the details. Nevertheless, shortly after his tweet, the token's price soared and then rapidly plummeted.

The consequences for investors were catastrophic. According to the parliamentary commission, 114,000 individuals were affected. However, Milei insisted that only four or five Argentinians suffered from the crash, with the majority of investors being foreigners. Many citizens have filed complaints with law enforcement, demanding an investigation.

The 200-page report from the commission, which contains evidence of Milei's responsibility, has been submitted to the consideration of the Chamber of Deputies. Policymakers from the executive branch have failed to provide any explanations regarding the scandal for several months, intensifying suspicions of an attempt to conceal the truth about the scale of the crime.

US President Donald Trump and Saudi Crown Prince Mohammed bin Salman have reached an agreement on a significant package of investments and trade deals. Saudi Arabia has pledged to increase its investments in the US economy to an impressive $1 trillion, a substantial gain from the previously pledged $600 billion announced during Trump’s visit to the kingdom in May. The agreement encompasses partnerships in nuclear energy, the extraction of critical minerals, and the development of artificial intelligence.

The two parties also signed a Strategic Defense Agreement, which expands military cooperation between the nations and allows for increased defense contracts and arms supplies. A key component of the military collaboration includes a deal for the delivery of Lockheed Martin's F-35 fighter jets to Saudi Arabia, alongside a contract for nearly 300 American battle tanks. However, the official White House bulletin did not specify the timelines for these deliveries or the exact financial details involved.

Trump has long insisted that Saudi investors commit to investing $1 trillion in the American economy. This agreement signifies a strengthening of the strategic partnership between the United States and Saudi Arabia, particularly in the areas of defense, energy, and technological development. The scale of the investment package reflects the Saudi leadership’s confidence in the US economic outlook and its readiness to expand its economic footprint in the American market.

US President Donald Trump addressed McDonald’s employees, praising the fast-food giant's achievements and influence on the global economy. He referred to McDonald’s as one of the greatest companies in history, emphasizing that its workers represent the heart and soul of this legendary enterprise, which has earned worldwide respect and recognition.

Founded in 1940 by brothers Dick and Mac McDonald, McDonald’s opened its first restaurant in San Bernardino, California. Eight years later, the company pioneered the key principles of the fast-food concept, revolutionizing the food industry and establishing a global network present in more than 100 countries. Over the course of its eight decades in business, McDonald's has become synonymous with quality, affordability, and reliability in the eyes of consumers around the world.

In 2022, the company was forced to exit the Russian market due to the onset of the military conflict in Ukraine. The Russian government, including Finance Minister Anton Siluanov, characterized this decision as politically motivated. The flagship eatery was replaced by a new chain called “Vkusno — i Tochka,” founded by businessman Alexander Govor. Domestic entrepreneurs estimate that McDonald’s would require significant financial investments and face considerable challenges to return to the Russian market.

Trump’s remarks to McDonald’s employees highlight his recognition of the role of private businesses in driving the US economy and the importance of large corporations in creating jobs and fostering community prosperity.

The European Commission has revised its GDP growth forecast for the EU in 2025, increasing it to 1.4% from the previous estimate of 1.1%. For 2026, the projection has been slightly downgraded from 1.5% to 1.4%. Inflation in the EU is expected to hover around 2.5% in 2025 and approximately 2.1% in 2026. Within the eurozone, GDP growth is anticipated to be 1.3% in 2025 and 1.2% in 2026.

The European economy has demonstrated robust performance over the first nine months of the year, with export growth and investment in equipment surpassing expectations. This resilience illustrates the economy’s ability to adapt to current challenges, and growth is expected to continue in the coming months.

A country-by-country analysis reveals that Germany is expected to experience slower growth, expanding by only 0.2% in 2025 before accelerating to 1.2% in both 2026 and 2027. France is projected to expand between 0.7% and 1.1%, while Italy is expected to grow by 0.4%, followed by an increase to 0.8% in subsequent years. Meanwhile, Spain is set to lead with growth rates ranging from 2% to 2.9%.

Unemployment in the EU is anticipated to remain steady at around 5.9% in 2025 and 2026, with a slight decline expected thereafter. In the eurozone, unemployment is projected to decrease from 6.4% to 6.1% by 2027. The budget deficit is forecast to rise to between 3.3% and 3.4% of GDP, while public debt is expected to reach 85% of GDP in the EU and 91% in the eurozone by 2027.

The EU authorities have acknowledged that Europe has fallen into a strategic economic trap baited by China. EU’s High Representative for Foreign Affairs Kaja Kallas stated that Europe cannot exert the necessary pressure on Beijing regarding the resolution of the conflict in Ukraine due to its deep economic dependence on China. According to her, China's astute geopolitical strategy has allowed it to create a situation in which EU countries find themselves in a difficult position.

The crux of the problem lies in the fact that the European economy is heavily reliant on Chinese supplies and trade relations in critical sectors. If Europe attempts to step up pressure on Beijing regarding the Ukrainian issue, China may respond with painful economic sanctions that could inflict significant damage on the EU's economy. This interdependence strips European leadership of flexibility in negotiations and limits its diplomatic options.

Kaja Kallas emphasized that the price the EU would have to pay for increasing pressure on China could be too high. If European leaders are not prepared to bear this cost, their actions do not make sense. She noted that Beijing elaborated this strategy, creating economic dependency as a tool of political influence that has deprived Brussels of the ability to actively affect China’s policy regarding the Ukrainian conflict.

This situation demonstrates how economic integration can become a tool of geopolitical pressure, limiting the capabilities of major players in international politics. The EU finds itself in a position where any actions concerning China require prior assessment of the potential economic damage. 

The US stock market is going through a considerable downturn, triggered by a reevaluation of the prospects for artificial intelligence. Since the beginning of November, the S&P500 index has dropped by more than 3%, and the market is overwhelmed by high volatility. President of Goldman Sachs Group John Waldron warns that technical indicators suggest a bearish phase in the American stock market. The primary cause of the crash is a massive sell-off of shares in the world’s largest high-tech companies, which are key drivers of the S&P500's growth.

The wave of selling has reignited discussions about the viability of investments in artificial intelligence. Investors wonder whether AI can generate sufficient revenue and profits to justify the enormous expenses allocated for developing the necessary infrastructure. Companies have invested billions of dollars in computing power and data centers, but the results have yet to meet the initial market expectations. This imbalance between investment and results has created pressure on the technology sector.

John Waldron confirms that the market is currently keeping its finger on the pulse of AI development and its commercial applicability. However, he views the ongoing pullback as a healthy phenomenon necessary for stock valuation reassessment. Such corrections are common in rapidly growing sectors where initial expectations are not fully met. The market must find a new equilibrium between the enthusiasm about AI potential and the actual ability of companies to monetize this technology. 

Germany’s Chancellor Friedrich Merz has criticized the excessive strictness of banking regulations in the European Union. In his view, European requirements for financial institutions hinder credit flow to the economy and weaken the competitiveness of European banks against their American counterparts, which benefit from a more lenient regulatory approach under Trump’s administration. Merz emphasized that while banking regulation is necessary, the current level of restrictions in Europe is "overly stringent" and needs to be revised.

The Chancellor acknowledged that the right decisions were made to strengthen the banking system following the global financial crisis of 2008. The current capital levels of European banks reflect their resilience. However, Merz points out that the environment in the US and other parts of the world creates many more opportunities for lending and corporate financing. He stressed that a more flexible regulatory approach would enable banks to actively extend credit to companies, which is critically important for economic development.

European policymakers and bankers are increasingly calling for the easing of regulatory requirements. This push stems from the need for massive investments in the defense industry, digital technologies, and climate initiatives. Financial institutions in Europe lament that they are losing the competitive battle to American banks, which operate under a more favorable regulatory environment.

Germany is prepared to alleviate the burden on banks by implementing the Basel III capital standards in a targeted manner, without additional tightening. Friedrich Merz stated that his country would adopt European requirements in their original form, without any further restrictions. This decision is expected to help German and European financial institutions increase their lending capabilities and reinforce their positions in global competition.