Global M&A hit $2.14 trillion in the first half of 2025, driven by a surge in $10 billion-plus deals and record activity in Asia, despite headwinds from tariffs and high rates. Bankers see renewed optimism for H2 as volatility eases and U.S. policy shifts open the door to larger transactions.
Canada has withdrawn its digital services tax on firms like Meta and Alphabet to restart stalled trade negotiations with the US, following threats of new tariffs from President Trump. The two countries now aim to reach a deal by July 21, with Canada pledging to repeal the tax entirely.
The S&P 500 surged 10% in Q2, outpacing Europe's Stoxx 600 and challenging investor bets on a lasting shift toward European equities amid US tariff turbulence. While European stocks still lead for the year, momentum has faded as US tech giants and retail investors drive Wall Street to new highs, reviving doubts about the durability of the so-called "Europe rotation."
The Bank for International Settlements has said the world economy faces heightened uncertainty due to trade fragmentation, rising debt, and geopolitical shocks. Outgoing BIS chief Agustin Carstens warned that public trust in institutions is fraying and called for urgent action to strengthen economic resilience.
US bond traders are riding a three-week winning streak and expect more gains as rate-cut positions grow ahead of Thursday's jobs report. With Treasury yields near two-month lows and signs of a slowing economy, markets are pricing in up to two Fed cuts this year, despite internal divisions among policymakers.
London Stock Exchange CEO Dame Julia Hoggett has urged a nationwide campaign to boost retail investing in UK stocks, citing weak capital flows and growing investor preference for crypto over equities. Speaking at a capital markets conference, she warned the UK has yet to see a real turning point, despite reforms, and suggested a modern reboot of the 1980s "Tell Sid" initiative.
UBS Group AG will launch a share buyback of up to $2 billion starting July 1, completing the second phase of its planned $3 billion repurchase for 2025. The bank said it will outline its 2026 capital return plans with its full-year results early next year.
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India's sovereign bond rally has cooled despite its recent inclusion in JPMorgan's EM index, with foreign inflows underwhelming amid a weak rupee and limited monetary easing. As India prepares to join FTSE Russell's index in September, investors say deeper reforms and tax relief are needed to attract more passive, long-term capital.
The Federal Reserve announced that all 22 major US banks passed its 2025 stress test, indicating they could withstand a hypothetical severe recession. This year's scenario was less severe than in 2024, reflecting shifts in global economic conditions and adjustments to the Fed's testing approach.
China's official manufacturing PMI remained in contraction for a third straight month in June, rising slightly to 49.7 as deflation and weak demand persisted. While construction activity picked up and export orders improved, analysts warn that fading fiscal support and sluggish consumer spending may weigh on growth in the second half of 2025.
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