In his speech to Congress on March 4th, President Donald Trump portrayed a flourishing American Dream, with tariffs designed to protect jobs and boost the economy. However, the reality diverges as investors and businesses begin to show signs of concern over his protectionist policies. Trump's imposition of tariffs on Canada, Mexico, China, and other trading partners threatens to disrupt global supply chains and increase costs. Despite some delays in certain tariffs, the unpredictability of his decisions risks long-term damage to both the US and international economies. Markets have become more volatile, with inflation expectations rising. Furthermore, the president’s focus on tariffs could lead to conflicts with the Federal Reserve and harm American consumers, especially farmers. Trump's rigid adherence to protectionism, despite its flawed economic foundation, may lead to greater instability for the global trading system and the US economy.

The cooling of relations between America and the European Union may benefit Mistral, a French AI startup founded in 2023 by former Meta and Google DeepMind researchers. Valued at €5.8bn in 2024, Mistral is Europe's most valuable AI startup, rapidly releasing models for coding, maths, and image recognition. While it lags behind American competitors like OpenAI and Anthropic in terms of scale and performance, Mistral has gained attention by offering many models open-source or under a “research” licence.
Previously squeezed between American and Chinese AI powers, Mistral’s fortunes began to shift in February 2024 with the launch of Le Chat, a fast-performing ChatGPT-style assistant. The app's success, alongside a sense of national pride, has attracted a loyal user base, particularly in France. Despite its limited annual revenue, Mistral’s approach could continue to garner support as AI competition grows, with patriotism helping to keep the company afloat.

A global survey by Kickresume found that 85% of people have experienced an annoying colleague, with credit-stealing topping the list of irritating behaviours. This issue is widely recognised, with research showing that even young children disapprove of plagiarism. Credit-claiming not only damages trust but also harms performance, as seen in a study of executives in a Chinese company.
However, not all credit-stealing is malicious. Psychologists note the phenomenon of "cryptomnesia," where people unknowingly plagiarise ideas. Additionally, innovation often involves recombining existing ideas, making it common for multiple people to arrive at similar conclusions independently. Furthermore, stealing credit can backfire, as research shows that bosses who praise others while promoting their own achievements appear more competent and likeable.
Despite the ideal of fair recognition, biases can still distort credit allocation, particularly in fields like academia, where women often face disadvantages when co-authoring papers. Ultimately, while credit-stealing is frustrating, understanding its complexities can help manage the situation.

Concerns about a potential U.S. recession caused sharp market declines on Monday, with the S&P 500 falling 2.7%, the Dow Jones dropping over 2%, and the Nasdaq losing 4%. The tech sector, led by a 15% drop in Tesla’s stock, contributed to the downturn. The Cboe Volatility Index spiked, reflecting market uncertainty. President Trump’s mixed comments on the economy and global bank warnings of rising recession risks added to investor concerns. Meanwhile, U.S. Treasury yields fell and Chinese stocks dropped following weak inflation data.

KPMG is reducing the number of country units it operates globally in an effort to strengthen its business, improve audit quality, and retain workers. The Big Four firm is merging its units, aiming to reduce their number from over 120 in 2023 to between 30 and 40 by the end of next year. So far, around 75 units have been merged. The restructured units will have their own leadership and governance within larger operations.

This move is part of a broader trend among accounting firms to restructure in response to slowing growth and recruitment challenges. KPMG’s mergers, which include regional consolidations like in Africa, are expected to be completed by September 2026, when the current Global Chairman’s term ends.

This week marks the 25th anniversary of the Nasdaq Composite’s dot-com-era peak, which saw a 500% rise followed by a sharp collapse. Many small investors lost fortunes, and companies like Pets.com and Webvan collapsed. Today, some investors worry that the same cycle could be repeating with artificial intelligence (AI), as valuations for AI companies soar despite limited immediate sales.

However, the dot-com crash ultimately led to the success of early internet technology, and some argue that the same could happen with AI. While many AI companies are struggling, substantial investments in infrastructure, such as specialised semiconductors like Nvidia’s GPUs, could lead to long-term productivity gains. Some analysts suggest that AI, like earlier technological booms, may ultimately prove to be a “good bubble,” creating significant economic value despite short-term challenges.

The UK Treasury Committee has warned that unfair banking practices and “damaging” financial regulators are harming small businesses, stifling innovation, and impeding growth. A report on access to finance for SMEs revealed a decline in confidence, with many firms struggling after the pandemic and energy crisis. The committee criticised practices like personal guarantees and “debanking,” where banks shut SME accounts without clear justification. It also highlighted the ineffective dispute resolution process, particularly the under-resourced Financial Ombudsman Service and the criticised Business Banking Resolution Service. MPs recommended that regulators enforce more transparency and tighten rules around personal guarantees. They also called for an independent system to address SME complaints, replacing the BBRS.

Spain’s Deputy Prime Minister Yolanda Díaz Pérez has urged UK Labour politicians to draw inspiration from Spain’s success in implementing radical labour laws. Despite initial opposition, Spain’s 2022 labour reforms reduced temporary contracts and improved the job market, with unemployment falling from 14% to 11%. Díaz advocates for workers’ rights, including stronger union power, better job security, and higher living standards, arguing that such reforms boost growth and productivity. She stresses the importance of social investment, warning against the far-right narrative that undermines workers’ rights. Díaz is now leading further reforms in Spain, including reducing the standard working week and ensuring digital disconnection for workers. She emphasised the need for social welfare and public housing, even amid rising defence spending in Europe.

An investigation has revealed that Mastercard and Visa are processing payments for illegal gambling websites targeting UK customers, despite previous pledges to block such transactions. These unlicensed sites have been accused of scamming customers, including one case where a person lost £60,000. Mastercard and Visa are understood to profit from these transactions, which continue despite agreements with the Gambling Commission to prevent payments to unlicensed operators. The companies claim to investigate illegal activity, but the payment systems remain accessible on high-traffic gambling sites. Experts and MPs have called for stricter action, with some urging Mastercard and Visa to immediately block all transactions linked to unlicensed gambling sites. The Gambling Commission is working to tackle the issue but has faced challenges due to sites reappearing under different names.

Major banks and fintech companies, including Bank of America, PayPal, and Stripe, are rushing to enter the stablecoin market, targeting the cross-border payments sector, which they anticipate will be reshaped by cryptocurrencies. Stablecoins, designed to maintain a constant value tied to the US dollar, are gaining popularity, particularly in emerging markets, where they offer a cheaper and faster alternative to traditional banking for transactions in commodities, agriculture, and shipping. As regulatory frameworks for stablecoins begin to emerge globally, companies are increasingly confident in entering the space. However, despite growing transaction volumes, experts warn that the market may not sustain many stablecoins, as users start to focus on the reliability of the issuers behind them. The use of stablecoins is particularly attractive in markets with poor infrastructure and high currency risk but is less clear in Western markets.

OpenAI has signed a five-year, nearly $12bn deal with CoreWeave, a cloud computing provider, to supply the computing power needed to train and run its AI models. This partnership reduces OpenAI’s reliance on Microsoft, its largest partner. As part of the deal, OpenAI will also acquire a $350 million equity stake in CoreWeave, which is preparing for a $4bn initial public offering. CoreWeave, originally founded for cryptocurrency mining, has pivoted to providing cloud services for AI companies, becoming one of Nvidia’s biggest customers. This deal follows Microsoft’s recent withdrawal from a similar agreement with CoreWeave due to delivery issues, and further strengthens OpenAI’s efforts to diversify its computing infrastructure.

Wall Street stocks plunged as concerns over Donald Trump’s tariffs and their economic impact grew, with Tesla leading a sharp sell-off in technology stocks. The S&P 500 dropped 2.7%, while the Nasdaq Composite fell 4%, marking its worst day in over two years. Investors are recalibrating to new risks, particularly the effects of Trump’s trade policies. Tesla’s shares fell 15.4%, while Nvidia and major banks also saw significant declines. Global markets, including those in Asia and Europe, were also affected, with fears of a potential recession and inflation rising. The US economy is showing signs of weakness, with businesses like Delta Air Lines cutting profit forecasts. The uncertainty surrounding Trump’s tariffs, coupled with disappointing economic data, has caused investors to reduce risk, leading to a sharp reversal from earlier optimism in the markets.