While popular stories of innovation often revolve around sudden breakthroughs and lone geniuses, true corporate innovation is usually the result of sustained effort, teamwork, and adaptation over time. Examples from the podcast Boss Class highlight this reality: Wayve, an AI self-driving startup, spent eight years refining its approach; Google saw success with restaurant reviews only after several failed attempts and key technological shifts; and Dutch startup Monumental improves its bricklaying robots through real-world feedback and constant iteration. These cases show that behind every breakthrough lies persistence, collaboration, and the patient solving of real-world problems—far from the myths of eureka moments.

After tense negotiations in Geneva, the US and China reached a surprise trade agreement on 12 May. Both sides agreed to reduce newly imposed reciprocal tariffs from 125% to 10% for at least 90 days, while China will also ease other retaliatory measures. Though earlier tariffs remain, the deal marked a significant de-escalation, positively impacting global markets. The agreement followed severe economic strain, including falling Chinese exports and financial instability in the US. While the truce is temporary, ongoing dialogue offers hope for a more lasting resolution, provided meaningful progress is made during the 90-day window.

Currency markets, once subdued by low interest rates and tight currency management, have surged back to life following Donald Trump's return to the White House. In the first quarter of 2025, foreign-exchange trading volumes surged by 25%, with a record daily average of 1.1 million futures and options contracts traded. Unexpected policy announcements, such as tariff shocks and geopolitical developments, have driven increased market activity. This uptick in volatility has benefited both companies and investors seeking to hedge currency risks, as well as banks, which reported stronger revenue from currency trading. While foreign-exchange markets are not yet back to their pre-crisis highs, analysts predict that currency volatility will persist in an increasingly fragmented global environment.

During the market volatility caused by the trade war, Andrew Skillman, a 60-year-old investor, remained calm and avoided making changes to his portfolio. His patience, alongside that of other investors, paid off as the market rebounded following President Trump’s easing of tariff policies. While some traders sought to capitalise on the volatility, others, like Skillman, refrained from panicking and were rewarded with substantial recovery in their investments. This hands-off approach, often advocated by investment experts, allowed many long-term investors to recover losses and achieve a positive outcome, reinforcing the value of maintaining a steady, buy-and-hold strategy during periods of market turmoil.

Honda Motor has projected a significant 70% drop in net profit for the fiscal year ending March 2026, estimating profits to fall to ¥250 billion ($1.68 billion). This decline is largely attributed to the impact of higher U.S. tariffs on foreign-made cars. Revenue is expected to decrease by 6.4% to ¥20.3 trillion. The tariff hikes are a growing concern for Japan’s automotive industry, a key driver of the nation's economy, as they could negatively affect car exports, which constitute a third of Japan's shipments to the U.S. Other Japanese automakers, including Toyota, are also facing similar challenges, with Toyota forecasting a 35% drop in net profit for the year.

Bayer has maintained its full-year outlook despite posting a decline in net profit for the first quarter. The German pharmaceutical and agricultural company reported a net profit of €1.30 billion, down from €2 billion the previous year and below analysts' expectations. However, its earnings before interest, taxes, depreciation, amortisation, and special items (EBITDA) rose to €4.085 billion, surpassing estimates. Sales fell by 0.2% to €13.74 billion, with stronger performances in its pharma and consumer health divisions offset by a decline in crop science. The company reaffirmed its 2025 guidance, expecting stronger growth in its pharma division.

After a long wait, the UK government has secured two significant trade deals in one week: one with India and another framework agreement with the US. The deals were announced alongside a Bank of England interest rate cut, aimed at boosting investment in the UK economy. The trade agreements, while not economically transformative in the short term, offer potential long-term benefits. The deal with India, in particular, could add £4.8bn to the UK economy by 2040, with hopes for growing demand in consumer goods. The US deal, though helpful in mitigating damage from rising tariffs, offers less immediate economic impact. The announcements led to a mixed reaction, with some sectors like luxury cars benefiting, but broader uncertainty remains. Economists and business leaders are cautiously optimistic, urging further government focus on policies to stimulate growth and investment.

The UK's unemployment rate has risen to 4.5%, its highest level in almost four years, according to the Office for National Statistics (ONS). This marks a 0.2% increase from the previous quarter, reflecting a slowdown in the jobs market. Data revealed a 5.3% drop in job vacancies, particularly in the construction sector, and a decline in pay growth, with regular earnings increasing by 5.6% in the three months to March. These signs of a weakening labour market, coupled with a small fall in payrolled jobs, may ease concerns for the Bank of England, which recently reduced interest rates. Meanwhile, the economic inactivity rate remains high at 21.4%, and the increase in employer national insurance contributions (NICs) and national living wage has sparked concerns over rising business costs. Additionally, the ONS is under scrutiny over data quality issues.

Research suggests that providing weight loss injections, like semaglutide (Wegovy and Ozempic), to those eligible could boost the UK economy by £4.5 billion. The study, which examined clinical trial data from 2,660 participants with obesity and/or type 2 diabetes, found that semaglutide increased productivity by enabling individuals to work more and contribute to unpaid work, such as volunteering. The total potential economic benefit from these productivity gains could reach £4.31 billion annually for those with severe obesity. While the medication shows promise for treating obesity and type 2 diabetes, experts warn that its high cost means it may not be affordable for widespread use at present. Additionally, weight loss drugs are also showing potential in reducing alcohol consumption, with some patients reporting significant reductions in their intake. However, experts caution that these drugs should not be seen as a cure-all, as they can have side effects.

In March, the US imported a record $53 billion worth of pharmaceutical products, as companies prepared for potential tariffs from President Trump’s administration. This marked a 160% increase from the previous year and a near doubling from February. While Trump has not yet imposed tariffs on pharmaceuticals, there are concerns following a national security review on the sector. The US and UK have agreed to negotiate preferential tariff treatments for drugs, contingent on a security review and supply chain compliance. A significant portion of the imports came from Ireland, which is home to many US pharmaceutical manufacturing plants. In response to the tariff threat, several US pharmaceutical companies, including Eli Lilly and Johnson & Johnson, have announced plans to expand domestic manufacturing. However, concerns persist that tariffs could lead to drug shortages. European pharmaceutical firms, such as AstraZeneca and GSK, are also increasing their investments in the US to mitigate the risks.

Singapore’s ruling People’s Action Party (PAP) has won its 16th consecutive general election, securing 87 of 97 parliamentary seats and increasing its share of the popular vote to 66% — its highest in a decade. The election marked the first major test for Prime Minister Lawrence Wong, who succeeded Lee Hsien Loong last year. Voters backed the PAP amid global geopolitical uncertainty, reflecting support for stability in the trade-reliant nation. The opposition Workers’ Party retained its 10 seats and will receive two additional non-constituency seats after running close in several constituencies. Rising living costs and slowing economic growth remain key challenges for the new government.

Opec+ members, including Saudi Arabia and Russia, have announced a second consecutive monthly increase of 411,000 barrels per day for June, despite a decline in oil prices due to concerns over oversupply and economic weakness. This decision follows an unexpected increase last month and marks a shift in strategy, with Opec+ aiming to regain market share after years of production cuts. The move comes as tensions grow within the cartel, particularly with Kazakhstan, and as Saudi Arabia seeks to unwind its production curbs. While the strategy could lead to lower oil prices, its impact remains uncertain, with concerns over whether members will adhere to the new quotas.