Nvidia recently became the first company to reach a $4 trillion market value, exemplifying the explosive growth driven by the artificial intelligence (AI) boom. This surge has reignited competition among Silicon Valley’s venture capital (VC) firms, who are now holding on to promising startups for longer, aiming to capture even greater returns. Some investors believe it's only a matter of time before the first unlisted company reaches a $1 trillion valuation.
Following a downturn in 2023, the VC industry has been revitalised by generative AI, with a significant share of investment now flowing into AI-related firms. The abundance of capital - bolstered by sovereign wealth funds and leftover pandemic-era funding - has pushed valuations to unprecedented heights. More mature startups are receiving the bulk of VC funding, and firms are finding new ways to extend investment horizons, such as through secondary share sales and permanent capital structures.
While these shifts offer the potential for extraordinary gains, they also bring heightened risk. The practice of writing ever larger cheques for unproven companies could backfire if lofty valuations prove unsustainable - echoing the fate of past "zombie unicorns". Nevertheless, the pursuit of trillion-dollar returns continues to reshape the VC landscape.

Initial fears about the global economic impact of President Trump’s tariffs have faded, with markets rallying and business confidence improving. However, the newly passed One Big Beautiful Bill (BBB), set to be signed into law on 4th July, threatens long-term economic stability in the United States.
The BBB primarily extends unsustainable tax cuts and does little to address America's growing budget deficit, which is nearing post-Second World War highs. It cuts welfare and clean energy incentives, likely leaving millions without health insurance and setting back climate policy. Despite hopes that economic growth will offset these concerns, the bill’s measures offer limited stimulus, especially in an environment of high interest rates and mounting debt.
Furthermore, the legislative process that produced the bill highlights deeper dysfunction in American politics, where rushed mega-bills bypass scrutiny. Structural risks-rising debt, weakening institutions, and Trump’s undermining of the rule of law - pose increasing threats to long-term growth and investor confidence. Although optimism persists, the economic foundations are becoming shakier beneath the surface.

Cognac producers had reason for cautious celebration this week after China concluded its anti-dumping investigation into European brandy. Thirty-four producers, including major firms like LVMH, Pernod Ricard, and Rémy Cointreau, agreed to minimum pricing and will be spared from new 35% tariffs, which will apply only to a handful of others.
Cognac is a key export for France, with 97% of production consumed abroad and annual sales of €3bn. However, tensions with China - seen as retaliation for the EU’s probe into Chinese electric vehicles - have hit the industry hard. Shipments to China fell 38% between October and May. While the deal avoids the worst-case tariff scenario, higher import taxes and weaker luxury spending in China are still expected to dent profits.
Meanwhile, in the United States, cognac faces both trade risks and falling demand. A potential return of steep tariffs under President Trump could hurt exports, and shifting consumer preferences—especially among younger drinkers who are turning to tequila and drinking less overall - are compounding challenges.
Despite a reprieve from punitive tariffs, cognac producers remain under pressure from both geopolitical tensions and changing global tastes.

China’s exports grew more rapidly in June, rising 5.8% year on year, boosted by easing trade tensions with the United States. This increase surpassed both May’s 4.8% growth and economists’ expectations of 4.0%, according to the General Administration of Customs.
Imports also rebounded, rising 1.1% in June compared to a 3.4% decline in May, outperforming forecasts of a 0.5% fall. Consequently, China’s trade surplus widened to $114.78 billion, up from $103.22 billion in May and exceeding economists’ predictions.
This stronger trade performance offers a significant boost to the world’s second-largest economy amid ongoing global uncertainties.

Despite a flood of tariff threats from President Trump, US stocks have continued to reach record highs this year, boosted by strong corporate profits. However, the upcoming earnings season poses a challenge, as investors look for clearer insight into how trade tensions are affecting companies and the broader economy.
Analysts expect S&P 500 profits to grow by 4.8% in the second quarter - significantly slower than earlier this year. Many firms have already cut or withdrawn forecasts, citing uncertainty from tariffs and inflationary pressures. Early reports from companies like Nike and FedEx suggest tariffs are increasing costs and dampening demand.
Investors will closely watch commentary for signs of consumer resilience, since economists estimate Americans will absorb most tariff-related price hikes. Some sectors, such as communication services and technology, are expected to show strong growth, while energy profits may decline sharply.
The earnings season will also test whether leading tech firms continue to invest heavily in artificial intelligence, a key factor supporting their high valuations. Overall, while stocks have rallied, valuations remain elevated, prompting caution among some strategists.

Alphabet, Google’s parent company, faces significant challenges from antitrust investigations in the US and Europe, as well as competition from AI rivals like OpenAI’s ChatGPT, which threatens its dominance in search - a key revenue source. Its stock has underperformed this year compared to peers such as Microsoft and Meta.
Some analysts suggest breaking up Alphabet into separate companies could unlock greater shareholder value, estimating a much higher combined worth than its current share price.
However, Alphabet’s valuation, around 18 times forward earnings, is relatively low compared to competitors, making it a rare bargain in the AI sector. Expected regulatory penalties may force divestitures but are unlikely to dismantle the company entirely.
Alphabet’s own AI tools, including Gemini, are gaining users and complement its vast ecosystem of services, which interconnect to support innovation and revenue. Its autonomous driving unit, Waymo, leads the robotaxi market despite less hype than rivals.
Given its integrated structure and scale advantages, Alphabet appears more of a strong contender with untapped potential than a company on the brink, suggesting its current struggles may be overstated.

French President Emmanuel Macron has urged the EU to “defend European interests resolutely” after US President Donald Trump threatened to impose 30% tariffs on nearly all imports from the bloc. In response, the EU paused €21 billion of retaliatory tariffs until 1 August, aligning with Trump’s deadline in a bid to de-escalate tensions.
Meanwhile, the EU secured a political agreement on a free trade deal with Indonesia, ending nine years of negotiations, as the bloc intensifies efforts to forge new trade partnerships with countries in Asia and South America.
European leaders expressed mixed reactions: Macron warned the EU to prepare for a potential trade war, while Germany advocated a pragmatic approach, with Chancellor Friedrich Merz seeking dialogue with Trump. Other leaders called for calm and unity, emphasising the need for a fair agreement.
The US administration confirmed tariffs would proceed if improved deals are not reached, intensifying pressure on the EU. Behind the scenes, many in Europe view Trump’s threat as a negotiating tactic but also a risky escalation amid global instability.
The dispute has sparked concern among European industries, notably Germany’s automotive and steel sectors, which are already burdened by existing US tariffs. The EU-US trade relationship remains significant, with key exporters like Germany, Italy, and Ireland particularly vulnerable to tariff hikes.

Scientists have detected gravitational waves from the collision of two enormous black holes, each over 100 times the mass of the sun, merging around 10 billion light years away. This is the most massive black hole merger ever recorded and challenges existing models of black hole formation. The event was captured by the US-based LIGO detectors, which observed tiny ripples in space-time caused by the merger.
The newly formed black hole is estimated to be up to 265 times the mass of the sun and spins near theoretical limits. Researchers believe these black holes may themselves be the result of earlier mergers, explaining their unusual mass and spin. This discovery marks a major advance in gravitational wave astronomy, offering a new way to observe the universe beyond traditional electromagnetic methods.

Darren Jones, Treasury chief secretary and MP for Bristol North West, has shifted focus from tough budget negotiations to launching a £500 million social impact investment fund aimed at tackling child poverty through grassroots projects. Drawing on his own experience growing up on a deprived council estate, Jones champions public-private partnerships that link taxpayer funding with private investment, rewarding success in improving educational and employment outcomes.
While cautious about government spending amid tight public finances, Jones supports innovative funding models distinct from the controversial PFI schemes of the past, and advocates for greater use of AI as a tool in government. Loyal to Chancellor Rachel Reeves, he emphasises fiscal discipline and promises no major tax rises on income, national insurance, or VAT, despite economic challenges.
Jones also highlights the government’s long-term approach to infrastructure investment, including improved maintenance for public buildings and roads, reflecting his pragmatic optimism about achieving change despite financial constraints.

The International Energy Agency (IEA) forecasts the slowest global oil demand growth since 2009, outside the pandemic period, expecting an increase of just 700,000 barrels per day this year. This downgrade reflects weaker-than-expected demand in the second quarter, partly due to weather and partly linked to economic uncertainty from US tariffs affecting countries like China, Japan, Korea, and Mexico.
The IEA’s outlook contrasts with Opec+, which predicts demand growth of 1.3 million barrels per day and has begun reversing production cuts. As a result, global oil supply is expected to exceed demand this year, potentially pressuring prices. Brent crude traded around $68.80 per barrel, with some analysts anticipating a drop below $60 later in the year.

Crypto companies and traders are increasingly investing billions in tokenised money market and Treasury bond funds as an alternative to stablecoins for parking cash with some yield. Assets in tokenised Treasury products have surged 80% this year to $7.4bn, with funds managed by BlackRock, Franklin Templeton, and Janus Henderson experiencing rapid growth.
Tokenised funds offer a cheaper, faster way to trade mutual funds on blockchain, reducing settlement times from days to minutes and lowering capital and administrative costs. This shift has been driven largely by crypto traders seeking more secure, yield-bearing alternatives to stablecoins, which offer no returns.
Tokenised assets are also gaining traction as collateral in crypto derivatives trading, allowing faster margin calls outside traditional bank hours. Significant investment from Wall Street firms into blockchain platforms like Digital Asset highlights growing interest in tokenised collateral management.
Despite these advances, broader market adoption remains slow due to liquidity challenges and the early stage of the technology. Experts acknowledge the potential benefits but emphasise that tokenised bonds currently lack the liquidity of traditional cash bonds.

Fundraising through initial public offerings (IPOs) in London has plunged to its lowest level in at least 30 years, highlighting the UK’s declining appeal as a hub for equity markets. In the first half of 2025, just five listings raised a mere £160 million, marking a 98% drop from early 2021 and even falling below post-financial crisis levels in 2009.
Experts warn this decline risks creating a vicious cycle where fewer companies list in London, leading to reduced liquidity and prompting the best growth firms to seek listings elsewhere, particularly in the US, where valuations are higher. The situation is underscored by recent news that AstraZeneca’s CEO has privately considered moving its listing to New York, causing concern among City investors.
The fall in public market activity is partly due to companies choosing private capital routes, shrinking the pool of public investment opportunities. Although the Labour government has proposed reforms to revitalise London’s markets, critics argue these focus too much on private companies and not enough on supporting public equity.
Overall, the London market faces a critical juncture, with industry leaders warning that without urgent change, it risks further decline and loss of its once-dominant position.