Global shares outpaced Wall Street as investors diversified amid unease over Trump’s policies, stretched US valuations and concerns about big tech and AI competition from China. Asset managers are shifting regional allocations after a prolonged period of US outperformance.

Tech start-ups have built a record $150bn cash pile to weather a potential AI downturn, prioritising ‘fortress’ balance sheets as funding cools and public market jitters grow. Backers urge discipline on burn, compute costs and revenue, warning valuations may outpace real adoption.

Global dealmaking hit about $4.5tn, the second-highest year on record. Cheap finance, boardroom confidence and US tax and regulatory shifts fuelled megadeals, lifting investment bank fees. Activity was led by US buyers, with technology, healthcare and energy among key sectors.

Labour has softened plans for farm inheritance tax, raising the threshold to £2.5m and leaving about 15% of estates liable. The change, expected to cost the Treasury about £130m, follows rural concerns. The NFU welcomed the step as support for family farms.