For several years now, financial markets have been riding a wave of unprecedented technological optimism driven by artificial intelligence (AI). Promises of productivity gains and novel business models have driven stock valuations to record highs, hinting at the formation of a financial bubble. This self-sustaining momentum heightens the risk of a sudden bubble burst, potentially triggering sharp market...

Against a backdrop of ongoing geopolitical uncertainty, but with the US trade fog lifting, growth rates are expected to remain steady or even pick up. Fiscal measures will contribute to this resilience in a variety of ways: from tax cuts in the US to aggressive fiscal policy in Japan, via Keynesian stimulus in the UK and spending linked to the NGEU plan on the one hand and the German recovery on the...