Global financial markets held steady last week, with investor attention focused on trade negotiations, corporate restructuring, and evolving investment strategies. While volatility was contained, several key developments signalled underlying tensions in the global economy.
Equity markets moved only modestly as the United States and China resumed high-level trade talks in Switzerland. Hints from the White House regarding a potential reduction in tariffs on Chinese goods briefly stirred investor sentiment, though no formal agreement was reached by the end of the week.
Meanwhile, global equity fund inflows slowed markedly. Investors directed just $856 million into global equity funds, compared with over $6 billion the week before. The shift reflects growing caution surrounding protectionist policies and their possible impact on global growth. European equity funds remained resilient, but US equity funds saw net outflows for a fourth consecutive week.
In the UK, government officials celebrated a new trade agreement with the United States, which removes tariffs on steel, aluminium, and car exports. In return, the UK will ease restrictions on US agricultural products. Despite the upbeat political messaging, analysts view the agreement as largely symbolic, with limited effect on either economy’s long-term performance.
Corporate headlines were dominated by Panasonic’s announcement of 10,000 job cuts by March 2026. The company cited the need to streamline operations and improve efficiency amid rising costs and a shifting global business landscape. The cuts are expected to affect both domestic and international workforces.
On the investment front, Berkshire Hathaway revealed a continued shift in strategy under Warren Buffett. Moving away from its traditional focus on undervalued assets, the firm has increased its holdings in stable, long-term franchises such as Apple and major US banks. Analysts note that Berkshire’s strength lies in its conservative balance sheet, strong insurance base, and growing preference for low-volatility, high-quality assets.
Together, these developments illustrate a global financial system adapting to uncertainty, whether through strategic rebalancing, political negotiations, or corporate restructuring.
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