Equity markets lost ground despite the usual year‑end support, with underlying weakness now surfacing more clearly. US companies have announced over 1.1 million job cuts so far this year, the highest since 2020. Much of this is being labelled as AI‑driven restructuring, though the scale and timing of benefits remain unclear. Cost savings are not yet feeding into earnings in a way that supports high valuations.
Major tech firms have continued to push AI, but so far the financial impact is limited. Share price reactions are starting to reflect that gap. The narrative around AI-led productivity is not yet matched by results. As expectations reset, weaker hands may continue to sell off, particularly where earnings guidance is vague.
In the UK, interest rates were held at 4%. Markets are now pricing in a cut before the end of the year, especially after weaker wage and inflation data. The government’s Autumn Statement did little to shift expectations. Fiscal support looks limited, so rate policy is expected to take the lead.
On the ground, health care remains in focus. Novo Nordisk announced a new US distribution deal for its weight‑loss drugs and confirmed its acquisition of a manufacturing partner. This is about protecting market share and speeding up access in a segment that’s moving fast. Pfizer’s withdrawal from one of its obesity drug programmes suggests more scrutiny on efficacy and cost.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
