Greetings,

A new report finds that global mergers and acquisitions are on track to reach $4 trillion in annual deal value this year, the most since 2021, amid a surge in megadeals driven by demand for artificial intelligence. More on that below.

Also in this edition:

• Big Tech sell-off ripples through global markets
• Steel, aluminum makers face rigorous tariff reduction process
• Most companies can't quantify sustainability's financial impact
• Senators challenge Trump on manufacturing tariffs

Global M&A deal value is on pace to reach $4 trillion this year, the strongest total since 2021, as AI demand fuels a wave of large transactions. PwC said deals above $5 billion now account for nearly half of global value, widening the gap between megadeals and a mid-market still constrained by uncertainty, valuation gaps and a private equity exit backlog.

Global stocks fell as a retreat in large technology companies and renewed concerns about higher US interest rates weighed on investor sentiment. The decline followed losses in AI-related shares, with Alphabet, Amazon and semiconductor stocks extending recent weakness, while SpaceX shares dropped more than 20% from their post-IPO peak. The sell-off spread across Asia and Europe, highlighting growing investor scrutiny of technology valuations after a rally that helped drive major equity indexes to record highs earlier this year. "New concerns are emerging" for stocks, said Barclays strategist Venu Krishna, "as markets tangle with resurgent inflation, AI capex scales to unprecedented levels and a Fed rate path narrows more than before."

Steel and aluminum producers seeking reduced Section 232 tariffs must navigate a rigorous record-keeping process, according to trade lawyers. The Commerce Department's new process allows Canadian and Mexican producers to qualify for a 25% tariff if they commit to expanding US production. Producers must submit extensive documentation, meet milestones and maintain detailed records to prove compliance.

A KPMG survey of more than 2,000 executives has found that only 20% of companies can quantify the financial impact of sustainability initiatives, highlighting a significant gap between sustainability awareness and financial integration. The survey shows that companies in South Africa and Germany are more likely to consider sustainability a key strategic factor than those in the US.

Sens. Elizabeth Warren, D-Mass., and Mark Kelly, D-Ariz., have written a letter to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, criticizing President Donald Trump's trade policies for harming US workers. They cite job losses and a record-high trade deficit in manufactured goods, and they also ask for an explanation of the increasing deficit and plans to mitigate the negative effects of tariffs.

Accountability is declining in organizations amid rising complexity and pressure from global events, Chris Power writes. Power cites Gallup research to illustrate that employees are unsure of expectations and leaders struggle to enforce accountability as a result of matrix structures and leadership behaviors, but notes that leaders can rebuild accountability by clarifying roles and fostering independent thinking.