Greetings,

M&A activity this year could top the record $5 trillion-plus seen in the bumper year that was 2021 — and that's even ever a 10% slowdown in Q3 deals. More on that below.

Also in the news:

• BIS flags concerns with circular financing in AI
• Sonderling confirmed as Labor secretary
• Few finance teams ready to implement AI at scale, IBM says
• Should AI be incorporated into employee costs? This firm thinks so

Global announced M&A has reached $3.8 trillion this year despite a roughly 10% year-on-year drop in third-quarter volume, leaving dealmakers within reach of the $5 trillion-plus record set in 2021. Higher rates, AI uncertainty and the US midterm election could complicate timing and financing, though advisers say boardroom appetite for large transactions remains strong.

A report from the Bank for International Settlements highlights the prevalence of circular financing among artificial intelligence companies, where firms finance each other to stimulate demand and secure inputs. The report notes that more than half of AI firm financing from 2021 to 2025 came from other AI firms, with almost half of these involving commercial relationships. The report raises concerns about the transparency of these arrangements, noting that they can obscure true demand and pose monitoring challenges for investors and regulators.

The Senate has confirmed Keith Sonderling as labor secretary, filling a Cabinet vacancy since April. Sonderling, who has served as the acting secretary, has a history with the Labor Department and the Equal Employment Opportunity Commission and has been seen as employer-friendly. His confirmation also has faced opposition from Democrats, who have expressed concerns about potential rollbacks of worker protections.

A report by PYMNTS Intelligence and JPMorgan Chase shows that CFOs are accelerating cash flow with tools such as artificial intelligence, but are facing challenges from external factors including longer customer payment terms, supplier delays and increased fraud threats. The report notes that 58% of companies now track cash flow goals across business units, up from 5% in 2025.

Diesel prices in the US have dropped slightly from record highs, but shipping costs remain elevated, posing challenges for finance teams. Chevron CFO Eimear Bonner expects energy prices to stay high until shipping through the Strait of Hormuz stabilizes and more refining capacity returns. Some states have responded by allowing the use of red-dyed diesel on public roads.

The Securities and Exchange Commission has proposed changes aimed at expanding individual investors' access to private markets, including allowing certain credential holders and investors to qualify as accredited investors if they pass an exam developed by the Financial Industry Regulatory Authority. Separate proposals would broaden advisers' ability to charge performance-based fees and update interval fund rules, including by allowing monthly repurchases. The proposals are open for public comment for 60 days.

IBM research shows a gap between artificial intelligence investment and implementation among finance teams, with just 6% of 1,500 chief financial officers surveyed saying their finance teams are ready for transformation with AI embedded in workflows and decision-making. The study also finds that organizations with chief financial officers who lead AI integration experienced 23% higher revenue growth from 2022 to 2024.

Finance software firm Esker has begun to incorporate artificial intelligence token consumption into employee expense planning to better manage the unpredictable cost of the technology, says CFO Scott McDermott. Esker has exceeded AI token caps because of increased use and usage-based pricing, leading to costs four times higher than budgeted.

A Florida federal judge ordered Brian Early and Alisha Ann Kingrey to pay more than $15.7 million in restitution and more than $15.7 million in civil penalties over the CFTC's allegations that Fundsz defrauded more than 9,000 customers. The agency said the scheme falsely advertised guaranteed crypto and precious-metals trading returns and did not trade customer funds, while Kingrey denied defrauding anyone.