• US business optimism has dropped dramatically, a stunning about-face from post-reelection giddiness, as just 27% of executives are confident about the direction of the economy. The about-face from optimism to caution stems largely from uncertainty regarding tariffs, leading to delayed hiring, reduced investment, and scaled-back growth plans. IMF’s Gita Gopinath warned that the mixed impact of trade wars will make monetary policy management for emerging market central banks more challenging than the COVID-19 pandemic.

• In other news, European consumer association BEUC complained to fast-fashion retailer Shein that it used “dark patterns” like pop-ups, countdowns, and over-notification to push mass consumption aggressively. Conversely, world spending on energy is set to hit a record high of $3.3 trillion in 2025, driven by a jump in clean energy expenditure, spearheaded by solar power and battery storage, despite economic and geopolitical uncertainty. Twice as much will be spent on clean energy technologies compared to fossil fuels.