The International Monetary Fund has appointed Silvana Tenreyro as chief economist, succeeding Pierre-Olivier Gourinchas. Tenreyro, a former member of the Bank of England's Monetary Policy Committee and a professor at the London School of Economics, will lead the IMF's research department amid global economic uncertainties, including inflation and the rise of artificial intelligence.

The value of takeover bids for London-listed companies has reached nearly £60 billion this year, about 27 times the market value of new listings. The gap is renewing concern over the shrinking UK public market as overseas buyers target listed companies while only seven firms joined the LSE in the first half.

Investors are increasingly shunning traditional hedging strategies in favor of buying call options to capitalize on rising stock prices, which has created a "greed premium" in the options market, with call implied volatility surpassing that of puts, deviating from the historical norm. The S&P 500 has risen about 10% this year despite challenges such as the war in Iran and inflation.

China's auction of 10-year government bonds has set a record for demand, with the bid-to-cover ratio reaching 7.23. The bonds were sold at an average yield of 1.72%, and the yield in the secondary market was little changed at 1.74%.

Japan's benchmark 10-year bond yield climbed to its highest level since 1996 as investors questioned the fiscal impact of Japanese Prime Minister Sanae Takaichi's long-term spending plans. The sell-off reflects concern that yen weakness, heavy debt and a cautious Bank of Japan could keep inflation pressures elevated and make Japan's borrowing costs harder to contain.

The autocallable exchange-traded fund market, a niche that emerged last year, is seeing competition between new and classic structures as issuers vie for market share. Although the market is small, with $3.4 billion in assets, older structures have caught up with volatility target versions that initially seemed poised to dominate.

The UK Financial Conduct Authority's recent review highlights the growing autonomy of AI in financial services, with banks increasingly deploying AI agents that can independently execute tasks for customers. The FCA identifies this rise in AI autonomy as a fundamental shift, requiring firms to rethink governance and oversight as risks move from isolated incidents within firms to broader, system-wide challenges. Regulators note that as delegation to AI increases, ensuring responsible management of both internal and external AI systems becomes critical.

Japan's ruling party plans to propose tougher enforcement of shareholder disclosure rules as activist investing reaches record levels. Lawmaker Fumiaki Kobayashi said the goal is not an anti-activist crackdown, but stronger oversight of suspected rule breaches, wolfpack activity and undisclosed coordination around takeovers.

The US Securities and Exchange Commission's 2026 regulatory agenda includes proposed rules to clarify the regulatory framework for crypto assets, aiming to attract markets onshore and embrace innovation. SEC Chairman Paul S. Atkins says the rules will provide certainty, facilitate capital formation and protect investors.

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