Friday 5 December 2025
The Mighty Headlines
Economics: US could pull out of US-Mexico-Canada free trade agreement
Business and markets: Facebook planning cuts in virtual reality business
Foreign Affairs: China deploys 100 ships to East Asian waters
Security and intelligence: Putin says Russia will have the Donbas
Domestic politics: Reform UK receives over £10 million in donations in Q3
The Mighty Stats
FTSE = 9,710.87 (up 0.19%)
S&P 500 = 6,857.12 (up 0.11%)
Nasdaq = 23,505.14 (up 0.22%)
CAC40 = 8,122.03 (up 0.43%)
£1 = $1.33 / €1.14
Lab / Con / Reform = 14 / 20 / 31 per cent (Find Out Now, 3 Dec)
Today’s Mighty Question and Answer
Q: What was the dot.com boom and in what ways was it similar to the AI boom? Thanks, M
A: M, thank you for your question which is very relevant given the valuations of many tech companies at the moment. The dotcom boom was a period during the mid to late 1990s in which the stock market valuation of tech companies was particularly high relative to the actual financial performance of those companies. Stock market indices rose off the back of speculation, leading to a significant market correction in the early 2000s. The Nasdaq dropped from just over 5,000 in early 2000 to just over 1,100 at the end of 2002. The Nasdaq wouldn’t reach that peak again until 2015.
The AI boom could be similar to the extent that technology companies have again seen a rapid rise in their valuations, perhaps with overly optimistic financial forecasts. Chipmaker Nvidia, for example, has seen its stock rise by over 300 per cent in the last two years. At the end of 2019, the Nasdaq stood at just under 9,000. It now stands at around 23,500.
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The Mighty Detail
Economics: The US administration could pull out of the US-Mexico-Canada (USMCA) trade agreement next year, according to the US’s head trade negotiator Jamieson Greer.
The deal regulates around $2 trillion in trade between the three countries each year.
President Trump separately said earlier in the week that Mexico and Canada had taken advantage of the US “like just about every other country”.
Business and markets: Facebook’s parent company, Meta, is planning budget cuts of up to 30 per cent to its “metaverse” business. The “metaverse” is a virtual reality world, which CEO Mark Zuckerberg once said was the future of the company. The virtual reality business of Meta has lost more than $70 billion since 2021.
Foreign Affairs: China has deployed more than 100 military and security vessels in East Asian waters this week. China often conducts military drills at this time of year, but this year’s figure is higher than previously.
Taiwan’s decision last month to increase defence spending by $40 billion has reportedly angered Beijing as have remarks made by the Japanese Prime Minister on Taiwan.
Security and intelligence: President Putin said yesterday that Russia would take the Donbas region of Ukraine by force or Ukrainian troops would leave. Putin spoke at the end of a two-day visit to India. Discussions between US envoy Steve Witkoff and President Putin on Tuesday ended without a deal.
Domestic politics: The Reform UK Party received £10.3 million in donations in Q3 2025. This is more than the governing Labour Party and the Conservative Party combined, which received £2.2 million and £4.7 million respectively. Of the money Reform UK received, £9 million was given by crypto investor Christopher Harbourne.
The Mighty Calendar
What’s happening today?
2026 World Cup draw
UK House of Lords continues debate on the assisted dying bill
Eurozone GDP growth data (Q3 2025) – set to fall from 1.5% to 1.4%
Lookahead to the weekend
Saturday
St Nicholas Day (continental European celebration)
EU Foreign Affairs Representative Kallas speaks at the Doha Forum
US Defence Secretary Hegseth speaks at the Reagan Defence Forum
Home Alone in Concert, Royal Albert Hall, London
Sunday
Elections for Hong Kong’s Legislative Council
UK Snooker Championship final
F1 Abu Dhabi Grand Prix
The Mighty Finale
🌤️Weather today
Heavy rain in the west of England for much of the day. Dry in the east until the afternoon. High of 10C and low of 7C in London. Heavy rain in Belfast. Light rain in Edinburgh.
✏️Life coaching quote of the day
“Happiness does not depend on what you have or who you are, it solely relies on what you think.” – Buddha
Mighty takeaway: Change your perspective about your problems until you find one that makes you happy.
That’s it for this morning and for this week. Thank you for reading as ever and we’ll see you on Monday. We hope that you enjoy the weekend.
Cheerio!
The Mighty Memo team
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