Good morning, welcome back and happy Friday. In today’s newsletter:

• Investors pour record sums into European stocks

• Trump gives Iran 15 days to strike a deal or ‘bad things will happen’

• Amazon service was taken down by AI coding bot

• Cats give genetic clues to better cancer treatments

We begin with European equities which have lured record sums from global investors, as a desire to reduce exposure to the US meets growing optimism over the state of the region’s economy. 

What to know: European stocks are heading for their highest-ever monthly inflows in February, following two consecutive record weekly flows of about $10bn, according to data from EPFR, which tracks ETF and mutual fund flows. 

The blue-chip Stoxx Europe 600 index has punched through a series of record highs this month, as have indices in the UK, France and Spain. 

Diversify, diversify: European bourses, with their heavy weighting to “old economy” sectors such as banks and natural resources, have benefited from big investors’ desire to branch out from Wall Street and its technology sector amid concerns over a potential AI bubble. Read the full story.

Here’s what else we’re keeping tabs on today and over the weekend:

• Economic data: Manufacturing and services purchasing managers’ indices are due for the Eurozone, France, Germany, the UK and the US. The UK releases public sector finances figures.

• Results: Anglo American and Danone report earnings.

• Diplomacy: Brazilian leader Luiz Inácio Lula da Silva meets Indian Prime Minister Narendra Modi tomorrow.

• Life and arts: The Bafta film awards ceremony will be held at the Royal Festival Hall in London on Sunday. The Winter Olympics will have its closing ceremony in Verona on the same day.

How well did you keep up with the news this week? Take our quiz.

Five more top stories

1. President Donald Trump has warned Iran that it had a “maximum” 15 days to reach a deal with the US or “bad things will happen”. His comments come as Washington deployed its biggest military presence in the Middle East since the 2003 Iraq invasion. Read more on the latest and check out our visual report on the build-up.

• Iran bets on war: Tehran thinks a drawn-out conflict could eventually yield a better deal than Trump is offering today, writes Vali Nasr, professor at Johns Hopkins University.

2. Exclusive: Nvidia is close to finalising a $30bn investment in OpenAI that will replace the long-term $100bn commitment agreed by the companies last year. Read more on the tech groups’ retreat from their earlier deal.

3. Exclusive: Diageo chief executive Sir Dave Lewis is planning a major shake-up of his executive team as part of plans to reinvigorate growth. The former Tesco boss, who has a reputation for cost-cutting, is moving to stamp out the ailing drinks group’s “fat and happy” culture.

4. Exclusive: The owners of Aggreko, which provides electricity for events such as Formula 1 races and Fifa World Cup football matches, are pushing ahead with plans to either list the power supplier in the US or sell a stake in a move that could value the business at more than $12bn.

5. Klarna shares sank by more than a quarter yesterday after the buy now, pay later group reported a $273mn net loss for 2025 and increased its provisions for bad loans. Read more on the Swedish fintech’s woes.

The Big Read

Once instinctively hostile to corporate interests, the African National Congress is now working with industry to revive South Africa’s economy. But, despite increased co-operation between business and President Cyril Ramaphosa’s administration to drive efficiency, some are saying the reforms are not going fast enough.

We’re also reading . . . 

• Comedy on prescription: The NHS is trialling the use of stand-up lessons for patients with depression as a complement or alternative to medication.

• Zambia bonds: The finance minister has called for the inclusion of the African country’s domestic debt in major indices after strong investor demand.

• Cat cancer: Scientists have found close similarities in pet and human tumours, offering ideas for better treatments that target both.

Chart of the day

Is a graduate degree still worth it? The premium gained from finishing university has fallen in the UK but not in other developed countries. John Burn-Murdoch explains why worsening graduate fortunes are a particularly British problem.

Take a break from the news . . . 

A visit to a modern hospital can often conjure a sense of alienation and unease, writes Edwin Heathcote. An exhibition at the V&A Dundee in Scotland presents another possibility: that architecture, space and landscape can be part of a process of caring and healing.