Good morning from the Financial Times.

Today is Tuesday, December 2nd, and this is your FT News Briefing.

UK pension funds are worried about an AI bubble, and the U.S. and the UK are getting close to a truce in the battle over pharmaceuticals.

Plus, Credit Suisse and UBS are facing criminal charges from the Tuna Bond scandal.

I'm Sonia Hudson, and here's the news you need to start your day.

UK pension funds are cutting back their exposure to U.S. equities. U.K. pension funds are cutting back their exposure to U.S. equities.

They're concerned about an AI bubble, plus the fact that the market has become more concentrated in a small number of tech stocks.

Funds that manage more than 200 billion pounds in assets told the FT they've been shifting to other geographical regions, or adding protection against a potential market dip.

The UK's defined contribution pension sector, where employees build individual retirement savings, is especially sensitive to potential stock market swings.

Savers that are 30 years from retirement typically have up to 80% of their assets in global

equities, most of them dominated by U.S. big tech stocks.

Swiss prosecutors filed criminal charges against Credit Suisse and its owner UBS yesterday.

They're connected to the Mozambique-Tunabond scandal.

Prosecutors allege that the bank failed to prevent a suspicious $7 million payment because of, quote, organizational shortcomings.

UBS took over Credit Suisse several years after the scandal, and the charges raise questions about whether criminal liability gets transferred during a takeover. Here to talk more about this is the FTs Mercedes rule. Hi, Mercedes.

Hi. All right, lots to unpack here. Can you first explain what the Tuna Bonds scandal is?

So the Tuna Bonds scandal dates back to 2013 when Mozambique, which is one of the poorest countries in the world,

borrowed around $2 billion to fund maritime security projects and a state tuna fishing fleet.

The problem was that much of this money was actually misused.

Bankers, intermediaries and government officials were accused of taking bribes and kickbacks,

and the country was ultimately left with, like, pretty crippling debts and a collapsed development

project.

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