FT News Briefing Renault and Nissan reach a deal to save alliance
Jan 31, 2023
The International Monetary Fund's optimistic growth forecast contrasts sharply with potential recession fears in Britain over high energy prices. Renault and Nissan have struck a crucial deal to stabilize their long-standing alliance, which could impact electric vehicle strategies. Meanwhile, South African businesses struggle amid power outages, with some turning to diesel and solar solutions as the country's energy crisis deepens. Notably, the U.S. has halted licenses for exports to Huawei, raising concerns over national security and intellectual property.
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Global Economic Outlook
- The IMF upgraded its global growth forecast to 3.2% due to China's reopening and a milder European winter.
- However, the UK is predicted to enter a recession due to high borrowing costs and energy prices.
Market Impact of IMF Report
- Markets may react negatively if central banks continue raising interest rates despite positive economic news.
- This disconnect between market optimism and policymakers' intentions could lead to repricing of risky assets.
US-Huawei Ban
- The White House halted licenses for US companies to export to Huawei, signaling a potential total ban.
- National security officials suspect Huawei aids Chinese espionage.