FT News Briefing

The US is about to hit its debt ceiling, sparking political tensions over managing the $31 trillion limit. Microsoft plans to cut 10,000 jobs in a strategic shift towards future technologies. Meanwhile, the World Economic Forum in Davos highlights growing tensions between the US and Europe over green energy subsidies, with the EU raising concerns about fairness and competition. European companies look for opportunities amidst these dynamics, adjusting their strategies to compete in the rapidly changing U.S. market.

Corporate earnings face turmoil as Goldman Sachs reports a two-thirds profit drop, while Morgan Stanley shines with its wealth management boom. Meanwhile, China is shifting its tech strategy, planning to secure 'golden shares' in giants like Alibaba and Tencent. This marks a significant pivot towards more indirect control over key tech firms. Additionally, shareholder proposals around abortion policies are rising, highlighting the clash between progressive and conservative values in corporate governance.

US Treasury Secretary Janet Yellen is set to meet her Chinese counterpart, signaling important diplomatic movements. A daring defector from the Wagner Group has escaped to Norway, shedding light on the group's grim realities. In a significant shift, Germany is stepping up as a leader in regulating Big Tech, showcasing its unique approach compared to the EU's framework. Meanwhile, scientists have developed a remarkable laser beam designed to divert lightning strikes, merging innovation with safety.

The podcast discusses the surging demand for 'buy now, pay later' services in the UK, revealing its appeal across all demographics. It also delves into U.S. regulatory challenges surrounding collateralized fund obligations, highlighting potential risks for private equity and insurance sectors. Additionally, discussions around the World Economic Forum in Davos offer insights into the significance of networking among global leaders and the urgent geopolitical issues overshadowing the event.

The U.S. inflation rate has dropped to its lowest in over a year, setting the stage for potential shifts in Federal Reserve policy. Meanwhile, Sweden recently unearthed Europe's largest rare earth metals deposit. In Pakistan, the economic climate is dire, with concerns over a potential default and industry shutdowns affecting daily life. The country faces significant debt challenges and negotiations with lenders are increasingly complicated. The discussion illustrates the interconnected nature of global economies and the urgent need for intervention.

Brussels is ramping up drug stockpiling to address supply chain issues. Meanwhile, Ukraine sees fierce clashes in Soledar, potentially boosting Russian morale. A military reshuffle aims to enhance efficiency as winter warfare intensifies. The failed Virgin Orbit launch raises concerns for Europe's space ambitions, highlighting the challenges of securing reliable satellite deployments. Surprisingly, optimism remains within the space industry, indicating a determination to overcome setbacks and boost competitive capabilities.

Former employees are legally challenging Twitter for unlawful dismissals. Meanwhile, Toyota is grappling with a major setback in its EV strategy, struggling with the BZ4X's poor sales and recall issues. Concerns about electric vehicles in Japan are rising as the company plans to overhaul its approach by 2030. In the energy sector, Shell's new CEO is navigating the complexities of transitioning the company toward renewables, while Virgin Orbit faces significant challenges following a rocky satellite launch.

The White House is under pressure to expel former Brazilian president Jair Bolsonaro amid turmoil in Brazil. Legal challenges await him upon returning home, especially concerning his pandemic response. Meanwhile, President Macron is gearing up for a contentious debate over raising France's retirement age amidst demographic shifts. Additionally, China is tightening its grip on the stock market, restricting certain companies from going public to steer funding towards strategic sectors, highlighting the battle between profit and national objectives.

Supporters of Jair Bolsonaro ignited chaos in Brazil's capital, posing challenges for President Lula. The unrest mirrors political tensions seen in the U.S., raising questions about legitimacy and consequences. Meanwhile, U.S. banks are bracing for potential loan defaults as they prepare to announce promising profits. Gulf sovereign wealth funds are shifting strategies, focusing on diversifying investments in technology and electric vehicles to reduce oil dependency and create jobs for the youth.

In this discussion, the U.S. job market shows signs of slowing growth, stirring concerns about future Federal Reserve policies. The crypto bank Silvergate faces a massive withdrawal of $8.1 billion in deposits, reflecting a broader crisis of confidence in the crypto sector. Experts also delve into the heightened regulatory scrutiny of cryptocurrency following recent collapses. Additionally, the conversation touches on the waning relevance of traditional company phone numbers in an increasingly digital customer service landscape.