US President Joe Biden predicted Russia would “move in” on Ukraine and warned an invasion would be a “disaster” for Vladimir Putin, as he urged the west to remain united in holding Moscow “accountable” for any aggression.
At a news conference to mark his first year in office, Biden said Russia would “pay a stiff price, immediately, short-term, medium-term and long-term” in the event of an invasion of its neighbour Ukraine.
But his comments were muddied by a later suggestion that a “minor incursion” into Ukraine by Russia might yield lighter retaliation, which the White House was forced to clarify.
Meanwhile, there were also signs of confusion in the European response to Russia’s build up of troops on the Ukraine border as fears of conflict grow.
Addressing the European parliament in Strasbourg, French President Emmanuel Macron yesterday broke ranks to call on EU states to “conduct their own dialogue” rather than engage with diplomatic efforts involving the US and Nato.
EU officials later sought to reassure the US that Brussels remains committed to Washington-led negotiations with Russia to defuse the crisis.
The diplomacy continues today with Antony Blinken, US secretary of state, travelling to Berlin for talks with new German Chancellor Olaf Scholz and the foreign ministers of Germany, France, and the UK. Tomorrow Blinken is due to fly to Geneva to meet his Russian counterpart Sergei Lavrov.
Go deeper: What would a Ukraine conflict look like? In the latest episode of the Rachman Review podcast, our chief foreign affairs commentator talks to Samuel Charap, a political scientist at the Rand Corporation think-tank in Washington about the potential for conflict in Ukraine.
Top Stories Today is a regularly updated short-form audio digest of the day’s top headlines, produced every weekday and read aloud by Microsoft Azure AI. The latest episode includes headlines on the Ukraine conflict.
Thanks for reading FirstFT Americas. Here’s the rest of today’s news — Gordon
Five more stories in the news
1. Biden backs Fed shift to monetary tightening Joe Biden backed the Federal Reserve’s shift towards tighter monetary policy to fight inflation, using his first formal press conference in months to defend his handling of the economy and reboot his presidency.
Comment: Joe Biden’s three picks to join the board of the Fed, if approved, would mark the first time women outnumber men on the policy-setting Federal Open Market Committee. “A more diverse group could mitigate some of the damage caused by the hubris of earlier generations,” writes Claire Jones.
2. Top Wall Street banks paid out $142bn in pay and benefits last year Wall Street’s leading banks increased pay by nearly 15 per cent last year as they fought a war for talent. JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America said they handed out $142bn in pay and benefits in 2021, up from $124bn in 2020.
3. Leon Black accuses former Apollo lieutenant of attempted ‘coup’ The accusation, detailed in a motion filed in New York state court yesterday, was linked to a scandal involving the late Jeffrey Epstein and described by a spokesperson for Josh Harris as “unhinged”. The filing is part of Black’s attempt to obtain the telephone records of his former mistress Guzel Ganieva.
Microsoft-Activision deal to test US antitrust enforcers’ tough line The biggest deal in Microsoft’s history is set to become a test case for the leaders of US antitrust agencies who have vowed to tackle Big Tech’s market power. The agreed $75bn acquisition will be heavily scrutinised by progressive Biden appointments, including Lina Khan at the US Federal Trade Commission and Jonathan Kanter at the US Department of Justice.
5. New York attorney-general claims ‘significant evidence’ of Trump fraud Donald Trump and the Trump Organization fraudulently misrepresented the value of their assets to banks, insurers and financial institutions, according to a court filing that seeks to compel the former president and two of his children, Donald Jr and Ivanka, to testify under oath.
Coronavirus digest
Boris Johnson declared Omicron had peaked in the UK on a dramatic day in the House of Commons that also saw a member of the prime minister’s party defect to the opposition Labour party and one of his own MPs calling on him to quit.
Hong Kongers leaving the increasingly isolated city are chartering private jets for their pets — the only way many can take their animals with them as pandemic restrictions squeeze freight space on commercial flights.
A fourth Covid booster shot is ineffective in blocking Omicron infections despite boosting antibodies, an Israeli hospital study showed.
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The day ahead
Netflix earnings The video streaming service will report earnings after the market closes today. Analysts predict that Netflix added 8.39m subscribers in the December quarter, fewer than it did in the same quarter a year earlier when homebound viewers flocked to the website in search of entertainment. American Airlines also reports.
Jobless claims: New applications for unemployment benefits were on pace to fall from a two-month high last week, according to economists’ forecasts. Continuing claims, which are reported on a one-week delay, probably moved higher after hitting their lowest level since 1973 on January 1.
Curbing the power of Big Tech The Senate judiciary committee will begin debating a pair of bills designed to reshape technology regulation and restrain the power of Big Tech. US technology companies warn The American Innovation and Choice Online Act (AICOA) and the Open App Markets Act, if passed into law, could have dire consequences for their products and services.
ECB The European Central Bank Governing Council publishes its December monetary policy meeting minutes and monthly inflation figures. Eurozone inflation rose to 5 per cent in December, setting a record high since the single currency was created more than two decades ago.
What else we’re reading and watching
How high oil prices are breathing new life into US shale In downtown Midland an electric sign alternates between showing an American flag and the words: “It’s a great day to drill an oil well”. Midland and neighbouring Odessa are in the Permian Basin, the world’s largest producing oilfield, where producers were almost killed off after prices turned negative in 2020. Now, despite political pressure, those companies are rehiring.
Biden’s year of living dangerously Joe Biden made mistakes in his first year, argues Edward Luce, sketching out the challenges that lie ahead for the Democratic president. “The fate of US democracy will partly hinge on whether [this] ageing leader can instil a renewed sense of vigour into governing.”
I tried to fix my wireless earbuds. It did not go well Stored in their charging boxes and laid side by side, it’s estimated that the all the earbuds sold in 2017 would stretch around the circumference of Earth. Neglected by government recycling targets, the mass of plastic, copper, circuit boards, magnets and batteries join the planet’s trove of e-waste once they die. This interactive graphic looks at the challenge of recycling the small mass-market electronics.
Collectors, players and leagues cash in on sport NFTs The market for sports NFTs [non-fungible tokens] is set to reach $2bn in 2022. Early collectors, sports stars and even the leagues stand to gain. But average consumers could lose money if the bubble bursts on this new asset class. FT Scoreboard’s Sara Germano talks to the people behind the craze to try to understand where it might lead.
Travel
Insomniac and FT columnist Lucy Kellaway took a trip to the Cliveden House Hotel to try out a cannabidiol oil massage called the OTO Sleep Experience. During her stay, she’s delighted by the light switches and cheese soufflé. The Tibetan bowls and CBD? They were simply not enough to remedy a sleepless night.
Source: Economy - ft.com
