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Good morning.
We begin with fallout from the decision by a Delaware judge to rule against Elon Musk’s pay package that is valued at more than $55bn.
Last night the billionaire chief executive of Tesla promised to hold a shareholder vote on whether the electric-car maker should move its corporate registration to Texas after followers on his social media platform X backed such a move.
The poll asked: “Should Tesla change its state of incorporation to Texas, home of its physical headquarters?” The result showed 87.1 per cent of 1.1mn voters thought the electric-car maker should change its state of incorporation.
The intervention from Musk came after Kathaleen McCormick, a judge in the Delaware Court of Chancery, ruled on Tuesday that a record remuneration package for Tesla’s chief executive was improperly approved by the company’s board and had short-changed shareholders. Here’s more on the latest developments at Tesla.
On another busy day for tech earnings here’s what else I’m keeping tabs on today:
Results: iPhone maker Apple and Facebook parent Meta, as well as Amazon, report earnings today. The results come a day after Mark Zuckerberg’s public apology to the families of people who said they had been harmed by his social media platform.
EU emergency summit: Leaders of the EU’s 27 countries have agreed a deal on a €50bn financial support package for Ukraine after Hungarian Prime Minister Viktor Orbán rescinded his veto on the aid. Here’s the latest from Brussels.
Interest rates: The Bank of England and Sweden’s central bank both announce their latest interest rate decisions.
Economic data: The Institute for Supply Management publishes its manufacturing purchasing managers’ index for December.
Five more top stories
1. Japan’s Aozora Bank blamed souring US office loans today as it forecast its first full-year loss since 2009, in a sign of the rising stress in the American commercial property market. Aozora’s shares fell by their maximum limit in Tokyo today as the bank projected a full-year loss of ¥28bn, compared with a previous forecast of a ¥24bn profit. Here’s more on the profit warning.
More bank profit warnings: The warning from Aozora echoed similar comments from New York Community Bancorp, which yesterday blamed a fall in profits on unexpected loan losses linked to US office buildings.
2. Federal Reserve chair Jay Powell gave no hint of when US interest rates would begin to fall after the US central bank held borrowing costs at a 23-year high. Powell said market expectations of a rate cut in March were not his “base case”. Powell also said there was “a way to go” before the Fed could claim victory in its battle against excessive inflation. Here’s how analysts’ reacted to the comments.
3. Blackstone chief Stephen Schwarzman was one of the top donors to Chris Christie’s abortive campaign for the US Republican presidential nomination. Schwarzman, who was once an ally of Donald Trump, gave $2mn to a pro-Christie super Pac, Tell It Like It Is, in late August, according to new federal filings. The former New Jersey governor dropped out of the race last month. Here were Christie’s other supporters.
Trump vs Taylor: The former president’s allies have aimed a conspiracy-fuelled rhetorical offensive at Taylor Swift, amid fears that the pop star could sway the 2024 election in favour of Joe Biden.
4. The PGA Tour has approved a deal for a group of investors led by Liverpool FC and Boston Red Sox owner John Henry to invest in the US golf organisation’s new commercial entity. Strategic Sports Group, which is led by Henry’s Fenway Sports Group, is set to inject up to $3bn in the tour’s commercial business. Here’s more on the deal which is the latest salvo in a high-stakes battle for the future of the sport.
More sports news: Private equity billionaire David Rubenstein, the co-founder of The Carlyle Group, plans to buy the Baltimore Orioles baseball team alongside an investor group including Michael Arougheti, the chief executive of Ares Management, for $1.73bn.
5. Silvio Berlusconi’s Sardinian beach estate is going on sale for €500mn after his five children agreed to sell the asset, according to people with knowledge of the transaction. The luxurious property owned by Italy’s late former prime minister has hosted several world leaders including George W Bush, Tony Blair and Vladimir Putin. Here’s more on the lavish Villa Certosa.
Today’s Big Read
Viktor Orbán was asked on Hungarian TV late last year whether his antagonism towards Brussels and Washington would lead Hungary away from the west and out of the EU. “Our plan is not to leave the EU,” he replied. “Our plan is to conquer it.” As EU leaders convene in Brussels today, the Big Read asks: what is the endgame for Europe’s chief disrupter?
We’re also reading . . .
US politics: It is not guaranteed that a Biden second term would bring an end to America’s political malaise, argues Edward Luce. The chances are reasonable that in the countdown to 2028, America would re-experience today’s sense of dread, he says.
EU markets: The bloc’s financial sector is struggling to pump sufficient capital to support companies and the economy, writes Rebecca Patterson, former chief investment strategist at Bridgewater Associates.
Tech Exchange: Pinterest’s chief executive Bill Ready talks to the FT about how social media became so toxic and how we can fix it.
Chart of the day
Attacks by Houthis rebels in the Red Sea have added significant costs to container shipping, but it is important to put things into context, writes Chris Giles. This is nothing like the supply chain nightmares of 2021 and 2022 that fuelled the worst inflationary episode for a generation.
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Take a break from the news
Fundamental questions about ovaries may unlock longer human lifespan. Philanthropist Nicole Shanahan is spending to find answers.
Additional contributions from Tee Zhuo and Benjamin Wilhelm
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Source: Economy - ft.com
