Economy

WASHINGTON (Reuters) – The Congressional Budget Office (CBO) said on Wednesday that it plans to release its 2023 baseline budget and economic forecast on Feb. 15, along with a special report on the federal debt limit situation.The non-partisan CBO said the debt limit report, part of a recurring series during debt limit standoffs in Congress, will describe “the current debt situation and CBO’s expectation about when the Treasury will no longer be able to pay its obligations fully if the debt limit is not raised.”The agency annually provides the baseline fiscal forecast based on current tax and spending laws and its assessment of current economic conditions to kick off Congress’ budgeting and appropriations processes.Republicans who now control the U.S. House of Representatives are demanding that President Joe Biden’s administration negotiate spending cuts in exchange for a debt limit increase, but divisions are starting to emerge between the party’s hard-liners and moderates over how aggressive their demands should be as a threat of default looms later this year. The CBO reports will provide lawmakers and financial market participants a better sense of how long past early June the U.S. Treasury’s extraordinary cash management measures will be able to last. Treasury Secretary Janet Yellen has declared a “debt issuance suspension period” allowing the government to claw back borrowing capacity from two federal retiree funds through June 5, but this could be extended.Yellen has said that it is difficult to forecast the timing for exhaustion of the special borrowing measures because of uncertainties over the strength of tax receipts and spending outflows over the next several months. The U.S. budget deficit for December quadrupled from a year earlier to $85 billion as revenues eased and outlays for debt interest costs, health care and Social Security grew. (RReporting by David Lawder; Editing by Christopher Cushing) More

(Reuters) – Dutch and U.S. officials will meet in Washington on Friday to discuss potential new controls on exporting semiconductor manufacturing gear to China, with a deal possible by the end of the month, according to two sources familiar with the matter.A deal could be announced as soon as Friday if the two sides can agree on the details, said one of the sources, speaking on condition of anonymity. The source added that it was possible that any deal reached might not be announced immediately.The Biden administration in October published wide-ranging export controls, including measures tightly restricting Chinese access to U.S. chipmaking technology, as part of an effort to slow Beijing’s technological and military advances.But it has not yet convinced key allies, most notably the Netherlands and Japan, to implement similar equipment curbs seen as essential to making the restrictions effective.The Netherlands is home to ASML Holding (NASDAQ:ASML), the world’s leading maker of lithography equipment, which is critical for making semiconductors. The second person familiar with the matter said a central concern for negotiators is that even small supply chain changes could reignite a global chip shortage that has eased in recent months but created havoc in supply chains for the past two years. Dutch officials are also adamant the controls be tailored to national security concerns and not give the appearance that the United States is trying to favor its own chipmaking industry, said the second source.The Dutch Foreign Ministry declined to comment. U.S. officials did not respond immediately to a request for comment. In a press conference with reporters after ASML reported fourth quarter earnings on Wednesday, CEO Peter Wennink said an export control deal may be close and that his company does not participate in the political talks. However, he said that while a deal may be announced soon, it is less clear whether the technical details of any regulations have been resolved. More

Juul, which was reportedly looking to file for Chapter 11 bankruptcy, has had separate discussions with Philip Morris International Inc (NYSE:PM), Japan Tobacco (OTC:JAPAF) Group and Altria Group (NYSE:MO) Inc, the report said.A deal is not imminent and the discussions may not result in a sale or partnership, the people told the Journal.The company, partly owned by Marlboro maker Altria, declined to comment.Juul reached late-stage talks with Altria last fall on a potential deal to sell its international business or license its U.S. intellectual property but the talks fell apart in September due to a potential bankruptcy filing, people familiar with the discussions told the Journal.The company has resumed discussions with Altria, the people added. In September, Altria exercised the option to be released from its non-compete deal with Juul almost four years after buying a 35% stake in the company. The once red-hot vaping company is currently facing thousands of lawsuits filed across the United States over claims that it deceptively marketed e-cigarettes and contributed to rising tobacco use amongst youth.Last week, Juul secured preliminary court approval of a $255 million settlement resolving the claims by consumers.Juul said in July it was in the early stages of exploring options including financing alternatives amid the lawsuits.But later in November, the company secured an investment from some of its early investors to stay in business.The U.S. Food and Drug Administration (FDA) in June briefly banned Juul’s e-cigarettes, though it later put the order on hold following an appeal. More

Rapid interest rate hikes, weak consumer demand and an economic slowdown in China have forced firms such as Amazon, Walt Disney (NYSE:DIS), Facebook-owner Meta and American banks to trim their workforce.As a pandemic-led demand boom rapidly fades, tech companies shed more than 150,000 workers in 2022, according to tracking site Layoffs.fyi, and more layoffs are expected as growth in the world’s biggest economies start to slow.Here are some of the job cuts by major American companies announced in recent weeks.TECHNOLOGY, MEDIA AND TELECOM SECTOR IBM (NYSE:IBM) Corp:The software and consulting firm said it will lay off 3,900 employees. Spotify Technology SA (NYSE:SPOT):Music streaming service Spotify is cutting 6% of its workforce, or roughly 600 roles.Alphabet (NASDAQ:GOOGL) Inc:Alphabet Inc is eliminating 12,000 jobs, its chief executive said in a staff memo. Microsoft Corp (NASDAQ:MSFT):The U.S. tech giant said it would cut 10,000 jobs by the end of the third quarter of fiscal 2023.The company laid off under 1,000 employees across several divisions in October, Axios reported, citing a source.Amazon.com Inc (NASDAQ:AMZN):The e-commerce giant said company-wide layoffs would impact over 18,000 employees. Meta Platforms Inc (NASDAQ:META):The Facebook-parent said it would cut 13% of its workforce, or more than 11,000 employees, as it grapples with a weak advertising market and mounting costs. Intel Corp (NASDAQ:INTC):CEO Pat Gelsinger told Reuters “people actions” would be part of a cost-reduction plan. The chipmaker said it would reduce costs by $3 billion in 2023. Twitter Inc (NYSE:TWTR):The social media company has aggressively cut its workforce across teams ranging from communications and content curation to product and engineering following Elon Musk’s $44 billion takeover. Lyft Inc (NASDAQ:LYFT):The ride-hailing firm said it would lay off 13% of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.Salesforce (NYSE:CRM) Inc:The software company said it would lay off about 10% of its employees and close some offices as a part of its restructuring plan, citing a challenging economy.Cisco Systems Inc (NASDAQ:CSCO):The networking and collaboration solutions company said it will undertake restructuring which could impact roughly 5% of its workforce. The effort will begin in the second quarter of the fiscal year 2023 and cost the company $600 million.HP Inc (NYSE:HPQ):The computing devices maker said it expected to cut up to 6,000 jobs by the end of fiscal 2025.FINANCIAL SECTOR Goldman Sachs Group Inc (NYSE:GS):Goldman Sachs began laying off staff on Jan. 11 in a sweeping cost-cutting drive, with around a third of those affected coming from the investment banking and global markets division, a source familiar with the matter told Reuters.The job cuts are expected to be just over 3,000, one of the sources said on Jan. 9, in what would be the biggest workforce reduction for the bank since the financial crisis. Morgan Stanley (NYSE:MS):The Wall Street powerhouse is expected to start a fresh round of layoffs globally in the coming weeks, Reuters reported on Nov. 3, as dealmaking business takes a hit. Citigroup Inc (NYSE:C):The bank eliminated dozens of jobs across its investment banking division, as a dealmaking slump continues to weigh on Wall Street’s biggest banks, Bloomberg News reported.BlackRock Inc (NYSE:BLK):The asset manager is cutting up to 500 jobs, Insider reported, citing a memo. Genesis:The cryptocurrency firm has cut 30% of its workforce in a second round of layoffs in less than six months, a person familiar with the matter told Reuters. Coinbase (NASDAQ:COIN) Global: The cryptocurrency exchange said it would slash nearly 950 jobs, the third round of workforce reduction in less than a year after cryptocurrencies, already squeezed by rising interest rates, came under renewed pressure following the collapse of major exchange FTX.Stripe Inc:The digital payments firm is cutting its headcount by about 14% and will have about 7,000 employees after the layoffs, according to an email to employees from the company’s founders.CONSUMER AND RETAIL SECTORBeyond Meat (NASDAQ:BYND) Inc: The vegan meat maker said it plans to cut 200 jobs this year, with the layoffs expected to save about $39 million.Blue Apron Holdings (NYSE:APRN) Inc:The online meal-kit company said it will cut about 10% of its corporate workforce, as it looks to reduce costs and streamline operations. The company had about 1,657 full-time employees, as of Sept. 30. DoorDash Inc:The food delivery firm, which enjoyed a growth surge during the pandemic, said it was reducing its corporate headcount by about 1,250 employees.Bed Bath & Beyond (NASDAQ:BBBY):The retailer will lay off more employees this year in an attempt to reduce costs. Last year, company executives had said the home goods retailer was cutting about 20% of its corporate and supply chain workforce.ENERGY AND RESOURCES SECTORPhillips 66 (NYSE:PSX):The refiner reduced employee headcount by over 1,100 as it seeks to meet its 2022 cost savings target of $500 million. The reductions were communicated to employees in late October.HEALTH AND PHARMACEUTICAL SECTORJohnson & Johnson (NYSE:JNJ):The pharmaceutical giant has said it might cut some jobs amid inflationary pressure and a strong dollar, with CFO Joseph Wolk saying the healthcare conglomerate is looking at “right sizing” itself.MANUFACTURING SECTOR3M Co:The industrial conglomerate said it would cut 2,500 manufacturing jobs after reporting a lower profit. More

The US and Germany will send main battle tanks to Kyiv, a significant increase of western military aid that was condemned by Russia and prompted cheers throughout Ukraine. The US will be sending 31 M1 Abrams tanks to Ukraine — or the equivalent of one Ukrainian tank battalion, senior Biden administration officials confirmed on Wednesday. Earlier in the day, Germany announced it would send 14 Leopard 2A6 tanks from stocks held by its army. Berlin also announced plans to team up with other European countries to create two tank battalions of the German-made Leopard 2s, which equates to about 90 tanks. Both the Abrams and the Leopard are among the best-rated modern main battle tanks in the world and Kyiv has argued it needs them to break through a front line that has barely budged in recent weeks and reconquer occupied territory. It also says it needs western tanks to deter a renewed Russian offensive that is expected in the early spring.Related read: The US-German decision to send tanks to Ukraine has reignited early-stage discussions among European allies on providing Kyiv with fighter jets. Lockheed Martin has said it stands ready to meet demand for its F-16 aircraft.Are the US and Germany right to supply tanks to Ukraine or does the move risk further escalating Ukraine’s war with Russia? Tell us in our latest poll.

Five more stories in the news1. Adani shares take $10.8bn hit Shares in listed companies tied to India’s sprawling Adani Group shed $10.8bn in value after short seller Hindenburg Research released a report targeting the conglomerate controlled by billionaire business magnate Gautam Adani. Shares in seven listed Adani Group companies fell more than 5 per cent on average.2. Taiwan’s Tsai names new premier to shore up support President Tsai Ing-wen has chosen former vice-president Chen Chien-jen as her new premier, handing the soft-spoken epidemiologist responsibility for tackling an economic downturn amid sliding support for the ruling Democratic Progressive party. The DPP is seeking to stem falling support ahead of presidential and parliamentary elections next January.3. Chinese migrant workers face crackdown over wage protests Chinese migrant workers demanding overdue wages from their employers are facing a crackdown by local governments over alleged “malicious” labour activism. More than a dozen cities across China have in recent weeks threatened to punish workers who take “extremist” measures, such as protests blocking traffic or outside government offices, to get the money they are owed.More news from China: Weaker international demand for Chinese goods has led to a rise in shipping cancellations at the country’s biggest ports. Get the latest news and analysis on Asia’s biggest economy with our China hub.4. Apple beefs up smartphone services Apple is taking steps to separate its mobile operating system from features offered by Google parent Alphabet, making advances in maps, search and advertising. The two Silicon Valley companies have been rivals in the smartphone market since Google acquired the Android operating system in the 2000s, which Apple co-founder Steve Jobs called “a stolen product”.5. Murdoch scraps Fox and News Corp merger Media tycoon Rupert Murdoch has scrapped a proposal to combine Fox and News Corp after his attempt to bring the two halves of his media empire back together was resisted by shareholders. News Corp is also in advanced talks to sell its 80 per cent share of digital property group Move to rival CoStar, valued in the “low billions” of dollars.For Premium subscribers: News Corp should continue to split off distracting subsidiaries, writes Lex. The failed merger has at least demonstrated that these are a drag on its valuation as a standalone business.The day ahead India’s Republic Day India marks its 74th Republic Day, commemorating the country’s constitution coming into effect. Domestic stock markets will be closed. (Times of India) Australia Day national holiday Australia today marks the date when Britain’s First Fleet landed in Australia in 1788. In recent years, however, there has been increased opposition to celebrating the date, which is when the era of colonisation began. (BBC News) US economic data The US today will publish consumer spending figures along with its first estimate for gross domestic product movement in the fourth quarter. GDP is expected to have grown by 2.6 per cent in the three months to December 31, according to a Bloomberg poll of economists.The FT will be holding its second annual Future of Business Education Series in February. This virtual one-day event will provide the opportunity for ambitious individuals looking to enhance their skill set, accelerate their careers, and discuss what life after an MBA might look like. Register today.What else we’re readingHow will the new machine learning era affect you? ChatGPT, a query-answering and text-generating system released at the end of November, has burst into the public consciousness in a way seldom seen outside the realm of science fiction. It is the most visible of a new wave of “generative” artificial intelligence systems that can produce content to order, threatening not just jobs but a surge of misinformation.India’s electric vehicle market glides into focus Boosted by state subsidies, some early sales of delivery vehicles and buses and paranoia among businesses and politicians about China’s high-tech dominance, a “Made in India” EV industry is starting to take shape.China’s palace politics: Xi loyalists compete for power Chinese leader Xi Jinping will use the March lianghui — the joint sessions of China’s rubber-stamp parliament and political advisory body — to confirm a batch of appointments to critical roles. The promotions will mark the completion of Xi’s consolidation of power but also signal the emergence of a new set of factions among his acolytes and loyalists.🎧 Listen: Shanghai correspondent Tom Hale and Global China Editor James Kynge break down President Xi Jinping’s main goals and whether they are enough to jump-start the country’s economy in this episode of the Behind the Money podcast. West grapples with dilemma over Iran nuclear talks Even as relations between Iran and the west touch new lows, US and European officials are keeping the door open to diplomacy. But that’s not because they are optimistic. Rather, it is a reflection of the limited options western powers face as they attempt to stop Iran from expanding its aggressive nuclear programme.Slimmer profit margins are here for a while With positive news on inflation and improving growth prospects in the US and eurozone there was growing optimism among investors in consumer goods companies. But, writes Brooke Masters, Procter & Gamble was quick to throw cold water on the idea of an easy recovery.Take a break from the newsCult favourite Everything Everywhere All at Once has been nominated for 11 Oscars, maxing out the list for this year’s awards. Here is the full list of nominations announced in Los Angeles.

Michelle Yeoh in ‘Everything Everywhere All At Once’ © David Bornfriend More

(Reuters) – A look at the day ahead in Asian markets from Jamie McGeever.South Korea and the Philippines’ GDP data are on the Asian data docket for investors on Thursday, as the upbeat mood that has propelled global stocks and risk assets higher this year shows signs of fading. Some gloomy signals from the latest U.S. earnings reports, a stream of tech sector layoffs and worries over global growth are overshadowing hopes that the Fed and other central banks will take their foot off the monetary tightening pedal. The Bank of Canada was the latest to signal a pause, indicating on Wednesday it would likely halt further hikes after lifting its key interest rate to 4.5%. Some Asian central banks have done likewise in recent weeks.Of course, the end of the tightening cycle could be in sight for many central banks because the lagged effects of previous rate hikes have not yet been fully felt and policymakers expect growth to slow. Investors on Thursday will get the latest snapshot on the health of two Asian economies – the Philippines and South Korea – before world markets get the first estimate of U.S. growth in the October to December period later in the day. South Korea’s economy is expected to have shrunk 0.3% in the fourth quarter of last year, the first quarterly contraction since the onset of COVID-19 in early 2020. South Korea’s fortunes are closely tied to the global tech sector and its largest trading partner, China. Both are navigating choppy waters.Still, Asian stocks are flying. MSCI’s broadest index of Asia-Pacific shares ex-Japan hit a seven-month high on Wednesday. Remarkably, the index is up 30% from an October low struck exactly three months ago, and it has risen 11 out of the last 13 weeks.It may be due a correction, and if that comes on Thursday, it will be on greater volume than the three days of gains this week as some Asian markets re-open after the Lunar New Year holidays. China, however, is still closed. Three key developments that could provide more direction to markets on Thursday:- South Korea GDP (Q4)- The Philippines GDP (Q4)- U.S. GDP (Q4 advance estimate) More

Pre-empting a law signed last year, business groups forced a ballot initiative on state oversight of wages and working conditions.LOS ANGELES — A California law creating a council with broad authority to set wages and improve the working conditions of fast-food employees has been halted after restaurant and trade groups submitted enough signatures to place the issue before voters next year.Officials from the California secretary of state’s office announced late Tuesday that Save Local Restaurants, a broad coalition of small-business owners, large corporations, restaurateurs and franchisees, had turned in enough valid signatures to stop the law from taking effect.The group, which has raised millions of dollars to oppose the law, had to submit roughly 623,000 valid voter signatures by an early December deadline to place a question on the 2024 ballot asking California voters if the law should take effect.Legislation signed in September by Gov. Gavin Newsom, a Democrat, would set up a 10-member council of union representatives, employers and workers to oversee the fast-food industry’s labor practices in the state.The panel would have the authority to raise the minimum wage of fast-food workers to as much as $22 an hour — well above the statewide minimum of $15.50. In addition, the council would oversee health, safety and anti-discrimination regulations for nearly 550,000 fast-food workers statewide.More on CaliforniaA Wake of Tragedy: California is reeling after back-to-back mass shootings in Monterey Park and Half Moon Bay.Storms and Flooding: A barrage of powerful storms has surprised people in the state with an unrelenting period of extreme weather that has caused extensive damage across the state.New Laws: A new year doesn’t always usher in sweeping change, but in California, at least, it usually means a slate of new laws going into effect.Wildfires: California avoided a third year of catastrophic wildfires because of a combination of well-timed precipitation and favorable wind conditions — or “luck,” as experts put it.Opponents including the International Franchise Association and the National Restaurant Association argued that the measure, Assembly Bill 257, singled out their industry and would in turn burden businesses with higher labor costs that would be passed along to consumers in higher food prices.Matt Haller, president of the International Franchise Association, said the bill “was a solution in search of a problem that didn’t exist.”“Californians have spoken out to prevent this misguided policy from driving food prices higher and destroying local businesses and the jobs they create,” Mr. Haller said.Last year, the Center for Economic Forecasting and Development at the University of California, Riverside, released a study that estimated that employers would pass along one-third of labor compensation increases to consumers.But Mr. Newsom, in signing the measure, said it “gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry.”Mary Kay Henry, president of the Service Employees International Union, a staunch proponent of the measure, assailed fast-food corporations.“Instead of taking responsibility for ensuring workers who fuel their profits are paid a living wage and work in safe, healthy environments, corporations are continuing to drive a race to the bottom in the fast-food industry,” Ms. Henry said. “It’s morally wrong, and it’s bad business.”The effort to put the issue before voters follows a playbook used by large corporations to circumvent lawmakers in Sacramento. In 2019, state lawmakers passed a measure that required companies like Uber and Lyft to treat gig workers as employees. The companies opposed the measure and helped get a proposition on the 2020 ballot allowing them to treat drivers as independent contractors. The measure passed with nearly 60 percent of the vote.The fast-food law has been closely watched by the industry’s workers across California, including  Angelica Hernandez, 49, who has worked at McDonald’s restaurants in the Los Angeles area for 18 years.“We are undeterred, and we refuse to back down,” Ms. Hernandez said. “We can’t afford to wait to raise pay to keep up with the skyrocketing cost of living and provide for our families.”Alison Morantz, a professor at Stanford Law School who focuses on employment law, said what made the law unusual was “its holistic approach to addressing a wide range of problems in a traditionally nonunionized industry — not just low and stagnating wages, but also employment discrimination and poor safety practices.”“If it takes effect, it will be closely watched and could become a harbinger of similar efforts in other worker-friendly jurisdictions,” Ms. Morantz said. More

Today’s top storiesGermany is to supply 14 Leopard 2 tanks to Ukraine as well as allowing allies to send their own, marking a significant increase in western military aid. Russia’s ambassador to Germany said the move was an “extremely dangerous decision” that “raises the conflict to a new level of hostilities”.US states stepped up efforts to entice European clean energy businesses such as Germany’s Marvel Fusion, with the promise of deep tax breaks, despite opposition from Brussels. The Netherlands opposes new EU money for subsidies, but the FT editorial board said the two blocs needed to find common ground on subsidies and avoid beggar-thy-neighbour measures. MSC and Maersk, the world’s two largest container shipping lines that together control two-fifths of seaborne freight, are ending their alliance as competition for transporting global trade heats up. Meanwhile, in China, weaker international demand for its goods has led to a rise in shipping cancellations at its biggest ports, limiting the economic boom expected from its reopening.For up-to-the-minute news updates, visit our live blogGood evening.EasyJet’s forecast today of a return to profit after three years of a pandemic-induced slowdown is the latest in a string of announcements confirming that air travel is well and truly bouncing back.Shares in the low-cost carrier surged 10 per cent, spurring rises in other airlines such as Ryanair, Wizz Air and BA owner International Airlines Group. EasyJet chief executive Johan Lundgren said customers appeared to be “prioritising spending on holidays” and added that the company was selling enough seats to fill five aircraft every minute during the busiest periods of its recent winter sale.Ryanair told a similar tale last week, reporting record bookings at the start of the year. “All the indicators are very strong,” company boss Michael O’Leary told the FT. “There is a lot of spending going on out there. Hotels are full, restaurants are full.”The global picture is equally encouraging. Last week Avolon, the world’s second-largest jet lessor, said that China’s reopening would help drive air traffic to pre-pandemic levels by the middle of the year. For every two seats of airline capacity added worldwide, one is in Asia, the company said. Company chiefs until recently had warned that a recovery to 2019 levels would not come before 2024 at the earliest.The return of the globetrotting Chinese, the world’s largest tourism population that had been cut off by zero-Covid restrictions, is probably the single best piece of news for the world’s airlines so far. In 2019, before the pandemic hit, 155mn travelled abroad and spent $255bn. The China Outbound Tourism Research Institute estimates 18mn will travel internationally in the first half of the year, followed by 40mn in the second. Asian airlines had already begun to expand their flight options at the end of last year, forming new partnerships to cash in on the expected boom in demand. Bain Capital, meanwhile, is preparing to relist Virgin Australia after it had collapsed during the pandemic.Profits at aerospace companies such as Raytheon are also soaring as demand for jet engines and parts takes off. Today Boeing reported that a flurry of jet deliveries last month was helping to repair its finances after the blow of two fatal crashes.However, there could still be some turbulence ahead. Air travellers in Europe face “major” disruption as skies become congested because of the war in Ukraine, while volatile oil prices could pose a problem. But as airline results season gets under way, easyJet is unlikely to be the only carrier forecasting blue skies ahead. Need to know: UK and Europe economyAs we wrote in Monday’s DT, economic indicators for the eurozone are now mainly pointing in the right direction. The S&P Global PMI survey showed an unexpected return to growth in business activity for the first time since June, while German business confidence is bouncing back.The UK economy, however, continues to diverge from the brightening outlook in the EU and the US. The Treasury is trying to damp down calls for tax cuts after a new downgrade to growth forecasts. The UK PMI reading has hit a two-year low, businesses face a growing risk of insolvency and public borrowing has hit its highest level since monthly records began in 1993. Meanwhile, producer price inflation has fallen to its lowest rate in almost a year. Damage from Brexit continues to become more apparent. The Eurostar boss said peak trains were being left a third empty because of new border arrangements. Italian petrol station owners have shut their pumps in a dispute with the government over the ending of fuel subsidies that shielded motorists from surging costs. Need to know: Global economyChinese households managed to save a record $2.6tn last year as pandemic restrictions crushed consumer demand, but it is unclear so far if this may lead them to splash the cash in “revenge spending”. US Treasury secretary Janet Yellen said China was a “barrier” to ending the debt crisis in Zambia. The restructuring of the debt is seen as indicative of how China, the biggest creditor to the developing world, will respond to a wave of defaults.Argentina will be transformed by gas and mining exports, according to its economy minister. The country is suffering almost 100 per cent inflation and is cut off from international markets after its ninth debt default in 2020.Australian inflation hit a 33-year high of 7.8 per cent in the final quarter of last year, dashing hopes of a pause in interest rate rises.Need to know: businessThe “Big Three” international oilfield services groups — Halliburton, Baker Hughes and SLB — reported their most profitable 12 months since the height of the US shale boom as high energy prices led to global drilling activity. Amazon workers in Coventry are striking today over pay, the first time the company’s UK employees have taken industrial action. British unions have hitherto struggled to recruit in sectors such as logistics that account for a growing chunk of the country’s workforce — often on insecure terms and in difficult working conditions. Tensions are growing in the UK, Europe and the US between governments and pharma companies over drug pricing. An industry spokesperson said authorities had gone from appreciating rapid innovation during the pandemic to needing to “squeeze” drugmakers because of financial pressure elsewhere.The head of Europe’s largest chip company ASML, which plays a critical role in the global industry and has been caught up in US-China tech tensions, said demand for semiconductors would recover in the second half of the year as it reported a record order backlog and forecast sales to increase 25 per cent in 2023. Microsoft gave a downbeat forecast for the current quarter, reporting that demand for its cloud services fell noticeably in December as customers grew more cautious on economic prospects.New “generative” AI systems that can produce content to order are raising concerns about potentially far-reaching social effects including the ability to produce large volumes of misinformation as well as making jobs disappear, as our new Big Read explains.

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The World of WorkThere are lots of stereotypes about millennials (those born between 1981 and 1996), the biggest one suggesting they have an overwhelming sense of entitlement. The new Working It podcast discusses whether the tropes are really true. Some good newsThe British Heart Foundation has sold an 18-carat gold Cartier watch found in a bag of donations for almost £10,000. The sale is a record for BHF, which raises funds for research into heart and circulatory disease.Ticker for tickers: the £10k wristwatch. Picture courtesy of British Heart Foundation More