Oil slides below $32, Brazil cans carnival and how to improve your mood

Oil prices plunged below $32 a barrel on Monday. But the chorus of voices warning that it has still further depths to plumb is growing louder, with Morgan Stanley saying crude could fall to $20.

Brent, the global oil marker, hit $31.48 a barrel in late trading on Monday, a level last reached in April 2004, while West Texas Intermediate fell to $31.28, a fresh 12-year low. The oil rout has seen 16 per cent knocked off both benchmarks in the first trading week of the year. (FT)

In the news

China’s battle against speculators Beijing has opened a new front in its war to curbcurrency depreciation by buying up renminbi offshore, foiling the burgeoning carry trade and driving the cost of borrowing to a record high. China equities fell further on Monday after one of the worst weeks on record, as investors failed to take heart from efforts by the central bank to support the renminbi. (FT)

Brazil cans carnival Towns and cities across Brazil are being forced to scrap the annual carnival parade as the country is braced for what is expected to be the worst recession since at least the 1930s. The traditional five-day celebration normally offers respite from the country’s troubles, but with unemployment and inflation rising, Brazilians are in no mood to party. (FT)

Another mega pharma deal The boom in pharmaceuticals deals is now two years old — but it shows no sign of slowing. The latest entry is Shire’s $32bn takeover of Baxalta which, if completed, would mark the biggest acquisition yet for the deal-happy Dublin-based Shire. (FT)

Banks scramble for Saudi Aramco IPO The world’s biggest investment groups are jockeying for a piece of the listing of the kingdom’s national oil company. But it may not be all it’s cracked up to be: analysts admit that the financial rewards will be far lower than Saudi Aramco’s potential $10tn valuation suggests. (FT)

Sweden hit by mass sex assault claims The country’s police have promised an urgent investigation into claims by a newspaper that a gang of Afghan youths groped and molested girls as young as 11 or 12 at a youth festival in Stockholm in both 2014 and 2015. The prime minister condemned the alleged assaults and police cover-up, calling the claims a “double betrayal of women”. (FT)

It's a big day for

President Barack Obama The US leader will deliver his final State of the Union address. He will use the speech to establish the achievements of his presidency — including passage of his landmark healthcare law and the creation of 9m jobs — as well as to build the case for the election of a Democratic successor, who will be key to securing his legacy. (FT)

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Food for thought

Ashes to ashes The tributes to David Bowie, who died on Sunday, are rolling in, from Paul McCartney to Kanye West to Madonna. Meanwhile, hundreds of fans thronged the muraldepicting Bowie as his Ziggy Stardust alter ego in Brixton, the London neighbourhood where he was born. (ABC, FT, NYT)

China markets: looking for clues The recent market turmoil, exacerbated by a shift in the Chinese central bank’s management of the renminbi, begs the question of whether the opaque party-state is fit for purpose when it comes to managing one of the world’s most pivotal financial markets and delivering the level of transparency expected by the international community. (FT)

Mass migration into Europe is inevitable The EU says that it welcomes refugees seeking asylum from war-torn countries, but illegal “economic migrants” must go home. Such a policy may sound good, writes Gideon Rachman, but in practice it is unlikely to stem the flow. “The big question in the coming decades is how Europe’s faith in universal liberal values will withstand the impact of mass immigration.” (FT)

The murderous past of the Oxford English Dictionary It is the pre-eminent dictionary of our time, with batches of new words selected for inclusion every year. Yet many of the early entries into the now global lexicon were compiled by a convicted murderer, locked up in a Victorian-era insane asylum. (Atlas Obscura)

How to improve your mood New research suggests you can make yourself feel happier simply by listening to the sound of your own voice. The trick is to alter the pitch — and simple online tools mean anyone can experiment. (Science)

Video of the day

Inside the mind of a hacker Understanding what motivates cyber attacks is the first line of defence against them, experts say. With attacks on the rise, companies would be wise to take such advice and form a strategy, says the FT’s Maija Palmer. (FT)