Obama’s State of the Union, BOJ inflation and quantitative easing
The daily briefing “FirstFT” from the Financial Times:
Barack Obama called on the US to “turn the page” on an era of war and recession in his State of the Union address. He tried to capitalise on the resurgent economy to win support for his progressive policies, but Republicans were quick to remind Americans that many of them are yet to feel the benefits of an economic recovery. (FT)
Pointing out that the president’s overview might not be completely objective, the NYT’s Upshot did their own analysis of the State of the Union – stronger than when Mr Obama took office, but still troubled. (NYT$)
In the news:
BOJ slashed inflation forecasts
Japan’s central bank cut its forecast for the year beginning this April to just 1 per cent , down from the 1.7 per cent anticipated in October, due to the slide in oil prices. The trimmed forecast is an acknowledgement that its 2 per cent core inflation target is a distant prospect.(FT)
SpaceX’s $1bn of new funding
Elon Musk could be a little closer to colonising Mars – SpaceX’s new $1bn round of financing from Google and Fidelity values the rocket company atjust over $10bn. The funding will go towards its reusable rockets and building an internet network run off satellites in space. (FT)
Yemen’s presidential palace seized
Houthi rebel militiamen stormed the palace and clashed with guards outside the president’s residence yesterday. The violent crisis in Sana’a has raisedfears of a coup in the insecure state. The whereabouts of President Abdu Rabbu Mansour Hadi, a western ally, are unknown. (NYT$)
Political tension and quantitative easing
Investors piled into peripheral eurozone debt ahead of the European Central Bank’s expected launch of large-scale bond purchases. But there is frustration over a concession that Mario Draghi is expected to make to Germany’s QE opponents by saying that bonds bought will remain with national central banks. (FT)
Protests in Argentina
Argentines took to the streets to protest the mysterious death of Alberto Nisman, a state prosecutor investigating the 1994 terrorist bombing of a Jewish community centre in Buenos Aires. (FT, Bloomberg)
Off-piste at Davos:
The World Economic Forum
The World Economic Forum kicks off today in Davos with discussions ranging from the effect of non-transparent practices on financial systems (9am GMT) to the state of global health security (13.45 GMT). (WEF webcast).
Divergence and deflation
Lionel Barber, Martin Wolf and Gideon Rachman discuss the big issues under the spotlight at the World Economic Forum in Davos and explain why we should care about the conference. (FT video)
Optimism on oil
Not everyone is as pessimistic as the International Monetary Fund: many economists at Davos think the world economy will get a significant boost from lower oil prices. The problem is whether advanced economies will be able to share the proceeds of growth across their populations. (FT)
It’s a big day for:
eBay investors, who will be hoping the company – which is preparing to split later on in the year – has put a chaotic year behind it with its fourth-quarter results. (FT)
JD Wetherspoon, which reports on Christmas trading figures fresh from a dispute with Heineken over pricing in Ireland, during which the pub chain said it would not sell the Dutch company’s products. Company margins will be in focus as they have been dented by utility costs and higher hourly wages. (FT)
Food for thought:
The smell of wealth
Procter & Gamble, hoping to boost sales, is launching a line of upscale fragrances in an effort to lure customers away from department stores and Yankee Candle. The company will woo aspirational customers with lines like “I want my yoga pants to smell likeI sweat money.” (Bloomberg)
Posthumous identity
Fine art students are using skulls to reconstruct the faces of crime victims in the hope of identifying them, opening cold cases and giving comfort to relatives. (NYT$)
Access all areas
Almost every major terrorist attack on Western soil in the past 15 years has been committed by people already known to law enforcement. The authorities did not lack data but failed to appreciate the significance of what they had. (New Yorker)
British wine lovers have developed a taste for more expensive bottles and are set to overtake the French in spending on wine by 2018. (FT)
Video of the day:
The Greek frontrunner
Tony Barber assesses how radical Syriza will be if it wins the Greek parliamentary election and how much breathing space it will get from international creditors. (FT)
This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.
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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.
Image: A man looks a screen outside a United Overseas Bank (UOB) branch in Singapore’s financial district. REUTERS/Vivek Prakash.
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