Commodities slump bites, the challenges of central bank divergence and the thought-controlled car

This article is published in collaboration with FirstFT. 

The daily briefing “FirstFT” from the Financial Times.

Brent crude slipped below $40 for the first time in more than six years as traders bet on an enduring oil glut, while US natural gas prices also nosedived.

On Tuesday the extended slump swept up Anglo American, one of the mining industry’s most venerable names. Shares in Anglo dropped more than 12 per cent to a record low on news that it would shelve its dividend and slash two-thirds of its workforce. (FT)

In the news

Yahoo kills $32bn spin-off The US technology group has abandoned plans to spin-off its $32bn stake in Chinese e-commerce group Alibaba under pressure from investors worried about a potentially huge tax bill. It is looking at selling or spinning off its core business instead. (FT)

Home of reported ‘Bitcoin founder’ raided Police in Australia have raided the home of a tech entrepreneur identified by two investigations as one of the early developers of the digital currency bitcoin. (The Guardian)

Morgan Stanley axes 1,200 jobs The US bank culled 1,200 people from its fixed-income business following its worst quarter for bond trading since the financial crisis. Tougher capital rules, a drop in client activity and a shift toward electronic trading have squeezed profits in parts of fixed-income, currencies and commodities units, forcing most banks to pull back and trim staff. (FT)

Google chief calls for ‘better web’ Government, citizens and tech companies need to act to help tamp down tensions on social media “sort of like spellcheckers, but for hate and harassment”, says Eric Schmidt. In a New York Times op-ed, he says accounts need to be scrutinised for terrorist messages and videos, which should be removed before they spread. Otherwise, he warns the web could become a vehicle for further disaggregation of poorly built societies. (NYT)

Widespread condemnation Trump’s Muslim ban Jeb Bush called it “unhinged”, Dick Cheney said it “goes against everything we stand for and believe in”, Hillary Clinton called it “reprehensible, prejudiced and divisive”. But Donald Trump continued to defend his proposal for a “total and complete shutdown” on Muslims entering the US. (FT, Reuters)

It’s a big day for

The Bank of England The bank’s Financial Policy Committee publishes minutes from its November meeting, where officials discussed risks to financial stability but held off imposing new limits on buy-to-let property borrowing or raising a capital buffer on banks. (FT)

Food for thought

The church of tax rebates Icelanders are flocking to register as Zuists, a movement that worships ancient Sumerian gods and — perhaps move importantly — promises its followers a tax rebate. The mass conversion — almost 1 per cent of the country’s population — is seen as a protest at the country’s requirement that taxpayers pay “parish fees” to registered religious bodies. (The Guardian)

The challenges of central bank divergence The US is years ahead of the EU in terms of its economic recovery, and so at a different stage of the monetary policy cycle, writes Martin Wolf. “To deliver on their mandates the central banks ought to be behaving differently. But this does not mean what they are about to do is right. This is partly be­cause their mandates are different. It is also because both are too conservative.” (FT)

Commodities: Material revolution As the prices for traditional commodities such as oil, steel and coal languish at multiyear lows, the raw materials used in smartphones, electric cars and 3D printers are set to experience increased demand. That is prompting some analysts to declare the advent of a new resource era driven by technology. (FT)

The thought-controlled car A research team in China says it has developed a car that can be controlled by thought. Using lightweight EEG-reading signal equipment to interface with the car, a driver can instruct the vehicle to move forwards, reverse, stop, lock and unlock itself. (Reuters)

Please come and collect your jets Three Boeing 747 aircraft have been abandoned at Kuala Lumpur International Airport — and officials have grown tired of their presence. They’ve taken out a newspaper ad asking the owners to retrieve the jets or face having them sold. (Quartz)

Video of the day

Renminbi you’re a womble This summer China frightened the herd when it devalued. Confidence returned and the renminbi made back about half its loss, but now it’s fallen back below its August low. FT investment editor James Mackintosh looks at what the currency move means for investors. (FT)

Publication does not imply endorsement of views by the World Economic Forum.

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Image: A car is seen in a test room. REUTERS/Petr Josek.