Asia rebound fails, Europe’s tech sector needs to step up and why corporations are sitting on trillions

A strong rebound for European markets may look a little harder to achieve after Asian markets took a dive in afternoon trade. European stocks were thumped more than 3 per cent on Wednesday, and with declines pared on Wall Street and a positive morning for Asian stocks, hopes had been high for a decent recovery today. However, Asian markets surrendered those early gains.

On Wednesday, the global equity rout continued with the the FTSE All-World index falling into bear market territory for part of the day and oil prices sliding to new lows. (FT)

In the news

Barclays to axe jobs The British bank is set to cut more than 1,000 jobs across its investment bank in the first big strategic move by new chief executive Jes Staley. The cuts, which could be announced as early as today, look set to be mostly focused on the company’s Asia offices, where it is withdrawing from investment banking operations. (FT)

The ninth planet Two astronomers reported that they had found compelling signs of something bigger and more distant than Pluto. “Planet Nine” has a mass about 10 times that of Earth and takes 20,000 days to make one full orbit of the sun. (FT)

The ‘Year of the Pancake’ for banks The six biggest US banks last year produced the same revenue as they did the year before. The figures underscore how the industry is struggling to expand in an era of ultra-low interest rates and toughened regulations. (FT)

German president backs refugee quotas Comments from Joachim Gauck that such limits might be “morally and politically necessary” will pile further pressure on Chancellor Angela Merkel, who is facing criticism from conservatives over her decision to open the country to mass immigration. Mr Gauck’s remarks come as Brussels looks to scrap laws that make the first country a refugee enters responsible for any asylum claim. Here is how the reforms will work. (FT)

Lagarde wins backing for new IMF term UK chancellor George Osborne has formally nominated Christine Lagarde to serve a second five-year term as managing director of the International Monetary Fund. The move came within seconds of the fund opening the selection process and is seen as attempt to build an unstoppable momentum behind her. (FT, NAR)

It's a big day for

UK-Russia relations The results of the inquest into the death of ex-KGB spy Alexander Litvinenko, poisoned in London a decade ago with tea laced with a rare radioactive isotope, are likely to conclude that Russia was responsible. (Reuters)

Vietnam The country’s ruling Communist party is preparing to select its next leaders at its five-yearly congress, amid tensions over China, the economy and the pace of political reform. (FT)

Food for thought

The jihadis next door A chilling documentary takes a look at the new wave of extremists in the UK, including an interview with Siddhartha Dhar, the man who fled to Syria with his family and is suspected of being the executioner in a horrifying Isis video. (Channel 4)

Europe’s tech sector needs to step up The continent is full of clusters of enterprises, but too few expand enough to become the next Facebook, writes John Gapper. “Solving the problem does not require European countries to reform their cultures, a vague and tricky project, but their financial and business practices.” (FT)

Why are corporations hoarding trillions? US companies are sitting on $1.9tn in cash, a state of affairs unparalleled in economic history. “The notion that a corporation would hold on to so much of its profit seems economically absurd, especially now,” writes Adam Davidson. He sets out to find out why. (NYT)

Stone-age massacre Some 10,000 years ago a woman in the last stages of pregnancy met a terrible death, trussed like a captive animal and dumped into shallow water at the edge of a Kenyan lagoon. She died with at least 27 members of her tribe, all equally brutally murdered, in the earliest evidence of warfare between stone age hunter-gatherers. (The Guardian)

Marvel at the great gridlock A campaign in Belgium is seeking an unorthodox addition to the list of World Heritage Sites, a compendium that includes wonders such as the Taj Mahal and the Acropolis. The candidate: the Belgian traffic jam — “an untamable beast . . . so magnificent, so overwhelming”. (WSJ)

China should devalue now Beijing should not let currency market players have their way and must set clearer exchange rate targets, including a one-off 10-15 per cent devaluation of the renminbi, argues Stephen Grenville. (NAR)

Video of the day

The Netflix network 2015 was a very good year for the video streaming provider, but despite that, Matthew Garrahan, the FT’s global media editor, says there are bumps on Netflix’s road to global domination. (FT)

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.