good morning. This article is an on-site version of our FirstFT newsletter. Subscribe to our Asia, Europe/Africa or Americas edition to have it sent straight to your inbox every morning of the week
good morning. A rift between EU and US politicians over support linked to Joe Biden’s inflation-lowering law is deepening as state governors across America try to lure European clean energy companies into their states.
The governors of Michigan, Georgia and Illinois, as well as West Virginia Senator Joe Manchin, an IRA architect, attended the World Economic Forum in Davos last week to extol the virtues of the law, which will provide $370 billion in subsidies for cleanliness. Energy is in everything from solar panels to electric cars.
“I was struck by the many activities of state governments, business development agencies, and state-owned business development agencies that were trying so hard to lure us in,” said Gunther Erfurt, CEO of Swiss-based Meyer Burger. Manufacturer of solar modules.
But European politicians were less impressed. Germany and France expressed their unease with the IRA. Belgian Prime Minister Alexandre de Croo recently complained about the “too aggressive way” the US has been providing support to EU companies.
In a recent editorial, the Financial Times said the US and the EU needed to work together “and not engage in a wasteful battle to pull business and investment away from each other”. He went on to say that avoiding distorting subsidies, and having clear rules on the limits of acceptable support, is key.
Valdis Dombrovskis, the European Trade Commissioner, said last week that the fight against climate change must be undertaken by “building transatlantic value chains, not dismantling them”.
Five more stories in the news
1. The former FBI agent is accused of violating sanctions by working for Oleg Deripaska Charles McGonigal, who previously worked as a special agent in charge of counterintelligence in the FBI’s New York office and investigated the Russian oligarch, was arrested.
2. Ford plans job cuts in Europe The US automaker wants to cut thousands of jobs in Europe and move more product development roles to the US, according to Germany’s largest union. IG Metall said Ford had announced internally plans to cut up to 3,200 jobs in Germany, with more cuts expected elsewhere in Europe.
3. Elon Musk says he thinks he has funding to take Tesla private On the second day of his testimony in federal court in San Francisco, Musk said he believed it was a “done deal” that Saudi Arabia’s Public Investment Fund would back a potential bid to acquire Tesla at $420 a share, a 20 percent premium to the share price. at that time. But Musk acknowledged that there is no contract and that many details have not yet been agreed upon.
4. Lazard Expands Risk Banking Unit The boutique investment bank is set to advise more fast-growing startups in the US as part of a broader drive to expand its private equity offering. Lazard is assembling a team of six dedicated bankers who will be based in Los Angeles and Austin, according to a note seen by the Financial Times.
5. China is a “barrier” to ending Zambian debt crisis, says Janet Yellen The US Treasury secretary has called on China to agree to a speedy loan restructuring for Zambia, saying Beijing is a “barrier” to ending the debt crisis in the South African country. Africa’s second largest copper producer defaulted on debts worth $17 billion in 2020.
latest markets US stocks pause after Monday’s rally ahead of a busy day of earnings announcements. Contracts tracking the leading S&P 500 index on Wall Street and those tracking the high-tech Nasdaq 100 index traded in a narrow range before the New York open. Read the latest market report.
debt ceiling: US President Joe Biden will meet with the Democratic leadership in Congress to draw their united front on the country’s debt limit. The United States last week hit the legal maximum amount the federal government is allowed to borrow, prompting the Treasury Department to say it is now taking “extraordinary measures” to meet its debt obligations.
earnings Microsoft reported earnings after announcing plans to cut 10,000 jobs and pour billions of dollars into the company behind artificial intelligence platform ChatGPT in recent days. US defense firms Lockheed Martin and Raytheon also reported earnings as demand for their products increased. As reported by 3M, Johnson & Johnson, and General Electric.
Ticket manager: The Senate Judiciary Committee will hold an antitrust hearing focusing on the meltdown during Taylor Swift’s upcoming ticket sale eras a tour. Joe Berchtold, chief financial officer of Live Nation, the company that owns Ticketmaster, is scheduled to testify.
Coinciding with the publication of Martin Wolf’s new book, The Crisis of Democratic Capitalism, join him and other online thought leaders for a subscriber-exclusive event on January 31. Register for free here.
What else do we read?
The Wagner Company: A Russian Warlord and His Lawyers As the founder of the private mercenary operation known as the Wagner Group, which provides power to dictators and waged war in the Middle East and Africa as an unofficial tool of the Kremlin’s foreign policy, Russian businessman Yevgeny Prigozhin is one of the most sanctioned individuals. Universe. A Financial Times investigation shows how he has used top corporate lawyers around the world to try to keep Western governments at bay.
The rise of Esther Crawford in Musk’s “hardcore” Twitter The social media giant’s director of product management has become one of the few women in the company to join Elon Musk’s trusted lieutenants. Some insiders believe the 39-year-old has the charismatic energy needed to turn around the struggling Twitter business, while also having the ear of his impulsive owner. Others reviled her as a sycophant and an opportunist.
The case of the troll ship tests Norway’s hold on the Arctic archipelago In a case starting today, Norway’s Supreme Court will assess whether a Latvian fishing vessel needs a Norwegian license to fish for snow crab in an area stretching around the Arctic archipelago of Svalbard. The case will test the Oslo interpretation of territorial waters and control over the region’s resources.
Why passive investing makes less sense in the current environment Passive portfolio management is attractive in a world where investment outcomes are strongly influenced by a universal common factor – as has been the case with the contract of artificial interest rates and massive central bank liquidity injections. But in a world where macro prospects are murky, dynamic asset allocation trumps low fees, writes Mohamed El-Erian.
What do you do if you hate your job Whatever your reason for being unhappy at work, hating your job is not viable in the long run. Grace Lordan of the London School of Economics shares eight proactive strategies for locating the source of the problem – and doing something about it.
Take a break from the news
Eleven Through is simply “nonsense, nonsense,” while the lower clues are more ambiguous. Try your hand at the latest crossword puzzle from the Financial Times.
Thank you for reading and remember you can add FirstFT to myFT. You can also choose to receive a FirstFT push notification every morning on the app. Send your recommendations and feedback to email@example.com
Newsletters recommended to you
asset management – Discover the inside story on the movers and shakers behind a multi-billion dollar industry. Register here
next week Start each week by reviewing what’s on the agenda. Register here