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The World
More CEOs fear their companies won’t survive 10 years as AI and climate challenges grow, survey says: More executives are feeling better about the global economy, but a growing number don’t think their companies will survive the coming decade without a major overhaul because of pressure from climate change and technology like artificial intelligence, according to a new survey of CEOs by one of the world’s largest consulting firms, PwC. The survey of more than 4,700 CEOs worldwide was released as business elites, political leaders and activists descended on the World Economic Forum’s annual meeting in Davos, Switzerland, and it showed a mixed picture of the coming years. Of the executives, 38% were optimistic about the strength of the economy, up from 18% last year, when the world was mired in high inflation, weak growth, rising interest rates and more. (Associated Press)
Davos 2024: 3 Key Topics for Leaders at World Economic Forum. (Bloomberg Quicktake)
Boeing plans to increase 727 Max 9 inspections “following the failure of an emergency exit door panel on an Alaska Airlines flight last week. It is the latest in a series of troubles for Boeing, whose reputation as the premier American aircraft manufacturer has been tarnished by a series of manufacturing flaws.” (Associated Press)
Boeing’s “long-awaited delivery resumption of its 737 MAX jets to China faces fresh delays after the Alaska Airlines incident.” China Southern Airlines was preparing to receive Boeing’s planes as early as this month, but is now “planning to conduct additional safety inspections on those aircraft following the incident.” (Wall Street Journal)
Boeing opens factories to airline customers as it beefs up inspections (Financial Times)
Iran’s Revolutionary Guards launched a barrage of ballistic missiles against targets in Syria and northern Iraq, including what the elite force described as an Israeli intelligence centre run by Mossad, the spy agency. The guards said the missile strikes on an “espionage centre” in the Iraqi city of Erbil were in retaliation for Israeli strikes that killed an Iranian commander in Syria, as well as members of Iran-backed militant groups in the region. (Financial Times)
Houthi militants fired a ballistic missile that struck the M/V Gibraltar Eagle, a U.S.-owned container ship, “off the coast of Yemen on Monday, U.S. Central Command said in a statement. There were no injuries and no ‘significant damage’ to the ship.” (Washington Post)
Bernardo Arévalo was sworn in as Guatemala’s president just after midnight on Monday after “old guard legislators delayed Arévalo’s swearing-in by 10 hours on Sunday.” He immediately faced “huge challenges” including his party’s “lack of recognition in a Congress where he would not have a majority anyway.” (Associated Press)
President Nicolás Maduro boosted Venezuela’s minimum wage by 43% in salary and food stamps “as protests by disgruntled public workers grow ahead of presidential elections” later this year in which Maduro “is lagging far behind opposition leader María Corina Machado in polls.” (Bloomberg)
Defense Secretary Lloyd Austin was released from Walter Reed National Military Medical Center, two weeks after being hospitalized due to complications from surgery to treat prostate cancer. In a statement, Austin said, “Now, as I continue to recuperate and perform my duties from home, I’m eager to fully recover and return as quickly as possible to the Pentagon.” (Politico)
“The White House became the latest target of an apparent ‘swatting’ call when D.C.’s dispatch center received a false report Monday morning claiming the executive mansion was on fire.” The call came in to the District of Columbia 911 center at 7:03 a.m. “reporting a structure fire at 1600 Pennsylvania Ave.” One minute later, “at least a dozen apparatuses were dispatched, including five engines, two trucks and rescue squads. Authorities said officials quickly determined there was no fire and no threat.” President Biden was not in the White House at the time. (Washington Post)
“Medicare patients lining up to fill pricey prescriptions at the pharmacy counter this year will realize some good news: For the first time, there is a ceiling on how much they will pay in 2024 for their Part D drugs.” (Wall Street Journal)
Economy
Germany’s GDP contracted 0.3% in 2023 “as high inflation, rising interest rates and elevated energy costs made Europe’s largest economy one of the weakest performers in the world.” The initial estimate “compounds what has been a gloomy start to the year for the country, which has been hit by nationwide train strikes over working hours and disruptive protests by farmers against cuts to fuel subsidies.” (Financial Times)
ING Groep NV says British inflation will be down to 1.5% by May, its lowest level in three years and below the Bank of England’s two percent target. UK inflation currently stands at 3.9%. (Bloomberg)
Taiwanese investments approved for mainland China “fell to a 22-year-low in 2023 while mainland investment in Taiwan also plumbed new depths.” Investments approved for Taiwanese companies in China reached about $3.04 billion, “the lowest for any single year since 2001.” (South China Morning Post)
The yield on 10-year Chinese government bonds is close to record lows, “with deflationary pressure and the protracted downturn in the property market fueling speculation of further monetary easing” even after the People's Bank of China held its key one-year medium-term lending facility at 2.5% on Monday. (Nikkei Asia)
Nigeria aims to increase revenue collections by 57% this year to $20.3 billion “as plans to overhaul its tax system start to pay dividends.” Nigeria’s Inland Revenue Service forecasts that about 51% of 2024 tax revenue will come from the country’s oil industry. (Bloomberg)
Global banks could boost their valuations by a combined $7 trillion in the next five years if they take major steps to promote growth and boost productivity, the Boston Consulting Group said in a report. Lenders could roughly double their current valuations if they pursue growth and improved price-to-book ratios despite obstacles, the consultant said. "The largest driver of pessimism about the banking sector has been the significant drop in profitability," BGC said. (Reuters)
Technology
Chinese military and intelligence researchers have managed to buy “small batches of Nvidia semiconductors banned by the U.S. from export to China. The sales “by largely unknown Chinese suppliers highlight the difficulties Washington faces, despite its bans, in completely cutting off China's access to advanced U.S. chips.” (Reuters)
More than 140 deepfake videos impersonating British Prime Minister Rishi Sunak “were paid to be promoted on Facebook in the last month alone, according to research that has raised alarm about the risk AI poses before the general election.” The payments originated from 23 countries including Malaysia, Turkey, and the U.S., and the ads “may have reached as many as 400,000 people.” (The Guardian)
Apple is planning to remove its blood-oxygen feature from its latest smartwatches — the Series 9 and Ultra 2 — to get around a US ban of the devices if an appeal of the decision fails. The plan was disclosed Monday by Masimo Corp., which has been locked in a feud with Apple over patents related to the technology. It said that US Customs and Border Protection approved the move on Jan. 12. The agency “decided that Apple’s redesign falls outside the scope” of an import ban by the US International Trade Commission, signaling that the adjustment will let Apple keep its watches on the market. (Bloomberg)
In addition to a $3,499 sticker price, buyers of Apple’s upcoming Vision Pro mixed-reality headset may need to go through a 25-minute demo process to make sure the device fits the user’s head properly and has the correct lenses installed. (Bloomberg)
“Apple has quietly tightened its reporting of how many people listen to podcasts, sending shock waves through an embattled audio industry still reeling from the end of the COVID-era production bubble.” Apple is now “switching off automatic downloads for users who haven’t listened to five episodes of a show in the last two weeks,” which has sent recorded downloads of some popular podcasts down by as much as 40%. (Semafor)
Microsoft debuts Copilot Pro for $20/mo./user, offering access to the latest models and features, like custom Copilot GPTs and integration into Office products. (Search Engine Land)
Smart Links
Fed Tiptoes Toward Dialing Back Key Channel of Monetary Tightening (Wall Street Journal)
China, Switzerland agree to strengthen trade ties (DW)
Shoppers Prefer Staying Outdoors. That’s More Trouble for Malls. (Wall Street Journal)
10 years in, GM CEO Mary Barra has built her legacy on change and crisis. 2024 will bring new tests (CNBC)
YouTube appears to be reducing video and site performance for ad-block users (Ars Technica)