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The World
The US has launched a renewed crackdown on countries and individuals helping the Kremlin evade western sanctions amid growing fears Russia is fueling the war in Ukraine by funneling imports through countries such as the United Arab Emirates and Turkey. The push by the US Treasury, commerce and justice departments, details of which were first obtained by the Financial Times, comes as western allies increasingly believe Turkey and the UAE, as well as countries in central Asia and the Caucasus, have emerged as the weak links in their efforts to isolate Russia both economically and militarily. (Financial Times)
The top diplomats from the U.S. and Russia spoke face-to-face for the first time since Moscow’s invasion of Ukraine, a brief meeting on the sidelines of a gathering of envoys from the Group of 20 nations that has been dominated by tensions over the war. The meeting between Secretary of State Antony J. Blinken and Foreign Minister Sergey V. Lavrov was unexpected, and came as the Russian government used the G20 meeting to lash out at calls to end its invasion, accusing Western nations of “blackmail and threats.” (New York Times)
China and the U.S. have flexed their military might around Taiwan over the past three days, as tensions between the two rival powers flared up. The People’s Liberation Army (PLA) has sent 68 aircraft and 10 warships close to Taiwan since Monday, according to the island’s defence ministry, while the US confirmed its P-8A Poseidon reconnaissance plane had been deployed to fly through the Taiwan Strait. Online flight-checking platforms showed the US had also sent aerial refuelling aircraft and bombers near the area. (South China Morning Post)
Japan and India hold joint military exercises before G20 in Delhi. China’s threat is growing, forcing new alliances between unexpected countries. (The Times)
Xi Jinping to tighten Communist party’s grip with overhaul of China’s government at key meeting. The NPC, China’s rubber-stamp parliament, will gather this weekend to approve far-reaching changes, and Xi’s unprecedented third term as president. (The Guardian)
North Koreans are experiencing widespread hunger and dying of starvation as the country suffers one of the worst food crises in decades as a result of its international isolation and natural disasters that have damaged crops, reducing yields. The North Korean regime held an urgent meeting on agriculture and the economy this week. Such a gathering is rare and indicates the seriousness of the shortages, South Korean officials said. (Wall Street Journal)
Hong Kong firefighters in 9-hour battle with huge blaze at under-construction skyscraper in major shopping district Tsim Sha Tsui. (South China Morning Post)
German Finance Minister Christian Lindner is faced with a shortfall of €12 billion ($12.7 billion) in his budget for next year, raising the prospect of a fight within the three-party ruling coalition over the allocation of funds. Lindner, who heads the business-friendly Free Democrats and portrays himself as a guardian of stable finances, insisted on restoring a constitutional limit on net borrowing starting this year, and again has limited room for maneuver in 2024. (Bloomberg)
Texas senators, facing criticism, soften proposed ban on Chinese purchases of land: The measure, endorsed by Gov. Greg Abbott, originally would have banned citizens of China, Iran, Russia or North Korea from buying land in Texas. Under a new version, the ban wouldn’t apply to dual citizens or lawful permanent residents. (Texas Tribune)
Yosemite National Park Closed Indefinitely After Receiving Up to 15 Feet of Snow. (Travel + Leisure)
Economy
Consumers pulled back on purchases of apparel and electronics in recent months while continuing to spend on groceries and other necessities, according to some of the largest U.S. retailers. Macy’s and Best Buy said they expect sales to fall this year, after declining in 2022, as stubbornly high levels of inflation and other economic issues weigh on shoppers. Macy’s Chief Executive Jeff Gennette said he expects consumers to be in worse shape in 2023 than they were last year. (Wall Street Journal)
Americans Need to Be Richer Than Ever to Buy Their First Home: The US housing market has softened a bit after years of soaring prices and frantic bidding wars, but there’s little reprieve for buyers trying to crack into the market. First-time buyers made up the smallest share of sales on record last year, at 26%, even as home values started to cool, according to the National Association of Realtors. And rising borrowing costs and still-high prices have pushed housing to the most unaffordable levels in records going back almost four decades. (Bloomberg)
Inflation eased only slightly in the 20 countries that use the euro currency as the pain from higher costs for food and fuel persists and gives the European Central Bank no reason to slow interest rate increases aimed at getting prices back under control. The consumer price index reached 8.5% in February compared with a year earlier, a drop from 8.6% in January. The figure was higher than analysts’ expectations of 8.3%. (Associated Press)
Here are some staggering numbers for you. Year to date, bitcoin is up 43%, ether is up 39%, and Coinbase shares are up more than 92%. In fact, Coinbase is now trading around 5 times its projected next 12 month sales, up from 2.1 times when 2023 began. It turns out, startups and venture capitalists are scratching their heads a bit, too, around what’s driving this rally (other than the same factors driving the broader surge in tech stocks, that is.) (The Information)
One big U.S. company told people hired on a remote basis that they need to start coming into the office. The financial-services company USAA notified some staff that they would soon be required to show up in an office three days a week, according to a company email reviewed by The Wall Street Journal. If someone lives within 60 miles of a company office, they would now be considered a hybrid employee, regardless of whether they were hired into a remote role. (Wall Street Journal)
Dozens of white-collar Starbucks Corp. employees and managers have signed an open letter protesting the company’s return-to-office mandate and its alleged union-busting, opening a new front in the battle over the avowedly progressive coffee chain’s treatment of its staff. “We love Starbucks, but these actions are fracturing trust in Starbucks leadership,” the workers wrote in their letter. “Morale is at an all-time low, and the brand reputation and financial value of this publicly traded company are at risk.” Both violating baristas’ unionization rights, and subjecting white-collar staff to an abrupt return-to-office mandate, the letter argues, reflect the same problem: “Not listening to partners.” (Bloomberg)
Hong Kong is racing to fill thousands of sustainability jobs as a talent shortfall challenges efforts to turn the city into a green finance hub, observers say. Despite high salaries and a surge in open positions, scores of companies are struggling to beef up staff charged with ensuring they meet environmental, social and governance (ESG) standards. (Nikkei Asia Review)
Starbucks committed "egregious and widespread misconduct" while trying to stop labor union campaigns, a federal administrative law judge ruled. Following a hearing in an unfair labor practice case filed by a Starbucks union, Judge Michael A. Rosas ordered the company to reinstate seven workers, give backpay and damages compensation, have interim CEO Howard Schultz read a notice to employees and bargain with members. (Axios)
Technology
China has a "stunning lead" in 37 out of 44 critical and emerging technologies as Western democracies lose a global competition for research output, a security think tank said on Thursday after tracking defence, space, energy and biotechnology. The Australian Strategic Policy Institute (ASPI) said its study showed that, in some fields, all of the world's top 10 research institutions are based in China. The study, funded by the United States State Department, found the United States was often second-ranked, although it led global research in high-performance computing, quantum computing, small satellites and vaccines. "Western democracies are losing the global technological competition, including the race for scientific and research breakthroughs," the report said, urging greater research investment by governments. (Reuters)
Chinese subsidiaries of American venture capital firms are investing money from U.S.-based funds into Chinese space startups, even as the Pentagon warns of Beijing’s growing activity in the space arena, according to data reviewed by TechCrunch. The data, collected by PitchBook, includes information on past limited partners and investments of the Chinese units of Sequoia Capital, Matrix Partners and Lightspeed Venture Partners. Space industry investments represent a very small but notable portion of these firms’ portfolios, with Sequoia Capital China and Lightspeed China investing in two companies each and Matrix China investing in eight. Startups that have landed funding include companies working on launch, satellite manufacturing and Earth observation. (TechCrunch)
Apple Blocks Update of ChatGPT-Powered App: The iPhone maker asked the developer of an email app embedded with AI-language capabilities to set an age restriction, a sign of unease about inappropriate content. (Wall Street Journal)
Apple partner Foxconn Technology Group plans to invest about $700 million on a new plant in India to ramp up local production, underscoring an accelerating shift of manufacturing away from China as Washington-Beijing tensions grow. (Bloomberg)
Microsoft is expected to secure EU antitrust approval for its $69 billion acquisition of Activision with its offer of licensing deals to rivals, three people familiar with the matter said, helping it to clear a major hurdle. (Reuters)
ESPN has talked with major sports leagues and media partners about launching a feature that would link users directly to where a live sporting event is streaming, sources said. The actual media partners haven’t yet been determined, and there’s no timeline on when a feature would launch. It could involve global streaming services and direct-to-consumer regional sports network products, and would aim to make ESPN the TV guide of live sports. (CNBC)
Smart Links
US senators reintroduce bill to make daylight saving time permanent. (Reuters)
Copenhagen is the world’s No. 1 city for work-life balance and pay —New York isn’t far behind. (CNBC)
Columbia, William & Mary extend test-optional college admissions. (Washington Post)
Oscars 2023: Regal Cinemas is showing every Best Picture nominee for $6. (CNBC)
The A to Z of economics. (The Economist)
Citigroup Cuts Hundreds of Jobs, Including in Investment Banking and Mortgage Units. (Bloomberg)