Know someone who would like this newsletter? Forward it to them.
The World
The US and Germany will send main battle tanks to Kyiv, a significant increase of western military aid that was condemned by Russia and prompted cheers throughout Ukraine. The US will be sending 31 M1 Abrams tanks to Ukraine — or the equivalent of one Ukrainian tank battalion, senior Biden administration officials confirmed on Wednesday. Earlier in the day, Germany announced it would send 14 Leopard 2A6 tanks from stocks held by its army. Berlin also announced plans to team up with other European countries to create two tank battalions of the German-made Leopard 2s, which equates to about 90 tanks. (Financial Times)
Scholz defends decision to send battle tanks to Ukraine: Speaking at the start of a question-and-answer session in the German Bundestag, Scholz said, "It is right that we act closely with our international partners to support Ukraine — financially, with humanitarian aid, but also with weapons deliveries. Now we can say that, in Europe, it is us and Britain who have made the most weapons available for Ukraine. … Germany will always be at the forefront when it comes to supporting Ukraine." (Deutsche Welle)
What Makes the M1 Abrams So Critical to the Russia-Ukraine War? The M1 Abrams tank is among the most powerful ground weapons in the U.S. arsenal, able to close in on enemy tanks, troop positions and other targets, blast them with its cannon and machine guns, and then speed away. The tank’s heavy armor protects the vehicle and its four-person crew from small-arms fire, shell fragments and even some direct hits. It can ford waters up to 4 feet deep. “The fundamental mission of the tank platoon is to close with and destroy the enemy,” reads the first sentence of a 2019 training document for Army and Marine Corps tank commanders. (Wall Street Journal)
Ford plans to cut 3,200 jobs across Europe, according to Germany’s largest union, as the carmaker looks to cut costs and shift its focus towards electric vehicles. Most of the 2,500 jobs in product development and up to 700 in administrative roles the automaker is hoping to cut are located in Germany, said IG Metall. The union, which represents 2.2 million members in the metal, electrical, iron, steel and automotive industries, said other cuts could fall at sites in Belgium and the UK, the Financial Times reported. (The Guardian)
The number of new cars made in the UK fell again sharply last year plummeting to its lowest level since 1956. The drop marks a 10% fall from the year before which itself was a historic low. A continuing global shortage in semiconductor chips hit production lines, industry body the Society of Motor Manufacturers and Traders said. But car makers are concerned the UK has not yet got a strategy to make the country competitive as a destination for manufacturing investment. (BBC)
Dutch and U.S. officials will meet in Washington on Friday to discuss potential new controls on exporting semiconductor manufacturing gear to China, with a deal possible by the end of the month, according to two sources familiar with the matter. A deal could be announced as soon as Friday if the two sides can agree on the details, said one of the sources, speaking on condition of anonymity. The source added that it was possible that any deal reached might not be announced immediately. Biden administration in October published wide-ranging export controls, including measures tightly restricting Chinese access to U.S. chipmaking technology, as part of an effort to slow Beijing's technological and military advances. (Reuters)
Data from the Bureau of Land Management shows that President Biden approved more oil and gas drilling permits in his first two years in office than former President Donald Trump. From Jan. 20, 2021, to Jan. 19 of this year, the BLM approved 6,430 permits for oil or gas drilling on federal land, compared with 6,172 drilling permits approved during the first two years of the Trump administration. (Yahoo! News)
Economy
Lael Brainard, the second-in-command at the Federal Reserve, is a contender to become the next top economist at the White House, in what would be a major shake-up for the US central bank as it grapples with the worst inflation problem in decades. The Biden administration is considering Brainard, who served as under-secretary for international affairs at the Treasury department during Barack Obama’s administration, to replace Brian Deese as the next head of the National Economic Council. (Financial Times)
Thai authorities urged Bangkok residents to work from home and wear respirator masks outdoors as air pollution level worsens in one of the world’s most-visited cities. Residents in the city of more than 10 million should work from home if possible, or switch from personal vehicles to public transport options if they need to commute, Bangkok governor Chadchart Sittipunt said. (Bloomberg)
South Korea's economy contracted in 4Q22 for the first time in two and a half years as a post-pandemic spending spree faded and global trade tumbled. GDP shrank 0.4% from the previous quarter, after a 0.3% gain in 3Q22. (Nikkei Asia Review)
Hiring and retaining people for high-growth tech companies has become easier as economic conditions have changed, new insights from a global survey of CEOs show. The findings are the latest indication that the tech sector is undergoing a massive talent reshuffling. More than 70% of CEOs who lead a portfolio company of SoftBank's Vision and Latin America Funds say that talent acquisition (74%) and retention (72%) was easier in 2022 than 2021. A separate survey from ZipRecruiter previously found that about 80% of recently laid-off tech company workers found a new job within three months of starting their search. (Axios)
JPMorgan CEO Jamie Dimon, a staunch opponent of working from home, said that it should be an option for women to help with the burden of childcare. He also said it makes sense for coders and researchers, but it doesn't work for managers. (Insider)
Companies that raised money in 2021 are more likely to see layoffs. (Crunchbase)
Chicago is looking to attract a myriad of foreign workers laid off by technology giants as companies in the city and its suburbs seek to lure top talent and fill thousands of open positions. More than 35 firms in the Chicago region are willing to hire workers on H-1B visas, given to foreign employees in specialty occupations such as software engineering. (Bloomberg)
Technology
IBM plans to lay off about 1.5% of its global workforce, or around 3,900 jobs, focusing on workers who remained after spinning off Kyndryl and Watson Health. But CFO James Kavanaugh told Reuters that IBM would continue to hire in focus areas. "Unlike many others over the last 2 to 2-1/2 years that were hiring in tens and thousands of people ... we are leveraging digitization, AI automation, that drives efficiency, but we are committed to hiring for client-facing research and development," he said. (Reuters)
Amazon’s Trickle-Down Monopoly: Third Party Sellers and the Transformation of Small Businesses. In this report, Moira Weigel tells the story of a group of hidden intermediaries who have played key roles in making Amazon one of the most powerful corporations in the world, while remaining mostly invisible to customers: third-party (3P) sellers. Critics of Amazon’s monopoly have often emphasized how the company eliminates competition. This report highlights how Amazon’s scale has also given rise to new kinds of small businesses — ones optimized for Amazon. (Data & Society)
Tesla reported record profit and revenue for the fourth quarter but acknowledged that it must make cheaper vehicles to become a bigger automaker. Details: The company reported net income of $3.69 billion and revenue of $24.3 billion in the fourth quarter, up 59% and 37%, respectively, from a year earlier. Both reflect its best quarterly marks ever despite a continued slowdown in the critical Chinese market. The company sold 405,278 vehicles in the fourth quarter, up 31% from a year earlier. Why it matters: Tesla is under pressure to regain momentum after signs of a sales slowdown and a stock-price plunge amid a broader industry pullback, as well as CEO Elon Musk's controversial management of Twitter. (Axios)
Rocket Lab’s first U.S. launch got off the ground Tuesday evening, marking a successful mission and a long-awaited expansion of the company’s capabilities. The company’s Electron rocket launched from NASA’s Wallops Flight Facility on the coast of Virginia, carrying a trio of satellites to orbit for radio frequency analytics specialist Hawkeye 360. The mission was Rocket Lab’s 33rd to date, but the first from U.S. soil. The company has been regularly launching from its two private launchpads in New Zealand – with nine successful missions last year. (CNBC)
Smart Links
The thing we thought was happening with robotic investments is definitely happening. (TechCrunch)
Shopify shares closed up more than 10% after the company said it was raising prices on its subscriptions by around 30%. (The Information)
Popular 401(k) Funds Rebound After Tanking in 2022. (Bloomberg)
Pakistan’s economy nears collapse as foreign currency reserves plunge. (Financial Times)
Office landlords should no longer view tech firms as sure bets: More modest tech leases are likely in store for the city going forward. (Crain’s NY Business)