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The World
The world will add more renewable energy power over the next five years than it did at any time over the past 20, according to an annual report from the International Energy Agency (IEA). The acceleration of renewable energy projects can be traced, in part, to the ongoing global energy crisis. In total, the IEA says global renewable energy is expected to grow by 2,400 gigawatts by 2027, or equivalent to China's entire energy output. (Semafor)
The UK agreed to double imports of US gas over the next year as it tries to stabilize soaring energy prices. Prime Minister Rishi Sunak said the plan would "bring down prices for British consumers and help end Europe's dependence on Russian energy". Russia has cut off the majority of its gas supplies to Europe over the past year after its invasion of Ukraine. The UK does not import gas from Russia directly, but has been hit by rising wholesale prices on the Continent. (BBC)
The Five-Year Engineering Feat Germany Pulled Off in Months. In March, the German government asked energy companies to weigh a seemingly impossible engineering task. Could a new liquefied natural gas import terminal, which normally takes at least five years to build, be erected by year’s end? After three days deliberations, the company asked to build the pipeline portion concluded that if everything went perfectly the project could be done by Christmas. Since then, it has had to contend with potentially toxic soil and environmental regulations protecting frogs and bats. When workers encountered high groundwater, they had to drain trenches, then backfill them. (Wall Street Journal)
Exxon, Chevron to spend billions more on oil projects next year. (Reuters)
Saudi Arabia and China showcased deepening ties with a series of strategic deals during a visit by President Xi Jinping, including one with tech giant Huawei, whose growing foray into the Gulf region has raised U.S. security concerns. King Salman signed a "comprehensive strategic partnership agreement" with Xi, who received a lavish welcome in a country forging new global partnerships beyond the West. (Reuters)
During Xi’s visit to Middle East, China and Saudi Arabia sign 34 energy and investment deals. (South China Morning Post)
China's factory-gate prices showed an annual fall for a second month in November while consumer inflation slowed, indicating weak economic activity and soft demand. (Nikkei Asia Review)
Christmas leave cancelled as British soldiers cover for striking Border Force: Troops to stand in for Border Force guards at Heathrow and Gatwick. (The Times)
President Joe Biden announced a $36 billion bailout for the Central States Pension Fund, one of the nation’s biggest multi-employer plans, touting the help for union workers and retirees as he looks to mend ties with organized labor after a contentious rail deal. The money would “prevent drastic cuts to workers’ hard-earned pension benefits, cuts that have been scheduled to occur within the next few years,” Biden said. “It’s not going to happen — the cuts are not going to occur.” (Bloomberg)
Tech companies fueled the rise of Homeland Security and domestic surveillance, report finds. Big tech companies including Microsoft, LexisNexis, and Palantir have helped fuel the militarization of local police forces and the Department of Homeland Security’s demand for high-tech surveillance, according to a new report. Researchers working on the project dug into how these companies benefit from a hidden and misunderstood source of funding, which requires states to dump money into law enforcement activities if they want to receive money for things like emergency medical and response services. (The Verge)
Economy
‘Dr. Doom’ Nouriel Roubini says a severe recession will cause stocks to drop 25%—and warns zombie companies are in danger. The man who spotted the 2008 U.S. housing bust and subsequent Great Financial Crisis (GFC) has warned throughout 2022 that a U.S. recession is inevitable and a global stagflationary debt crisis will follow. Roubini warned that the first signs of the coming recession will be seen in credit markets, and particularly in the debt of “zombies”—companies that have taken on too much debt and rely on unsustainable business models. The economist said that he believes the Federal Reserve will be forced to raise interest rates to 6% to fight inflation, forcing many zombies “into distress.” (Fortune)
The share of retirement savers who withdrew money from a 401(k) plan to cover a financial hardship hit a record high in October, according to data from Vanguard Group. That dynamic — when coupled with other factors like fast-rising credit card balances and a declining personal savings rate — suggests households are having a tougher time making ends meet amid persistently high inflation and need ready cash, according to financial experts. (CNBC)
Goldman Sachs’ bonus pool for senior employees is expected to shrink by as much as half, people familiar with the matter said, as CEO David Solomon tries to boost flagging shareholder returns in a tough year across Wall Street. A smaller bonus pool for its 400-odd partners isn’t surprising, at least directionally speaking. Last year was a huge year for high finance, and compensation reflected that, while 2022 has been a rough one. But Goldman’s revenue, which tends to be a proxy for pay, is only down 20% over the first nine months of the year, so the expected cuts look deeper this year. It will be finalized by the end of the year. (Semafor)
The UK government is set to announce what it describes as one of the biggest overhauls of financial regulation for more than three decades. It is expected to loosen rules on banks introduced after the financial crisis in 2008 when some banks faced collapse. The changes will be presented as an example of post-Brexit freedom to tailor regulation specifically to the needs and strengths of the UK economy. Critics will say it risks forgetting the lessons of the financial crisis. (BBC)
Hong Kong companies are eyeing the domestic market in mainland China amid uncertainty in overseas markets such as Europe and the United States, and the Greater Bay Area (GBA) is being viewed as the ideal springboard, according to a survey. The joint poll was conducted by government-owned Hong Kong Export Credit Insurance Corporation (HKECIC) and the Hong Kong Trade Development Council (HKTDC) in the third quarter of this year. About 413 Hong Kong companies that have either started developing domestic sales in the GBA or are planning to do so were surveyed. (South China Morning Post)
5 Companies Where Employees Move Up the Ladder Fast. According to “The American Opportunity Index: A Corporate Scorecard of Worker Advancement,” a worker’s choice of company has considerable bearing on how fast they climb the ranks, how likely they are to land a better job elsewhere, and whether they’ll be hired and promoted. The study specifically looks at roles that were open to people without college degrees and assesses America’s 250 largest public companies as ranked by Fortune magazine. The authors profile five companies that stand out: (Harvard Business School)
IBM. The technology company has removed the college requirement for 50 percent of its jobs, like software development, for example, widening possibilities for advancement. The company has also developed apprenticeship programs, allowing employees to earn while they learn.
Southwest Airlines. In its 51-year history, the company has never had a layoff, offering employees remarkable stability.
WESCO International. The industrial company is known for moving entry-level employees into new roles.
U.S. Bank. More than 45 percent of the bank’s 2022 hires were not college graduates, and the company fills nearly 40 percent of its positions with internal candidates.
Liberty Mutual. The insurer fills more than 80 percent of managerial positions with internal candidates.
Technology
The Federal Trade Commission, in one of the most aggressive actions taken by federal regulators in decades to check the power of the tech industry’s giants, sued to block Microsoft’s $69 billion acquisition of the video game maker Activision Blizzard. The F.T.C. said that the deal would harm consumers because Microsoft could use Activision’s blockbuster games like Call of Duty to lure gamers from rivals. The agency’s commissioners voted 3to 1 to approve filing the suit. (New York Times)
Google plans to combine the team working on the mapping service Waze with the group overseeing the company’s Maps product, as the search giant faces pressure to streamline operations and cut costs. Google plans to merge Waze’s more than 500 employees with the company’s Geo organization, which oversees the Maps, Earth and Street View products. (Wall Street Journal)
Google has to delete search results about people in Europe if they can prove that the information is clearly wrong. The European Court of Justice ruled that search engines must “dereference information” if the person making the request can demonstrate that the material is “manifestly inaccurate.” (Associated Press)
Fintech decacorn Plaid is laying off 260 employees, or about 20% of its workforce. In March, Plaid CTO Jean-Denis Greze told TechCrunch that he grew his engineering team 17.5x in just four years, from 20 engineers to 350 people. (TechCrunch)
Twitter will roll out new controls as soon as next week to let companies prevent their ads from appearing above or below tweets containing certain keywords, the social media platform told advertisers. (Reuters)
Tech companies in Singapore that rely on "gig workers" are bracing for higher costs, as they are being asked to fashion a stronger safety net for independent contractors. Companies and experts describe the new government regulations as complex, with difficult questions unanswered. From late 2024 onward, a new set of rules in the city-state will require ride-hailing and food delivery companies to contribute to social security savings programs for workers, and compensate them for workplace injuries. (Nikkei Asia)
Smart Links
How Wall Street Banks Will Reap Billions From Tax-Free Renewable Energy Bonds. (Forbes)
For the First Time, Two Women Will Have Signatures on U.S. Currency. (Wall Street Journal)
Amazon will give your overworked delivery driver $5 if you ask Alexa to say thank you. (TechCrunch)
Starbucks entered the world of NFTs with the beta launch of the web3-enabled extension of its loyalty program. (Axios)
Disney debuts $7.99 ad-supported tier for Disney+. (Axios)
Elon Musk’s Bankers Consider Tesla Margin Loans to Cut Risky Twitter Debt. (Bloomberg)