Know someone who would like this newsletter? Forward it to them.
The World
Russia began a new, bloodier phase of the war, hitting the center of Ukraine’s second-largest city of Kharkiv with a missile. Ukrainian officials said Russia shelled residential buildings in the southern city of Kherson, with some 300,000 people, as they advanced. Kyiv is bracing for the same kind of indiscriminate shelling of civilian neighborhoods. The Russian defense ministry warned residents to leave some areas of the capital ahead of bombing. (Wall Street Journal)
Russia closed its stock market as the ruble plummets: Russia's central bank said the Moscow Exchange wouldn't open for stock trading through at least Thursday. The exchange was closed on Monday. Meanwhile, President Biden pledged to crater the Russian economy, adding Putin "has no idea what's coming." (Axios, Axios-2)
Roundup: Oil, Boeing, Apple, Google, Ford, Nord Stream 2, air flights, Exxon Mobil, and more:
Oil climbed above $110 a barrel; Boeing suspended major Russian operations and support for Russian airlines; Apple halted all product sales in Russia — on Apple’s Russia store, all Apple products are listed as “unavailable” for purchase or delivery in the country — and removed Russian state-controlled outlets RT News and Sputnik News from its App Store globally; Google blocked RT, Sputnik from Play app store in Europe; Ford suspended operations; a Swiss official said Nord Stream 2 had become insolvent; the U.S. bans Russian flights from American airspace. (Financial Times, CNBC, Reuters, Axios)
Exxon Mobil said it is halting operations at a multibillion-dollar oil and gas project in Russia and will make no further investments in the country. The U.S. oil giant said it is preparing to shut down production from the massive Sakhalin Island development in Russia’s Far East. Exxon is also developing plans for expatriate staff in Russia to leave the country, if the employees wish to do so: “Exxon Mobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation,” the company said. “We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.” (Wall Street Journal)
China’s foreign minister says easing violence in Ukraine is top priority. (Washington Post)
Former Japanese Prime Minister Shinzo Abe sparked anger from China after calling for Japan to host US nuclear weapons. The idea was prompted by the Russian invasion of Ukraine and reflects concerns about China’s potential to invade Taiwan. (The Guardian)
Five takeaways from Biden’s State of the Union speech: 1) Standing Ovation for Ukraine: The first 10 minutes were about highlighting a united Western front over Russia’s invasion of Ukraine. It was one of the rare bipartisan moments in the speech; 2) Turning the Page on Covid-19: Biden announced that the disease that hobbled the U.S economy “need no longer control our lives.”; 3) Inflation: Biden sought to sympathize with Americans feeling the pain of inflation at the grocery store check-out and gas pump. His “top priority is getting prices under control.”; 4) China: It was notable that there were only two mentions of China in the hourlong speech, given the increased tensions between the world’s two biggest economies. He only mentioned China in the context of competition and infrastructure; 5) Biden worked to prove his moderate credentials. (Bloomberg)
Most Americans say some restrictions on normal activities should remain in place to try to control the coronavirus, as public wariness of the pandemic lingers even as federal health officials and a growing roster of governors have softened mask advice. (Washington Post)
Hong Kong’s most recent measures to combat Covid-19 are unsettling its large community of bankers and investors, many of whom were already struggling to square business and family commitments with severely curtailed travel. Some financial professionals have asked employers whether they can relocate, while a few expatriates have decided in recent months to resign and move home. Others are considering options that could split up their families for months or more as they try to move their children into more stable schooling and away from the risk of mandatory quarantine. (Wall Street Journal)
South Korea's new daily cases surpassed 200,000 for the first time, surging to 219,241 from 138,989 a day ago. (Nikkei Asia Review)
Australian Prime Minister Scott Morrison tested positive for COVID-19 and was experiencing flu-like symptoms, including fever. (Reuters)
The months of January and February were the driest ever recorded in most of California this year, and state water officials are now sounding the alarm for a third year of severe drought, shrinking water supplies and the growing threat of extreme wildfire. The California Department of Water Resources announced that statewide snowpack had dwindled to 63% of average for this time of year, following an extraordinarily dry start to the year. (Los Angeles Times)
People plucked from rooftops as floodwaters rise in Australia: A deadly storm battering eastern Australia forced tens of thousands of people to flee their homes yesterday as helicopter crews scrambled to rescue those left trapped on roofs by rising floodwaters. As the severe weather system approached Sydney, authorities warned the city’s five million people to brace for severe damage. (The Times)
Economy
The U.S. said it is realigning its trade policy toward China, looking at all existing tools and potentially new ones to combat Beijing’s state-led nonmarket practices. In its annual trade policy agenda, the Office of the U.S. Trade Representative said the U.S. is raising its concerns directly with China and accelerating joint work with allies and partners. “We are clear-eyed about China’s doubling down on its harmful trade and economic abuses,” the USTR said in the report, noting that its “holistic and pragmatic” approach to the bilateral relations will focus on long-term benefits for American workers. (Wall Street Journal)
Investors bet Ukraine crisis will slow pace of ECB and Fed tightening: Government bonds staged a powerful rally on Tuesday as investors bet the economic fallout from Russia’s invasion of Ukraine will push central banks to raise interest rates more slowly than previously anticipated. The biggest moves came in Europe, where Germany’s 10-year bond yield sank below zero for the first time in a month as markets reacted to a string of comments from senior European Central Bank policymakers arguing against any drastic shift in monetary policy until it becomes clearer how the crisis in Ukraine will affect the eurozone economy. (Financial Times)
Germany aims to get 100% renewable energy by 2035. This compared to the previous target to abandon fossil fuels “well before 2040”. These accelerated aims are substantially motivated by the current reliance on Russian fuel. (Reuters)
The office return is in motion. After two years of remote work, companies including American Express, Facebook, and Wells Fargo plan broader office reopenings in March. Many executives say they are uncertain about what the future may hold, but feel confident that offices can at least reopen this month as Omicron cases fall and health authorities loosen mask guidance. Office attendance has ticked up recently, though it remains sparse in many places. In 10 major U.S. cities, offices were on average 36.4% occupied as of mid-February, up from about 33% earlier in the month. (Wall Street Journal)
Summer interns are jilting companies as better offers come along: Rarely—if ever—has there been a bidding war for summer interns. But some young professionals in training are job-hopping between internships before they even start, frustrating companies and campus career advisers. (Wall Street Journal)
Technology
Tech’s big investment year: If you think the contest for talent in tech is bad now, just wait. Judging by the number of companies that in recent weeks have outlined plans to invest more money in product development, the need for new tech workers is only going to get worse. The investment surge is, at least in part, a byproduct of the post-pandemic cooldown. While several companies—Zoom Video and Shopify come to mind—have seen their revenue growth slow from stratospheric levels, their businesses are still much bigger than they were two years ago. That means they have the resources—and the incentive—to invest more. Zoom lifted its R&D spending in fiscal 2021 by 123%—more than twice the rate of revenue growth. Shopify said last month it planned to hire more engineers this year than it did last year and to speed up hiring in sales. (The Information)
President Biden called on Congress to pass new rules to enhance child safety on social media platforms like Facebook and Instagram in his State of the Union address. It’s the first time Biden has called for these rules, and the White House plans to make specific funding requests to study and improve children’s online safety. Specifically, Biden requested that Congress institute stronger children’s privacy rules, ban targeted advertising to children, and pressure social media companies to design their products from the ground up with child safety in mind. (The Verge)
Uber starts rolling out an Explore tab that lets users book dinner reservations, buy tickets to live events, and more, in 15 markets across the US and Mexico. (Engadget)
AMC is charging more for ‘The Batman’ tickets as it tests out a new pricing model. (CNBC)
Download figures for Sci-Hub, the popular but controversial website that hosts pirated copies of scientific papers, reveal where people are using the site most. China tops the chart, with more than 25 million downloads over the past month, and the United States comes in second place, with 9.3 million downloads. But the figures include only downloads from original Sci-Hub websites, not any replica or ‘mirror’ site, and virtual private networks, which are often used to circumvent bans in countries such as the United Kingdom, can skew the results by making it appear that users are in a different country. (Nature)
Smart Links
MLB cancels first 2 regular-season series after MLBPA rejects league's final proposal. (ESPN)
More than 100,000 Hongkongers apply for new visa to Britain. (CNBC)
Web developers challenge Apple to allow other browser engines on iOS. (9to5Mac)
Is a four-day work week catching on in Asia? It depends on the country. (CNBC)
Sunny weather, grateful crowds mark return of Mardi Gras to New Orleans. (New Orleans Times-Picayune)