António Guterres, the United Nations’ secretary-general, warned Donald Trump “to avoid any form of ethnic cleansing” after the president proposed that America take over Gaza and relocate its Palestinian inhabitants abroad. As countries around the world rejected the idea—including, importantly, Saudi Arabia—the White House tried to walk back Mr Trump’s suggestion that Palestinians be “permanently” resettled and that American troops would be deployed “if it’s necessary”.
The Rwanda-backed M23 rebels began a new offensive in the Democratic Republic of Congo, days after capturing the eastern city of Goma. On Wednesday they took control of a town while advancing towards Bukavu, the capital of South Kivu province. The rebels had said a ceasefire would begin on Tuesday, but Congo’s government described that as a “false communication”.
Qualcomm and Arm, two chipmakers, reported better-than-expected revenues of $11.7bn and $983m respectively for the final quarter of 2024. Both firms have benefitted from growing demand for smartphones with artificial-intelligence features, such as virtual assistants. Still, the chipmakers’ shares slumped in after-hours trading, in Arm’s case because it cut its revenue projections for 2025.
Tesla’s sales in Europe fell sharply in January. Sales in Germany, home to its only European factory, dropped by 59% year on year; they fell 63% in France, 8% in Britain, and 38% in Norway. Analysts attributed the slump in part to consumer backlash against Elon Musk, who has supported Germany’s far right and made inflammatory remarks on social media.
Nissan suspended merger talks with Honda, according to Nikkei. The newspaper said the two Japanese carmakers had failed to agree on a valuation. Both firms have struggled to compete with Chinese rivals in the production of electric cars. The merger would have created the world’s third-largest carmaker by sales.
Ahead of the Bank of England’s first interest rate decision of 2025, the FTSE 100 index hit a record high, driven by expectations of lower borrowing costs. A weaker pound and strong corporate earnings also lifted stocks, with AstraZeneca’s share price rising nearly 5% after posting better-than-expected results. Gilt yields fell as investors bet on deeper rate cuts this year.
This January was the warmest on record and the third-hottest month globally, with surface air temperatures reaching 13.23°C—1.75°C above pre-industrial levels—according to the EU’s Copernicus Climate Change Service. The record heat defied expectations of a slowdown in global warming due to the cooling La Niña phenomenon. Scientists warned of a dangerous climate breakdown.
Figure of the day: $12m, the amount Deloitte has earned since 2020 from DEI-related work for America’s Department of Health and Human Services. Read the full story.
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