The most important news of the day

• Salesforce has become the latest tech company to cut costs as demand slows, announcing plans to scale back 10 percent of its workers.

• British Prime Minister Rishi Sunak made it clear in his first major political address since taking office Five promises Who wants to be judged by the public in general elections. One of these big issues is the state of the health service: here’s our explanation of why the NHS exists Worst crisis ever.

• To be imposed by the European Union Covid tests before departure For travelers coming from China, in light of the new wave of infections in the country, which is still being reported propaganda efforts in Beijing. The World Health Organization called for More transparency.

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Good evening.

“We expect a third of the global economy to be in recession,” was the International Monetary Fund’s cheery New Year’s message as it hinted at other possibilities. cut in his expectations for 2023, likely during its annual meeting in Davos later this month.

But even though the US, Europe and China will all experience some kind of slowdown over the next 12 months, new data this week has highlighted some key differences.

In continental Europe at least, optimism is growing that inflation has peaked. Better than expected The German CPI fell to 9.6 percent From 11.3 per cent lifted European stocks and government bonds to one of the best starts of the year ever. German companies reported an improvement in supply chain disruption And the number of jobs in high after reunification.

inflation in Spain And the France It also fell more than expected, suggesting that the eurozone-wide figure due on Friday could fall 9.7 percent less than expected. Outside the European Union, Turkey has also reported A big drop In inflation, albeit from as high as 85 percent, to 64 percent, thanks to lower food and fuel costs.

However, comfort crumbs are hard to find across the channel.

Industry data showed today UK food inflation was 13.3 per cent, which puts more pressure on distressed families. Other data this week showed industrial production contracted in one of the Fastest prices since 2009; Closing stores hits them highest totals in five years; Mortgage approvals are their responsibility lowest levels in more than two yearshighlighting the turmoil in the housing market sparked by the disastrous September ‘mini’ budget of then Prime Minister Liz Truss.

Not surprisingly, the Financial Times’ annual survey of economists concludes that the UK is facing The worst and longest recession in the Group of Seven.

The Chinese economy, which until recently was under severe pressure from crippling epidemic restrictions, is now struggling with A new wave of infection After the sudden reopening in the country, it negatively affected the factory activity in the process. For the first time in 40 years, China is likely to be a major drag on the global economy in 2023 rather than a driving force, according to the International Monetary Fund.

The United States, which the International Monetary Fund believes will likely survive the worst of the downturn, thanks in part to its strong labor market, will publish monthly figures on Friday, but new data on… Jobs Today was better than expected.

However, the country’s manufacturing sector continues to struggle, contracting in December for the second month in a row, according to closely watched. ism scan, today too. As for the fight against inflation, minutes from the latest Federal Reserve meeting later (2pm ET / 7pm London) will give more clues about policymakers’ next steps.

Need to know: UK and European economy

In better news for the beleaguered Brits, recent warm weather across Europe means home energy bills Likely to be Less than previously expectedwhich is lower than the price guarantee provided by the government in the second half of the year.

Meanwhile, the European Union plans to reform the bloc electricity market give priority to The cheapest renewable energy. Right now, the most expensive fuel—currently gas—determines the price of all power generated. Our Big Read explores whether the consumer is moving to reduce consumption It will have a lasting effect.

Need to know: The global economy

Dhananjayan Sriskandarajah, President of Oxfam Great Britain, argues in the Financial Times for the urgency Financial architecture reform to global aid With less of an emphasis on charity and more about responsibility – and enlightened self-interest.

Pakistan Turns to China to fund its overhaul The rail system is creakingEven though it already owes $100 billion in foreign debt and is at risk of default after its foreign exchange reserves plummet.

We can remember 2023 as a new year global energy system It is shaping up as the oil market slowly “dollars back,” says a columnist Rana Forouhar.

And if you can’t get enough of those Predictions for 2023take a look at this Compendium of kicks by Financial Times writers On everything from the war in Ukraine to the prospect of cutting federal interest rates and the future of cryptocurrency.

Need to know: business

US technology stocks It was a bumpy start to the year, led by big declines for electric car company Tesla and an Apple, which was affected by fears of declining demand. Markets fall globally More than 30 trillion dollars Last year thanks to inflation, high interest rates and the impact of the war in Ukraine. Premium subscribers can check out commentator Robert Armstrong Stocks to watch in 2023.

For more positive tech news, try Technology heroes Report of winners and shortlists for The smartest use of technology. Here’s how readers of sister publication Sifted see next year European technology.

Hollywood heads anticipation “year of unrestWhere the economic downturn coincides with a slowdown in the flow of growth, a faltering film industry and a potential writers’ strike. The boom is in TV content Spending is too It is expected to slow down. cinemaworldThe movie theater operator is in bankruptcy protection in the US, looking for buyers trying to avoid it Partially cut.

price for re Insurance rose up to 200 percent Its crucial January renewals, thanks to the war in Ukraine and severe weather. Reinsurers share losses with primary insurers, and so they have a vital role in what can be insured and at what rate.

Strong and long lasting Cold and flu season As people mix more indoors after two years of pandemic restrictions, this is good news for at least one sector: consumer health. Sales of cold and flu medicines in the UK jumped 28 per cent in value terms to £288.5m in the year to November 27.

world of work

The economic downturn will be paid to Post-Covid Work Attitudes? The FT team discusses what 2023 holds in the new edition Working on a podcast.

Get ready for what could be a tough year with our new series: Make work better. Read about how to communicate more efficiently, ask for a raise, and if all else fails, leave on better terms.

Another way to improve life is through work Mental health treatments. Companies are beginning to realize that basic wellness programs are failing to make a dent in burnout and Stress-related absence among executives.

And in case you missed it, here are some of them FT search On how to adapt to the city of London Hybrid work It is increasingly adopting a Tuesday-Thursday work week.

Get the latest worldwide image through our website Vaccine tracker

Some good news

There may be problems in the future but it is important to acknowledge the progress as well. Here are reasons to be a delight list 183 ways to improve the world in 2022.