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Wage progress has slowed throughout main economies over the previous six months, in an extra signal that central banks are underneath elevated strain to start reducing rates of interest within the first half of the yr.

12 months-on-year progress in marketed wages and salaries stood at 3.8 per cent within the US in December following a gradual two-year decline from a peak of 9.5 per cent in late 2021, in keeping with a cross-country wage tracker printed by the job search web site Certainly.

Annual wage progress additionally stood at 3.8 per cent within the eurozone, down from a 2022 peak of 5.2 per cent, in keeping with Certainly. Even within the UK — the place wage progress has been stronger and extra persistent — the median price of pay cited in job adverts was 6.6 per cent larger than a yr earlier, down from a peak of seven.4 per cent in June.

The figures will reassure financial policymakers who fear that it will likely be tougher to deliver down inflation sustainably to focus on if wages proceed rising quickly and corporations go on the prices to shoppers. Listed below are extra particulars on the info.

And right here’s what else I’m conserving tabs on as we speak:

  • Davos day three: Geopolitical dangers are overshadowing financial optimism on the World Financial Discussion board’s annual assembly in Switzerland, the place UK shadow chancellor Rachel Reeves plans to pitch Britain as an funding vacation spot to enterprise leaders. Be part of us for on-the-ground evaluation and insightful occasions because the week unfolds.

  • Financial knowledge: The EU and UK have December inflation figures, whereas the US has retail gross sales knowledge and the Federal Reserve publishes its Beige E-book on financial situations. Opec publishes its month-to-month oil market report.

  • Nato: Navy chiefs meet for 2 days on the alliance’s headquarters in Brussels following its pledge final week to proceed offering support to Ukraine.

  • Sierra Leone: Former president Ernest Bai Koroma is because of seem in courtroom, charged with 4 offences together with treason over a foiled coup in November.

What are your bonus expectations? Do you plan to speculate, save or spend the money? Tell us in our fast, nameless survey right here.

5 extra prime tales

1. China’s inhabitants decline accelerated final yr as its economic system grew at one of many lowest charges in a long time, pointing to persistent challenges for the world’s second-largest economic system from a property slowdown, deflation and demographic pressures. Gross home product expanded 5.2 per cent, exceeding one of many authorities’s lowest official targets in a long time at 5 per cent. Right here’s what specialists assume the brand new knowledge means for Beijing’s policymakers.

2. Unique: PwC has dropped a few of its variety targets within the US and opened up beforehand off-limits scholarships to white college students after strain from rightwing activists and a Supreme Courtroom ruling towards affirmative motion. The Huge 4 accounting agency mentioned it was making use of “rigour” to its variety, fairness and inclusion efforts. Stephen Foley has the complete story from New York.

3. The US is making ready to call the Houthis as a specifically designated international terrorist group, in keeping with folks aware of the matter. The choice, to be introduced within the coming days, comes because the Iran-backed militants proceed to assault business vessels within the Crimson Sea regardless of a US-led navy response. Right here’s what the brand new label entails.

  • US strikes: American forces carried out their third strike on the Yemen-based rebels in lower than per week, destroying 4 anti-ship ballistic missiles, in keeping with the US navy.

  • Israel-Hamas conflict: Qatar has mediated an settlement between the 2 sides to ship humanitarian support into Gaza as a part of a deal to supply medication to Israeli hostages.

4. Funding corporations are elevating billions of {dollars} to purchase stakes in enterprise capital-backed expertise start-ups, as a protracted drought in acquisitions and listings forces early buyers to dump their inventory at reductions. The beginning-up secondary market is turning into an more and more vital buying and selling venue within the absence of conventional methods of cashing out. Right here’s how a lot totally different corporations are elevating.

5. Two deputy Conservative social gathering chairs have stop after Rishi Sunak suffered the largest revolt of his premiership yesterday, with 60 Tory MPs trying to pressure him to toughen up his Rwanda asylum laws. The UK prime minister defeated the rightwing rebels within the Home of Commons due to the backing of opposition events, however the transfer has come at a excessive political value.

Letter from the editor

Democracy 2024 by the FT
© FT

How will democracy fare in 2024? Because the world heads to the polls in what is ready to be a historic election yr, the Monetary Occasions has launched a collection of articles and movies on the political challenges and guarantees forward. FT editor Roula Khalaf introduces Democracy 2024 in her letter to readers as we speak, kicking off our year-long collection with movies that includes authors Margaret Atwood and Elif Shafak. Don’t miss the remainder of our protection at ft.com/democracy2024.

We’re additionally studying . . . 

Chart of the day

What’s going to occur to the world economic system? We’ll by no means know the reply to this query, writes Martin Wolf, however there are some large options that aren’t actually unsure, together with progress, an inherent characteristic of the worldwide economic system.

Bar chart of Share of global GDP at purchasing power parity (%) showing The shift of world output towards developing Asia has been inexorable

Take a break from the information

A brand new 4 Seasons “floating resort” in Palau presents a few of the world’s greatest scuba diving. The three-deck catamaran presents ranges of consolation remarkable in most dive boats and permits friends to sail away on a whim to the subsequent bay or the subsequent of the Pacific nation’s many islands.

The Explorer yacht navigates through islands
The Explorer navigates the scattered islands of the archipelago

Extra contributions from Benjamin Wilhelm and Gordon Smith

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