China’s military builds massive wartime command centre

In the present day’s agenda: Trump’s crypto embrace; OpenAI’s new funding spherical; Canada warns on tariffs; Huge Tech earnings; and Linklaters’ US foray

Good morning. We start in China the place the nation’s navy is constructing an enormous advanced in western Beijing that US intelligence believes will function a wartime command centre far bigger than the Pentagon, based on present and former American officers. Right here’s what we all know:

Large navy advanced: Satellite tv for pc pictures obtained by the Monetary Occasions which are being examined by US intelligence present a roughly 1,500-acre development web site exterior the Chinese language capital with deep holes that navy consultants assess will home giant, hardened bunkers to guard Chinese language navy leaders throughout any battle — together with probably a nuclear warfare.

US officers mentioned the intelligence neighborhood is carefully monitoring the location, which might be the world’s largest navy command centre — and a minimum of 10 instances the dimensions of the Pentagon.

Why does it matter: The Folks’s Liberation Military is quickly increasing its nuclear weapons arsenal and dealing to raised combine its branches. Lack of integration is amongst its greatest weaknesses in contrast with the US armed forces, navy consultants say.

If confirmed, the navy bunker “alerts Beijing’s intent to construct not solely a world-class typical drive but additionally a sophisticated nuclear war-fighting functionality”, one China analyst mentioned. Read the full report and view a satellite image of the site.

Right here’s what else we’re retaining tabs on as we speak and over the weekend:

• Financial information: France and Germany launch inflation information. Germany additionally has labour market and retail gross sales figures.

• UK: Brexit security and safety declarations for EU imports come into drive. Right here’s how Brexit reshaped Britain, 5 years as we speak because it left the bloc.

• US: Marco Rubio travels to Central America, together with Panama, in his first journey as US secretary of state.

• Outcomes: Aon, Baker Hughes, Chevron, Colgate-Palmolive, ExxonMobil and Novartis report.

5 extra prime tales

1. The Trump administration’s embrace of cryptocurrencies helps gas a speculative mania that might trigger “havoc” when costs collapse, the hedge fund Elliott Administration has warned. In its investor e-newsletter, it additionally mentioned supporting digital belongings that might marginalise the greenback was “profoundly harmful”. Learn extra on the fund’s comments on crypto.

• Trump’s good begin: A sequence of early strikes has breathed fresh life into the enterprise neighborhood, writes Michael Pressure of the American Enterprise Institute.

2. OpenAI is concentrating on a $300bn valuation in an enormous new SoftBank-led funding spherical. The Japanese group is ready to take a position between $15bn and $25bn into the ChatGPT maker, an funding that would be the centrepiece of a wider funding spherical which may result in the factitious intelligence firm elevating as a lot as $40bn. Read more on the plans.

3. Unique: The US can be compelled to purchase oil from geopolitical rivals comparable to Venezuela if it disrupted commerce with Canada, Ottawa’s international minister has warned. Trump’s risk to impose levies of 25 per cent on Canadian imports would hit “actual folks” if ties between the 2 nations fester right into a commerce warfare, she warned. Read the interview with Mélanie Joly.

• Oil exemption: Trump has mentioned he’s contemplating excluding oil imports from deliberate tariffs on Canada and Mexico, in an indication the US president would possibly supply reduction for essential industries. 

4. Apple’s quarterly income and income crept previous Wall Road forecasts, regardless of decrease iPhone gross sales because it confronted mounting competitors in China. The group reported income of $124.3bn for its December quarter yesterday, above analysts’ estimates. Web earnings climbed about 7 per cent to $36.3bn, additionally above expectations. Read the full report.

5. Unique: Linklaters has employed a group of litigation companions in New York within the newest try by the UK’s “magic circle” group of regulation corporations to tackle US rivals on their dwelling turf. British elite corporations have lengthy struggled to make inroads on the earth’s most worthwhile authorized market however there are indicators that among the methods are starting to pay off.

The Huge Learn

Late-night buying and selling classes have fuelled a rising curiosity in establishing round the clock mainstream operations. The New York Inventory Alternate is now seeking to supply for much longer buying and selling home windows, widening to 22 hours a day. However the growth is elevating thorny questions on how equity markets work.

We’re additionally studying . . . 

How nicely did you comply with the information this week? Take a look at your data in this week’s quiz.

Chart of the day

Substantial revisions in UK and US immigration information don’t simply change our understanding of inhabitants dimension and progress charges. They influence economic indicators too, not least labour market statistics, writes John Burn-Murdoch.

Take a break from the information

Mohammad Rasoulof is certainly one of many Iranian filmmakers who’ve battled censorship at dwelling. He even confronted jail time and flogging for his work and views. As his newest movie will get an Oscar nod, he and different administrators clarify why they’ve an obligation to hitch the nation’s youth protest movement.