Quartz Daily Brief—Euro zone surge, Standard Chartered’s dive, India’s surprise cut, Finnish traffic tickets
Good morning, Quartz readers!
What to watch for today
Mark Zuckerberg’s town hall. The Facebook CEO will answer questions from the public on a webcast from Barcelona at 6pm local time (12pm ET). To ask a question, register here.
The US Senate tries again to push Keystone XL… The controversial pipeline legislation needs 60 supporters in the Senate to begin the process of overriding a presidential veto. If it gets them, there could be a full Senate vote on Thursday.
… and Obamacare makes another appearance before the Supreme Court. Republicans looking to undo the president’s healthcare reforms will try to argue that one short phrase in the 900-page law bans the federal government from subsidizing health insurance for the poor, even though that was the whole point. A decision isn’t expected until June.
Abercrombie & Fitch loses its cool. The preppy fashion brand is likely to report disappointing fourth-quarter results, on the back of a strong dollar and discounted holiday-period sales. Investors will want to know how it intends to fight off increasing pressure from fast-fashion competitors.
While you were sleeping
Good news from the euro zone. Retail sales rose 3.7% in January from a year earlier, the biggest increase in almost 10 years, thanks in part to famously frugal Germany’s epic shopping spree. And Markit’s purchasing managers’ index for the bloc’s service sector rose to 53.7 in February, a full point higher than in January.
Standard Chartered’s profit fell 25%. The British-based Asia-focused bank said it will cut $1.8 billion in costs over the next two years after reporting an underlying pretax profit of $5.2 billion for 2014, from $7 billion a year earlier. A 32% rise in bad loans hindered the bank, which last week replaced its CEO and many other top executives.
Toyota diversified at the top. The world’s biggest auto maker by sales promoted three Western executives, a notable move for a company with only seven non-Japanese managers in its top 57 positions. Didier Leroy, Toyota’s European chief, will become one of six executive vice presidents, and the first foreigner to hold such a role.
Another surprise rate cut in India. Central bank governor Raghuram Rajan cut the country’s benchmark interest rate by 25 basis points to 7.5% after an unscheduled meeting, for the second time this year. That suggests an endorsement (paywall) of prime minister Narendra Modi’s recently unveiled budget, which calls for corporate tax breaks and infrastructure investment.
Australia’s GDP slowed. The economy matched expectations by growing by 2.5% in 2014, down from 2.7% the previous year. Household spending rose modestly, as consumers were buoyed by higher home prices and cheaper oil. The central bank held off on further interest rates reductions yesterday, but there may still be more cuts to come.
China’s services sector ticked up while Japan’s crashed. The HSBC/Markit purchasing managers’ index for China’s service sector was 52 in February, from 51.8 in January, showing an acceleration in the expansion of sector activity. Low demand and subsequent job cuts caused Japan’s service PMI, measured by Markit/JMMA, to drop sharply to 48.5 in February from 51.3 in January.
Quartz obsession interlude
Bobby Ghosh on Iran’s real firepower. “Netanyahu’s Ahab-like fixation with his white whale—Iran’s nuclear program—draws attention away from the many other ways that the regime in Tehran represents a clear and present danger to the world. He is right that sanctions relief will empower that regime, but it’s hardly a given that the billions of dollars unlocked ($1.6 billion a month in oil income, by some estimates) will be poured into a clandestine program to build The Bomb.” Read more here.
Matters of debate
Netanyanhu was all mouth and no action. The Israeli prime minister’s speech to the US congress sounded tough but proposed nothing.
We underestimate the value of meaningless work. Let’s celebrate employment that simply provides money and a weekend.
Japanese innovators need to be outward facing. The country is failing to export its best products.
McDonald’s unhealthy food is the tip of the iceberg lettuce. Consumers are also noticing its abhorrent labor practices.
Sony’s $840 augmented reality glasses are unbelievably dorky. The unwieldy specs suggest a $30 billion company in crisis.
Surprising discoveries
Big Pizza is a major player in DC lobbying. Pizza Hut alone gave almost $685,000 to Republicans in the past two election cycles.
Air pollution is bad for kids’ brains. Memories of children in high-pollution areas develop more slowly.
Finnish traffic tickets are tied to drivers’ salaries. One man got a €54,000 ($60,400) fine for going 14 mph (23 kph) over the speed limit.
Ancient cultures might not have been able to see the color blue. Because they didn’t have a word for it.
Mount Everest is really, really dirty. Climbers aren’t disposing of their poop properly.
Correction: In yesterday’s brief we incorrectly told you that Barclays’ pretax profit of £5.5 billion ($8.5 billion) included money set aside for potential fines. In fact, it did not include such funds.
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