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Outcomes from Google father or mother Alphabet and Microsoft yesterday have fed hopes on Wall Road that Huge Tech is proving extra resilient than current issues may recommend.

Income at Microsoft’s cloud division climbed 16 per cent within the first three months of 2023, a sooner than anticipated charge that dispelled fears of a pointy slowdown in spending by their company purchasers following a growth for digital providers through the Covid-19 pandemic.

Google’s search promoting enterprise additionally topped forecasts and returned to progress, with income rising 2 per cent within the quarter after slipping 2 per cent within the remaining three months of final yr.

The largest US tech firms had been anticipated to provide little progress, if any, owing to tough comparisons with the sturdy begin they needed to 2022 and a spending slowdown that has hit many elements of their companies.

The higher than anticipated efficiency pushed Microsoft and Alphabet shares larger yesterday and boosted rivals resulting from launch earnings this week, together with Fb father or mother Meta, which reviews in the present day.

Right here’s what else is going on in the present day:

  • Outcomes: Boeing, Danone, eBay, GSK, Heathrow, Hilton, Michelin and Commonplace Chartered report. See our Week Forward e-newsletter for the total record.

  • Financial information: The UK has fourth-quarter labour productiveness figures, GfK publishes its client local weather survey in Germany and France releases client confidence information.

  • Microsoft-Activision deal: The UK’s Competitors and Markets Authority is ready to publish its remaining report on the $69bn takeover.

5 extra high tales

1. US regulators and financiers scrambled to stabilise First Republic as its shares plunged additional. The California-based financial institution’s inventory value, down by greater than 93 per cent this yr, fell by an additional 49.4 per cent yesterday. Learn extra concerning the “strategic choices” that the lender is pursuing.

2. Unique: Shareholders have criticised Common Music’s chief government for an “extreme” $100mn pay deal forward of the corporate’s annual assembly subsequent month. Right here’s why buyers may reject Lucian Grainge’s pay package deal.

3. A senior government has left Citigroup days after a report that he had met with Jeffrey Epstein on a number of events whereas working at JPMorgan Chase. Citi confirmed that Paul Barrett, head of North American personal capital at its personal financial institution, was not with the corporate and stated it was unaware “till not too long ago” of his affiliation with the late intercourse offender.

4. Unique: Tencent is ramping up abroad funding in gaming belongings with a concentrate on Europe, in search of to diversify away from China at the same time as Beijing lifts punishing restrictions on the business. Learn the total story.

5. EU nations have criticised unilateral bans on Ukrainian grain imports that had been imposed by Poland, Hungary, Slovakia and Bulgaria final week to guard their very own farmers. Right here’s why a number of agriculture ministers have condemned the unprecedented strikes.

The Huge Learn

© FT montage/Molfar/Bloomberg/Reuters

From a St Petersburg grandmother together with her personal artwork gallery to a young person competing in worldwide equestrian occasions, the relations of Russian warlord Yevgeny Prigozhin have led a charmed life. Western governments have struggled to impose prices on the Wagner founder’s kinfolk, though they’ve been closely concerned in his companies.

We’re additionally studying . . . 

Chart of the day

China already has a potent financial system, a giant position in world commerce and an enormous army, writes Martin Wolf. Its relationship with the US is probably going to find out humanity’s destiny within the twenty first century — whether or not there shall be peace, prosperity and safety of the surroundings, or the opposites.

Bar chart of Selected G20 countries’ share of exports to the US and to China, 2022 (%) showing For many countries, China is a hugely important trading partner

Take a break from the information

Dingley Dell pork dry curry at Rambutan
Dingley Dell pork dry curry at Rambutan © Carol Sachs

The spice is true at Rambutan, London’s latest Sri Lankan restaurant. Cynthia Shanmugalingam’s providing in London’s Borough Market has been definitely worth the wait, writes meals columnist Ajesh Patalay.

Extra contributions by Gordon Smith and Emily Goldberg

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