China's factory activity unexpectedly contracted in January, halting the expansionary streak seen over the past three months. Perplexity AI revised its proposal to acquire TikTok's US operations. British retailer WH Smith is exploring strategic options for its UK high street business. All this and more on the January 27 edition of World Street.
Minor blip
China's factory activity unexpectedly contracted in January, marking an end to three months of expansion, partly due to seasonal slowdowns ahead of the Lunar New Year.
The official purchasing managers' index (PMI) for January stood at 49.1, falling below December's 50.1 and November's 50.3, as well as missing Reuters' forecast of 50.1, according to data from the National Bureau of Statistics.
PMI readings above 50 signal expansion, while those below 50 indicate contraction. January's dip reflects the typical softness in manufacturing as migrant workers head home for the Lunar New Year festivities.
Mix and Match
Perplexity AI has revised its merger proposal to TikTok parent ByteDance, now allowing the US government to own up to 50 percent of a new entity following a future IPO, CNBC reported.
The proposal outlines the creation of a US-based holding company, "NewCo," where ByteDance would contribute TikTok US, excluding its core recommendation algorithm, while existing investors receive equity in NewCo. Perplexity AI would also join the merger, with its investors gaining a share of the NewCo equity.
A major push
US President Donald Trump directed the formation of a cryptocurrency working group to propose new regulations and explore the development of a national cryptocurrency stockpile, fulfilling his pledge to overhaul US crypto policy swiftly.
The executive order also mandated protection for banking services for crypto companies, addressing concerns from the industry that US regulators have pressured banks to sever ties with crypto firms—an allegation regulators deny. Additionally, the order prohibited the creation of central bank digital currencies in the US to avoid competition with existing cryptocurrencies.
Minting money
British retailer WH Smith is exploring strategic options for its UK high street business, including a potential sale, the company said on Saturday following media reports.
Sky News reported that WH Smith had been engaged in "secret talks" regarding the sale of its entire high street arm, which operates over 500 stores.
In response, the company stated: "WH Smith confirms that it is exploring potential strategic options for this profitable and cash-generative part of the group, including a possible sale."
Neck-to-neck
Euro zone banks require a digital euro to counter US President Donald Trump's push to promote stablecoins, a cryptocurrency typically tied to the US dollar, European Central Bank board member Piero Cipollone said on Friday.
Trump announced plans to "promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide" as part of a broader crypto strategy outlined in an executive order issued on Thursday.
Cipollone noted that this move could draw more customers away from banks, reinforcing the need for the ECB to launch its own digital currency in response.
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