Good morning, Quartz readers!
What to watch for today
US retail sales data for January answer a key question. Which is: Did an increase in US payroll taxes, which went into effect in January as part of the fiscal cliff deal, make people spend less? Reports from chain stores suggest it didn’t.
Euro-zone industrial production for December. It was down three straight months through November.
SocGen reports. It’s been an ugly year for the French bank.
Cisco Systems reports too, after the close of trading in New York. Look for evidence of John Chambers’ strategic shift away from hardware toward data management for governments and large corporations.
While you were sleeping
The US Treasury posted a monthly surplus for January. It’s the first time in five years, thanks to higher tax revenues (yes, that payroll tax again). And also the first time in five years that the deficit for the whole year is likely to be less than $1 trillion.
Tim Cook told a technology conference that Apple can still “create magic.” He also said that David Einhorn’s lawsuit over the tech giant’s cash hoard is a “silly sideshow,” and that visiting an Apple store makes him feel like he’s taken Prozac. (We wish we were so easily pleased.)
The chief executive of Italian defense giant Finmeccanica was arrested and held on corruption charges. And now India is looking into whether Indian officials took bribes tied to a helicopter deal.
Mario Draghi said Spain was on the right track with its austerity measures. Austerity isn’t a popular notion in Spain right now, though, so the ruling party wouldn’t let the European Central Bank chief’s speech to parliament be televised, and blocked cellphone signals so lawmakers couldn’t tweet it.
Abenomics optimism is spreading. Japanese consumers showed a sharp upturn in sentiment in January, the first rise in five months.
Barclays is chopping another 3,700 jobs. And trimming its investment bank further.
Quartz obsession interlude
The Vatican could take a lesson or two from beverage companies, Tim Fernholz writes. “Look at it this way: 75% of Catholics are outside of Europe, but there has never been a pope from outside the continent. Meanwhile, PepsiCo, which sells 47% of its product in emerging markets, has an Indian-born CEO. Indra Nooyi got the job because of her long experience as an executive at the company, but the importance of her national background and experience in global business was lost on no one.” Read more here.
Matters of debate
Bubbles schmubbles. The historical record of monetary policy that’s too tight is a lot worse than policy that’s too loose.
Japan is pulling a Ponzi by trying to coax investors into stocks.
No, there isn’t a currency war. Central banks are just doing their jobs.
An Italian journalist scooped the world on the Pope’s retirement because she understood Latin.
Wrestling is out of the 2020 Olympics. It will now have to compete for a slot with, among others, karate, wakeboarding and the Chinese martial art of wushu.
The Cosby sweater is back. As its popularizer, Bill Cosby, put it, “the knit woolen things that look like the sheep were different colors or fell in some paint, right?”