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BP is a victim of wishful thinking on fossil fuels

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Donald Trump’s inaugural address as US president this week included a eulogy to fossil fuels and the “liquid gold under our feet”. Despite BP’s large oil and gas operations and reserves in Texas and the Gulf of Mexico (or America), you have to drill deep to find gold in its finances.

The UK company now trails the other big investor-owned energy multinationals by market value: it is not only a sixth of the worth of ExxonMobil but less than half that of its old Anglo-Dutch rival Shell. It announced last week that it was cutting 4,700 jobs in a renewed effort to be “a simpler, more focused, higher value company”.

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But BP has made a lot of pronouncements about its future over the years and has a record of disappointments. It has also run through a few chief executives, the latest being Murray Auchincloss, who has just had to postpone a long-awaited strategy update for investors next month to recover from a medical procedure.

Auchincloss succeeded Bernard Looney, who was fired in 2023 amid allegations of misconduct over his past relationships with colleagues. “It is almost Shakespearean. This company is star-crossed,” reflects one BP veteran. It has certainly suffered a series of unfortunate events while trying to please investors and respond to climate change.

The worst of the setbacks was the Deepwater Horizon oil spill in 2010, which killed 11 workers, polluted the Gulf of Mexico and forced it to sell assets to meet a $65bn bill. The company took a long time to recover and arguably never has: it still has net debt of $24bn and only approved a sixth platform in the Gulf last year, in a field it first discovered in 2006.

Then came Looney’s promise five years ago that BP would reduce oil and gas output 40 per cent by 2030, and would “reimagine energy for people and our planet”. This was bolder in rhetoric than in substance and BP has been edging away from it ever since, as high interest rates put paid to its vision of being able to construct wind farms cheaply.

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The kicker was Vladimir Putin’s full-scale invasion of Ukraine in 2022, which forced BP to abandon its minority stake in the Russian oil company Rosneft at a cost of $25bn. Having made a lot of money during the mid-2000s from TNK-BP, its original joint venture with a group of oligarchs, it was finally expelled. Like others, Russia took it by surprise.

But companies make their own fortunes, and BP cannot claim simply to be unlucky. The thread that runs through its recent history is its grand sense of ambition and purpose, which has outpaced its ability to put plans into practice. While ExxonMobil sticks to dealing with the world as it is, BP is prone to wishful thinking.

This reaches back to Lord John Browne, who transformed the company as CEO by acquiring Amoco and Arco in the US and striking the TNK-BP deal. He also brought an intellectual sheen to strategy, including the thinly evidenced notion that BP would go “beyond petroleum”. The slogan did not last but its legacy is that every BP leader craves a vision.

BP is not a cowboy outfit. Its operations are generally well managed, despite the Deepwater Horizon lapse, and it takes compliance seriously. But it has greater intellect than instinct (“There are a lot of clever people there,” says an observer, not meaning it wholly as praise). Another calls it “more like a state than a business”, lacking the fierce profitmaking drive of rivals.

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Its pledge to decarbonise was partly prompted by social and governmental pressures following the 2016 Paris agreement to limit global warming. It also hoped to attract investment from ESG funds and benefit from a financial transition. But that failed and it did not react as swiftly as Shell in changing course. It has been stranded by poor financial results, executive upheavals and strategic indecision.

BP now confronts a world in which Trump tells oil companies to “drill, baby, drill” and withdraws the US from the Paris accord. It is meanwhile accused of greenwashing by Greenpeace for not decarbonising fast enough. If the last few years prove anything, it is that it is impossible to please both sides, especially as an energy company with its head office outside the US.

Three months before Deepwater Horizon, BP’s market value briefly overtook that of Shell but now it lags far behind. There will be many bankers wondering whether they can fix a merger or a takeover. If BP is to stay independent, it must show investors it can make things happen, rather than gazing into the future. There is such a thing as being too smart.

john.gapper@ft.com

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Pokemon TCG Pocket’s next expansion launches on January 30th

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Pokemon TCG Pocket’s next expansion launches on January 30th

The latest batch of new Pokémon TCG Pocket cards finally has a concrete release date, but it seems like you won’t be able to trade them right off the bat.

The Pokémon Company announced today that Space-Time Smackdown, Pokémon TCG Pocket’s latest expansion, is set to debut at the end of the month right after the game’s trading feature launches on January 29th. While cards from the last set could all be obtained from a single type of pack, Space-Time Smackdown — which includes a number of monsters from Pokémon Diamond / Pearl / Platinum — will come from packs featuring the legendary Pokémon Dialga and Palkia.

Along with Space-Time Smackdown’s announcement, TCPi also revealed a bit more about how the trading mechanic will involve two new types of in-game currencies — trade houseglasses and trade tokens. It seems as if there will be cooldown periods as well as a cost if you want to swap cards from Pocket’s Genetic Apex and Mythical Island sets with other players. But there will definitely be some waiting involved for people hoping to trade Space-Time Smackdown, which will not be tradeable until a later date after it drops on January 30th.

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io.net and Nexus Network Partner to Expand Compute Power and Accessibility

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io.net and Nexus Network Partner to Expand Compute Power and Accessibility

The partnership aims to expand compute services on Nexus Network via io.net’s decentralized GPU network, as the project works on developing the world’s first decentralized supercomputer. 

Decentralized physical infrastructure network (DePIN) io.net announced its newest partner, Nexus Network, a project aiming to provide supercomputer resources to everyone, this week. The strategic collaboration will see Nexus leverage io.net’s GPU clusters to expand its network’s compute power as it builds its ‘Verifiable Internet’. 

Additionally, the partnership will strengthen the Nexus zero-knowledge Virtual Machine (zkVM) by integrating io.net’s Infrastructure-as-a-Service (IaaS) platform, furthering Nexus’s mission to make zero-knowledge proof services accessible to all.

Nexus Network is a community of developers that are designing the Verifiable Internet, where trustless computation and verification are integral to digital interactions. The mission of the project is to build a global, distributed supercomputer that is accessible to everyone. It leverages zkVM technology which enables developers to create scalable and secure applications, redefining how users interact with blockchain ecosystems.

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io.net, or the Internet of GPUs, is a DePIN that deploys and manages on-demand, decentralized GPU clusters from globally distributed sources. The protocol includes millions of GPUs that are connected to the IO Network, allowing users to tap into the compute power for various high-0compute needs such as AI, machine learning, cloud gaming etc. io.net democratizes access to GPU compute capacity while reducing costs, expediting lead times, and expanding choice for engineers and businesses. 

Expanding Compute Power on Nexus Network

As stated, the partnership will leverage  io.net’s robust decentralized GPU infrastructure to expand the compute power available for proof generation within the Nexus zkVM. Via the geo-distributed GPUs, Nexus will benefit from an extended network of validators, bridges, relayers, and oracles across web3 ecosystems.

The added compute power from io.net will enable Nexus Network to enhance zk-proof technologies and make these services accessible to everyone. From accessibility to developers across the world to enterprises and businesses, users on Nexus will enjoy faster and more efficient zero-knowledge-proof generation. This is expected to facilitate blockchain development of scalable, privacy-focused and low-latency decentralized applications (DApps).

Speaking on the partnership, Alex Fowler, Chief Strategy Officer at Nexus, stated: 

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“Our partnership with io.net marks a pivotal step forward in advancing the capabilities of Nexus network, By combining our zero-knowledge proof technology with io.net’s decentralized compute infrastructure, we’re creating a more scalable and accessible proving solution that will benefit developers and users globally.”

A New Interconnected, Privacy Focused Supercomputer

The partnership aims to help both io.net and Nexus flourish as well as expand the capabilities of their users. Together, the two companies aim to improve the scalability, reliability, and accessibility of zero-knowledge proving technology. In addition, the two companies will share expertise on how to strengthen the computational capabilities of the Nexus network by optimizing access to GPU clusters, supporting its goal of creating the world’s most powerful computer.

To boost privacy, in addition to the computing power on Nexus, Tausif Ahmed, Chief Business Development Officer at io.net, echoed the statements of Fowler saying: 

“Collaborating with Nexus reinforces io.net’s commitment to powering innovative web3 technologies. Together, we’re enabling a decentralized and privacy-first future, where zero-knowledge proofs can thrive at scale.”

The collaboration is also expected to scale the decentralized network of GPUs on the IO Network, as new users join from Nexus. It will also scale the computational resources dedicated to proof generation within the Nexus zkVM, enhancing performance and reducing lead times for developers and enterprises. Moreover, io.net’s geo-distributed GPU clusters will provide a decentralized, high-performance compute layer, boosting the overall resilience and scalability of the Nexus network.

The biggest winner, however, is the wider Web 3 ecosystem. Through such partnerships, the Web 3 industry builds a foundation for a more interconnected, verifiable, and scalable ecosystem. It bridges the gap between innovative infrastructure and practical utility for web3 developers and enterprises. 

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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How private credit impacts DeFi yield — Clearpool CEO

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Clearpool co-founder and CEO Jakob Kronbichler offered his insights on the shift toward private credit tokenization and DeFi yield growth.

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Friedrich Merz warns German companies about ‘great risk’ of investing in China

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Friedrich Merz, the frontrunner in the race to become Germany’s chancellor, has warned German companies about the “great risk” of investing in China.

“I say to all representatives of the German economy that the decision to invest in China is a decision involving great risk,” the Christian Democratic party chief said in Berlin on Thursday. He issued his warning during questions and answers after a far-ranging foreign policy speech that highlighted a pro-EU, Atlanticist vision of Berlin’s role on the global stage.

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“My heartfelt request to all companies . . . limit the risk you take in order to avoid endangering your own company if it triggers an immediate write-off,” said Merz.

China was not abiding by western rule of law standards, he added.

“You must expect major disruptions if you take this risk. I’ve talked to a whole range of small and medium-sized and also very large companies . . . If you take this risk and if you have to write off these investments from one year to the next, then please do not, under any circumstances, come to the state . . . for help.”

This is a developing story 

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Y Combinator grad Spacium raises oversubscribed $6.3M for space re-fueling

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Y Combinator grad Spacium raises oversubscribed $6.3M for space re-fueling

Back in 2023, Ashi Dissanayake, cofounder of in-space fueling startup Spacium, was so bootstrapped she used the surface of her clothes dryer as a desk, sticking her legs inside the drying machine. Her computer was perched beside Tide Pods and she was surrounded by disembodied robotic arms, working late into the night with her cofounder, Reza Fetanat. Back then, the pair worked out of a tiny Ottawa apartment. 

Since then, they’ve moved to an office with real desks, gone through Y Combinator, and, today, announced an oversubscribed $6.3 million seed round led by Initialized Capital. The company is planning a demo mission of their product capabilities later this year, and Dissanayake said they have a “strong pipeline of customers.” 

The two cofounders bonded at University of Ottawa over their mutual space obsession and teamed up for research projects. “We were building the rockets, rocket structures, propulsion system, as well as the parachutes that would bring the rocket back,” she said, adding they would put samples in the rockets, shoot them up as high as 30,000 feet, and then send the data back to Canadian labs. 

As they worked on research, Dissanayake and Fetanat realized that “the biggest bottleneck” in the industry was the lack of refueling options in space. Right now, a spacecraft has to be equipped with all the fuel it needs for a mission. “And after the mission ends, the spacecraft basically becomes space debris,” she said.  

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For longer missions or deep space missions — like, say, colonizing Mars — companies will need to have access to fuel in space. “Our big mission would be to build the space super highway, where we have multiple refueling stations where a spacecraft can come dock, refill, and go about their way,” she said. 

Spacium is not the only company with this dream: Orbit Fab is also working on in-space refueling, and has a several year head start. Additionally, Japanese aerospace company Astroscale won a $25.5 million U.S. Space Force contract to build a refueling vehicle. 

But Dissanayake feels confident they have a competitive advantage. “We have actually developed a very unique system where we can store the fuel for longer periods of time, which was actually not done before,” she said, declining to give further details. 

Dissanayake has a long way to go, but she hopes one day she can take a trip up to space, look out into the abyss, “and then actually see our stations from where we are.”

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HMRC set to hire 5,000 new inspectors in tax clampdown on ‘working people on ordinary incomes’

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HMRC set to hire 5,000 new inspectors in tax clampdown on 'working people on ordinary incomes'

HM Revenue and Customs (HMRC) is set to hire 5,000 additional tax inspectors as part of a major clampdown on small businesses and their owners.

The expansion, revealed in the HMRC Customer Service & Accounts report published yesterday, aims to secure £6.5billion in additional revenue by 2029/30.


Price Bailey, a Top 30 accountancy firm, notes that this recruitment drive will result in one additional tax inspector for every 1,000 small businesses across the UK.

The move represents a significant shift in HMRC’s enforcement strategy, targeting the country’s 5.3 million small businesses.

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This intensified scrutiny comes as small businesses face increases to employers’ National Insurance and the National Living Wage. The scale of HMRC’s tax enforcement operation reflects growing concerns about small business compliance.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

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HMRC is hiring thousands of new officers to target tax dodgers

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According to HMRC’s June tax gap report, small businesses now account for 60 per cent of the overall tax gap, up from 44 per cent in 2018-19.

The current tax gap attributed to small businesses stands at £24.1billion. Price Bailey’s data shows HMRC’s customer compliance staff has increased by 26 per cent over the past three years, rising from 25,442 in 2021/22 to 32,017 in 2023/24.

As the firm reports, HMRC is increasingly conducting parallel investigations, examining both businesses and their directors simultaneously.

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Tax inspectors are now more likely to review multiple years of accounts in a single investigation. This enhanced scrutiny comes despite HMRC’s reported struggles with tackling serious tax evasion, including electronic sales suppression in retail and directors avoiding tax debts through company wind-ups.

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HMRC is looking to see where business owners are failing to pay tax

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Andrew Park, an investigations partner at Price Bailey, criticised the Government’s previous focus on offshore tax compliance.

“It was clear to anyone looking closely at the numbers that the Government’s plan to slash the tax gap by targeting wealthy individuals with offshore assets was fanciful. It was simply a politically expedient thing to say,” he states.

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Park warns that HMRC will need to target ordinary business owners to achieve its goals.

“To make a serious dent in the tax gap HMRC will need to go after a vast swathe of working people on ordinary incomes,” he explains.

The shift comes as HMRC faces pressure to increase revenue amid rising Government borrowing costs.

“With Government borrowing costs rising and the Chancellor desperate to avoid more tax rises, there is growing pressure on HMRC to save the day by bringing in billions more in revenue,” Park adds.

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Britons could be targeted in HMRC’s efforts to clampdown on tax evasion

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According to Price Bailey, HMRC will be placing particular scrutiny on the costs businesses are trying to claim back as an expense from the tax authority.

“Business expenses account for a large portion of the small business tax gap,” said Park.

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He reveals some striking examples of questionable expense claims: “I have seen owner-managers claiming tax relief for expensive suits, leisure travel, family birthday parties and in one case even a hovercraft.”

Small business owners are being advised to consider protection against the growing risk of investigations.

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US Jobless Claims Edge Higher, Continuing Claims Jump

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Applications for US unemployment rose slightly by 6,000 to 223,000 last week, while continuing claims surged to a more than three-year high of 1.9 million. Michael McKee breaks down the numbers on Bloomberg Television.

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ANIME launching on South Korea’s Upbit Jan. 23

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The native token of the Animecoin community is set to make its South Korean debut via Upbit on Jan. 23 at 22:00 KST after listing on Binance.

According to a recent notice, Upbit will launch the token inspired by the Japanese pop-culture phenomenon starting from Jan. 23 at 22:00 KST. The South Korean crypto exchange will provide trading support for ANIME paired with the Korean Won, Bitcoin and Tether. The token will be available on the Arbitrum (ARB) network.

Traders can start depositing and withdrawing ANIME at 22:00 KST. Upbit will announce the beginning of transaction support at a later time. However, due to the token’s newly launched status, the crypto exchange warned traders that the token may not have enough liquidity to guarantee a stable trading experience.

“Upbit will provide additional information on the trading support time through this notice 1 hour before the trading support time after sufficient liquidity is secured within the exchange,” wrote Upbit in the notice.

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Buy orders for ANIME will be restricted to around 5 minutes after trading starts, while sell orders are restricted to for one hour. The base price for the Animecoin token will be announced one hour before trading officially begins.

Animecoin is also listed on other major crypto exchanges, including Binance, Bybit and OKX from Jan. 23.

According to the official description, ANIME is a “culture coin of the anime industry” meant to solve problems plaguing the animation industry such as fragmented consumer experience, limited fan participation, and outdated monetization models using a community-owned creative web3 network.

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ANIME will be used as a gas and governance token for Animechain, the community’s web3 network scheduled to go live in Q1 of 2025. The project vows to introduce a series of original and third-party anime content, including games, merchandise, and NFTs.

The Animecoin foundation has prepared a total token supply of 10 billion ANIME tokens and an initial circulating supply of 7.69 billion ANIME. Around 50.5% of the total token supply will be allocated to the community and more than 20% will go to the team and company.

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Trump’s not just going after modern DEI—he just overturned an LBJ-era order safeguarding federal workers from discrimination

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Trump overturned a 1965 executive order that forbade federal contractors from discrimination. Read More

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Canon reveals the world’s first 410MP sensor – with a staggering 24K resolution and virtually infinite cropping potential

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Canon 410MP full-frame sensor on a magenta background with Game Changer text overlay

  • A 410MP sensor smashes previous pixel records for full-frame, and is equivalent to a 24K resolution
  • It’s capable of 410MP stills up to 8fps, or 100MP up to 24fps
  • It’s designed for surveillance, medicine and industry applications, and unlikely to ever land in a consumer Canon camera

Try this for size – Canon has announced a new 410MP full-frame sensor that smashes any previous records for resolution. It packs 24,592 x 16,704 pixels to be precise, which is roughly equivalent to 24K resolution.

Canon points out in its global announcement that 24K is 12 times the resolution of 8K and 198 times the resolution of HD, and suggests that the unprecedented resolution “enables users to crop any part of the image captured by this sensor and enlarge it significantly while maintaining high resolution”.

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