‘Historic’ climate deal agreed at COP28

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Almost 200 countries attending the COP28 summit have reached a “historic” deal to transition away from fossil fuels and reach net zero emissions globally by 2050.

“We have language on fossil fuels in our final agreement for the first time ever,” said Sultan al-Jaber, COP28 president and head of the Abu Dhabi National Oil Company, as he bought down the gavel on the UN plenary session.

“We have set the world in the right direction. We have given it a robust action plan to keep 1.5C within reach. It is a plan that is led by the science,” he added.

A previous draft document caused outrage among European, Latin American and vulnerable island states after it dropped all references to phasing out fossil fuels and offered an “à la carte menu” of options countries “could” take. The FT’s reporters in Dubai round up the reaction to the deal.

And here’s what else I’m keeping tabs on today:

• US interest rates: The Federal Reserve is widely expected to hold rates steady at a 22-year high when it announces its latest monetary policy decision. For more, premium subscribers can sign up to our Central Banks newsletter by Chris Giles, or upgrade your subscription here.

• Economic data: The US producer price index, a leading inflation indicator tracking wholesale prices, is projected to have increased, while Opec publishes its monthly oil market report.

• SEC: The US Securities and Exchange Commission, the federal securities regulator, is set to vote on whether to adopt amendments to standards for US Treasury clearing agencies.

• Impeachment vote: The US House of Representatives, the lower chamber of Congress, could vote to launch a formal impeachment inquiry into President Joe Biden as soon as today.

Five more top stories

1. Joe Biden has warned that Israel’s “indiscriminate bombing” in Gaza risks leaving the country isolated. The president’s harshest criticism yet of Israeli Prime Minister Benjamin Netanyahu’s government were made at a political fundraiser as the UN General Assembly voted overwhelmingly to demand a humanitarian ceasefire in Gaza. The vote in the 193-member world body was 153 in favour, 10 against and 23 abstentions. Here’s more on Biden’s remarks.

2. Argentina’s new libertarian government will halve the value of the peso, cut spending and reduce energy and transport subsidies, the new economy minister said in a lengthy television address last night. “If we carry on as we are, we will have hyperinflation,” Luis Caputo said. The broadcast marked the first major announcement by Javier Milei’s government since the president took office on Sunday. Here’s more on the package of measures which was quickly welcomed by the IMF.

3. Harvard’s board has given Claudine Gay its full backing to remain as the university’s president after her congressional testimony on campus antisemitism stirred furious backlash and a movement to oust her. Gay is Harvard’s first black and second woman president and only began her term in July. Her job was thrown into doubt after a disastrous performance — along with the presidents of the University of Pennsylvania and the Massachusetts Institute of Technology — at last week’s congressional hearing. Read more on Havard’s defence of Gay.

4. Guyana will defend itself “by all and any means” as fears mount that neighbouring Venezuela’s strongman President Nicolás Maduro will try to annex part of its territory, its vice-president has told the Financial Times. “We’re not a belligerent nation, we’re not an aggressive nation,” said Bharrat Jagdeo. “But if Venezuela takes action that will seek to change the borders that were defined by the 1899 agreement, then we will explore every means whatsoever, including defence co-operation with our allies.” Read the full interview.

5. Netflix, the streaming service that has been long criticised for a lack of transparency about how shows and films perform on its platform, will begin publishing a “comprehensive deep dive” twice a year into what its subscribers are watching. Its first report, released yesterday, provided viewer data on more than 18,000 titles, representing a total of nearly 100bn hours viewed. Can you guess what was the most watched show in the first half of 2023?

The Big Read

The success of the United Auto Workers union in raising wages at three carmakers speaks to a rising assertiveness in the US labour movement. More than 485,000 workers went on strike this year as unions launched an estimated 317 work stoppages, more than any time in the past two decades. After years of decline, labour organisers believe the political momentum has shifted in their direction. But are they overplaying their hand?

We’re also reading . . . 

Chart of the day

The belief that stocks outperform bonds over the long run sits behind almost every strategic asset allocation process and is backed by centuries of empirical data, writes Toby Nangle. This degree of persistent stock market outperformance has delighted shareholders but puzzled academics. A new report, however, suggests that the data is dud.

Take a break from the news

A haunting wrapped in a murder mystery and bound in a series of coincidences, a fraudulent faith healer who convinced her victims she had a direct line to Amazonian spirits and a reassessment of Michael Jackson’s life and legacy — Fiona Sturges reviews the best podcasts of 2023.

Additional contributions from Tee Zhuo and Benjamin Wilhelm