Caroline Ellison sentenced to two years in prison

 📍Top line: Caroline Ellison, the former co-CEO of Alameda Research, has been sentenced to two years in prison for her involvement in the massive fraud linked to the collapse of the FTX cryptocurrency exchange.

Ellison's decision to testify against her former lover Sam Bankman-Fried, who received a 25-year sentence for his role in the fraud, enabled her to reduce her term behind bars. Ellison’s testimony was crucial in Bankman-Fried’s conviction, as she admitted to committing crimes under his direction.

Ellison expressed remorse in court, stating, "I want to start by saying how sorry I am." Her defense attorney emphasized her youth and acceptance of responsibility, mentioning that she had agreed to forfeit all earnings from FTX, which amounted to roughly $11 billion.

The UK’s low-alcohol beer market is booming

📍Top line: UK sales of low-alcohol beer surged in 2023 thanks to changes in alcohol duties. Brewers have capitalised on lower tax rates by launching new or revamped lower-ABV products.

📈 Sales doubled from 650,000 hectolitres in 2022 to nearly 1.3 million in 2023, making the UK the fastest growing country and eighth-largest global market for low-strength beer.

Analysts credited the boom to the post-Brexit tax overhaul, which ensured products under 3.5% ABV are taxed at a lower rate than stronger drinks. Major brewers like Guinness and Heineken have responded to growing demand among health-conscious consumers by introducing alcohol-free alternatives, reflecting the broader trend towards moderation. Guinness 0.0 is the most popular on the UK!

Elsewhere in business:

🇬🇧 Adverts for Nike and Sky have been banned for using "dark pattern" tactics, which are manipulative strategies designed to lead consumers into making unintended purchases. In Nike's case, the company had advertised a shoe at a low price, but the offer turned out to be for a children's size. Sky's ad for Now TV did not clearly inform users that a free trial would automatically renew into a paid subscription unless canceled.

👚 Superdry CEO Julian Dunkerton is urging the UK government to address what he calls an unfair "tax dodge" by fast fashion giant Shein. Dunkerton argues that Shein exploits a loophole allowing shipments under £135 to avoid import duties, giving the company an unfair advantage over UK retailers like Superdry. He believes the current tax rules were not designed for companies like Shein, which generate billions in the UK while avoiding certain taxes.

UK interest rates set for gradual decrease

📍Top line: The Bank of England's governor, Andrew Bailey, has announced that interest rates will gradually decrease over the next year, but won't return to the near-zero levels seen in the past. With inflation dropping from 11.1% in 2022 to 2.2%, Bailey remained optimistic but cautious, stating that significant economic shocks would be needed to revert to those ultra-low rates.

Analysts expect one more rate cut this year and have predicted a drop to around 3.5% next year.

Bailey emphasised the importance of stabilising inflation while acknowledging that challenges remain. The UK economy is still grappling with the effects of the Covid-19 pandemic, especially in the labor market, which has seen many workers go on long-term sick leave.

Elsewhere in the economy:

🇬🇧 The UK saw its biggest reduction in household inequality in over a decade in 2023, according to the Office for National Statistics (ONS). The shift was largely due to high inflation and increased taxes hitting the wealthiest households, while lower-income families benefitted from government cost-of-living support.

🇨🇳 China's central bank has cut interest rates and introduced several measures to revive its slowing economy and alleviate the debt burden on property owners. In its boldest intervention since the pandemic, the People’s Bank of China (PBOC) reduced interest rates on existing mortgages by 0.5 percentage points and lowered reserve requirements for banks to support new lending.

Deutsche Bank has opened applications for its Technology, Data and Innovation Internship in London, starting in 2025. Successful candidates will assist in delivering the firm’s key technology strategies, including cloud computing and IT infrastructure solutions. Applicants must currently be commencing their penultimate year of undergraduate study. Apply now here.

Telegram performs U-turn on sharing user data with police

📍Top line: Telegram has announced that it will begin sharing users' IP addresses and phone numbers with authorities who have valid search warrants, marking a significant shift in its privacy policy. CEO Pavel Durov explained that the move aims to deter criminals from using the platform, although he emphasised that only a tiny fraction of Telegram's nearly billion users are involved in illicit activities.

This policy change follows Durov’s recent arrest in France, where he was charged with enabling criminal activity on the platform, including the spread of child abuse images and drug trafficking. Durov has denied the charges, calling the accusations against him "surprising" and "misguided."

Telegram has long been criticised for hosting harmful content such as child pornography, misinformation, and extremist activity, partly due to its ability to host groups of up to 200,000 members—significantly larger than the 1,000-member limit on WhatsApp.

Elsewhere in tech

✈️ A new study from the University of Cambridge has suggested that planes should slow down and extend flight times to help reduce emissions and combat climate change. A particularly bold suggestion involves reducing flight speeds by around 15%, which could lower fuel consumption by 5-7%. While this would help cut emissions, it would also increase transatlantic flight times by approximately 50 minutes.

🤖Famed director James Cameron, known for films like "Titanic" and "The Terminator," has joined the board of Stability AI, a London-based startup that develops AI image-generation tools. As generative AI technology gains momentum, Hollywood is increasingly interested in its potential amid rising production costs.

📺 Phillip Schofield is set to make his return to television, 16 months after his departure from This Morning. The 62-year-old broadcaster has filmed a secret Channel 5 special titled Cast Away, where he will spend 10 days marooned on a tropical island in Madagascar. Schofield will document his experience of survival, filming himself while reflecting emotionally on the difficulties of the past two years.

🏃‍♂️ Obesity rates in England have stabilised for the first time in two decades, according to NHS figures. Childhood obesity has dropped to its lowest level since 2000, while adult obesity has remained stable over the past five years. The figures suggest public health measures, like the sugar tax and growing awareness of ultra-processed foods, are making an impact.

🍜 Instant noodles are enjoying a gourmet revival, driven by a viral TikTok trend. Once seen as a lazy meal for bachelors, ramen has become a Gen Z favorite, with users adding ingredients for extra flavor and nutrition. Sales of instant ramen have surged 50% on Ocado, alongside a rise in demand for toppings like chili oil, crispy onions, and seaweed.