Inside Daily Brief

For January 31, 2024

Today's top headlines include:

Israeli Prime Minister Benjamin Netanyahu ruled out any ceasefire deal that involves the withdrawal of Israeli troops from Gaza.
The effect of the 2022 crash in tech stocks on the Nasdaq Composite Index.
Ukrainian President Volodymyr Zelensky is reportedly preparing to oust his top general.
GOOD NEWS: The U.K.'s National Trust will plant 100,000 trees this winter to expand a temperate rainforest.
Microsoft reported its strongest profit growth in over two years amid growing investor interest in its AI products.
Pakistan's former prime minister received two jail sentences ahead of the country's general elections on Feb. 8.

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Israeli Prime Minister Benjamin Netanyahu said on Tuesday that he would reject any ceasefire deal involving a troop withdrawal from Gaza. Netanyahu also ruled out deals that include the release of thousands of Palestinian prisoners as the U.S., Qatar, and Egypt continue their efforts to broker a ceasefire.

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The U.S., Qatar, and Egypt worked with Israel on Sunday to outline a "framework" for a ceasefire proposal but Hamas negotiators were not present because the meeting was in Paris.
According to leaked information, in the first phase of a proposed six-week ceasefire, Hamas would free 35 Israeli hostages ― including women and children ― and Israel would release hundreds of Palestinians.
- During a second phase, Hamas would release Israeli soldiers and in the final stage, the group would release the bodies of deceased hostages.
Netanyahu on Tuesday reiterated his call for "total victory" to eliminate Hamas and demilitarize Gaza.
Israeli national security minister, Itamar Ben-Gvir warned that a "negligent" deal would trigger the dissolution of Israel's governing coalition.
Hamas leader Ismail Haniyeh said he would be willing to discuss ceasefire proposals in Cairo but noted that the group seeks a withdrawal of Israeli troops from Gaza.

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Over 26,900 people have reportedly died in Israel's military operations in Gaza, which began after Hamas took about 240 people captive and killed 1,200 on Oct. 7.
Israel's government faces growing divisions between those who prioritize destroying militants in Gaza and those focused on the return of Israeli hostages.

What the numbers say: The Nasdaq Composite Index reached 15,644.97 points in 2021 and then fell to 10,466.48 points in 2022. The index recovered to 15,011.35 points a year later. The index is weighted toward the technology sector and includes over 2,500 companies listed on the Nasdaq stock exchange.

Tech stocks soared in 2020 and 2021 as COVID-19-related social restrictions made digital technology increasingly central to work and home life around the world. Profits dropped as central banks started raising interest rates in 2022, reducing access to cheap capital. Share prices in the tech sector plummeted that year, causing investors to lose $7.4T within 12 months.

Ukrainian President Volodymyr Zelensky reportedly seeks to replace his top general. The leadership shakeup may lower Ukraine's military morale and unnerve its Western allies at a crucial moment in Kyiv's fight against Russia.

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Valeriy Zaluzhny, commander-in-chief of Ukraine's armed forces, met with Zelensky on Monday, reports the Financial Times citing people familiar with the matter.
Zelensky told Zaluzhny that he would be removed from his position and take on a role as a defense adviser, but Zaluzhny rejected the offer, the sources said.
Zaluzhny's removal may be delayed after Ukrainian media revealed the plans, the Financial Times reports.
Zelensky's spokesperson denied media reports on Monday that Zaluzhny had been dismissed.
Zaluzhny has broad support among Ukrainians and Zelensky may view him as a political rival.
- In a poll released in December, 62% of Ukrainians indicated that they trust Zelensky while 88% percent said they trust Zaluzhny.

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Zelensky's tense relationship with Zaluzhny deteriorated after Ukraine's 2023 counteroffensive failed in its missions to retake lost territory and cut Russia off from Crimea.
The U.S. and the EU have provided billions to support Kyiv after Moscow launched a full-scale invasion of Ukraine in 2022, but political infighting has stalled about $110B in EU and U.S. aid.

GOOD NEWS: The U.K.'s National Trust will plant 100,000 trees this winter to expand a temperate rainforest in England. The project seeks to increase tree cover and support wildlife across 50 hectares (123.55 acres) of land in the southwest English county of Devon.

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Local community groups, including primary schools, will participate in the tree-plating project.
The project will initially target an area that includes Arlington Court, Exmoor, Woolacombe, and Hartland but the trust plans to plant more trees in the coming years.
The new trees will generate natural habitats, absorb carbon, and help purify soil, water, and air, the trust said.
The National Trust, which has successfully carried out 51 similar projects in the past, aims to plant 20 million trees by 2030.

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Most of western Britain used to be covered by temperate rainforests, but the habitat now covers only 1% of Britain's land.

Microsoft reported its strongest profit growth in over two years on Tuesday. The U.S. tech giant reached a market capitalization of $3T last week amid investor enthusiasm for its artificial intelligence (AI) products.

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In the last quarter of 2023, Microsoft's revenue grew 18% year-over-year to $62B.
Net income surged 33% to $21.9B, marking Microsoft's strongest quarterly expansion since 2021.
Sales at Microsoft's Azure cloud unit grew 30%, surpassing analysts' estimates of 27% growth.
The company attributed six percentage points of Azure's growth to high demand for AI.
Microsoft's AI strategy includes Copilot, a set of AI-powered digital assistants that can perform tasks such as sending emails and summarizing video call transcripts.

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Microsoft has invested about $13B to gain a 49% stake in generative AI firm OpenAI, triggering scrutiny from U.S. and U.K. regulators.
Microsoft shares have jumped by almost 70% in the last 12 months, allowing it to briefly surpass Apple as the most valuable company in the world.

Former Pakistani Prime Minister Imran Khan and his wife, Bushra Bibi, were sentenced to prison for 14 years on Wednesday. The verdict came after Khan was given a 10-year sentence on Tuesday in what his party claimed was an effort to sideline him a week before the country's national election.

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Wednesday's conviction stems from accusations that Khan and his wife sold state gifts worth over $501,000 (140 million rupees).
A day earlier, Khan was sentenced for leaking state secrets shortly before he was removed from power in 2022.
Khan's sentencing bars him from holding public office for 10 years, according to his Pakistan Tehreek-e-Insaf (PTI) party.
Khan's lawyers claimed he was not permitted to defend himself in the latest trial and said they planned to appeal both rulings to Pakistan's High Court.
On Tuesday, Khan called on his supporters to "take revenge for every injustice with your vote" but urged them to remain peaceful.

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According to some analysts, the country's military could be behind efforts to sideline Khan from a general election on Feb. 8.

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The U.K. inflation rate fell from 4.3% in December to 2.9% in January, marking the country's lowest rate of annualized price increases in over 18 months.
Lviv has become the first Ukrainian region to remove all monuments from the Soviet era as the country seeks to eliminate traces of Russian rule amid Moscow's ongoing invasion.
Universal Music is set to take songs off TikTok over a payment dispute, which may prevent the platform from giving its users access to music by Taylor Swift, The Weeknd, and Drake.
Astronomers have discovered aging giant stars at the center of the Milky Way galaxy that may play a role in distributing elements in space by releasing clouds of dust and smoke.
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Painter Janusz Nawroczynski in the studio, by Konrad Krzyżanowski. 1905-1906.

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Gregory Bridgman

Writer / Editor

Gregory Bridgman is a politics and e-commerce researcher with a Ph.D. from the University of Cambridge. He also holds a Master of Science from University College London and a Bachelor's degree from the University of Cape Town. Feel free to follow him on Twitter or drop him an email at gregory@inside.com.