Good morning. Elon Musk is being sued by the US SEC. The ECB’s Philip Lane says the euro-dollar rate matters even if firms absorb initial swings. And Google’s Sundar Pichai joins tech CEOs in bidding for a London cricket team. Listen to the day’s top stories.

Elon Musk cheated Twitter shareholders out of more than $150 million by waiting too long to disclose his growing stake in the company in 2022 as he prepared a takeover bid, the US Securities and Exchange Commission said. The complaint was immediately disputed by Musk’s lawyer.

The euro exchange rate matters for the euro-area economy over time, though monthly movements in the currency are typically absorbed by companies, European Central Bank Chief Economist Philip Lane said. Separately, the ECB is pushing back against investors who reckon firmer inflation, a surprisingly sturdy US jobs market and President-elect Donald Trump’s economic disruption will narrow the scope to lower interest rates.

A worker inspects stacks of aluminum ingots. Photographer: Andrey Rudakov/Bloomberg

The European Union is considering import restrictions on Russian aluminum and phasing out the nation’s liquefied natural gas in a package of sanctions targeting Moscow, people familiar said. A ban on imports of Russian gas has been urged by several nations.

The US plans to unveil more regulations aimed at keeping advanced chips from flowing to China. The latest measures would seek to encourage chip producers like TSMC, Samsung Electronics and Intel to more carefully scrutinize customers and increase due diligence.

About two-thirds of UK retailers will raise prices to cover the higher taxes outlined in Labour’s first budget, according to the British Retail Consortium, a lobby group. More than half said they will cut staff hours and 46% will reduce store headcount.

Deep Dive: Volkswagen’s Woes

Volkswagen had a poor 2024, with sales falling and Europe’s biggest automaker even raising the prospect of closing factories in Germany. This year could be even worse.

• The manufacturer’s deliveries risk slumping again because its namesake VW brand doesn’t have a new electric car coming in 2025, with key products pushed back amid delays developing software.
• “For the next year or so, VW is forced to sell old technology to new customers,” said Matthias Schmidt, an automotive analyst based near Hamburg. “That’s going to be difficult.”

The Big Take

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Opinion

Photographer: Hollie Adams/Bloomberg Economics

London is no place for equities bargain hunters, writes Chris Hughes. UK stock market casualties may look cheap, but it’s hard to see a speedy and likely path out of the mire.

Before You Go

Sundar Pichai in 2017. Photographer: Chandan Khanna/AFP/Getty Images

Alphabet’s Chief Executive Officer Sundar Pichai is joining Silicon Valley executives bidding over £80 million for a London cricket team in The Hundred tournament. The England and Wales Cricket Board is selling stakes in eight teams to boost the sport’s finances.

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