Markets embrace rate rise, Japan-Australia relations and the secret codes in everyday life

This article is published in collaboration with The Financial Times.

International stocks rose in a sign that global investors have embraced the end of the zero interest rate era in the US. The US dollar climbed sharply against most major currencies in the wake of Wednesday’s historic rate rise, which dented commodity prices.

The Fed used an arcane tool — the “overnight reverse repo” programme — to lift rates. Policymakers instilled some discipline into markets which “can be likened to unruly and spoilt toddlers”, writes John Authers, by vowing to raise rates gently. (FT)

In the news

Shkreli accused of ‘Ponzi-like’ scheme Martin Shkreli, the pharmaceuticals executive who became an international pariah after hoisting the price of a drug for Aids patients, has been arrested on securities fraud charges by the FBI. The internet, as is its wont, rejoiced in schadenfreude at the latest twist in Mr Shkreli’s tale. (FT, Wired)

Apple rejigs top ranks The tech company has made a series of changes to its top ranks amid continued anxiety from Wall Street analysts about iPhone sales over the coming year. The changes, which include the promotion of Jeff Williams to chief operating officer, cap one of Apple’s busiest years for new product launches. (FT)

Cameron rebuffed on migrant benefits UK Prime Minister David Cameron was left searching for a face-saving plan B in his attempt to restrict immigration to the UK, after EU leaders rejected a flagship element of his drive to reform Britain’s relationship with the rest of Europe. Mr Cameron’s plan to ban migrants from claiming British benefits for four years was roundly opposed during talks in Brussels. (FT)

Vladimir Putin: pro-Trump, anti-Turkey The Russian president used his annual year-end news conference to dare Ankara to try to down another Russian jet. Yet he had kind words for US secretary of state John Kerry, Fifa head Sepp Blatter and Republican frontrunner Donald Trump — a “very bright and talented man”. (NYT)

Christine Lagarde to face trial The head of the IMF has been accused of negligence over her role in a payout of roughly €400m to businessman Bernard Tapie while she was serving as France’s finance minister. (Reuters)

It’s a big day for

Japan-Australia relations Prime Minister Malcolm Turnbull visits Tokyo for diplomatic and trade discussions. Also on the docket: Japan’s bid for Australia’s $36.5bn project to design, build and maintain a new fleet of submarines. (SMH)

Food for thought

Star Wars: the FT review The Force Awakens is the most entertaining Star Wars film sinceThe Empire Strikes Back, writes FT critic Nigel Andrews, who fondly recalls reviewing the 35-year-old flick for this very newspaper. But the latest reboot — despite all the spectacle and fun — is lacking some longer-range direction. “What troubles most is that Star Wars is starting to look like every other franchise epic”. (FT)

Permission to pose Lawmakers in France have adopted a bill forcing models to provide adoctor’s certificate confirming they are healthy, and magazines to label Photoshopped images as “touched up”. (The Guardian)

José Mourinho tastes defeat The Portuguese was like a chief executive who promises nothing except results, and then delivers them — until, this season, he suddenly stopped delivering. “If your only selling pitch to the world is that you are a winner, there is nothing left when you become a loser,” writes the FT’s Simon Kuper. (FT)

Where it’s cool to be Christian Dressed in Saint Laurent, the pastors look like models. Services take place in nightclubs and parishioners include Justin Bieber, Kendall Jenner and Bono. Welcome to Hillsong, where the cool kids get saved. (GQ)

The secret codes in everyday life All over the world — from your local Tube station to your office’s IT department — there are hidden messages, codewords and visual ciphers. Most are used to transmit information quickly and without causing panic, but it is sometimes difficult to shake the sense of intrigue. (BBC)

Video of the day

How mood changed towards the Fed World markets reacted positively to the Federal Reserve’s interest rate rise. Roger Blitz, FT currencies correspondent, talks about how the mood of uncertainty has changed over time and the factors that played a part in its historic decision. (FT)

Publication does not imply endorsement of views by the World Economic Forum.

To keep up with the Agenda subscribe to our weekly newsletter.

Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: Silhouetted workers walk in front of office towers in the Canary Wharf financial district in London. REUTERS/Luke MacGregor.