The UK’s new EU deal, big oil hit by plummeting prices and first US Zika case probably sexually transmitted

David Cameron’s fight to keep Britain in the EU began in earnest on Tuesday with the release of the outline of a long-awaited reform deal he said would deliver the “substantial change” he wants for the UK’s relationship with the bloc.

The British prime minister secured a breakthrough ahead of an expected referendum this year, with the power to restrict benefits for new migrant workers for up to four years. This is a temporary mechanism, however, and the outline leaves open the question of when the restriction must end. (FT)

In the news

Cruz and Clinton notch up victories Texas Senator Ted Cruz treated Donald Trump to a humbling defeat, while Hillary Clinton secured the slimmest of victories over Democratic rival Bernie Sanders in the first 2016 nominating contests. It sets up bitter fights on both sides as the campaign heads to New Hampshire, but isn’t likely to end the GOP’s Trump nightmare. (FT, NYT, TNR)

US fortifying Europe to deter Putin The Obama administration will substantially increase the deployment of weaponry, armoured vehicles and equipment to Nato countries in central and eastern Europe. The move is aimed at deterring Russian aggression in the region. (NYT)

Big oil hit by plummeting prices ExxonMobil showed some resilience in the face of the crude slump but it still promised a steep 25 per cent cut in capital spending this year, following a 19 per cent cut last year. Meanwhile, BP reported a $2.2bn fourth-quarter loss after taking heavy writedowns and restructuring charges in the wake of the crude price collapse. (FT)

First US Zika case probably sexually transmitted Officials in Texas, where the first known case of the disease’s transmission in the US was reported on Tuesday, said it was probablyspread through sexual contact, rather than a mosquito bite. Meanwhile, France’s Sanofi became the first drugmaker to announce a research and development plan to target the disease, saying its existing infrastructure could be “rapidly leveraged” to speed identification of a vaccine candidate. (Reuters, FT)

Yahoo cuts jobs, explores spin-off The tech company will lay off 15 per cent of its workforce and is exploring strategic alternatives, which could include a sale of its core internet business, in an effort to appease activist investors. (FT)

Magic Leap raises $800m from Alibaba and Google The secretive Florida-based start-up has raised nearly $800m from investors including Alibaba, Warner Bros and Google, as it prepares to begin production of a new “augmented reality” headset its founder promises will bring users Harry Potter-like experiences. (FT)

Valeant raised drug price 356% The figure will give fresh ammunition to critics who say the company is “gouging” its customers. The drug had been singled out by Hillary Clinton, the Democratic presidential contender, at a campaign event last week. (FT)

It’s a big day for

ChemChina The company confirmed its $43bn acquisition of Syngenta, which is the country’slargest ever outbound takeover. It marks the second blockbuster takeover in the chemicals industry in two months, after Dow and DuPont agreed a $130bn merger. (FT)

Food for thought

Bring our elites closer to the people The FT’s Martin Wolf argues that something must be done to address the disaffection among the masses. He offers a number of solutions, including curbing illegal immigration, rethinking austerity-oriented doctrines, curbing the excesses of the financial industry and making taxation fairer. (FT)

Company wisdom and the road to profit Strategic clarity has blurred in so many industries today to the point of near-invisibility, thanks to the digital revolution and globalisation. Flying blind, companies seem happier to cut costs and buy back their shares than to invest purposefully for the future. In that sense, the main competition of so many established companies lies within their own organisations, says the FT’s John Thornhill. (FT)

Luxembourg’s asteroid mining plan It may be the cause of a commodity price bear market in decades to come, but the small European country is preparing to launch an official initiativeto promote the mining of asteroids for metals and other materials that are scarce on Earth. (FT)

Pacific trade pact’s big ambition could be its undoing The trade ministers of 12 Pacific Rim nations meet in New Zealand this week to sign the Trans-Pacific Partnership agreement, after more than seven years of difficult talks. Then another countdown begins. Over the next two years, each of the 12 will have to navigate their domestic politics to ratify the agreement. For some countries, the negotiations needed to cross that hurdle will be especially challenging, writes Edward Alden of the think-tank Council on Foreign Relations in Washington. (NAR)

Film prompts push to end ‘honour killings’ A Pakistani documentary about “honour killings” is giving impetus to a political effort to protect women, even before it has been screened in Pakistan. When the film was nominated for an Oscar last month it caught the attention of Nawaz Sharif, prime minister. He will convene a meeting this month to build consensus to tackle the tradition, which results in the murder of about three women a day in Pakistan for disobeying male elders in matters of love and marriage. (WSJ)

Video of the day

Long or short the yen? The FT’s Dan McCrum and the head of fixed income for M&G’s Global Macro Bond Fund discuss potential investment strategies for the yen. (FT)