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It has been a day of confusion, delay and loss for Toshiba. The Japanese nuclear and energy conglomerate saw its shares drop 8 per cent in Asian trading after it delayed an earnings release detailing the scale of a multibillion-dollar writedown. Then, five hours later, the company released unaudited numbers showing $6.3bn writedown on its nuclear unit and announced that its chairman, Shigenori Shiga, would step down.

The financial mess engulfing the company reflects massive cost overruns and delays linked to several nuclear projects in the US and experts say it will cast a shadow over the future of the global nuclear industry. Toshiba has said it will withdraw from nuclear plant construction overseas. (FT, NAR, Reuters)

In the news

First man down Donald Trump’s national security adviser Michael Flynn has resigned, becoming the fledgling administration’s first high-level departure. The retired general was accused of illegally discussing US policy with a Russian diplomat weeks before Donald Trump’s inauguration, then misleading the White House about the conversation. It has also emerged that the justice department warned Mr Trump that Mr Flynn could be vulnerable to Russian blackmail late last month. (FT, WaPo)

New leader for Hamas Yahya Sinwar, a founding member of the Hamas military wing, has been chosen as head of the militant group in secret elections, replacing Ismail Haniyeh. Sentenced to four life terms by Israel, Mr Sinwar was freed in a prisoner swap in 2011 after serving 20 years in jail. His appointment is seen as a message of defiance towards Israel. (Jazeera)

A taxing reform Lawyers for the EU and other US trading partners have begun laying the groundwork for a legal challenge to a US border tax proposal in a move that could trigger the biggest case in World Trade Organisation history. The Trump administration’s promised tax revolution has also triggered a corporate civil war between importers (such as Walmart) and exporters (such as GE) in the US. (FT)

Rolls-Royce’s biggest loss Rolls-Royce, the aero-engine maker, has confirmed its biggest ever loss, with a pre-tax loss of £4.6bn. The report comes after the company last month admitted to a series of corruption offences committed over a more than 20-year period as part as a deferred prosecution agreement with UK, US and Brazilian authorities.(FT)

Lloyds eyes Berlin Britain’s largest mortgage lender is set to pick Berlin as its base to maintain access to the EU single market following Brexit. Lloyds may move a small number of jobs to the country and will apply for the changes later this year, sources said. (Bloomberg)

It’s a big day for

Israel-US relations Israeli Prime Minister Benjamin Netanyahu meets Donald Trump, setting the tone for ties under the new US administration. Iran and West Bank settlements are likely to be discussed. (USA Today)

US markets Janet Yellen, chair of the US Federal Reserve, will testify to lawmakers in Washington. She is expected to repeat the guidance given at the Federal Open Market Committee two weeks ago. (FT)

Keep up with the important business, economic and political stories in the coming days with the FT’s Week Ahead.

Food for thought

Cameroon’s language divide When Cameroon’s goalkeeper Fabrice Ondoa declared his solidarity with the country’s English-speaking minority after his team’s victory at the African Cup of Nations earlier this month, he shone a spotlight on a deepening crisis triggered by a government crackdown on activists and protesters in English-speaking parts of the west African nation. (FT)

Trump’s clash of civilisations The US president’s “Muslim ban” is not a one-off or a badly executed aberration, argues the FT’s Gideon Rachman. “It responded to a hostility to Islam and a craving for security and cultural homogeneity that is finding adherents across the western world — and not just on the far right.” (FT)

The kids are not all right The sudden collapse of a power-sharing agreement that ended decades of violence in Northern Ireland has angered a younger generation who feel robbed of their future by the failure of politicians to get over the sectarian prejudices of the past. With Brexit threatening to send further shockwaves to the province’s economy, few people expect the March election to deliver a breakthrough. (Reuters)

Don’t breathe The list of the 20 cities with the most dangerous air in the world is dominated by fast-growing Asian metropolises, with India taking 10 of the slots. (Guardian)

Political athletes Debate may be raging about whether athletes should take a political stance or “stick to sports”, but the intrusion of politics in US sport has galvanised coverage. (NYT)

Video of the day

Mobile pay: Shanghai v San Francisco Who has the best facilities for mobile phone payment — the world’s tech hub or China’s business capital? The FT’s Gabriel Wildau and Leslie Hook grab their phones to see which city comes out on top. (FT)

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