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North American Morning Briefing: Stock Futures -2-

Investors have faith in the Fed. Over the past three months consumer prices, excluding volatile food and energy, have risen 2%, equivalent to a shockingly high annual rate of 8.2%. Rather than panic and dump bonds, investors have piled into Treasurys and pushed 10-year yields back down to where they stood in late February. Confidence in the central bank is absolute.

To be fair, the Fed is probably right: This burst of inflation is probably transitory. The reopening of the economy released a surge of pent-up demand, while supply bottlenecks are restricting production and distribution. As things get back to normal inflation should calm down.

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Debt Burden Swells as Europe Extends Life Support for Companies

Rousselle Industrie SA, a maker of machinery for paint manufacturers in northern France, almost collapsed in 2020 after the pandemic disrupted supply and its clients' businesses.

The 10-person company was saved by the equivalent of $360,000 in loans under a government program that guaranteed debt and deferred interest payments for 12 months.

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Regulators Tell Banks It Is Time to Stop Using Libor

Regulators are ramping up efforts to end Libor trades by year-end.

The Commodity Futures Trading Commission last week told brokers that facilitate derivatives trading among large banks that they should stop using Libor, or the London interbank offered rate, as a reference rate by July 26. The Tuesday announcement could accelerate the push to phase out the troubled interest-rate benchmark, which underpins trillions of dollars worth of financial contracts. Authorities decided several years ago, after a widespread Libor-rigging scandal, that it should disappear by the end of 2021.

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U.S. Fight Against Chinese 5G Efforts Shifts From Threats to Incentives

The U.S. government is ratcheting up pressure on Beijing's 5G ambitions overseas, offering financial incentives and other enticements to countries willing to shun Chinese-made telecom gear.

U.S. foreign-affairs agencies are developing workshops and a handbook that would help policy makers in places like Central and Eastern Europe, and in developing countries elsewhere, to build next-generation 5G cellular networks that don't use equipment from Huawei Technologies Co. and China's ZTE Corp.

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Carlos Ghosn Fallout: American Father, Son Plead Guilty to Role in Escape

TOKYO-Americans Michael Taylor and Peter Taylor pleaded guilty in Tokyo on Monday to the charge of helping former Nissan Motor Co. chief Carlos Ghosn escape Japan in a box aboard a private jet in late 2019.

Michael Taylor, a 60-year-old former Green Beret, and his son Peter Taylor, 28, were brought into a Tokyo courtroom in handcuffs surrounded by guards for the first day of their trial. After prosecutors read out a summary of the charge, the Taylors told the judge the prosecutors' statements were correct. The defendants didn't speak further on Monday, but a second trial session was scheduled for late June.

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Ousted From Power, Israel's Netanyahu Plots Comeback

TEL AVIV-Outmaneuvered by rival politicians after 12 years in power, Israeli Prime Minister Benjamin Netanyahu is already plotting a comeback, intending to challenge the new government on matters that could deeply divide the cross-party coalition.

Mr. Netanyahu, who now is expected to lead the opposition, plans to press the new governing coalition, which includes eight parties ranging from an Arab group to conservative forces, on sensitive policy issues such as settlement construction and empowering the country's Arabs.

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Biden and Macron Share Affection and Worldview at G-7 Summit

President Biden and French President Emmanuel Macron threw their arms around each other as they walked on the beach. Later the two men shared a tête-à-tête as aides looked on. At one point Mr. Biden asked Mr. Macron to answer a reporter's question for him.

At the summit of the Group of Seven leaders in Cornwall this weekend, the two presidents embraced each other, sometimes literally, as allies on a host of issues-from multilateralism to fighting climate change-after years of volatility between Mr. Macron and former President Donald Trump.

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Write to sarka.halas@wsj.com

TODAY IN CANADA

Earnings:

HEXO 3Q

Major Drilling Grp 4Q

Economic Indicators (ET):

0830 Apr New motor vehicle sales

0830 Apr Monthly Survey of Manufacturing

Other News:

Canada to Discard 300,000 Doses of J&J Covid-19 Vaccine

Canada said late Friday it would discard 300,000 doses of Johnson & Johnson's Covid-19 vaccine it received in April, saying health authorities were unable to determine whether the shipment met safety standards.

Canada halted distribution of the doses after learning the doses included a substance produced at a Emergent BioSolutions plant in Baltimore -- a factory beset by contamination problems. In April, Canada's health department said the J&J doses would undergo a safety assessment before they were released for use.

In a Friday evening statement, Canada said the health regulator was unable to issue a decision on the doses, without elaborating. Further, it said it would no longer accept Covid-19 vaccine doses made at Emergent's Baltimore factory, nor would it accept vaccine doses with ingredients produced at the plant.

"To ensure the safety of any future vaccine supply from this facility, Health Canada is planning an onsite inspection, expected to take place this summer," the statement said. A government representative did not immediately respond to further questions.

A spokesperson at Emergent wasn't immediately available for comment about Canada's statement.

   
 
 

Expected Major Events for Monday

04:30/JPN: Apr Revised Industrial Production

12:30/CAN: Apr New motor vehicle sales

12:30/CAN: Apr Monthly Survey of Manufacturing

All times in GMT. Powered by Kantar Media and Dow Jones.

   
 
 

Expected Earnings for Monday

BMTC Group Inc (GBT.T) is expected to report for 1Q.

Charles Schwab (SCHW) is expected to report.

Coda Octopus Group Inc (CODA) is expected to report for 2Q.

Coffee Holding Co (JVA) is expected to report $0.06 for 2Q.

HEXO Corp (HEXO,HEXO.T) is expected to report for 3Q.

Major Drilling Group International Inc (MDI.T,MJDLF) is expected to report $0.09 for 4Q.

Motorcar Parts Of America Inc (MPAA) is expected to report $0.49 for 4Q.

Optical Cable (OCC) is expected to report for 2Q.

RF Industries (RFIL) is expected to report $-0.01 for 2Q.

Urstadt Biddle Properties Inc - Class A (UBA,UBP) is expected to report for 2Q.

Powered by Kantar Media and Dow Jones.

   
 
 

ANALYST RATINGS ACTIONS

Air Products & Chemicals Raised to Positive From Neutral by Susquehanna

Biogen Raised to Outperform From Market Perform by Bernstein

Brookdale Senior Living Raised to Overweight From Equal-Weight by Barclays

Celsius Holdings Raised to Outperform From Neutral by Credit Suisse

Cricut Cut to Equal-Weight From Overweight by Morgan Stanley

International Paper Raised to Buy From Hold by Argus Research

OGE Energy Raised to Buy From Neutral by B of A Securities

Qumu Cut to Hold From Buy by Craig-Hallum

Smartsheet Cut to Sector Perform From Outperform by RBC Capital

United Natural Foods Raised to Buy From Neutral by Northcoast Research

Ventas Raised to Overweight From Equal-Weight by Barclays

This article is a text version of a Wall Street Journal newsletter published earlier today

 

(END) Dow Jones Newswires

June 14, 2021 06:08 ET (10:08 GMT)

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