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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TODAY IN CANADA
Major Drilling Grp 4Q
Economic Indicators (ET):
0830 Apr New motor vehicle sales
0830 Apr Monthly Survey of Manufacturing
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)Copyright (c) 2021 Dow Jones & Company, Inc.