Skip to Content
Global News Select

EUROPEAN MIDDAY BRIEFING - Stocks Fall as -3-

People familiar with the situation say what comes next has been pending with Mr. Biden in recent weeks and that he could announce his decision this week. It could include a pause on tariffs on consumer goods such as clothing and school supplies, as well as launching a broad framework to allow importers to request tariff waivers.

   
 
 

Glynn's Take: RBA Not Done yet With Blockbuster Rate Hikes

SYDNEY-The Reserve Bank of Australia delivered a second blockbuster interest-rate rise Tuesday, taking the official cash rate to 1.35% from 0.85%, but it's not done yet.

The reality for Australia's vast swaths of highly indebted mortgage holders is that the RBA will almost certainly sting homeowners again with a further 50-basis-point rise in interest rates in August, and depending on the look of second-quarter inflation data at the end of this month, it could line up even more.

   
 
 

Thai Baht Falls to Five-Year Low on Global Growth Concerns

The Thai baht fell to a five-year low against the U.S. dollar for a second day this week on worries over a slowdown in global economic growth.

"The baht was recently impacted by concerns of global growth that may derail the domestic economic recovery," said Jeff Ng, senior currency analyst at MUFG Bank, in an email to Dow Jones Newswires. "The economy, in particular the current account, is somewhat reliant on tourism," he added.

   
 
 

China Service Sector Activity Rebounded in June

China's Caixin services purchasing managers index, a private gauge, rebounded in June as Covid-19 restrictions were eased in the world's second-largest economy.

The Caixin services PMI rose to 54.5 in June from 41.1 in May, Caixin Media Co. and research company S&P Global said Tuesday. That marked the quickest expansion recorded since July 2021.

   
 
 

China Imposes Fresh Restrictions as Covid-19 Cases Rise

China is imposing fresh restrictions in some eastern cities as Covid-19 cases have spiked to near their highest levels in more than a month.

The country recorded 380 locally transmitted coronavirus cases on Sunday, China's National Health Commission reported on Monday. Two thirds of Monday's cases came from the eastern province of Anhui, the commission said.

   
 
 

South Korea Inflation Hits Over Two-Decade High

South Korea's inflation rate hit a more-than-two-decade high in June, raising the likelihood of a bigger-than-usual interest rate increase by the central bank to curb price increases.

The benchmark consumer-price index rose 6.0% from a year earlier-the fastest since November 1998-following a 5.4% increase in May, the statistical office said Tuesday. That beat a median market forecast for a 5.9% increase for June.

   
 
 

Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals

A cryptocurrency lender backed by Peter Thiel and Coinbase Global Inc. suspended withdrawals, trading and deposits on its platform, citing volatile market conditions and financial difficulties facing key business partners.

The platform, Vauld, said Monday that it froze the operations after users pulled almost $200 million over the last three weeks. A sharp decline in cryptocurrency prices that began with the collapse of two cryptocurrencies in May has spooked traders and caused knock-on effects in the digital asset world.

   
 
 

Our Recession Forecasting Model Is Broken

Of course the U.S. could slip into a recession. But with the economy nowhere close to anyone's idea of normal, thinking a downturn is coming on the basis of what some model or rule of thumb says could be a mistake.

The same goes for putting too much credence in indicators that say the risk of a recession is still very low.

   
 
 

Falling Commodity Prices Raise Hopes That Inflation Has Peaked

A slide in all manner of raw-materials prices-corn, wheat, copper and more-is stirring hopes that a significant source of inflationary pressure might be starting to ease.

Natural-gas prices shot up more than 60% before falling back to close the quarter 3.9% lower. U.S. crude slipped from highs above $120 a barrel to end around $106. Wheat, corn and soybeans all wound up cheaper than they were at the end of March. Cotton unraveled, losing more than a third of its price since early May. Benchmark prices for building materials copper and lumber dropped 22% and 31%, respectively, while a basket of industrial metals that trade in London had its worst quarter since the 2008 financial crisis.

   
 
 

Biden Says U.S. Can Choose Unity as Nation Faces Divisions

WASHINGTON-President Biden said in a Fourth of July address that many Americans are worried about the divisions roiling the country but the U.S. has the power to choose a "unity of purpose."

Mr. Biden, speaking to military families at a barbecue on the South Lawn of the White House, noted Monday's deadly shooting at a parade in the Chicago suburb of Highland Park, Ill.

   
 
 

Ukraine's Allies Talk of Rebuilding as Russia Consolidates Gains in Donbas

Ukraine's President Volodymyr Zelensky said huge investments would be needed to rebuild the country, addressing Western officials in Switzerland as Russian forces continued to press their advance in the east.

Mr. Zelensky spoke during a conference Monday via video-link to discuss a road map for Ukraine's reconstruction, after Russian forces gained control Sunday over the eastern city of Lysychansk.

   
 
 

Chinese Vice Premier Liu, Treasury Secretary Yellen Discuss Economic Issues, Xinhua Reports

Chinese Vice Premier Liu He held a video call Tuesday with U.S. Treasury Secretary Janet Yellen and exchanged views on economic issues, state-run Xinhua News Agency reported.

The two discussed matters including the macroeconomic situation and global industrial and supply chains, said Xinhua, characterizing the talks as "constructive."

   
 
 

New Zealand Treasury Bars Wall Street Journal From Restricted Briefings Until 2025

New Zealand's Treasury will bar The Wall Street Journal from attending restricted briefings for three years for publishing budget information before the scheduled release time in May.

The Treasury said Tuesday that the Journal will be barred from attending restricted briefings on New Zealand's budget, economic and fiscal updates, government financial statements and other meetings until a budget briefing in 2025. It will also bar a reporter from the Journal and Dow Jones Newswires who mistakenly sent a draft of a story before the time stipulated by the Treasury as a condition of attending the restricted briefing.

   
 
 

Argentina Names New Economy Minister as Inflation Crisis Mounts

BUENOS AIRES-Argentine President Alberto Fernández appointed a little-known public servant as economy minister as his administration was facing soaring inflation and a weakening currency, which risk leading to social unrest.

Silvina Batakis, an economist aligned with the ruling Peronist coalition's far-left faction, took over the government's top economic post Monday, two days after the surprise resignation of Martín Guzmán, a moderate aligned with the president.

   
 
 

Akron Declares State of Emergency Following Police Shooting of Jayland Walker

The mayor of Akron, Ohio, declared a state of emergency on Monday and issued a curfew starting at 9 p.m. after protesters damaged property amid protests over the fatal police shooting of a 25-year-old Black man.

The protests came after the release on Sunday of body-camera videos that appear to show multiple police officers firing dozens of times at Jayland Walker, who was unarmed, the morning of June 27. Akron Police Chief Stephen Mylett said a lot of rounds were fired and investigators are trying to determine exactly how many.

   
 
 

Jan. 6 Hearings to Examine Role Extremist Groups, White House Played in Capitol Attack

WASHINGTON-The House select committee investigating the Jan. 6, 2021, attack on the U.S. Capitol is expected to zero in on two overlapping areas of its probe in coming hearings: the extremist groups that participated in the attack and a minute-by-minute account of what took place inside the White House that day.

The committee in its previous hearings has largely focused on efforts by former President Donald Trump and his allies to overturn the 2020 presidential election by pressuring then-Vice President Mike Pence, senior officials in the Justice Department and state officials to take actions that would reverse the results.

   
 
 

Brittney Griner Makes Direct Plea to Biden for Her Freedom

WASHINGTON-Women's professional basketball star Brittney Griner made a direct plea to President Biden to work to free her and other Americans detained abroad, in a handwritten letter delivered Monday to the White House.

"As I sit here in a Russian prison, alone with my thoughts and without the protection of my wife, family, friends, Olympic jersey, or any accomplishments, I'm terrified I might be here forever," Ms. Griner wrote, according to excerpts provided by her agent.

   
 
 

Write to nihadahmed@wsj.com

Write to us at newsletters@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

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

 

(END) Dow Jones Newswires

July 05, 2022 06:18 ET (10:18 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.