Continuing campaigns to encircle Ukrainian cities, Russian forces conducted missile and rocket strikes on cities and military targets in the country's north and south, disrupting plans to evacuate civilians via humanitarian corridors, Ukrainian officials said. Ukrainian forces continued to frustrate Russia with counterattacks and sabotage operations.
Gasoline Price Hits Record High
The price for U.S. gasoline hit a record high, tracking a surge in global energy markets and showing how the war in Ukraine is having far-reaching economic consequences.
The spiraling cost of filling up a tank adds fresh pressure on American households already dealing with the quickest inflation in decades, and could crimp economic growth by curbing spending on other items.
The U.S. Shifts Focus to Venezuelan Oil, but Output Is Low
BOGOTA, Colombia-Even as the U.S. considers lifting sanctions so Venezuela gets oil flowing, the reality is that the country's oil sector is ill-prepared to start churning out more crude and lower fast-rising oil prices amid the Ukraine war.
Years of mismanagement, corruption and nationalization of oil ventures caused Venezuela's oil industry-which in the 1990s produced 3.2 million barrels a day-to crash by 2020, when output fell to just one-tenth of what it had been. Production has now more than doubled to about 800,000 barrels a day but that is less than 1% of the 100 million barrels dozens of countries produce world-wide daily.
Nickel Trading Is Suspended on the LME After a Sharp Price Spike
The London Metal Exchange said it has suspended trading in its nickel market for the remainder of Tuesday, "following further unprecedented overnight increases in the three-month nickel price."
Nickel surged as much as 111% during the trading day in Asia, according to data from Bloomberg, and traded briefly above $100,000 a ton. The move was the largest ever on the LME, Bloomberg reported.
Foreign Companies in China Are Less Optimistic About Investing There
HONG KONG-Foreign companies in China are feeling less confident about investing in China, citing concerns of slowing economic growth and political tensions with the U.S., an annual survey by an American business group found.
Less than one-half of members surveyed by the American Chamber of Commerce in China said they were optimistic that the Chinese government was committed to opening its market to more foreign investment over the next three years, down from 61% a year earlier. More than one-third said they would reduce investment in the country because of an uncertain policy environment.
White House to Order Broad Review of Cryptocurrencies
WASHINGTON-The White House is set to release an executive order this week tasking several federal agencies with conducting a broad review of cryptocurrencies, including studying the creation of a U.S. digital currency, according to a person familiar with the matter.
The executive order, which the White House is expected to reveal in the coming days, will task the Treasury, Commerce, State and Justice departments, among other agencies, with studying elements of the fast-growing cryptocurrency market, the person said. The agencies will have roughly three or six months to conduct a review and prepare a public report with recommendations for the federal government's approach to digital tokens.
JPMorgan to Exclude Russian Debt From Bond Indexes
JPMorgan Chase & Co. said Monday that it would exclude Russian sovereign and corporate debt from all of its widely tracked fixed-income indexes, as Wall Street further decoupled from Russia in the wake of economic sanctions tied to the invasion of Ukraine.
JPMorgan's move, effective March 31, will exclude Russia's sovereign and corporate debt from fixed-income benchmarks, including the Emerging Market Bond Index (EMBI) and the Corporate Emerging Market Bond Index (CEMBI). Along with Russia, Belarus's sovereign debt will also be excluded from the bank's environmental, social and governance-linked indexes as of March 31, JPMorgan said.
Germany's Industrial Production Rose in January, Beating Forecasts
German industrial production increased in January, beating expectations despite supply-chain constraints.
Total industrial output--comprising production in manufacturing, energy and construction--rose 2.7% in January compared with the previous month in calendar-adjusted terms, statistics office Destatis said Tuesday. Economists polled by The Wall Street Journal had forecast a 0.5% increase.
Supreme Court Turns Away GOP Challenges to Congressional Maps in North Carolina, Pennsylvania
WASHINGTON-The Supreme Court on Monday rejected two separate Republican challenges to congressional maps in North Carolina and in Pennsylvania, representing victories for Democrats in two key redistricting fights ahead of the 2022 fall elections.
The court noted that the Pennsylvania case is pending before a lower federal court. There were no noted dissents to that order.
Congress Passes Historic Anti-Lynching Bill
WASHINGTON-After more than 100 years of effort and 200 bills that failed, legislation to designate lynching a federal hate crime passed Congress on Monday and will head to President Biden for a signature.
The measure passed the Senate by unanimous consent, meaning none of the 100 senators objected. It cleared the House last month in a 422-3 vote.
South Korea's Presidential Election to Set Tone With U.S., North Korea
SEOUL-For nearly five years under left-leaning President Moon Jae-in, South Korea went all in on engaging North Korea. That left Seoul at times out of sync with Washington and Tokyo, which back stronger confrontation with Pyongyang.
South Korea's election on Wednesday to pick Mr. Moon's successor will determine whether much of his foreign policy approach stays or goes. Progressive Lee Jae-myung, a fellow Democratic Party member with Mr. Moon, is running a tight race with the conservative Yoon Suk-yeol, who pledges to get tougher on North Korea and closer with the U.S.
Court Hears Final Arguments in First Jan. 6 Capitol Riot Trial
WASHINGTON-Prosecutors rested their case Monday in the first Jan. 6 criminal trial, having put the son and a friend of a former Texas oil worker on the stand to show how he came to believe potentially violent means were needed to remove Washington lawmakers he deemed corrupt.
"Not making the sacrifice for this short time in your life could be detrimental for the rest of your life," the man, Guy Reffitt, texted other members of a local right-wing group, as they discussed traveling to Washington to disrupt lawmakers' planned certification of President Biden's win in the 2020 election.
EPA Aims to Cut Toxic Emissions From Commercial Trucks
WASHINGTON-The Biden administration is proposing stricter rules to reduce air pollution from commercial trucks and buses, an effort it says will combat smog in major cities and the resulting respiratory problems.
The U.S. Environmental Protection Agency on Monday proposed new standards for engine manufacturers to lower nitrogen-oxide emissions from tractor-trailer-size trucks, as well as other delivery trucks, cement mixers and trash trucks.
Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Ag Growth Intl (AFN.T) 4Q
AirBoss of America Corp (BOS.T) 4Q
CareRx 4Q
Ero Copper Corp. ERO.T) 4Q
Evertz Tech Limited (ET.T) 3Q
Nuvei 4Q
Spartan Delta Corp (SDE.T) 4Q
Transcontinental Inc. (TCL.A.T) 1Q
Transcontinental Inc. (TCL.B.T) 1Q
Wajax 4Q
Economic Indicators (ET):
0830 Jan International merchandise trade
Stocks to Watch:
Transglobe Energy 2021 Oil Reserves, Expected Revenue Rose
Transglobe Energy Corp. said Monday that its oil reserves and expected future revenue rose in 2021.
The oil exploration-and-production company said that proved developed producing gross reserves rose 30% to 19.9 million barrels of oil equivalent, while total proved gross reserves increased around 23% to 28.0 million barrels of oil equivalent across its Canadian and Egyptian sites.
The net present value of future net revenue--which takes into account forecasted energy prices and tax among other factors--increased to $423 million, more-than-doubling from $198 million in 2020.
The company said reserves largely increased due to amended commercial terms in Egypt, allowing it to merge, amend and extend its three existing Eastern Desert concessions, and technical work carried out in both Egypt and Canada.
Market Talk:
Sleep Country Can Weather Headwinds in 2022
Sleep Country Canada is well positioned for 2022, and management's forecasts are likely inclined towards the conservative side, CIBC says. Management was cautious on expectations for 1Q, the investment bank notes, as supply chain issues, inflation and rising interest rates continue to weigh on an already uncertain economic recovery. However, CIBC says this industry is fairly resilient, the consumer balance sheets remain healthy and Sleep Country can continue taking share. "The risks discussed have, for the most part, been present for multiple quarters, and ZZZ has excelled," it says. CIBC lowers its target price to C$39 from C$47 to reflect weaker sentiment among consumer discretionary names. Shares sink 9.9% at C$26.75.
Expected Major Events for Tuesday
00:01/UK: Feb BRC-KPMG Retail Sales Monitor
04:30/JPN: Feb Corporate Insolvencies
05:00/JPN: Jan Indexes of Business Conditions - Preliminary Release
06:00/JPN: Feb Economy Watchers Survey
07:00/GER: Jan Industrial Production Index
08:59/JPN: Jan Provisional Labour Survey - Earnings, Employment & Hours Worked
09:00/ITA: Jan Retail Sales
09:30/UK: 4Q Mortgage Lenders and Administrators Return (MLAR) statistics
11:00/FRA: Jan OECD Composite Leading Indicators
(MORE TO FOLLOW) Dow Jones Newswires
03-08-22 0529ET
