EMEA Morning Briefing : Stocks to Edge Higher, -2-

Hiring among U.S. employers slowed sharply in July, signaling that the full recovery of the labor market could be bumpy despite high economic growth.

The U.S. nonfarm private employment increased by 330,000 in July, data from ADP National Employment Report showed Wednesday, well below the 653,000 rise expected by economists polled by The Wall Street Journal.

U.S. Services Sector Activity Accelerated in July to New All-Time High -- ISM

Activity in the U.S. services sector accelerated in July from the previous month, hitting a new record high, amid an increase in demand and widespread supply-related problems.

The ISM Services Report on Business PMI increased to 64.1 in July from 60.1 in June, data from a survey compiled by the Institute for Supply Management showed Wednesday.

Brazil's Central Bank Raises Benchmark Rate to 5.25%, Sees More Hikes Coming

Brazil's central bank raised its benchmark lending rate by a full percentage point, picking up the pace of its increases after inflation accelerated and the economy showed unexpected strength, and said it expects to increase it by the same amount at its next meeting.

The bank raised the rate, known as the Selic, to 5.25% on Wednesday from 4.25%, the fourth increase in as many policy meetings. The Selic started the year at a record low of 2%, and the bank raised it by three-quarters of a percentage point at each of the previous three meetings.

Canada's Plan to Reopen Border Threatened by Labor Strife

OTTAWA-Canada's plan to reopen its border next week to U.S. tourists could be in trouble as the union representing customs and immigration officers said it is ready to cut services at land crossings, airports and shipping ports Friday morning unless a new labor agreement is struck.

A labor disruption could upend the North American economy, given the tight supply-chain links between the U.S. and Canada. Furthermore, it could deal another blow to Canadian businesses in the travel, tourism and hospitality sectors, where sales plummeted due to the Covid-19 pandemic amid border restrictions in place since March of last year, and which were relying on a partial reopening to help salvage what is left of the summer season.

U.S. Crude-Oil Inventories Unexpectedly Surge Higher

U.S. inventories of crude oil unexpectedly climbed sharply last week despite an uptick in refinery activity, according to data released Wednesday by the Energy Information Administration.

Benchmark U.S. oil prices that were sharply lower before the report came out remained lower afterward. The Nymex front-month crude contract for September delivery was recently down 2.2% at $69.02 a barrel.

Beirut Port Explosion Fuels Lebanon's Collapse: 'May God Save the Country'

BEIRUT-In recent decades Lebanon has been a place of relative calm in a turbulent region. Now it is living through a once-in-a-century economic meltdown.

The collapse, rippling through all levels of society, has been accelerated by the lasting effects of the explosion in the Port of Beirut one year ago today.

U.S. Faces Growing Pressure to Allow European Travelers

BRUSSELS-The European Union's top official called on the U.S. to reverse its ban on travelers from the bloc, urging the Biden administration to act within weeks to match Europe's opening to Americans.

The comments by European Commission President Ursula von der Leyen, which were published in German media on Wednesday, signal a growing risk that U.S. travelers could again be banned from visiting Europe because of the Covid-19 pandemic.

Taliban Claim Attack on Afghanistan Defense Minister's Home

KABUL-The Taliban claimed responsibility for a complex suicide attack targeting the home of Afghanistan's defense minister that killed eight people and wounded 20, one of the most serious insurgent strikes in the Afghan capital in recent months.

Gen. Bismillah Khan Mohammadi, who took over as minister of defense after the Taliban swept through northern Afghanistan in June, wasn't at home during Tuesday night's attack. The ensuing gunbattle between Afghan special forces and Taliban fighters rattled downtown Kabul for several hours.

ESR Cayman to Acquire ARA Asset Management for US$5.2 Billion

ESR Cayman Ltd. is planning to acquire ARA Asset Management Ltd. for US$5.2 billion in a move that would make it the largest real estate manager in Asia Pacific.

As part of the deal, ESR will issue shares worth US$4.29 billion, translating to 27.00 Hong Kong dollars per share (US$3.47), and another US$519 million in cash consideration, it said Thursday.

Boeing Says Weather Unlikely the Cause of Starliner Postponement

Boeing Co. said a storm Monday near the launch site in Florida for its Starliner space capsule likely wasn't the cause of a problem with valves in a propulsion system for the vehicle, but teams plan more checks for water or electrical damage.

In a statement Wednesday evening, Boeing also said the problem concerned valves in the propulsion system for Starliner's service module.

Fox Reports Higher Revenue, as Sports and Entertainment Events Resume

Fox Corp., parent of Fox News and the Fox broadcast network, said revenue rose in the latest quarter, as the company expects the return of live sports and entertainment events will continue to propel its growth.

Revenue for the company's fiscal fourth quarter was $2.89 billion, up 20% from the year-ago period.

DBS Group 2nd-Quarter Net Profit Rose 37% on Lower Allowances

DBS Group Holdings Ltd.'s second-quarter net profit rose 37% on year as the bank set aside lower allowances for credit and other losses.

Net profit for the quarter was 1.70 billion Singapore dollars (US$1.26 billion), DBS Group, one of Southeast Asia's largest banks by assets, said Thursday.

Uber, Lyft Drive Investors Away

Is the optimal strategy in ride-hailing growth or profits? Investors can't have it both ways.

After Lyft said it achieved profitability on the basis of adjusted earnings before interest, taxes, depreciation and amortization on Tuesday, Uber said Wednesday that its losses deepened sequentially on that basis as it made investments in driver recovery. Shares of Lyft fell more than 9% the day after its report while Uber's shares fell 8% in after-hours trading immediately following the release of its second quarter results.

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Expected Major Events for Thursday

00:01/IRL: Jul Ireland Services PMI

04:30/NED: Jul CPI

06:00/NOR: May POSTPONED: Labour force survey SA, incl unemployment

06:00/NOR: 2Q Labour force survey

06:00/GER: Jun Manufacturing orders

06:00/GER: Jun Manufacturing turnover

06:45/FRA: Jun Industrial production index

07:00/CZE: Jun Retail trade

08:00/UK: Jul UK monthly car registrations figures

08:30/UK: Jul CIPS / Markit Construction PMI

09:00/CYP: Jul CPI

09:00/GRE: May Labour Force Survey

10:00/IRL: Jul Monthly Unemployment

11:00/UK: Bank of England Monetary Policy Report

11:00/UK: UK interest rate decision

12:30/CZE: Czech interest rate decision

23:01/UK: Jul BRC-Sensormatic IQ Footfall Monitor

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

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

(END) Dow Jones Newswires

08-05-21 0021ET