EMEA Morning Briefing : Stocks to Rebound on U.S. -2-

The U.S. and Europe aren't weighing sanctions against Russian exports of oil and natural gas directly given concern they could increase already high energy costs in Europe. But officials have outlined possible, broad restrictions on technology transfers and export controls into Russia, The Wall Street Journal has reported. Such sanctions, if applied broadly enough, could hamper access to crucial gear and know-how by all companies operating in Russia, including units and partners of these Western energy companies.

Wall Street's Green Push Exposes New Conflicts of Interest

The booming business of green finance is being led by an unlikely group of companies that sits at the heart of the financial system.

The giant firms that audit the books, rate the bonds, advise on proxy voting and categorize the world's companies are spending billions to boost their climate-related operations. That could accelerate the shift away from fossil fuels but could also create a new set of conflicts of interest for industries that struggled to manage them in the past.

EU's Microchip Plan to Rival U.S. and Asia Takes Next Step

BRUSSELS-Coming European Union legislation to promote microchip development would mobilize funding comparable to the $52 billion proposed in pending U.S. legislation, a senior EU official said.

Thierry Breton, European commissioner for the internal market, said the European Chips Act, which he expects to present early next month, would strengthen the bloc's position in the global semiconductor industry through funding and other support for research and investment.

Port Congestion Spreads Across More U.S. Import Gateways

Port congestion is spreading across the country, threatening to extend shipping delays and drive up costs for importers seeking to get around the bottlenecks at Southern California's big gateway complex.

Container ships are backing up off coastlines from Oakland, Calif., to Charleston, S.C., because of a record flow of boxes into and out of the country combined with worker shortages triggered by Covid-19's fast-spreading Omicron variant.

Bank of America Fed Outlook Gets More Hawkish Amid Inflation Worries

Bank of America has shifted its outlook for monetary policy in a decidedly hawkish direction and now expects more rate rises this year than even the most aggressive forecast from a central banker.

The Fed is likely to raise its near-zero short-term interest-rate target seven times over the course of this year, on its way to a stopping point of between 2.75% and 3%, wrote Ethan Harris, chief global economist for the bank.

U.A.E. Shoots Down Missile Fired by Yemen's Houthis During Israeli Visit

DUBAI-The United Arab Emirates military said Monday it intercepted a ballistic missile fired at Abu Dhabi by Iran-backed Houthi rebels in Yemen, just hours after Israel's president began a historic visit to the Persian Gulf country.

The missile attack, which caused no injuries or major disruptions, was the Houthis' third aerial assault on the U.A.E. in as many weeks, as Yemen's civil war threatens to spill over into other parts of the region.

In Eastern Ukraine's Largest City, Pro-Russia Sympathies Wither as War Looms

KHARKIV, Ukraine-An unexploded long-range Russian rocket, brought here from the war-torn Donetsk region to the south, sticks out from the ground opposite the government headquarters of Ukraine's second-largest city.

Next to it, a banner asks, "Is Kharkiv next?"

Italy Opts to Keep Same Leaders, Averting Political Chaos

ROME-Italian lawmakers re-elected President Sergio Mattarella as head of state, ending a week of quarreling over other possible candidates that threatened to undermine the stability of the government.

The floundering of Italy's political parties over how to fill the mainly ceremonial position of president, at a time when Italy is facing the pandemic, a stalling economic recovery and the West's standoff with Russia, was becoming a national embarrassment, further weakening Italians' low trust in their political class.

Turkey's Erdogan Fires Statistics Chief After Record Inflation

ISTANBUL-Turkish President Recep Tayyip Erdogan replaced the head of the state statistics agency weeks after it reported record inflation, which added to anger in the country over its economic woes, and appointed another member of the ruling party as justice minister.

Uproar in Israel Over Police Snooping Renews Privacy Debate

TEL AVIV-For years, governments around the world used Israeli company NSO Group's software to spy on journalists, activists and dissidents, prompting the U.S. to blacklist it. Now, a firestorm has erupted here over whether the company's tools were used to illegally monitor Israelis.

Israel's police say they use a variety of spyware tools, including one developed by NSO, known for its Pegasus software, which can infect and completely take over a smartphone without the target being aware. The police haven't said how similar spyware that has been tailored for their use is to Pegasus, only that Israeli law allows them limited access. They say spyware is crucial for tracking criminal activity amid a rise in the use of encrypted software in phone apps like WhatsApp, Telegram and Signal.

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Expected Major Events for Monday

05:30/NED: Dec Retail turnover

07:00/DEN: Dec Unemployment

07:00/TUR: Dec Foreign Trade

07:00/NOR: Dec Credit Indicator C2

08:00/SPN: Dec Retail Sales

08:00/AUT: 4Q Flash Estimate GDP

08:00/SPN: Jan Flash Estimate CPI

08:00/HUN: Dec PPI

09:00/GER: Jan Bavaria CPI

09:00/GER: Jan Brandenburg CPI

09:00/GER: Jan Hesse CPI

09:00/GER: Jan Baden-Wuerttemberg CPI

09:30/GER: Jan North Rhine Westphalia CPI

09:30/POR: 4Q Flash Estimate GDP

10:00/GER: Jan Saxony CPI

10:00/MLT: Dec PPI

10:00/CRO: Dec Industrial Production Volume Index

10:00/GRE: Nov Turnover Index in Retail Trade

10:00/CYP: Dec PPI

10:00/LUX: Dec PPI

10:00/EU: 4Q Preliminary Flash Estimate GDP

10:00/ITA: 4Q GDP preliminary estimate

13:00/GER: Jan Provisional CPI

15:59/UKR: Dec Industrial Production

16:59/SPN: Nov Monthly Balance of Payments

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

01-31-22 0029ET