EUROPEAN MIDDAY BRIEFING : Stocks Jump to Open -2-

Finnish state-controlled utility company Fortum Oyj said late Wednesday that it has agreed to sell its 50% ownership in Swedish district heating and cooling company Stockholm Exergi Holding AB to a group of European institutional investors for 29.5 billion Swedish kronor ($3.45 billion).

The consortium comprises APG, Alecta, PGGM, Keva and AXA.

Sweden's Central Bank Still Expects to Hold Key Rate at 0% Well Into 2024

Sweden's central bank said Thursday that it still expects the key repo rate to remain at 0% in the years to come, with updated forecasts showing the repo rate remaining unchanged throughout its forecast horizon that runs to the third quarter of 2024.

The Riksbank said the spread of coronavirus infections has declined and the economic outlook is brighter, but new variants are creating uncertainty and inflationary pressures are still moderate. Expansionary monetary policy is therefore needed for the continued development of the economy and for inflation to attain its 2% target more permanently.

Sodexo Raises 2H Guidance After 3Q Was Better Than Expected

Sodexo SA has raised its guidance for the second half of its fiscal year after third-quarter revenue was better than expected.

The French food-services and facilities company now expects organic growth of roughly 15% and underlying operating margin of around 3.5% at constant rates in the second half.

Credit Suisse Major Shareholder Qatar Investment Authority Trims Stake

One of Credit Suisse Group AG's biggest and longest-term shareholders, the Qatar Investment Authority, trimmed its stake in the bank, a blow to the beleaguered Swiss lender.

QIA, a sovereign-wealth fund of the gas-rich Gulf state, cut its stake to 4.8% from 5.2% on Wednesday, according to its filings with the Securities and Exchange Commission. Credit Suisse is under pressure to revamp following twin scandals from the failures of Archegos Capital Management and Greensill Capital.

Nissan Motor Unveils GBP1 Billion Electric Vehicle Hub in UK

Nissan Motor Co. announced a 1 billion British pound ($1.38 billion) electric-vehicle production hub in the U.K. that includes Envision Group's battery factory.

The Japanese auto maker said Thursday that it would invest up to GBP423 million to produce a new-generation electric vehicle at its Sunderland plant. An Envision unit will invest GBP450 million to build a factory near the plant and supply batteries for up to 100,000 vehicles a year.

CureVac Covid-19 Vaccine Is 48% Effective in Pivotal Study

German company CureVac NV released the final results for its once-promising Covid-19 vaccine, finding it provided less protection than the vaccines already authorized for use in the U.S.

The company said Wednesday that its vaccine was 48% effective in providing protection against Covid-19 of any severity, regardless of age, in a large, pivotal study.

Why the Covid-19 Pandemic Weakened Far-Right Groups in Europe

European governments struggled in the pandemic, facing criticism for high death rates and the slow pace of vaccination. Yet as the crisis recedes, it leaves surprising political fallout: weakened antiestablishment forces and a strengthened center.

Far-right parties in France and Germany that were once highly popular have scored badly in recent ballots and weakened in opinion polls. Support for populist opposition parties in Italy is stagnating, and their ideological allies in governments across Central Europe have either seen their ratings fall or are threatened by a strengthening opposition.

Russia's Putin Challenges U.S. Leadership, Asserts Military Might

MOSCOW-Russian President Vladimir Putin challenged U.S. leadership in world affairs on Wednesday, arguing that an era of U.S. hegemony has come to an end as he touted Moscow's growing military strength and increasingly assertive foreign policy.

Mr. Putin spoke during an annual event at which he answers questions from ordinary Russians. The remarks come two weeks after a summit with President Biden in Geneva where the two leaders sought to ease tensions but achieved little tangible progress. At the same time, Mr. Biden depicted the Kremlin leader as presiding over a country increasingly isolated by sanctions and struggling economically.

GLOBAL NEWS

Delta Variant's Spread Hobbles Global Efforts to Lift Covid-19 Restrictions

The fast spread of the Delta variant of the coronavirus in much of the world is thwarting plans in many countries to lift lockdowns and reopen economies, a major setback to efforts to contain the global Covid-19 pandemic.

The variant's spread has heightened a likely feature of an extended global pandemic: the contrast between poorer unvaccinated countries where hospitalizations and death rates are surging and highly vaccinated populations where the link between rising case rates and serious illness has been largely broken.

U.S. Jobless Claims Projected to Resume Decline

Worker filings for jobless benefits are projected to have resumed a decline last week after stalling out in mid-June.

Economists surveyed by The Wall Street Journal estimate that new jobless claims for the week ended June 26 decreased to a seasonally adjusted 390,000 from 411,000 the prior week. The four-week moving average, which smooths out volatility in the weekly figures, was slightly above its pandemic low at 397,750 last week.

China Manufacturing Activity Slows to Three-Month Low, Caixin PMI Shows

A private gauge of China's manufacturing activity fell to a three-month low in June, as a recent uptick in Covid-19 cases and supply-chain logjams weighed on output and dampened demand.

The Caixin China purchasing managers index dropped to 51.3 in June compared with 52.0 in May, Caixin Media Co. and researcher Markit said Thursday.

Japan Manufacturing Sentiment Rose to Highest Level in 2.5 Years in 2nd Quarter

Sentiment among Japan's large manufacturers rose to the highest level in 2 1/2 years during the second quarter thanks to a recovering global economy.

The main index measuring large manufacturers' sentiment was plus 14 in June, compared with plus five in March, according to the Bank of Japan's quarterly tankan corporate survey released Thursday. It was the highest reading since December 2018.

Propane Prices Are Cooking, Signaling Higher Winter Heating Bills for Many

Propane has rarely been so expensive this time of year, and prices may have to move higher yet to ensure ample supply for winter, when millions of rural Americans rely on the fuel to heat their homes.

At hubs in Mont Belvieu, Texas, and Conway, Kan., propane futures traded Wednesday at $1.09 and 95 cents a gallon, respectively. Those prices are roughly twice their levels during the past two summers. Spot prices have moved in a similar way.

Car Market Is Expected to Cool Amid Dearth of Vehicles on Lots

The dwindling number of vehicles on dealership lots is threatening to cool the U.S. car market's blistering sales pace.

Analysts are expecting new-car sales from June to fall off from recent months, when car shoppers turned out in near-record numbers, buoyed by excess household savings and pent-up demand from the pandemic. Most car makers are scheduled Thursday to report U.S. sales results for June.

Private-Equity Firms Put Retirees' Annuities in Higher Risks but Also More Cash

Private-equity-backed insurance companies that owe billions of dollars to retirees in annuity payments are taking some additional risk with investments, new analysis by ratings firm A.M. Best shows.

To offset that risk, however, these firms on average hold more cash than traditional insurers, and they have higher capital levels, according to the report.

Xi Jinping Warns China Won't Be Bullied as Communist Party Marks 100 Years

Chinese leader Xi Jinping marked his ruling Communist Party's 100th anniversary with rousing appeals for national unity and defiance against foreign pressure, a rallying cry for one-party rule aimed at reinforcing his authority for years to come.

Addressing a crowd of thousands gathered Thursday at Beijing's Tiananmen Square, Mr. Xi struck strident tones in recounting the party's successes in surmounting challenges at home and abroad-from eliminating rural poverty to resisting imperialist aggression. He insisted that China has irreversibly emerged from past humiliation by foreign powers into an era of pride and prosperity.

Delta Most Common Covid-19 Variant in U.S., Data Show

The highly transmissible Delta variant is the most common strain of the Covid-19 virus circulating in the U.S., new data showed, but federal health officials said fully vaccinated people don't necessarily need to put on face masks again.

An analysis of genetic sequencing data as of June 27 showed that the Delta strain, also known as B.1.617.2, now makes up about 40% of positive Covid-19 test samples, according to Helix, a population genomics company that collects and analyzes test samples from several U.S. states.

Vaccinated People Who Get Infected Carry Less Covid-19 Virus, CDC Researchers Say

People who became infected with Covid-19 after getting a messenger RNA vaccine carried less virus and had shorter cases than unvaccinated people who became infected, a study by government health researchers found.

Sixteen people in the study who got infected, despite taking a Pfizer Inc. or Moderna Inc. vaccine, had on average 40% less virus in their nose compared with the 155 unvaccinated people who became sick, according to the study, published online Wednesday in the New England Journal of Medicine.

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07-01-21 0626ET