OPEC+ is set to consider Wednesday its most drastic reduction of production since the pandemic in order to help prop up falling oil prices, a move that could put pressure on global economic growth.
The Organization of the Petroleum Exporting Countries and Moscow-led allies, collectively known as OPEC+, is considering a cut of more than 1 million barrels a day, delegates in the group said.
U.K. Prime Minister Liz Truss Admits Mistake in Communicating Economic Plan
LONDON-U.K. Prime Minister Liz Truss said that her government could have done a better job preparing financial markets for a surprise tax-cut plan funded by increased debt, but otherwise defended the package of economic measures.
"We should have laid the ground better," Ms. Truss said in an interview with the British Broadcasting Corp. on Sunday. It was her first acknowledgement that her signature policy since taking office last month had fallen flat among investors, voters and some members of her own party.
Britain's Financial Disaster Is a Warning to the World
A toxic mix of politics, inflation and higher interest rates is threatening the financial system in the U.K., sending a shock wave through global markets and providing a warning to governments everywhere of the dangers of the new economic era we are entering.
A surprise tax cut by the new British government just over a week ago sparked investor concern about the country's fiscal credibility and crashed both the pound and the market for U.K. government bonds, known as gilts.
U.K.'s Central Banker Faces Inflation, a Financial Crisis and His Own Government
LONDON-In late August, Bank of England Gov. Andrew Bailey was at a symposium in Jackson Hole, Wyo., when a New York University economist flagged a problem. In a world where central banks are quickly raising interest rates to calm inflation, they might face an unexpected crunch in financial markets and need to flood them with liquidity to prevent a market meltdown.
Mr. Bailey, a bookish, soft-spoken Brit, stood up in the hall and said such an about-face would be a tough sell to investors and the public since it would undermine the fight against inflation. It "is a very difficult message to get across to the outside world," he said.
Probe Into Nord Stream Pipeline Damage Faces Hurdles at Sea, Ashore
When Bjorn Lund's team at the Swedish National Seismic Network first recorded tremors in the Baltic Sea, it didn't initially notice anything unusual.
The area, off the coasts of Denmark and Sweden, is used for naval exercises by both countries. The institute, part of Uppsala University, regularly records the impact of explosive blasts there.
Russia's Gazprom Suspends Gas Flow to Italy
Russian gas giant Gazprom PJSC said it suspended its natural-gas deliveries to Italy over the weekend after it didn't receive authorization for the pipeline flows via Austria.
It wasn't immediately clear whether the interruption was a temporary bureaucratic glitch, or whether Italy has now joined the growing list of European Union countries that have been cut off from Russian gas.
Ukraine Gains Full Control of Lyman, Days After Putin Claimed Russia Rules There
KYIV, Ukraine-Ukrainian President Volodymyr Zelensky said the eastern city of Lyman had been cleared of Russian forces and that Ukrainian flags were flying again, scoring a symbolic military and political victory against Moscow on the very territory President Vladimir Putin said last week Russia would annex.
Russia's Defense Ministry said it was withdrawing troops from the city following days of advances by Ukrainian forces to surround them, but Moscow kept several thousand troops there, most likely encircled until fighting ended.
Iran Protesters Circumvent Internet Disruptions
Protesters in Iran are finding new ways to challenge the Islamic Republic after the government imposed sweeping disruptions to the internet that have affected the movement's ability to use social media to spread its message.
In places such as Tehran and Ahvaz in Southwestern Iran, demonstrators are passing out paper leaflets with details of planned protests and antigovernment statements, according to social-media footage. Others are spraying graffiti on the walls, with slogans like "Woman, life, freedom, " which is one of the trademark chants of the demonstrators.
GLOBAL NEWS
Central Banks' Higher Rates, Bond Sales Clash With Government Needs
FRANKFURT-Central banks and governments are on a collision course.
For 15 years, central bankers around the world worked hand in glove with elected leaders to bolster economic growth and inflation.
Inflation Keeps the U.S. From Stepping In to Slow Dollar's Rapid Rise
WASHINGTON-U.S. policy makers aren't likely to take action to slow the dollar's rapid rise despite rising risks of global financial turmoil, analysts say, largely because a strong greenback helps fight domestic inflation.
The U.S. dollar has soared in value as the Federal Reserve raises interest rates to fight the highest U.S. inflation in decades and investors move money into dollar-denominated assets. The WSJ Dollar Index, which measures the dollar against a basket of other currencies, is up roughly 16% so far this year.
Cargo Shipowners Cancel Sailings as Global Trade Flips From Backlogs to Empty Containers
Ocean carriers are canceling dozens of sailings on the world's busiest routes during what is normally their peak season, the latest sign of the economic whiplash hitting companies as inflation weighs on global trade and consumer spending.
The October cancellations are a sharp reversal from just a few months ago, when scarce shipping space pushed freight rates higher and carriers' profits to record levels. Last October, companies like Walmart Inc. and Home Depot Inc. were chartering their own ships to get around bottlenecks at ports to meet a surge in demand for imports.
China Stocks Near a Bottom, But Recovery Path Unclear -- Talking Markets
After months of roller coaster trading, Chinese stocks have dropped back to their lowest levels of the year. A path to full recovery remains unclear, but stocks with exposure to government stimulus efforts or defensive earnings could offer opportunities, analysts say.
The Shanghai Composite and CSI 300 indexes fell 11% and 15%, respectively, in the third quarter, leaving both benchmarks at their lowest levels in about five months. Hong Kong's Hang Seng Index lost 21%.
Write to paul.larkins@dowjones.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
10-03-22 0543ET
