European Midday Briefing : Euro Spikes, Bund -2-

Swedbank AB on Tuesday reported a second-quarter net profit roughly in line with expectations as higher net interest income was partly offset by increased expenses and negative effects from the revaluation of its trading portfolio.

Net profit fell to 4.71 billion Swedish kronor ($452.9 million) from SEK5.56 billion, while net interest income rose 5.5% to SEK7.11 billion.

Tele2 Backs Guidance as 2Q Earnings Beat Forecasts

Tele2 AB on Tuesday backed its guidance after reporting a rise in second-quarter underlying earnings amid a strong performance in the Baltics and its Swedish business-to-business offering while benefiting from a slight tailwind in roaming revenues.

The Sweden-based telecom company posted a net profit of 847 million kronor ($81.4 million), down from SEK1.37 billion.

Telenor Swung to 2Q Net Loss, Trims Guidance

Norwegian telecommunications provider Telenor ASA on Tuesday swung to a second quarter net loss and trimmed full-year guidance as earnings were weighed by an impairment related to Pakistan and currency losses.

The company posted a second-quarter net loss of 1.11 billion kroner ($109.9 million), compared with a net profit of NOK2.19 billion a year earlier and versus a company-compiled consensus of NOK2.3 billion.

Gazprom Claims Force Majeure in Its Halt of Gas Deliveries to Europe

Russia's energy company Gazprom PJSC has invoked force majeure for its failure to deliver contractually agreed natural-gas shipments in recent weeks, according to European energy companies, raising concerns it could use the same argument to turn off the tap to the continent this week.

Gazprom stopped deliveries last week via the Nord Stream pipeline-the largest thoroughfare for Russian gas to Europe-as the pipeline undergoes scheduled maintenance, usually a routine annual procedure. European officials fear that Moscow won't restore the flows after the maintenance ends on Thursday, making it hard for several European nations to build reserves for the winter and possibly causing a deep recession on the continent.

In Scramble to Give Up Russian Gas, Europe Strikes Energy Deals Elsewhere

European leaders rushed to secure a handful of energy-supply deals Monday, part of a broader, monthslong effort by the continent to reduce its reliance on energy from Russia.

The moves come days ahead of the planned restart of a natural-gas pipeline from Russia to the European Union. The line has been switched off for routine maintenance and is due to come back on stream later this week. European officials and executives worry Russia instead will keep it shut off or operating at a reduced capacity. In that eventuality, Europe would struggle to fill up its gas storage to comfortable levels before winter.

EU Seeks to Quell Criticism of Its Russia Sanctions

BERLIN-European officials hit back at critics of their sanctions policies on Monday, arguing the measures were inflicting pain on Russia, as worries grow inside the bloc about the impact of Kremlin's energy cuts and other countermeasures on EU economies and citizens.

Hungarian Prime Minister Viktor Orban has continued to rail against a European Union oil embargo against Russia agreed last month and Italian Prime Minister Mario Draghioffered his resignation last week after a key party in his coalition pulled support for the government following squabbles among the groups on whether to send arms to Ukraine.

Russia Orders Troops to Target Ukraine's Western-Supplied Long-Range Weapons

KYIV, Ukraine-Russia ordered its forces to target the long-range missiles and artillery weapons that Western countries have recently supplied to Ukraine, a sign of how Kyiv's additional firepower has begun to reshape the conflict.

On Monday, Defense Minister Sergei Shoigu told a group of Russian troops to make Ukraine's long-range weaponry a priority target to prevent shelling in parts of eastern Ukraine held by Russian forces, according to the Russian Defense Ministry.

Ukraine's First Lady Olena Zelenska in Washington for High-Level Meetings

WASHINGTON-Ukraine's first lady Olena Zelenska opened a round of high-level meetings Monday in Washington that includes a planned address to Congress later in the week.

Ms. Zelenska met Monday with Secretary of State Antony Blinken and is due to hold talks with first lady Jill Biden on Tuesday, the White House said. Ms. Zelenska is scheduled to deliver remarks to lawmakers on Wednesday at 11 a.m., House Speaker Nancy Pelosi (D., Calif.) said.

Race for Next British Leader Down to Final Four

LONDON-The race to succeed British Prime Minister Boris Johnson was whittled down to four candidates Monday, with former Chancellor of the Exchequer Rishi Sunak continuing to lead the highly unpredictable contest to find the country's new leader.

Mr. Sunak extended his lead, getting the backing of 115 Conservative lawmakers, needing just five more votes to secure a place in the final-two runoff. Penny Mordaunt, the race's dark horse, held on to second place with 82 votes and Foreign Secretary Liz Truss closed the gap in third, securing 71 backers. Kemi Badenoch, a former equalities minister, got fourth place with 58 votes. Tom Tugendhat, a centrist Conservative, was eliminated.

U.K. Declares National Emergency in Heat Wave as Europe Faces Record Temperatures

LONDON-A heat wave swept the U.K. on Monday, with the country set to have its hottest day on record this week-an unprecedented 104 degrees Fahrenheit-causing the government to declare a national emergency.

Across the country, schools, sports facilities and summer camps shut down, train companies canceled services and health authorities prepared for a surge in calls. The national meteorological service triggered its first-ever "red extreme heat warning" across England.

Binance Fined in Netherlands for Lack of Registration

The Dutch central bank fined cryptocurrency exchange Binance for offering services without proper registration, underscoring the company's friction with regulators.

The EUR3.3 million fine, equivalent to $3.4 million, is a relatively small financial penalty for the world's largest cryptocurrency exchange by volume, which processes billions of dollars in trades daily. The Netherlands has required crypto companies to register with the central bank since May 2020.

GLOBAL NEWS

Yellen Calls for Trade Overhaul to Diversify From China

SEOUL-Treasury Secretary Janet Yellen called for a reorientation of the world's trading practices in the wake of Russia's invasion of Ukraine, pushing again for countries to become less reliant on China for critical components like semiconductors.

Speaking at an LG Group research facility in South Korea's largest city and capital, Ms. Yellen explored so-called "friend-shoring," a proposed paradigm shift that would have the U.S. and its allies trade more closely with one another and less with geopolitical rivals. Supply disruptions during the Covid-19 pandemic, as well as the war in Ukraine, have exposed the danger of depending too heavily on a single producer, Ms. Yellen said.

Tech Bill Aims to Block U.S. Aid for Companies That Build Advanced Chips in China

WASHINGTON-A bill providing roughly $52 billion to boost U.S. semiconductor manufacturing would impose so-called guardrails aimed at ensuring adversarial countries such as China don't benefit too, according to the draft legislation.

The chip legislation has been narrowed from a broader bill to help the U.S. better compete in advanced technology, and details are still being hashed out ahead of expected procedural votes in the Senate as soon as Tuesday.

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

(END) Dow Jones Newswires

07-19-22 0533ET