European Midday Briefing : Fed Inflation Fears -2-

Germany's annual rate of inflation accelerated again in September, posting the highest reading since December 1951 as temporary government interventions to ease prices expired, according to final data released by German statistics office Destatis on Thursday.

The consumer price index--a measure of what consumers pay for goods and services--rose 10.0% in September compared with the same month a year ago measured by national standards, up from 7.9% in August, confirming the preliminary reading. This is in line with the forecasts of economists polled by The Wall Street Journal.

Italy's Monte Dei Paschi to Push Ahead With $2.43 Bln Capital Increase to Revamp Business

Italy's Banca Monte dei Paschi di Siena SpA will go ahead with plans to raise up to 2.5 billion euros ($2.43 billion), a move that is expected to revamp its balance sheet, turning a page on a chapter that saw the lender undergo state recapitalization and the disposal of billions in bad loans.

The world's oldest bank said Thursday that its board of directors had set the final terms and conditions for the capital increase, issuing more than 1.25 billion shares on the regulated market of Euronext Milan.

easyJet Sees Narrowed FY 2022 Pretax Loss After Strong 4Q

easyJet PLC said Thursday that its headline pretax loss for the year ended Sept. 30 is expected to be between 170 million and 190 million pounds ($188.7 million-$210.9 million) after fourth-quarter revenue more-than doubled.

Consensus for headline pretax loss is GBP185.1 million pounds, taken from FactSet and based on nine analysts' forecasts. The company reported a headline pretax loss of GBP1.14 billion for fiscal 2021.

Entain 3Q Net Gambling Revenue Rose; Backs Full-Year View

Entain PLC said Thursday that its net gambling revenue increased 2% in the third quarter, and it reaffirmed full-year earnings and revenue expectations.

The sports-betting and gambling entertainment group said net gambling revenue rose 1% for the online business in the period, broadly in line with expectations, and rose 10% across retail sites.

Oil-Refinery Strike Grips France Amid Energy Crisis

PARIS-A strike by French refinery workers has choked fuel supplies nationwide, deepening the country's energy crunch as temperatures drop and Europe grapples with a sharp cut in Russian natural-gas shipments.

The CGT, France's far-left union, decided on Wednesday to continue a strike that has hobbled the country's refining system. The union also moved to extend the strike to a refinery in Donges on the Atlantic coast owned by TotalEnergies SE. The government on Tuesday ordered employees at a fuel depot owned by Esso-SAF ES, a subsidiary of Exxon Mobil Corp., to return to work, invoking rarely used legal powers to end strikes.

U.N. Overwhelmingly Condemns Russian Move to Annex Ukrainian Regions

United Nations members overwhelmingly rejected Moscow's move to annex four regions of Ukraine, dealing a symbolic blow to President Vladimir Putin and putting 143 nations on the record as not recognizing Russia's latest territorial expansion.

Still, 35 U.N. members abstained from the vote, showing the limits of lobbying by the U.S. and other Western countries that sought to convince developing economies to reject Russia's moves and isolate Moscow diplomatically. China, India, Pakistan, South Africa, Thailand and Vietnam were among the countries abstaining from the vote.

Ukraine Appeals for More Support From West as Russia Resumes Strikes

Ukraine said it shot down nearly a dozen drones over the south of the country on Wednesday as the West moved to shore up the country's air defenses in the wake of a barrage of Russian missiles and drones that knocked out energy infrastructure earlier this week.

The barrage heightened concerns as Ukraine's Defense Minister Oleksii Reznikov met with U.S. Defense Secretary Lloyd Austin on Wednesday ahead of the latest meeting of more than 50 Western countries under the U.S.-led Ukraine Defense Contact Group in Brussels.

Amid U.S.-Saudi Tensions, Officials Say Military Ties Will Endure

WASHINGTON-The U.S. isn't currently planning any significant changes to the number of U.S. forces stationed in Saudi Arabia but some aspects of the two nations' extensive defense cooperation could be affected following President Biden's decision to reassess relations after OPEC+ unveiled an oil production cut, U.S. officials said.

The officials said that the U.S. relationship was too critical to American interests in the Middle East to change the overall course and that the U.S. was determined to continue its strategic cooperation with Riyadh that is central to combating Iran. But there could be a decline in some areas of defense cooperation.

Iran's Supreme Leader Rails Against Protesters

Iranian Supreme Leader Ali Khamenei doubled down Wednesday on his unsupported accusations that the uprising rocking Iran is orchestrated by the country's foreign enemies, as authorities further tightened internet restrictions to make it harder for protesters to spread information about the violent government crackdown.

Meanwhile, strikes by shopkeepers spread to Iran's second-most populous city, Mashhad, according to social-media posts. The city is a stronghold for the country's hard-liners, including Mr. Khamenei and President Ebrahim Raisi. Mashhad shopkeepers joined strikes under way in the capital Tehran and other cities across the country.

Deadly Ebola Outbreak Spreads to Uganda's Capital

KAMPALA Uganda-A deadly outbreak of the Ebola virus has spread from rural Uganda into the capital, Kampala, the country's Health Ministry said Wednesday, raising further fears of a wider spread of the deadly Sudan strain for which there are no proven vaccines or antiviral treatments.

Nineteen people are confirmed dead from the hemorrhagic fever since Ugandan health authorities announced that a 24-year-old man was killed by the relatively rare Sudan strain of Ebola last month. Nineteen others, including six members of the man's family, are also believed to have died as far back as early August, but were never tested, the health ministry said.

GLOBAL NEWS

Inflation May Have Slowed in September. It Won't Be Enough For The Fed.

Consumer price growth is expected to have slowed in September from a year ago, notching the third straight month of declines in the annual pace of inflation as cheaper gas prices have provided some relief to American households.

At the same time, prices are expected to have risen slightly faster in September than in August, according to consensus expectations from economists polled by The Wall Street Journal. The result could be a slight uptick in the monthly pace of inflation that nonetheless marks a deceleration from a year ago-showing some progress on overheating prices, but not enough to steer the Federal Reserve off its monetary policy tightening path.

Japan Stands Ready to Take Action Against Sharp Yen Weakness

Japanese Finance Minister Shunichi Suzuki repeated his concerns about the yen's sharp depreciation and indicated that the government is ready to intervene in currency markets again.

"We cannot tolerate excessive moves caused by speculation" in the yen, Mr. Suzuki told reporters in Washington DC on Wednesday. "We will take appropriate action if there are any excessive moves."

Fed Minutes Show Concerns of More Persistent High Inflation

WASHINGTON-Federal Reserve officials expressed concern at their meeting last month over the persistence of high inflation, underscoring their intention to continue raising interest rates in large steps despite the pain that could cause.

Policy makers revised higher their expectations for rate increases, though some signaled caution about overdoing them amid risks of economic and financial volatility, according to minutes of the Sept. 20-21 gathering released Wednesday.

North Korea's Kim Guides Missile Test in Latest Show of Military Might

SEOUL-North Korean leader Kim Jong Un guided the launch of two long-range strategic cruise missiles on Wednesday, state media said, the latest of a recent barrage of weapons tests.

Mr. Kim stressed that the test was a "clear warning to the enemies," demonstrating the combat capacity of North Korea's war deterrent, according to a Thursday state media report.

U.S. Sees 'Decisive Decade' Ahead in Competition With China, Russia

WASHINGTON-The U.S. is entering a "decisive decade" as it faces competition with China and an attempt by Russia to upend the international order, while dealing with challenges from climate change to energy to food security, international terrorism and disease, the White House said Wednesday.

The Biden administration released its national-security strategy, a blueprint that outlines the administration's approach to problems around the world.

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

(END) Dow Jones Newswires

10-13-22 0530ET