European Midday Briefing : Mixed Earnings Drag on -2-

Gold Investment Remains Attractive Despite Demand Slip on Dollar Strength

Demand for gold fell during the second quarter of 2022 as the strength of the dollar weighed on prices for the precious metal, but macroeconomic weakness is still likely to ensure it remains an attractive investment, the World Gold Council said in a report Thursday.

Gold demand fell by 8% from the same period in 2021 to 948 metric tons, with much of the weakness related to the dollar's strength, the WGC said.

Airbus, Bogged Down by Supply Chain Woes, Cuts Delivery Target

LONDON-Airbus SE cut its aircraft delivery guidance for this year and slowed production plans, citing delays in its supply chain that are holding back the European planemaker's aggressive ramp up targets.

The company will deliver 700 aircraft this year, 20 fewer than it had initially planned, it said on Wednesday. Airbus delivered 297 aircraft in the first half, with some handovers held back by missing or late components.

Credit Suisse Tries to Turn the Page-Again

Credit Suisse is still struggling to get its house in order. A new leader will help, but the job is getting harder.

The crisis-prone bank named a new chief executive officer and strategy on Wednesday, alongside dismal second-quarter results. The change isn't surprising after its recent string of quarterly losses, profit warnings and senior personnel changes. The board will be more involved, and the incoming CEO brings useful experience, but previous efforts have been disappointing and the macroeconomic backdrop isn't ideal for a turnaround.

UK Car Manufacturing Rose in June for Second Consecutive Month

U.K. car manufacturing rose in June for the second consecutive month, but is still 19% down for the first six months as a whole, an industry body said Thursday.

The Society of Motor Manufacturers and Traders said that a total of 72,946 cars drove off the production lines in June compared with 69,097 in June 2021.

U.K. Ad Market Reached GBP8.6 Billion in First Quarter

The U.K.'s advertising market grew faster than previously anticipated in the first quarter and spending for 2022 as a whole is now expected to set a new high of 35.4 billion pounds ($42.64 billion), according to the latest Advertising Association/WARC expenditure report released Thursday.

AA/WARC figures show U.K. ad spend rose 28.3% during the first three months of 2022 to GBP8.6 billion, with growth across all media. The first three months of 2022 outperformed expectations by 7.7 percentage points as media recovered when compared with the first quarter of 2021, which was hit by Covid-19 lockdown measures and the wider impact of the pandemic on activity.

FDA Clears Danish Monkeypox Vaccine Plant, Paving Way for Use of Doses in U.S.

The Food and Drug Administration signed off on a Bavarian Nordic A/S monkeypox vaccine plant, a move that allows use in the U.S. of 786,000 doses made at the facility in Denmark.

The FDA said Wednesday it had validated the quality of the shots made at the plant and they met the agency's standards.

GLOBAL NEWS

Fed Lifts Rates by 0.75 Point Again

WASHINGTON-The Federal Reserve continued a sprint to reverse its easy-money policies by approving another unusually large interest rate increase and signaling more rises were likely coming to combat inflation that is running at a 40-year high.

Fed Chair Jerome Powell's Remarks Send Government-Bond Yields Lower

Short-term government-bond yields declined Wednesday afternoon after the Federal Reserve raised interest rates by 0.75 percentage point at its July meeting.

Most investors considered the Fed's rate increase, which brought its target to a range of 2.25% to 2.5%, a foregone conclusion. But Treasury yields fell as Chairman Jerome Powell spoke to reporters after the meeting, with some traders perceiving leeway in his remarks for a less aggressive series of rate hikes to follow.

Joe Manchin Reaches Deal With Chuck Schumer on Energy, Healthcare, Tax Package

WASHINGTON-Sen. Joe Manchin (D., W.Va.) agreed to back a package aimed at lowering carbon emissions and curbing healthcare costs while raising corporate taxes, marking a stunning revival of core pieces of President Biden's economic and climate agenda that the West Virginia Democrat had seemingly killed earlier this month.

The deal, negotiated privately between Messrs. Manchin and Senate Majority Leader Chuck Schumer (D., N.Y.) since the start of last week, would raise roughly $739 billion, with much of the revenue coming from a 15% corporate minimum tax and enhanced tax enforcement efforts at the Internal Revenue Service, as well as projected savings from allowing Medicare to negotiate some prescription-drug prices.

Senate Approves $280 Billion Bill to Boost U.S. Chip Making, Technology

WASHINGTON-The Senate on Wednesday approved a $280 billion bill aimed at boosting the semiconductor industry crucial to modern technology, in a bipartisan embrace of expanding U.S. industrial policy to counter the competitive threat posed by China.

The vote reflected growing concern in both parties that the U.S. lacks a long-term response to Beijing's technological and economic rise, a view galvanized when the Covid-19 pandemic disrupted chip supplies from Asia, with fallout across major industries.

Miners Unfazed by China's Plan to Control Iron-Ore Imports

ADELAIDE, Australia-Some of the world's largest iron-ore miners said they expect the market to continue dictating prices of the commodity despite China setting up a centralized buying group to try to gain more sway.

China Mineral Resources Group was established by Beijing this month as part of a drive to secure more control over resources needed for the country's growth at a time of rising tensions with the West. More than half of China's iron-ore imports arrive from Australia, which has faced a trade backlash from Beijing after calling for an investigation into the origins of Covid-19 in central China.

North Korea Threatens to Annihilate South's Military Should It Try Pre-Emptive Strike

SEOUL-North Korean leader Kim Jong Un said the country's nuclear missiles stand "fully ready" for a military conflict with the U.S. and threatened to annihilate South Korea's military should it attempt a pre-emptive strike.

The 38-year-old dictator made the remarks while delivering a speech for the country's Victory Day, an annual July 27 holiday that celebrates the signing of the armistice that halted fighting in the Korean War nearly seven decades ago. Without a peace treaty, the conflict remains technically ongoing.

Anti-Iran Protesters Break Into Baghdad Green Zone, Storm Iraqi Parliament

BAGHDAD-Thousands of demonstrators chanting anti-Iran slogans stormed the Iraqi capital's government center and occupied the parliament building Wednesday, protesting corruption and denouncing the leading candidate to be the country's next prime minister.

The protesters, also voicing support for fiery cleric Moqtada al-Sadr, pulled down concrete walls and poured into the Green Zone, the fortified area where many government ministries and the U.S. Embassy are located, as security personnel did little to stop them.

Write to [e-mail]

Write to us at [e-mail]

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

07-28-22 0535ET