The Swiss pharmaceutical company said Thursday that Sandoz would be based in Switzerland and listed on the SIX Swiss Exchange, with an American depositary receipt program in the U.S.
Norwegian Air Shuttle Pretax Profit Falls; Sees Fuel Prices Hurting 2022 Results
Norwegian Air Shuttle ASA said Thursday that profit fell for the second quarter of 2022 and that it expects fuel prices to hit its full-year earnings.
The low-cost carrier reported a pre- and posttax profit of 1.25 billion Norwegian kroner ($129 million) compared with a pretax profit of NOK1.59 billion for the second quarter of 2021, hit by the reinstatement of aircraft order prepayments and high fuel prices and positive restructuring events in the comparative quarter.
German Economy Grew in Second-Quarter Beating Expectations
The German economy grew modestly in the second quarter, beating expectations of stagnation amid high inflation and uncertainty stemming from Russia's invasion of Ukraine.
According to a second estimate for the period released Thursday by German statistics office Destatis, Germany's gross domestic product grew by an adjusted 0.1% from the previous period.
German Business Sentiment Posts Small Decline in August
Business confidence in Germany worsened slightly in August as companies turned more pessimistic due to rising energy costs and the threat of gas shortages.
The Ifo business-climate index fell to 88.5 points in August from a revised figure of 88.7 points in July, data from the Ifo Institute showed Thursday. Economists polled by The Wall Street Journal had expected the index to come in at 87.2.
French Manufacturing Confidence Fell in August
Sentiment in the French manufacturing sector declined in August amid increasing energy prices and slowing demand.
French manufacturing sentiment came in at 104 in the month, down from 106 in July, according to data from the national statistics office Insee released Thursday. Economists polled by The Wall Street Journal had forecast a reading of 105.
U.K. Car Manufacturing Rose in July But Recovery Some Way Off
U.K. car manufacturing rose in July for the third consecutive month, but is still well below prepandemic levels, indicating that a recovery is still some way off, an industry body said Thursday.
The Society of Motor Manufacturers and Traders said that a total of 58,043 cars drove off the production lines in July compared with 53,438 in July 2021, which in itself was the worst July since 1956, as the industry faced staff and chip shortages. In July 2019, 108,239 cars were manufactured.
Zip to Exit U.K. After Annual Loss
SYDNEY-Zip Co. Ltd. will close its U.K. operations as the Australian buy-now-pay-later provider seeks profitability in the wake of a blowout 1.015 billion Australian-dollar (US$701.3 million) annual loss.
The ASX-listed company on Thursday said net loss for the 12 months through June widened from a restated A$697.4 million loss in fiscal 2021. Zip recorded a noncash impairment of goodwill and intangibles of A$821.1 million.
GLOBAL NEWS
Fed Watchers Scrutinize Jackson Hole for Hints on Interest-Rate Outlook
Federal Reserve officials returning to Grand Teton National Park for the Kansas City Fed's annual economic symposium on Thursday face one of the most challenging economic backdrops since officials began hosting the event in Jackson Hole, Wyo., in 1982.
U.S. inflation is running close to a 40-year high, while unemployment is at half-century lows. Global economies are reeling from the effect of multiple shocks-the coronavirus pandemic, a massive fiscal and monetary policy response, and the fallout from Russia's war in Ukraine. Central bankers could soon confront difficult trade-offs between bringing down inflation and preventing a large rise in unemployment.
Treasury Yields Rise on Bet That Recovery Will Last Longer
U.S. government-bond yields have staged a major rebound this month, reflecting increased optimism among investors about the near-term economic outlook.
Yields, which rise when bond prices fall, remain below their peaks set in June, when investors were most concerned about runaway inflation. But they are also now well above their recent lows, when analysts were hotly debating whether the U.S. was already in, or entering, a recession.
Energy Crisis Squeezes Smaller Firms That Power Europe's Economy
Europe's energy crisis is squeezing the small and midsize firms that form the backbone of the continent's economy, leading some business owners to curb production or close up shop.
Katrien Vandenheuvel recently decided to shutter her family's grocery store-nestled in a village outside Antwerp, Belgium-after realizing she needed to sell about 3,000 more loaves of bread every month to cover the higher natural-gas bills. The store had already been charging higher prices for pastries and cheeses than chain stores, she says. Hiking prices enough to cover expenses would have driven more customers away.
Pension Funds Are Selling Their Office Buildings
Major U.S. and Canadian pension funds are cutting back investments in office buildings, betting that prices will likely fall as the five-day office workweek becomes a thing of the past.
Retirement funds are still buying property, partly in a bid to reduce the impact of inflation. But those investments are more focused on warehouses, lab space, housing and infrastructure such as airports.
Bank of Korea Raises Rate to 2.50%, Lowers GDP Forecast
South Korea's central bank returned to its usual quarter-percentage-point rate increase in August after an outsized increase in the prior month, seeking to curb inflation but avoid hurting the economy.
The Bank of Korea raised the benchmark seven-day repurchase rate by 25 basis points to 2.50% on Thursday, as expected. That marked its fourth consecutive rate increase and the bank is projected to tighten policy further.
Bank of Japan to Patiently Continue Powerful Monetary Easing, Says Board Member
TOKYO--Bank of Japan policy board member Toyoaki Nakamura said Thursday that the central bank would continue its powerful monetary easing because the current inflation triggered by higher energy prices is unlikely to be sustainable.
"Judging from the current situation in which prices of only some items are rising significantly due to higher import costs, it would be more effective to take measures targeting specific items, rather than monetary policy which controls overall demand," Mr. Nakamura said in a speech.
Biden's Student Loan Forgiveness Plan to Cancel Up to $20,000 in Debt for Millions
President Biden will forgive up to $20,000 in federal student loan debt for tens of millions of Americans, a move that will provide unprecedented relief for borrowers but is certain to draw legal challenges and political pushback.
Following more than a year of internal debate, the president said Wednesday that he will cancel $10,000 in federal student loan debt for borrowers making under $125,000 a year or couples making less than $250,000 a year. In addition, those who receive federal Pell Grants and make less than $125,000 a year would be eligible for total forgiveness of $20,000, Mr. Biden said.
Secret Service Veteran Kimberly Cheatle Named as New Director
WASHINGTON-President Biden said he has chosen Kimberly Cheatle as the next director of the Secret Service, naming her to take over after a turbulent couple months in which the agency best known for protecting presidents has faced controversies related to the Jan. 6, 2021, attack on the U.S. Capitol.
Ms. Cheatle will replace James Murray, who served as director since 2019 and temporarily delayed a planned retirement as the agency faced Jan. 6-related controversies including its handling of phone records. The Secret Service director is appointed by the president and doesn't require Senate confirmation. A White House official said Ms. Cheatle is expected to start her new role in early September.
Biden Moves to Strengthen DACA With a New Rule
WASHINGTON-The Biden administration said it would transform the Deferred Action for Childhood Arrivals program, which provides deportation protections to more than 600,000 young immigrants in the country illegally known as Dreamers, into a federal regulation to strengthen it against legal challenges.
The new rule, published by the Department of Homeland Security on Wednesday, is set to take effect on Oct. 31, and will replace a memo issued in 2012 by then-Homeland Security Secretary Janet Napolitano that governed the program for a decade.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
08-25-22 0710ET
