European Midday Briefing : Traders Gear for Busy -2-

TEL AVIV-Israeli Prime Minister Benjamin Netanyahu said Monday he was retaining his defense minister, two weeks after firing him in a decision that amplified widespread protests amid concerns that it would undermine the country's ability to confront a challenging security environment.

Mr. Netanyahu on March 26 said he was firing Yoav Gallant-a member of the premier's own Likud party-a day after the defense minister called for a delay to the ruling coalition's controversial plan to overhaul the judiciary. Mr. Gallant said then that protests within the military against the proposals had become a grave threat to the nation.

Debt Standoff Between China and U.S. Hurts Poor Countries, Zambia's President Warns

LUSAKA, Zambia-Zambian President Hakainde Hichilema said China and the U.S. have a responsibility to set aside their differences and help countries such as his get the debt relief they need to avoid further damage to their economies.

With finance officials from around the world gathering in Washington this week for the International Monetary Fund and World Bank biannual meetings, Mr. Hichilema's country is emerging as a focal point of discussions on how to restructure poor nations' debts. U.S. officials have criticized China, now the biggest government lender to the developing world, for failing to write down loans if borrowing countries such as Zambia run into trouble.

Russian ruble falls to lowest level against U.S. dollar in a year. Here's what's driving it lower.

Falling oil prices and fears about capital flight helped push the Russian ruble to its weakest level against the U.S. dollar in a year on Monday, the latest milestone in what has been a dramatic reversal of fortune for the currency.

The ruble showed surprising resilience against the U.S. dollar last year despite Russia's invasion of Ukraine, with the dollar falling 2.7% against the Russian currency in 2022.

GLOBAL NEWS

Exxon Deal Hunt Signals Possible Shale M&A Wave

Exxon Mobil Corp.'s hunt for a blockbuster deal in U.S. shale could kick off a bonanza of deal-making in the oil patch as drillers look to put large war chests of cash to work.

The oil giant has held preliminary talks with Pioneer Natural Resources Co., a Texas fracker with a roughly $52 billion market capitalization, about a potential acquisition, The Wall Street Journal reported last week. Exxon, which has been on the prowl in the Permian Basin for months, has also discussed a potential deal with at least one other company, the Journal reported.

China Consumer Price Growth Eases, Reflecting Caution on the Economy

SINGAPORE-Inflation in China eased for the second straight month in March despite signs of a pickup in the economy, a cautionary signal on the strength of the nation's recovery as it emerges from nearly three years of strict Covid-19 controls.

Consumer prices rose just 0.7% in March from a year earlier, China's National Bureau of Statistics said Tuesday, the lowest annual rate of inflation since September 2021.

China Signals Readiness to Further Ease Trade Dispute With Australia

SYDNEY-China agreed to take steps that could resolve a trade dispute with Australia over barley, the latest sign that relations between the two countries are improving even as Canberra pursues deeper military ties with Washington.

Australian officials said China will review the 80.5% duties on Australian barley imports over the coming months. In return, Australia said it would suspend its case at the World Trade Organization challenging the barley restrictions while the review is pending.

Chinese Banks' March Lending Beat Expectations

Chinese banks issued a higher-than-expected amount of new yuan loans in March, signaling the stepping-up of support for the nation's economic recovery.

Banks extended 3.89 trillion yuan ($565.27 billion) in new yuan loans in March, up significantly from CNY1.81 trillion in February, according to data released Tuesday by the People's Bank of China.

Top Fed Official Plays Down Divergent Rate Outlook With Investors

A senior Federal Reserve official said he wasn't concerned about a potential disconnect between officials at the central bank and investors in financial markets over the outlook for interest rates later this year.

Last month, Fed officials projected they would hold rates steady this year after raising them to just above 5%. But investors in interest-rate futures markets increasingly anticipate the Fed will cut rates significantly over the 12 months beginning this September.

Government Posing Greater Risk to Corporate Profits, Chamber Study Finds

WASHINGTON-Tax changes, regulatory enforcement and government policy shifts are posing a greater threat to corporate profits than they did a decade ago, according to a new study from the U.S. Chamber of Commerce.

The chamber study was based on an analysis of annual reports filed by publicly traded companies in the S&P 500 index. It found that companies used terms associated with potential risks from government action about 325,000 times in their 2021 annual reports, a 27% increase from 2011.

Lawmakers Trade Bank Stocks While Working on U.S. Bank-Failure Fallout

Two lawmakers reported trades in bank stocks last month as they worked on government efforts to address fallout from two of the largest bank failures in American history.

The disclosures, by a New York Republican and an Oregon Democrat, mark the latest instance of congressional stock trading intersecting with official business.

Bitcoin tops $30,000 for first time in 10 months, as some tout crypto as 'safe haven'

Bitcoin rallied Monday to its highest level in 10 months, as some industry proponents touted the asset as a potential "safe haven," like gold, as recession fears return to the forefront, and after fears rose last month about potential instability in the banking system.

The world's largest cryptocurrency topped $30,000 Monday night for the first since June 10, 2022, according to Dow Jones Market Data, peaking at $30,321 before pulling back. Bitcoin BTCUSD has surged 81% year to date, though is still down over 57% from an all-time high in November 2021. Ethereum ETHUSD also rallied Monday, and was closing in on the $2,000 level for the first time since last August.

Pentagon Probe Under Way in Leaks Case

WASHINGTON-The Pentagon is conducting an internal investigation of how purported secret documents detailing Ukraine war plans and intelligence on U.S. allies surfaced online in recent weeks, as the U.S. sought to soothe foreign governments whose countries were mentioned in the files.

The Justice Department and the Federal Bureau of Investigation are leading a criminal investigation into the leaks, but the Pentagon has assembled a team to conduct its own inquiry to determine the authenticity of the photographs of the classified slides that appeared online.

Biden Administration Weighs Possible Rules for AI Tools Like ChatGPT

WASHINGTON-The Biden administration has begun examining whether checks need to be placed on artificial-intelligence tools such as ChatGPT, amid growing concerns that the technology could be used to discriminate or spread harmful information.

In a first step toward potential regulation, the Commerce Department on Tuesday put out a formal public request for comment on what it called accountability measures, including whether potentially risky new AI models should go through a certification process before they are released.

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

(END) Dow Jones Newswires

04-11-23 0551ET