European Midday Briefing : U.K. Bonds Rally After -2-

The Belgian chemicals company said it expects earnings before interest, taxes, depreciation and amortization growth to be around 28% for 2022 compared with last year. This also compares with the previous guidance provided in July of between 14% and 18% growth for 2022.

Pearson Made Progress in 2022 to Date; Sees Full-year Meeting Market Views

Pearson PLC said Monday that it has made strong progress in the first nine months of the year, and that it expects to meet the full-year adjusted operating profit market consensus.

The FTSE 100 education company said it experienced a strong performance in Assessment and Qualifications over the period with sales up 12%, while English Language Learning sales rose 28%, and Workforce Skills sales grew 9%. Overall, group underlying revenue rose 7%.

Boris Johnson Drops Out of Race for U.K. Prime Minister, Giving Rishi Sunak the Edge

LONDON-Former U.K. Chancellor of the Exchequer Rishi Sunak took a major step toward becoming Britain's next prime minister after his main rival for the job, Boris Johnson, pulled out of the race late Sunday, averting a contest between the two men that threatened to split the ruling Conservative Party and further roil financial markets.

The decision by Mr. Johnson-forced to step down as prime minister and party leader over the summer after a series of scandals-leaves Mr. Sunak as the heavy favorite to replace Liz Truss in the top job. Ms. Truss, who took office Sept. 6, said last week she was quitting after her economic program imploded, making her the shortest serving prime minister in British history. The only other remaining candidate is Penny Mordaunt, the leader of the House of Commons.

Giorgia Meloni, Taking Power in Italy, Promises a Pro-Western Course

ROME-Giorgia Meloni was sworn in as Italy's prime minister on Saturday, assuming power at the helm of a right-wing coalition beset by internal squabbles over Rome's position toward Moscow.

A staunch Atlanticist, Ms. Meloni has said her government will be steadfast in its support for Ukraine and in its opposition to Russia's war on the country.

France's Nuclear Reactors Malfunction as Energy Crisis Bites

PARIS-France is falling behind in its plans to return the country's fleet of nuclear reactors to full power this winter after a rash of outages, raising fears that one of Europe's key sources of electricity won't be ramped up to counter Russia's squeeze on the continent's energy supplies.

The nuclear fleet was designed to act as the front line of France's energy security. Since Moscow cut the flow of natural gas to Europe-plunging the continent into its biggest energy crisis since the 1970s oil shock-France's vaunted nuclear fleet has been about as effective as the Maginot Line, the French fortifications that did little to stop the German invasion during World War II.

Russia Moves to Defend Kherson Against Ukraine's Advance Before Winter

KYIV, Ukraine-Russian-installed officials in Ukraine's Kherson said they were forming territorial defense units on Monday as Kyiv pushes to recapture the occupied regional capital before the onset of winter slows its offensive.

The announcement of these units, which will take part in the city's defense, comes amid an organized evacuation of residents from Kherson using boats to transfer them to other parts of the southern Kherson region and to cities in Russia, Moscow's officials in the region said.

Vladimir Putin Plays for Time as Russian Forces Fall Back in Ukraine

Russia's Vladimir Putin is aggressively trying to prevent further losses in Ukraine by bombarding critical infrastructure and to avert disquiet at home by tightening social controls.

The goal: hold on until the winter can give him enough pause to reboot his bogged-down invasion.

Israel's Far-Right Itamar Ben-Gvir Poised to Become Political Force

TEL AVIV-In a new campaign ad for Israeli right-wing parliamentary candidate Itamar Ben-Gvir, a frightened woman tells her husband in Hebrew over the phone that men are outside their apartment with knives to kill her and their children. Implying that the men are Arab, the ad then warns that the ethnic riots that took over the streets of Israel last year could return.

"It's time to be the masters of the house," the ad says. "It's time for Ben-Gvir."

Iran's Labor Strikes Give Protest Movement Added Momentum

Iran's labor unions are helping antigovernment protests maintain momentum by calling for strikes at oil facilities, schools and factories, opening another front in the upheaval inside the country.

Authorities in Tehran have responded by monitoring and arresting some workers who go on strike and show up at demonstrations. Organized labor played a key role by paralyzing the economy in the 1979 Islamic Revolution that forced the Shah to abdicate.

GLOBAL NEWS

Higher Interest Rates Can Take a Long Time to Bring Down Inflation

FRANKFURT-The world's central banks face a nail-biting wait.

They have raised interest rates this year at the fastest pace in decades. But those hikes work with what economists call "long and variable" lags so central banks might not know for years if they have tightened too much, or not enough.

What CEOs Are Saying: The Fed 'Should Look Out the Front Windshield'

Here is what some of the world's corporate leaders said this week about the economy, consumer spending and advertising trends, among other topics.

Bank of America Corp. Chief Executive Brian Moynihan:

Biden Pitches Plan to Refill Oil Reserves, but Producers Are Skeptical

After releasing the most oil ever from the U.S. emergency petroleum reserve, the Biden administration is signaling it will refill soon, a multibillion-dollar undertaking that it hopes will rouse sluggish domestic drilling activity.

Hong Kong Stocks Dive After China Party Meeting

Hong Kong shares faced a wave of selling after the conclusion of the Chinese Communist Party's national congress meeting over the weekend.

The Hang Seng Index was down 5% by midday, bringing it below its lowest closing level since April 29, 2009. Shares in mainland China were also down, but not by as much. The benchmark CSI 300 was 1.7% lower and the Shanghai Composite Index was down around 0.9%.

Yen Rises Sharply Versus Dollar After Hitting 32-Year Low on Friday

The yen rose sharply Monday morning after falling to a new 32-year low against the dollar on Friday.

Nikkei Quick News reported Monday morning that Masato Kanda, Japan's vice finance minister for international affairs, reiterated that the government will take appropriate steps against the yen's excessive moves.

China's Economy Grew 3.9% in the Third Quarter

HONG KONG-China's economy expanded more strongly than expected in the third quarter as the country bounced back modestly from crippling Covid lockdowns in the spring, though challenges remain as leader Xi Jinping consolidates control over the political apparatus for another five years.

China's gross domestic product grew by 3.9% in the three months ended Sept. 30 from a year earlier, China's National Bureau of Statistics said Monday in a data release that was unexpectedly delayed as Communist Party leaders gathered for a key meeting in Beijing.

North, South Korea Fire Warning Shots Along Disputed Western Sea Border

SEOUL-North and South Korea fired warning shots in waters off their west coast early Monday, blaming each other for breaching their de facto maritime border as confrontations between the two countries rise in frequency.

The latest exchange of fire comes as tensions on the Korean Peninsula have escalated beyond heated rhetoric, as the two Koreas increasingly engage in tit-for-tat military actions.

Beijing Protester's Battle Cry Sends Ripples Worldwide

On the morning of Oct. 13, an email landed in the inboxes of more than two dozen recipients including Chinese media outlets, popular bloggers and rights activists.

Sent under the name Peng Lifa, it called on the recipients to launch protests against Xi Jinpingtaking a norm-breaking third term in power, according to a Wall Street Journal review of the email.

Pollsters Try to Learn From Mistakes of 2016 and 2020 Elections

Pollsters this year are taking a range of steps to try to improve the accuracy of their surveys, after significantly understating support for Donald Trump and other GOP candidates in the past two presidential elections. Strategists and pollsters in both parties are worried about whether the steps will work.

When Tom Bonier sees polls showing the Senate race tied in Ohio, his first reaction is skepticism. After all, President Biden's 8-point loss in Ohio two years ago was far bigger than polls had suggested. Mr. Bonier, a longtime Democratic strategist and data expert, assumes that pollsters are overstating Democratic support once again.

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

(END) Dow Jones Newswires

10-24-22 0642ET