The June consumer-price index "was uniformly bad, there was no good news in that report," Ms. Mester said in a Bloomberg radio interview. "Until we get and see convincing evidence that inflation has turned the corner, is on a downward path and is sustainably on a downward path, we just have more work to do."
EU Raises Eurozone Inflation Forecasts, Cuts Growth Outlook Due to Ukraine War
The European Commission has raised its inflation forecasts for the eurozone considerably and has slashed its 2023 growth forecast for the bloc as Russia's war against Ukraine takes its toll on the economy.
Following the revision, the European Commission expects eurozone inflation to peak at a historical high of 7.6% in 2022, up from its previous forecast of 6.1% published in May. For 2023, eurozone inflation is forecast at 4.0%, up from 2.7% in the Spring forecasts.
"Moscow's actions are disrupting energy and grain supplies, pushing up prices and weakening confidence," European Commissioner for Economy Paolo Gentiloni said.
Asian Central Banks Unveil Surprise Tightening to Fight Inflation
A pair of Asian central banks made surprise moves to tighten policy to rein in fast-rising inflation, while another monetary authority intervened to bolster its currency as the U.S. Federal Reserve's interest-rate increases boost the appeal of the U.S. dollar.
In near back-to-back moves Thursday, the Monetary Authority of Singapore tightened its policy while the Philippine central bank raised its benchmark rates by 75 basis points, both citing the need to curb fast-rising inflation.
Glynn's Take: RBA Needs to Accelerate Pace of Rate Hikes
SYDNEY-The Reserve Bank of Australia will raise its official cash rate by an eye-watering 75 basis points in August if second-quarter inflation figures due out at the end of this month proves even more hellish than expected.
The odds are growing that they will.
Pakistan Reaches Agreement With IMF for $4 Billion Lifeline
ISLAMABAD, Pakistan-The International Monetary Fund agreed to a bailout of Pakistan, providing a financial lifeline as emerging markets strain under pressure from a global price shock rippling out from the war in Ukraine.
The IMF said in a statement late Wednesday it would provide Pakistan with $4 billion over the next year, starting with an initial $1.2 billion, once its board formally approves the agreement worked out with Pakistani officials over weeks of negotiations. Foreign-exchange reserves held by Pakistan's central bank have depleted in recent weeks to cover less than two months' worth of exports, largely closing off Pakistan's prospects of tapping international financial markets.
Former CIA Employee Convicted of Massive Leak
A federal jury in New York convicted a former Central Intelligence Agency software engineer of leaking a trove of classified documents to the website WikiLeaks.
After a retrial lasting several weeks, the jury on Wednesday found Joshua Schulte, 33 years old, guilty of all nine counts he faced, including illegal gathering of national defense information. The leak, which WikiLeaks dubbed Vault 7 and published in 2017, detailed how the CIA breaks into computers, smartphones, messaging applications and television sets. WikiLeaks said Vault 7 was the largest ever publication of confidential documents on the agency.
Inflation Surge Challenges Democrats' Economic Plans
WASHINGTON-Worries about inflation and the economy are throwing up new doubts about Democrats' ability to pass a slimmed-down version of President Biden's economic package, piling on to the obstacles facing the plan focused on drug prices, climate-related proposals and tax increases.
New government figures showed a 9.1% increase in the consumer-price index, driven by surging costs for gasoline, food and other items.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Opsens 3Q
OrganiGram 3Q
Economic Indicators (ET):
0830 May Monthly Survey of Manufacturing
Stocks to Watch:
Bellus Health Prices $153M Public Offering in Canada and US; Offering 16,540,541 Common Shrs at $9.25 Each; Has Given Underwriters Option for Additional 2,481,081 Shrs; Jefferies, Evercore ISI and RBC Capital Markets Acting as Bookrunning Managers; LifeSci Capital as Lead Manager
Bellus Health Intends to Use Net Proceeds of Offering Primarily to Fund BLU-5937 R&D, Other General Corporate Purposes; Expects to Close Offering July 18
Expected Major Events for Thursday
04:30/JPN: May Revised Industrial Production
06:00/GER: Jun WPI
08:30/UK: 2Q Bank of England Credit Conditions Survey
08:30/UK: 2Q Bank of England's Bank Liabilities Survey
12:30/US: Jun PPI
12:30/CAN: May Monthly Survey of Manufacturing
12:30/US: 07/09 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:30/US: 07/08 EIA Weekly Natural Gas Storage Report
20:30/US: Federal Discount Window Borrowings
20:30/US: Foreign Central Bank Holdings
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Expected Earnings for Thursday
American Outdoor Brands Inc (AOUT) is expected to report for 4Q.
BancFirst Corp (BANF) is expected to report $1.09 for 2Q.
Bank of South Carolina Corp (BKSC) is expected to report for 2Q.
Caldwell Partners International Inc (CWL.T) is expected to report for 3Q.
Capstone Green Energy Corp (CGRN) is expected to report for 4Q.
Cenntro Electric Group Ltd (CENN) is expected to report for 1Q.
Cintas Corp (CTAS) is expected to report $2.68 for 4Q.
Conagra Brands Inc (CAG) is expected to report $0.63 for 4Q.
First Republic Bank (FRC) is expected to report $2.09 for 2Q.
Inscape is expected to report for 4Q.
Intellipharmaceutics International Inc (IPCI,IPCI.T) is expected to report for 2Q.
JPMorgan Chase & Co (JPM) is expected to report $2.89 for 2Q.
Jewett-Cameron (JCT-T,JCTCF) is expected to report for 3Q.
Kayne Anderson Energy Infrastructure Fund Inc (KYN) is expected to report for Full year.
Liquid Media Group Ltd (YVR) is expected to report for 2Q.
Marten Transport (MRTN) is expected to report $0.33 for 2Q.
Morgan Stanley (MS) is expected to report $1.55 for 2Q.
National Bankshares (NKSH) is expected to report $0.80 for 2Q.
National Energy Services Reunited Corp (NESR) is expected to report $0.11 for 1Q.
Nautilus (NLS) is expected to report $-0.72 for 1Q.
OrganiGram Holdings Inc (OGI,OGI.T) is expected to report $-0.02 for 3Q.
Platinum Group Metals Ltd (PLG,PTM.T) is expected to report for 3Q.
Singing Machine (MICS) is expected to report for 4Q.
Singularity Future Technology Ltd (SGLY) is expected to report for 3Q.
Tanzanian Gold Corp (TNX.T,TRX) is expected to report for 3Q.
Theratechnologies (TH.T,THTX) is expected to report $-0.10 for 2Q.
Tilray Inc (TLRY) is expected to report $-0.08 for 4Q.
Universal Security Instruments Inc (UUU) is expected to report for 4Q.
Wayne Savings Bancshares Inc (WAYN) is expected to report for 2Q.
Western Alliance Bancorp (WAL) is expected to report $2.30 for 2Q.
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ANALYST RATINGS ACTIONS
American Equity Cut to Market Perform From Outperform by Keefe, Bruyette & Woods
Armstrong World Raised to Buy From Neutral by Goldman Sachs
Atara Biotherapeutics Cut to Hold From Buy by Stifel
Atara Biotherapeutics Cut to Neutral From Overweight by JP Morgan
Audacy Cut to Neutral From Buy by B. Riley Securities
Bath & Body Works Cut to In-Line From Outperform by Evercore ISI Group
Caesars Entertainment Cut to Sector Weight From Overweight by Keybanc
Cardlytics Cut to Underperform From Neutral by B of A Securities
CCC Intelligent Soltns Raised to Buy From Neutral by Goldman Sachs
Celanese Cut to Sector Perform From Outperform by RBC Capital
Clearwater Analytics Cut to Sell From Neutral by Goldman Sachs
CommVault Systems Cut to Neutral From Overweight by Piper Sandler
Cullen/Frost Bankers Raised to Neutral From Sell by Compass Point
DigitalOcean Cut to Sell From Buy by Goldman Sachs
Ecolab Cut to Neutral From Buy by B of A Securities
F5 Cut to Neutral From Overweight by Piper Sandler
Gap Inc Cut to Hold From Buy by Deutsche Bank
GrafTech International Cut to Sector Perform From Outperform by RBC Capital
Hanesbrands Cut to In-Line From Outperform by Evercore ISI Group
Harmony Biosciences Cut to Neutral From Buy by Goldman Sachs
Hasbro Cut to Sector Weight From Overweight by Keybanc
Humanigen Cut to Neutral From Buy by HC Wainwright & Co.
Humanigen Cut to Neutral From Buy by Roth Capital
Humanigen Cut to Neutral From Overweight by Cantor Fitzgerald
Illumina Cut to Underweight From Equal-Weight by Barclays
Juniper Networks Cut to Underweight From Neutral by Piper Sandler
Latham Group Cut to Sell From Neutral by Goldman Sachs
Molson Coors Beverage Raised to Neutral From Sell by Redburn Partners
OneMain Holdings Cut to Equal-Weight From Overweight by Wells Fargo
SeaWorld Entertainment Cut to Sector Weight From Overweight by Keybanc
Sherwin-Williams Cut to Neutral From Buy by B of A Securities
Shyft Group Raised to Buy From Neutral by DA Davidson
Synchrony Financial Cut to Equal-Weight From Overweight by Wells Fargo
US Silica Raised to Equal-Weight From Underweight by Morgan Stanley
Veritone Cut to Neutral From Buy by B of A Securities
Vista Outdoor Cut to Sector Weight From Overweight by Keybanc
Yeti Holdings Cut to Sector Weight From Overweight by Keybanc
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
07-14-22 0537ET
