Shares jumped as much as 7.2% in early trading in Hong Kong on Thursday before paring gains.
Rideshare Recovery Still Lacks an ETA
Omicron has sneezed on rideshare's recovery, but only one platform is vaccinated.
Both Lyft and Uber Technologies reported solid fourth-quarter results over the past two days, sending shares of both ride-hailers up in Wednesday's session and after hours. But their first-quarter guidance showed Omicron has added many miles to ride hailing's widely prophesied recovery. Investors seem to have forgotten that Lyft, in particular, plays in a duopoly where speed matters.
U.S. Inflation Is Expected to Have Stayed Near 40-Year High
U.S. inflation is estimated to have remained at a nearly four-decade high in January as prices remained under pressure from strong consumer demand and pandemic-related supply constraints.
Economists surveyed by The Wall Street Journal expect the Labor Department will report the consumer-price index-which measures what consumers pay for goods and services-rose 7.2% in January from the same month a year ago, marking a pickup from a 7% annual rate in December. It also would be the fastest pace for inflation since February 1982 and the eighth straight month above 5%.
Why High Gasoline Prices Could Stick Around for a While
Americans are paying about twice as much for gasoline now as they were early in the Covid-19 pandemic. And the high price of fuel is costing consumers away from the gas pump, too, contributing to decades-high inflation on a range of goods and services.
When oil becomes more expensive, so does everything else. And $20 doesn't go as far in a car's fuel tank.
EU Raises Eurozone Inflation Forecasts on Higher Energy Prices, Tensions in Eastern Europe
The European Commission has raised its inflation forecasts for the eurozone considerably, due to high energy prices and the broadening of inflationary pressures to other categories of goods since the autumn.
Following the revision, the European Commission expects eurozone inflation at 3.5% in 2022, up from its previous forecast of 2.2% published in November. For 2023, eurozone inflation is forecast at 1.7%, up from 1.4% in the Autumn forecasts.
Corporate Bonds in Europe Tumble Most Since Pandemic Began
Corporate bonds in Europe have taken their biggest hit since 2020 over the past week after a sudden pivot from the European Central Bank toward tighter policy reanimated worries about the region's economic health.
"The ECB's unexpectedly hawkish stance has been a detonator for a selloff," said Vincent Benguigui, a credit portfolio manager at Federated Hermes.
Fed's Mester Supports Moves to Accelerate Balance-Sheet Wind-Down
Federal Reserve Bank of Cleveland President Loretta Mester said Wednesday that as part of the central bank's looming effort to shrink the size of its nearly $9 trillion balance sheet, she'd support taking active measures to speed that process along.
"While our principles state that we will reduce balance-sheet assets primarily by adjusting the reinvestment amounts of the principal payments we receive on our assets, I would support selling some of our mortgage-backed securities at some point during the reduction period to speed the conversion of our portfolio's composition to primarily Treasurys," Ms. Mester said in remarks given before a virtual gathering held by the European Economics and Financial Centre.
Stock-Trading Ban for Members of Congress Gains Traction
WASHINGTON-House Speaker Nancy Pelosi said she expected Democrats to reach consensus on restricting stock trading by members of Congress and called for new rules for federal judges, as proposals competed for bipartisan support.
"It's complicated, but members will figure it out," she said. "I assume they'll have it pretty soon," the California Democrat said, referring to the House Administration Committee tasked with reviewing the proposals. She also wanted any legislation to also require financial disclosures from the judiciary, including Supreme Court justices. "It has to be governmentwide," she said.
House Democrats Introduce Resolution Allowing Staff to Unionize
WASHINGTON-House Democrats introduced a resolution Wednesday that would recognize congressional staff's right to unionize, but many details of the nascent organizing effort remain unresolved.
The resolution, introduced by Rep. Andy Levin (D., Mich.) and 130 co-sponsors, builds on the Congressional Accountability Act of 1995, which allowed various legislative-branch workers to unionize, including employees of the U.S. Capitol Police, Library of Congress and the Architect of the Capitol. Mr. Levin's resolution would provide the ability for House staffers who work in personal offices, district offices and committees. Separate legislation would have to be passed for Senate staff to unionize.
Jan. 6 Committee Subpoenas Former Trump Adviser Peter Navarro, Citing Plans to Stop Biden Election Victory
WASHINGTON-The select committee investigating the pro-Trump Jan. 6 riot at the Capitol issued a subpoena to Peter Navarro, a former Trump administration adviser, saying that he had openly discussed a plan to stop the certification of President Biden's victory in the 2020 presidential election.
Mr. Navarro, who advised then-President Donald Trump on trade policy, has described what he called the "Green Bay Sweep" in his book "In Trump Time." Under that strategy, Republicans would challenge Mr. Biden's victory in about half a dozen swing states, forcing an extended debate over the validity of results in those states.
Biden Approves Pentagon Plan to Help Americans Fleeing Ukraine if Russia Invades
WASHINGTON-The White House has approved a Pentagon plan for U.S. troops in Poland to help thousands of Americans likely to flee Ukraine if Russia attacks, as the Biden administration tries to avoid the kind of chaotic evacuation conducted in Afghanistan.
Some of the 1,700 troops from the 82nd Airborne Division being deployed to Poland to bolster that ally will in coming days begin to set up checkpoints, tent camps and other temporary facilities inside Poland's border with Ukraine in preparation to serve arriving Americans, U.S. officials said. The troops aren't authorized to enter Ukraine and won't evacuate Americans or fly aircraft missions from inside Ukraine, officials said.
Senators Strike Bipartisan Deal on Violence Against Women Act
WASHINGTON-Senators have struck a bipartisan deal to reauthorize a landmark domestic-violence bill, after Democrats dropped their effort to add contentious language related to guns.
The Violence Against Women Act, or VAWA, was enacted in 1994 to provide funding for prosecutions of domestic violence crimes, as well as for shelters and other programs to aid victims of abuse. It lapsed in 2019.
New York to Drop Indoor Mask Mandate for Businesses
Nine states this week announced plans to roll back requirements that people wear masks at indoor venues, including businesses and, in some cases, schools, as Covid-19 case numbers decline and pressure to return to normal life rises.
Officials in New York, Illinois, Massachusetts and Rhode Island said Wednesday that rules requiring masks or proof of vaccinations intended to curb the spread of the Covid-19 pandemic would end by March. Earlier in the week, California, Oregon, New Jersey, Connecticut and Delaware officials announced similar rollbacks.
Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Algoma Steel Grp Inc. (ASTL.T) 3Q
Alithya Grp inc (ALYA.T) 3Q
Bombardier Inc. Class A (BBD.A.T) 4Q
Bombardier Inc. Class B (BBD.B.T) 4Q
Brookfield Asset Mgmt (BAM.A.T) 4Q
Canada Goose Hldgs (GOOS.T) 3Q
Colliers Intl Gp (CIGI.T) 4Q
Computer Modelling Gp (CMG.T) 3Q
Definity Fincl Corp. (DFY.T) 4Q
Fairfax Fincl Hldgs (FFH.T) 4Q
IGM Fincl Inc. (IGM.T) 4Q
MEG Energy Corp. (MEG.T) 4Q
Sangoma Tech Corp (STC.T) 2Q
Saputo 3Q
TELUS 4Q
TELUS Intl (CDA) Inc. (TIXT.T) 4Q
Trisura Grp Ltd. (TSU.T) 4Q
Economic Indicators (ET):
- Nothing major scheduled
Stocks to Watch:
Sun Life Financial's Earnings Rise 45% in 4Q
Sun Life Financial Inc. reported a 45% rise in its earnings in the latest quarter as its insurance and wealth businesses reported strong growth.
The Canadian financial services company said its profit in the fourth quarter was 1.08 billion Canadian dollars ($852.2 million) compared with C$744 million a year earlier. On a per share basis, earnings were C$1.83, compared with C$1.27 a year earlier.
Underlying earnings were C$1.53 a share.
Insurance sales were C$1.61 billion, up from C$1.43 billion a year earlier.
Manulife Financial Reports Record 2021 Profit, Record Year for Retail Wealth Business
Canadian insurer Manulife Financial Corp. reported better-than-expected fourth-quarter earnings and record profit for the year, helped by a record year for its retail wealth business.
Fourth-quarter profit rose to 2.08 billion Canadian dollars (US$1.64 billion) from C$1.78 billion a year earlier. On a per-share basis, profit was C$1.03.
Core earnings rose to 84 Canadian cents a share from 74 Canadian cents a share a year earlier.
Analysts surveyed by FactSet had expected 96 Canadian cents a share in profit, or 82 Canadian cents a share in core profit.
Other News:
Officials Raise Concerns Canada Border Protest Will Disrupt Supply Chains
Canadian and U.S. officials expressed concerns Wednesday on the possible fallout from a prolonged traffic disruption at Detroit's Ambassador Bridge on already strained supply-chain networks.
(MORE TO FOLLOW) Dow Jones Newswires
02-10-22 0607ET
