WASHINGTON-House Republicans' debt-ceiling bill would cut government deficits by $4.8 trillion over 10 years, according to Congress's nonpartisan scorekeeper, as party leaders moved to gather enough support for a vote this week.
The bill is designed to unify Republicans around a position as they prepare for expected talks with the White House and congressional Democrats over spending cuts, ahead of a projected summer deadline to raise the country's borrowing limit. Unless Congress raises the ceiling, the U.S. could default on payments to borrowers and other obligations.
U.S. Treasury Looks to Curb 'De-risking' at Banks
The Biden administration is looking to address actions taken by U.S. banks to unbank certain customers and groups over their perceived connections to higher money-laundering risks.
Banks' decisions to limit exposure to certain categories of customers over increased illicit finance risks could hurt those communities and pose a national security risk by driving financial activities out of the regulated banking system, the U.S. Treasury Department said.
Closed-End Bond Funds Are Selling at Steep Discounts. Moves to Make Now.
Leverage helps on the way up, but hurts on the way down, amplifying both gains and losses. That's what closed-end bond fund investors learned the hard way in 2022.
Last year, Barron'swarned of the "debt time bomb" inside such funds as interest rates rose. Bond prices move inversely with rates, and leverage made things worse, with the market prices of some levered bond closed-ends such as Pioneer Municipal High Income Opportunities (ticker: MIO) falling by almost 40% last year. (The funds typically trade at premiums or discounts to their underlying net asset values.)
U.S., South Korea Pledge Cooperation on Potential Use of Nuclear Arms
WASHINGTON-The U.S. has agreed to give Seoul a greater voice in consultations on a potential American nuclear response to a North Korean attack in return for swearing off developing its own nuclear weapons, U.S. officials said.
The accord would grant South Korea's leadership a long-sought place at the table on the use of U.S. nuclear forces to defend the country, though the U.S. would still retain control over targeting and the execution of nuclear operations. Seoul, in return, would restate its commitment not to develop its own nuclear arsenal.
TikTok Ban in Montana Faces Speed Bump as Governor Seeks Changes
Montana's governor is asking legislators to make changes to a bill that would be the first in the U.S. to ban TikTok outright, according to a draft of the amended bill language viewed by The Wall Street Journal.
The changes would broaden the ban from applying specifically to TikTok, which is owned by China-based ByteDance Ltd., and cover social-media applications that provide certain data to foreign adversaries, according to the proposed bill language.
Senators to Introduce Bipartisan Bill Mandating Code of Ethics for Supreme Court
WASHINGTON-Sens. Angus King (I., Maine) and Lisa Murkowski (R., Alaska) will introduce a bipartisan bill Wednesday that would require the U.S. Supreme Court to create its own code of conduct within a year, following media reports that raise questions about whether Justices Clarence Thomas and Neil Gorsuch properly disclosed their financial activities.
"It's pitiful that we're having to introduce this bill-it's pathetic that the Supreme Court hasn't done this itself," Mr. King said.
Prosecutors Seek to Restrict Evidence From Donald Trump in Hush-Money Case
Manhattan prosecutors on Tuesday asked a judge to restrict Donald Trump's access to some evidence in his criminal case, citing the former president's history of attacking witnesses and other people involved in legal matters.
The office of Manhattan District Attorney Alvin Bragg made the request for a protective order in a court filing Tuesday. Prosecutors asked the judge to order that Mr. Trump be allowed to view some evidence only in the presence of his lawyers. They also asked that defense attorneys show evidence from witness cellphones to Mr. Trump only with prosecutors' consent.
U.S. Cyber Plans Are Built to Endure Political Winds, Senior Security Official Says
SAN FRANCISCO-Despite partisan divisions in Congress, current and former U.S. officials hope cybersecurity remains an issue that can unite Democrats and Republicans.
A top federal cyber official at the RSA Conference 2023 here emphasized the need for apolitical cooperation and information sharing to protect government bodies, the private sector and critical infrastructure.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Alamos Gold 1Q
AltaGas 1Q
Canadn Pac. Kansas City 1Q
Celestica 1Q
Cenovus Energy 1Q
CGI 2Q
FirstSvc 1Q
Methanex 1Q
New Gold 1Q
North Amer. Construc. 1Q
Precision Drilling 1Q
Rogers Commun. 1Q
Teck Resources 1Q
Waste Connections 1Q
Economic Calendar (ET):
0830 March intentions of principal field crop areas
1330 Bank of Canada summary of monetary policy deliberations
Stocks to Watch:
Teck Resources 1Q Rev C$3.785B Vs. C$4.62B; 1Q Adj EPS C$1.78 Vs. Adj EPS C$2.96; 1Q EPS From Continuing Ops C$2.23 Vs. C$2.78;
No Change to Previously Issued Annual Guidance, Except for QB2 Capital Cost Guidance; QB2 Capital Costs Could Increase to US$8.0B-US$8.2B
---
West Fraser Timber 1Q Loss/Shr 52c; 1Q Loss $42M; 1Q Rev $1.627B;
Expect Aging Housing Stk and Greater Entrenchment of Work-From-Home Flexibility Will Help Offset Near-Term Headwinds and Spur Repair and Renovation Spending That Supports Lumber, Plywood and OSB Demand;
Over Longer Term, Growing Market Penetration of Mass Timber in Industrial and Comml Applications Is Also Expected to Become a More Significant Source of Demand Growth for Wood Building Products in N America; Demand for European Products Is Expected to Remain Robust Over the Longer Term as Use of OSB as an Alternative to Plywood Grows;
Expect Total Lumber Shipments in 2023 to Be Similar to 2022 as Transportation Challenges Are Not Expected to Be as Severe in 2023, Offset by Yr-over-Yr Softness in New Home Construction Demand, Permanent B.C. Mill Curtailments and Indefinite Curtailment of the Perry, Fla., Sawmill;
Reiterate 2023 SPF Shipments Guidance of 2.6B to 2.8B Bd Feet, and in the U.S. South, Reiterate 2023 SYP Shipments Guidance of 2.9B to 3.1B Bd Feet
Expected Major Events for Wednesday
06:00/GER: May GfK consumer climate survey
06:45/FRA: Apr Consumer confidence survey
10:00/UK: Apr CBI Distributive Trades Survey
10:00/FRA: 1Q Claimant count and job advertisements collected by Pole emploi
11:00/US: 04/21 MBA Weekly Mortgage Applications Survey
12:30/US: Mar Advance Report on Durable Goods
12:30/CAN: Mar March intentions of principal field crop areas
12:30/US: Mar Advance Economic Indicators Report
14:30/US: 04/21 EIA Weekly Petroleum Status Report
23:50/JPN: Apr Provisional Trade Statistics for 1st 10 days of Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
Amphenol Corp (APH) is expected to report $0.67 for 1Q.
Automatic Data Processing Inc (ADP) is expected to report $2.43 for 3Q.
Avery Dennison Corp (AVY) is expected to report $1.66 for 1Q.
BOK Financial Corp (BOKF) is expected to report $2.31 for 1Q.
Boeing Company (BA) is expected to report $-0.48 for 1Q.
Boston Scientific (BSX) is expected to report $0.28 for 1Q.
CGI Inc - Class A (GIB,GIB.A.T) is expected to report $1.72 for 2Q.
CME Group Inc (CME) is expected to report $2.29 for 1Q.
Capitol Federal Financial (CFFN) is expected to report $0.11 for 2Q.
Central Pacific Financial Corp (CPF) is expected to report $0.55 for 1Q.
Dover Corp (DOV) is expected to report $1.76 for 1Q.
Drive Shack Inc (DSHK) is expected to report $-0.06 for 4Q.
FirstService Corp (FSV,FSV.T) is expected to report for 1Q.
HBT Financial Inc (HBT) is expected to report for 1Q.
Healthcare Services Group Inc (HCSG) is expected to report $0.14 for 1Q.
Hess Corp (HES) is expected to report $1.01 for 1Q.
Humana Inc (HUM) is expected to report $9.08 for 1Q.
Insperity (NSP) is expected to report $2.25 for 1Q.
Marine Products (MPX) is expected to report $0.17 for 1Q.
MarketAxess Holdings Inc (MKTX) is expected to report $1.90 for 1Q.
Masco Corp (MAS) is expected to report $0.60 for 1Q.
Navient Corp (NAVI) is expected to report $0.85 for 1Q.
Norfolk Southern Corp (NSC) is expected to report $3.09 for 1Q.
Old Dominion Freight Line (ODFL) is expected to report $2.70 for 1Q.
Otis Worldwide Corp (OTIS) is expected to report for 1Q.
PROG Holdings Inc (PRG) is expected to report for 1Q.
Popular Inc (BPOP) is expected to report $2.03 for 1Q.
Prosperity Bancshares (PB) is expected to report $1.35 for 1Q.
Provident Financial Holdings Inc (PROV) is expected to report $0.33 for 3Q.
RPC Inc (RES) is expected to report $0.37 for 1Q.
Rogers Communications Inc - Class B (RCI,RCI.A.T,RCI.B.T) is expected to report $1.13 for 1Q.
Ryder System (R) is expected to report $2.84 for 1Q.
Silgan Holdings Inc (SLGN) is expected to report $0.73 for 1Q.
Stock Yards Bancorp Inc (SYBT) is expected to report $0.92 for 1Q.
TE Connectivity Ltd (TEL) is expected to report $1.48 for 2Q.
Tattooed Chef Inc (TTCF) is expected to report for 4Q.
Taylor Morrison Home Corp (TMHC) is expected to report $1.32 for 1Q.
Teck Resources Ltd - Class B (TECK,TECK.A.T,TECK.B.T) is expected to report $1.85 for 1Q.
Universal Stainless & Alloy Products Inc (USAP) is expected to report $0.24 for 1Q.
Wabtec Corp (WAB) is expected to report $0.93 for 1Q.
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ANALYST RATINGS ACTIONS
Cal-Maine Foods Cut to Equal-Weight From Overweight by Stephens & Co.
Day One Biopharm Cut to Underperform From Buy by B of A Securities
DigitalOcean Cut to Hold From Buy by Needham
(MORE TO FOLLOW) Dow Jones Newswires
04-26-23 0615ET
