European industry thrived for decades on a steady supply of cheap Russian gas, which flowed uninterrupted throughout the Cold War and other times of tension between Moscow and the West.
Since invading Ukraine, Russian President Vladimir Putin has weaponized the country's vast stores of energy to undermine support for Kyiv. He turned off the taps to the biggest natural-gas pipeline, Nord Stream, completely this month.
For Wall Street, a Strong Dollar Is Front and Center
The strong dollar is now one of Wall Street's main concerns.
On Main Street, a rising dollar boosts Americans' relative purchasing power by making imports cheaper. But the dollar is also at the center of world financial markets, and a stronger U.S. currency can have unforeseen consequences.
Why Is the Dollar So Strong? American Innovation
The dollar is having a once-in-a-generation surge of supremacy over the world. After 11 years and a 40% gain on a real trade-weighted basis, some are starting to wonder if it is time for a fall.
In the short run a weaker dollar is plausible, as Europe's governments absorb the financial threat to their economies from energy prices and foreign central banks rush to catch up with the Federal Reserve on rate rises. The burst of optimism in the markets on Friday led the dollar to fall back, as money that had sought it out as a haven left again.
Oil Prices Slump as Recession Fears Grow
Another turbulent week in oil markets carried crude prices to their lowest point since January, with thin trading and a blurry outlook for supply and demand driving a fitful 30% decline from this year's highs.
A 5.9% gain since Wednesday notwithstanding, the main U.S. oil benchmark has shed about $35 a barrel since peaking above $122 three months ago. West Texas Intermediate closed Friday at $86.79. Brent crude futures, the primary international price gauge, ended at $92.84.
Global Drought Saps Hydropower, Complicating Clean-Energy Push
Record drought across the globe this year dried up rivers and reservoirs and sapped the world's largest source of renewable electricity: hydropower.
The dip in electricity generated by the flow of water across dams in China, Europe and the U.S. stifled power production. In some places, it has caused factories and smelters to shut down for weeks on end.
Outlook for Tech Stocks Darkens After Rocky Stretch
A rally in technology shares helped the stock market snap a three-week losing streak. There are already signs that reprieve may be short lived.
Investors are bailing out of technology-focused mutual and exchange-traded funds at the fastest clip since early February, when the tech selloff was first intensifying, according to data from Refinitiv Lipper. They yanked about $2.4 billion from such funds in the three weeks ended Wednesday.
California Drought Leaving Rice Farmers Dry
COLUSA, Calif.-Rick Richter has spent the past 43 years flying biplanes over California's Sacramento Valley, dropping rice seeds into vast, flooded fields that churn out grain for consumers across the globe.
In a typical year, Mr. Richter's company seeds 42,000 acres of rice, earning more than $3 million in revenue. This year, as a worsening drought prompts unprecedented cuts in water allocations to rice farms, he has seeded just 7,000 acres and expects sales of $550,000.
Wildfires in Oregon and Washington State Prompt Evacuation Orders
Wildfires burned throughout Oregon and Washington state on Sunday, prompting officials to order evacuations in some areas and electric utilities to shut off power to thousands of customers for safety reasons.
There were 19 large fires in the two states, encompassing more than 295,000 acres as of Sunday, according to the Northwest Interagency Coordination Center, which provides logistical and intelligence support for agencies in the region. Some 5,000 personnel were fighting the blazes.
Trump Lawyer Seeks to 'Lower Temperature' Over Mar-a-Lago Documents
WASHINGTON-Chris Kise, the well-connected former Florida solicitor general who last month became the leading member of former President Donald Trump's legal team, has sought a conciliatory tack in challenging the Justice Department's investigation into the handling of highly sensitive documents at Mar-a-Lago, but he faces strong headwinds.
His aim is to resolve the case without the government seeking criminal prosecution, people familiar with the strategy say. But arrayed against him, they say, are a client who relishes a fight over compromise and a Justice Department that has said its probe has escalated because of potential criminal activity it can't easily ignore, namely that classified documents remained at Mar-a-Lago months after Mr. Trump's allies affirmed they had provided all of them to the FBI, and some appeared to have been deliberately moved.
Biden Jabs Trump at Midterms Events as Some Democrats Express Enthusiasm for 2024
WASHINGTON-As President Biden rallies Democrats ahead of the midterm elections, he is drawing a sharp contrast with Republicans and citing polling of a potential 2024 rematch against former President Donald Trump as some allies say recent legislative victories have eased their questions about the president's political future.
At a Democratic National Committee meeting near Washington Thursday, Mr. Biden listed his recent legislative successes, which include passing a law aimed at lowering prescription drug prices and boosting renewable energy. While Mr. Biden in the past has stressed the bipartisan passage of the roughly $1 trillion infrastructure law he signed last year, this time he characterized it as only "a little help" from the GOP.
Democrats' Effort to Speed Up Energy-Project Permitting Faces More Opposition
WASHINGTON-Congress is flashing warning signs about the prospects for passing legislation to speed up permitting of both renewable-energy and traditional fossil-fuel projects, with a growing number of lawmakers objecting to the proposal being tied to a must-pass spending bill.
Last week, Senate Majority Leader Chuck Schumer (D., N.Y.) said he would attach the permitting bill to a short-term budget measure known as a continuing resolution needed to keep the government funded beyond the end of September. Lawmakers on both sides of the aisle have balked at supporting the permitting bill, leaving its fate up in the air with just a few weeks until the funding deadline.
Canada's Conservatives Pick 'Freedom Convoy' Sympathizer to Lead Party Against Trudeau
OTTAWA-Canada's Conservative Party picked as its new leader a politician who backed the paralyzing protests earlier this year against pandemic restrictions and vaccine mandates, hoping his populist appeal with disaffected voters will be enough to unseat Prime Minister Justin Trudeau.
Pierre Poilievre was declared the winner Saturday, winning 68% from party members voting on the first ballot. Mr. Poilievre's campaign said it signed up hundreds of thousands of new party members, drawn by his promises to reduce the role of the state in people's lives and to roll back government spending and taxes that he says helped fuel inflation.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
None scheduled
Economic Indicators:
None scheduled
Stocks to watch:
Magna International Invests $77M in India's Yulu; Magna to Hold Stake in Yulu, Have a Seat on Yulu's Board; Magna, Yulu to Set Up New Battery-Swapping Entity
Expected Major Events for Monday
06:00/JPN: Aug Preliminary Machine Tool Orders
06:00/UK: Jul Index of production
06:00/UK: Jul UK trade
06:00/UK: Jul Index of services
06:00/UK: Jul Monthly GDP estimates
08:00/ITA: Jul Industrial Production
08:00/GER: Ifo Economic Forecast
10:00/FRA: Jul OECD Composite Leading Indicators
11:30/UK: Aug NIESR Monthly GDP Tracker
16:00/US: World Agricultural Supply & Demand Estimates (WASDE)
16:59/GER: Jul Balance of Payments
23:01/UK: 4Q Manpower UK Employment Outlook Survey
23:50/JPN: 3Q Business Outlook Survey
23:50/JPN: Aug Corporate Goods Price Index
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
Akoustis Technologies Inc (AKTS) is expected to report $-0.21 for 4Q.
Coffee Holding Co (JVA) is expected to report $0.06 for 3Q.
Dye & Durham Ltd (DND.T) is expected to report for 4Q.
EVI Industries Inc (EVI) is expected to report for 4Q.
Frequency Electronics (FEIM) is expected to report for 1Q.
Friedman Industries (FRD) is expected to report for 1Q.
MIND Technology Inc (MIND) is expected to report for 2Q.
Matrix Service (MTRX) is expected to report $-0.31 for 4Q.
Ocean Power Technologies Inc (OPTT) is expected to report for 1Q.
Optical Cable (OCC) is expected to report for 3Q.
Oracle Corp (ORCL) is expected to report $0.80 for 1Q.
Planet Labs PBC (PL) is expected to report for 2Q.
Rent the Runway Inc (RENT) is expected to report for 2Q.
SeaChange International Inc (SEAC) is expected to report $-0.07 for 2Q.
Value Line (VALU) is expected to report for 1Q.
Vince Holding Corp (VNCE) is expected to report for 2Q.
Vinco Ventures Inc (BBIG) is expected to report for 2Q.
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ANALYST RATINGS ACTIONS
3M Raised to Neutral From Sell by UBS
Alector Cut to Equal-Weight From Overweight by Morgan Stanley
American Axle Cut to Neutral From Buy by B of A Securities
American Water Works Raised to Neutral From Underweight by JP Morgan
Avantor Cut to Neutral From Buy by Cleveland Research
CarMax Cut to Underperform From Neutral by B of A Securities
Coinbase Raised to Buy From Outperform by Daiwa Capital
Correction to CF Acquisition VI Rating
Cyteir Therapeutics Cut to Equal-Weight From Overweight by Morgan Stanley
Elevance Health Raised to Buy From Neutral by B of A Securities
Enphase Energy Cut to Neutral From Buy by Guggenheim
Essential Utilities Cut to Neutral From Buy by B of A Securities
(MORE TO FOLLOW) Dow Jones Newswires
09-12-22 0537ET
