The German chemicals giant said Tuesday that it expects to book EUR5.4 billion of the total impairment in the fourth quarter of 2022, swinging to a net loss of EUR1.38 billion from a 2021 profit of EUR5.52 billion. BASF's forecast, based on preliminary figures, is considerably below analysts' forecast of a EUR4.77 billion profit, the company said.
December Retail Sales Report to Show How Consumers Weathered Holiday Season
A report on December U.S. retail sales will show consumers' appetite for spending on gifts, dining out and big-ticket purchases during the final month of the holiday season.
High inflation and rising borrowing costs caused some households to pull back late last year, and retailers said the recently completed holiday shopping season turned out to be weaker than expected. Macy's Inc. warned of softer sales, and Lululemon Athletica Inc. said its profit margins were squeezed as shoppers bought more items on sale. Broadly, discounting became more commonplace.
Despite Pressure, Bank of Japan Keeps Interest-Rate Targets Unchanged
TOKYO-The Bank of Japan kept its interest-rate targets unchanged Wednesday despite strong pressure from investors on the bank's new 0.5% cap for the 10-year government bond yield.
The Japanese central bank decided to leave short-term interest rates at minus 0.1% and its target for the 10-year Japanese government bond yield at around zero. The bank reiterated that it intends to cap that yield at 0.5%.
Oil Demand to Hit Record Level This Year as China Reopens, IEA Says
China's rapid shift to reopen its economy following lengthy Covid-19 lockdowns should help oil demand rise to a record level this year, the International Energy Agency said.
The energy watchdog lifted its forecast for oil demand growth this year by nearly 200,000 barrels a day to 1.9 million barrels a day. The extra demand means that the IEA now expects total oil demand this year to average 101.7 million barrels a day, well above pre-Covid levels and a record amount.
U.K. Inflation Falls for Second Month, Following Global Move
The U.K.'s annual rate of inflation fell for a second straight month in December, the latest sign that the global surge in consumer prices that began in early 2021 is slowing.
Consumer prices in the U.K. were 10.5% higher than a year earlier, a slower rate of inflation than the 10.7% recorded in November as gasoline prices cooled, the Office for National Statistics said Wednesday. The core rate of inflation was unchanged at 6.3%, while prices of food and beverages rose at the fastest pace since September 1977.
European Privacy Regulators Step Up Scrutiny of Business Data Practices
European privacy regulators are reaching beyond investigations into run-of-the-mill violations of the General Data Protection Regulation, such as data breaches, and eyeing companies' business models, scrutinizing their contracts and considering more nuanced aspects of how the nearly five-year-old law applies.
Cybersecurity failures and misuse of artificial intelligence show up in privacy fines, with regulators sanctioning companies that don't require long, complex passwords to protect data.
Taiwan's Economy Shrank in Fourth Quarter, First Downturn in Years
Taiwan's economy shrank 0.86% in the final quarter of 2022, as weakening global economies weighed on overseas demand and hurt the manufacturing hub's export momentum.
The decline, shown in official advance data released on Wednesday, marked the island's first quarterly economic downturn in years, and significantly weakened from a 4.01% rise in the previous quarter, when a reopening-triggered consumption jump supported economic improvement.
EU Passenger Car Registrations Increased in December, But 2022 Still in the Negative
Registrations of passenger cars in the European Union increased in the last month of 2022, although the full year still showed a contraction in registrations as a result of component shortages in the first half of the year, the European Automobile Manufacturers Association said.
December registrations increased by 12.8% in the fifth consecutive month of growth, the association, known as ACEA, said. However, only two of the region's four major markets, Germany and Italy, posted growth, it added.
Fed needs to avoid the mistake of declaring victory over inflation too soon, Barkin says
The Federal Reserve must avoid the mistake of declaring victory over inflation too soon, said Richmond Fed President Tom Barkin on Tuesday.
In an interview on the Fox Business Network, Barkin said "the thing I learned" is one can't declare victory too early.
Ukraine's Interior Minister, at Least 17 Others Killed in Kyiv Helicopter Crash
Ukraine's interior minister and other senior officials were among at least 18 people killed when a helicopter crashed near a kindergarten on the edge of Kyiv on Wednesday morning, Ukrainian officials said.
The minister, Denys Monastyrsky, a first deputy minister, and another senior official were killed in the crash, Ukrainian police said. Nine of those killed had been on board the aircraft when it crashed in Brovary, on the outskirts of Kyiv, Ukraine's national police chief said on his official Telegram channel.
Justice Department Considered but Rejected Role in Biden Documents Search
WASHINGTON-The Justice Department considered having FBI agents monitor a search by President Biden's lawyers for classified documents at his homes but decided against it, both to avoid complicating later stages of the investigation and because Mr. Biden's attorneys had quickly turned over a first batch and were cooperating, according to people familiar with the matter.
After Mr. Biden's lawyers discovered documents marked as classified dating from his term as vice president at an office he used at a Washington-based think tank on Nov. 2, the Justice Department opened an inquiry into why and how they got there. Mr. Biden's legal team prepared to search his other properties for any similar documents, and discussed with the Justice Department the prospect of having FBI agents present while Mr. Biden's lawyers conducted the additional searches.
Australia to Buy U.S. Helicopters, Declares Existing Aircraft Unfit for Purpose
SYDNEY-When Australia's military acquired a fleet of European-made helicopters to fly troops into combat, it planned to operate the aircraft for decades.
But there was a problem: The door wasn't wide enough to allow its self-defense gun to fire while special-operations forces were rappelling to the ground. A new gun mount was designed that could be stowed quickly, but the weapon still couldn't be fired while troops exited the aircraft. Military commanders said two helicopters might be needed for some missions so one could provide cover while soldiers disembarked from the other.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators (ET):
0830 Dec Industrial product & raw materials price indexes
Stocks to Watch:
Bausch + Lomb Acquires AcuFocus, Inc.; Acquisition Will Enhance Surgical Portfolio With IC-8 Apthera Intraocular Lens
BMO Receives Regulatory Approval To Acquire Bank Of The West
Bombardier Prices $750M Offering of Senior Notes Due 2029 With Coupon of 7.50%
Maverix Metals Receives Ontario Superior Court of Justice Approval for Combination With Triple Flag Precious Metals
Pan American Silver Announces Preliminary 2022 Production Results; Consolidated Silver Production in 2022 of 18.5M Ounces Within Revised Guidance Range of 18.0M to 18.5M Ounces Provided Nov 9, Below Original Guidance of 19.0M to 20.5M Ounces Provided on Feb 23; Consolidated Gold Production in 2022 of 552.5 Thousand Ounces Within Original Guidance Range of 550.0 to 605.0 Thousand Ounces Provided Feb 23; Consolidated Zinc Production in 2022 of Approximately 38,000 MT Within Guidance of 35,000 - 40,000 MT, Lead Production of Approximately 18,000 MT Above Guidance of 15,000 - 17,000 MT, Copper Production of Approximately 5,000 MT Modestly Below Guidance of 5,500 - 6,500 MT Based on Guidance Provided Feb 23
Wallbridge Announces 2023 Budget and Exploration Program for Detour-Fenelon Gold Trend Land Package; Has Approved a C$36 M Budget for 2023
Expected Major Events for Wednesday
00:01/UK: Dec Scottish Retail Sales Monitor
04:30/JPN: Nov Revised Industrial Production
07:00/UK: Dec UK monthly inflation figures
08:59/JPN: Japan Monetary Policy Meeting decision
09:00/ITA: Nov Foreign Trade EU
09:00/FRA: Jan IEA Oil Market Report
09:30/UK: Oct Card Spending statistics
09:30/UK: Nov UK House Price Index
12:00/US: 01/13 MBA Weekly Mortgage Applications Survey
13:30/US: Dec PPI
13:30/US: Dec Advance Monthly Sales for Retail & Food Services
13:30/CAN: Dec Industrial product & raw materials price indexes
13:55/US: 01/14 Johnson Redbook Retail Sales Index
14:15/US: Dec Industrial Production & Capacity Utilization
15:00/US: Nov Manufacturing & Trade: Inventories & Sales
15:00/US: Jan NAHB Housing Market Index
20:00/US: U.S. Federal Reserve Beige Book
21:00/US: Nov Treasury International Capital Data
21:30/US: 01/13 API Weekly Statistical Bulletin
23:50/JPN: Dec Provisional Trade Statistics for the Month
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
Alcoa Corp (AA) is expected to report $-0.54 for 4Q.
Allied Healthcare (AHPI) is expected to report for 1Q.
Avalon Advanced Materials Inc (AVL.T) is expected to report for 1Q.
Commerce Bancshares Inc (CBSH) is expected to report $1.04 for 4Q.
Community Trust Bancorp (CTBI) is expected to report $1.23 for 4Q.
Concrete Pumping Holdings Inc (BBCP) is expected to report $0.13 for 4Q.
Discover Financial Services (DFS) is expected to report $3.65 for 4Q.
Eagle Bancorp (Maryland) (EGBN) is expected to report $1.16 for 4Q.
First Bancorp Inc (FNLC) is expected to report for 4Q.
(MORE TO FOLLOW) Dow Jones Newswires
01-18-23 0618ET
