In a speech Wednesday afternoon at the Brookings Institution, Powell is expected to reinforce the dual message central bank officials have been making for weeks: that the Fed is on track to ease up slightly on its pace of monetary policy tightening, likely slowing to a 50 basis point increase next month after four straight 75 basis point hikes.
U.S. Not Seeking Decoupling From China, Commerce Chief Says
WASHINGTON-The U.S. isn't seeking to decouple from China, U.S. Commerce Secretary Gina Raimondo will assert Wednesday, even as she emphasizes steps the U.S. is taking to safeguard its technology to ensure its economic competitiveness.
Ms. Raimondo is scheduled to speak Wednesday on U.S. competition with China at the Massachusetts Institute of Technology. At a briefing with reporters in advance, Ms. Raimondo highlighted the importance of promoting trade and investment in areas outside of core economic and national security interests.
Junk Bonds Rally as Investors Speculate Inflation Has Peaked
Investors are driving a modest end-of-year rally in junk bonds, erasing some of 2022's biting losses in a bet that the economic outlook for next year has stabilized.
Yields on below-investment-grade corporate bonds tracked by Intercontinental Exchange's index have declined to 8.76% through Monday's trading, down from a recent high of 9.61% on Oct. 13. Investors say they are growing more confident that interest rates might peak without putting many lower-rated companies' ability to repay debt in serious jeopardy.
Biden Administration Pressed by Allied Nations to Revise EV Subsidy Program
WASHINGTON-The Biden administration finds itself caught between its domestic-policy goals and some of its closest allies as it races against the clock to set the ground rules for new electric-vehicle subsidies.
The Treasury Department's Internal Revenue Service faces a year-end deadline to propose a guideline for how to qualify for EV tax incentives of up to $7,500 per vehicle under the tax and climate spending legislation known as the Inflation Reduction Act that President Biden signed in August.
Covid Controls Hit Chinese Factories, Adding Risks to Global Growth
SINGAPORE-Economic activity in China contracted further in November, adding pressure to a global economy already losing momentum as the war in Ukraine drags on and central banks raise interest rates to combat high inflation.
Gauges of activity in Chinese manufacturing, services and construction deteriorated by more than expected this month, a sign of weakening economic output as authorities persist in using widespread curbs on business and daily life to respond to Covid-19 outbreaks.
India's Central Bank to Launch Retail Pilot of Digital Rupee
India's central bank will launch its first pilot of a digital rupee for individual users on Thursday, putting it ahead of many major economies in the journey toward a sovereign virtual currency.
The Reserve Bank of India has said a digital rupee could provide Indians a safe alternative to risky private digital currencies.
Elon Musk's Neuralink Set to 'Show and Tell' Latest Brain-Computer Advances at Event
Elon Musk's neuroscience startup Neuralink Corp. is expected to give a progress report on its brain-implant technology in a highly anticipated streamed event Wednesday night.
In a tweet last week, the company teased a demo for the event, which begins at 9 p.m. New York time, with a short video that slowly spelled out the message "please join us for a show and tell." Some outside researchers said the video may indicate that a Neuralink device has been used to decode brain signals to type words on a screen, although they speculated that it would most likely be through a monkey or a wearable device.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
BRP 3Q
Natl Bank of Canada 4Q
Royal Bank of Canada 4Q
TECSYS 2Q
Economic Indicators:
None scheduled
Stocks to Watch:
Bausch Health Announces Unrestricting of Bausch + Lomb Under Bausch Health Debt Documents; Bausch + Lomb No Longer Subject to Covenants Under Bausch Health Debt Documents; Bausch Health Continues to Evaluate Potential Options to Maximize Stakeholder Value
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Enbridge Completes Partnership Agreement in Woodfibre; Enbridge Now Has 30% Ownership Stake in the Woodfibre LNG Project; Pacific Energy and Enbridge Will Each Make Pro-Rata Contributions During Construction Through Combination of Expected Asset Level Financing and Equity Investments; Enbridge: Project Remains on Track for Targeted In-Service Date of 4Q 2027
Expected Major Events for Wednesday
00:01/UK: CBI Service Sector Survey
00:01/UK: Nov Shop Price Index
01:00/JPN: Oct Steel Imports & Exports Statistics
04:30/JPN: Oct Preliminary Report on Petroleum Statistics
05:00/JPN: Oct Construction Orders
05:00/JPN: Oct Housing Starts
07:45/FRA: Oct Housing starts
07:45/FRA: Oct Household consumption expenditure in manufactured goods
07:45/FRA: Oct PPI
07:45/FRA: Nov Provisional CPI
07:45/FRA: 3Q GDP - detailed figures
08:55/GER: Nov Labour market statistics (incl unemployment)
09:00/ITA: 3Q GDP
10:00/ITA: Nov Provisional CPI
10:00/ITA: Nov Cities CPI
12:00/US: 11/25 MBA Weekly Mortgage Applications Survey
13:15/US: Nov ADP National Employment Report
13:30/US: 3Q 2nd estimate GDP
13:30/US: Oct Advance Economic Indicators Report
13:30/US: 3Q Preliminary Corporate Profits
14:45/US: Nov Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI
15:00/US: Oct Pending Home Sales Index
15:00/US: Oct Job Openings & Labor Turnover Survey
15:30/US: 11/25 EIA Weekly Petroleum Status Report
19:00/US: U.S. Federal Reserve Beige Book
20:00/US: Oct Agricultural Prices
23:50/JPN: 3Q Quarterly Financial Statements Statistics of Corporations
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Wednesday
Allena Pharmaceuticals Inc (ALNAQ) is expected to report $-0.48 for 3Q.
Amtech Systems Inc (ASYS) is expected to report $0.11 for 4Q.
Box Inc (BOX) is expected to report $0.01 for 3Q.
Brp Inc (DOO.T,DOOO) is expected to report $2.45 for 3Q.
Build-A-Bear Workshop (BBW) is expected to report $0.38 for 3Q.
Costco Wholesale Corp (COST) is expected to report.
Credo Technology Group Holding Ltd (CRDO) is expected to report for 2Q.
Donaldson Co (DCI) is expected to report $0.70 for 1Q.
Five Below (FIVE) is expected to report $0.15 for 3Q.
Genasys Inc (GNSS) is expected to report for 4Q.
Great Panther Mining Ltd (GPL,GPR-T) is expected to report for 3Q.
Hennessy Advisors Inc (HNNA) is expected to report for 4Q.
Hormel Foods Corp (HRL) is expected to report $0.50 for 4Q.
Just Energy Group Inc (JE,JE.H.V) is expected to report for 2Q.
KE Holdings Inc - ADR (BEKE) is expected to report for 3Q.
La-Z-Boy Inc (LZB) is expected to report $0.85 for 2Q.
Leslie's Inc (LESL) is expected to report for 4Q.
National Bank of Canada (NA.T,NTIOF) is expected to report $2.25 for 4Q.
Nutanix Inc (NTNX) is expected to report $-0.60 for 1Q.
Okta Inc (OKTA) is expected to report $-1.39 for 3Q.
Ooma Inc (OOMA) is expected to report $-0.06 for 3Q.
PVH Corp (PVH) is expected to report $2.13 for 3Q.
Petco Health & Wellness Co Inc (WOOF) is expected to report for 3Q.
Portage Biotech Inc (PBT.U-L,PRTG) is expected to report for 2Q.
Pure Storage Inc (PSTG) is expected to report $-0.04 for 3Q.
Rogers Sugar (RSGUF,RSI.T) is expected to report for 4Q.
Royal Bank of Canada (RY,RY.T) is expected to report $2.68 for 4Q.
Salesforce Inc (CRM) is expected to report $0.11 for 3Q.
Schmitt Industries (SMIT) is expected to report for 1Q.
Semtech (SMTC) is expected to report $0.41 for 3Q.
Snowflake Inc (SNOW) is expected to report for 3Q.
Splunk Inc (SPLK) is expected to report $-1.04 for 3Q.
Synopsys Inc (SNPS) is expected to report $1.11 for 4Q.
TECSYS Inc (TCS.T) is expected to report $-0.01 for 2Q.
Titan Machinery (TITN) is expected to report $1.16 for 3Q.
Victoria's Secret & Co (VSCO) is expected to report for 3Q.
Yext Inc (YEXT) is expected to report $-0.15 for 3Q.
nCino Inc (NCNO) is expected to report for 3Q.
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ANALYST RATINGS ACTIONS
American Homes 4 Rent Cut to Outperform From Strong Buy by Raymond James
CinCor Pharma Cut to Equal-Weight From Overweight by Morgan Stanley
CinCor Pharma Cut to Perform From Outperform by Oppenheimer
Darden Restaurants Cut to Neutral From Outperform by Baird
Evergy Cut to Underperform From Outperform by Credit Suisse
Generac Cut to Underperform From Hold by Jefferies
Goodyear Tire Cut to Hold From Buy by Argus Research
Invitation Homes Cut to Outperform From Strong Buy by Raymond James
Paccar Raised to Neutral From Underperform by Exane BNP Paribas
Roku Cut to Sector Weight From Overweight by Keybanc
Surrozen Cut to Underweight From Neutral by JP Morgan
United Parcel Service Raised to Buy From Hold by Deutsche Bank
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
11-30-22 0558ET
