The European Central Bank and Bank of England are expected on Thursday to match the Federal Reserve by raising interest rates 50 basis points. All are doing so to battle inflation that has at various times this year hit multi-decade highs. But the scenarios they face are all slightly different.
Here's what to expect, and why, from the European monetary guardians.
Swiss Central Bank Follows Fed With 0.5-Point Rate Rise
The Swiss National Bank said it would increase interest rates by 0.5 percentage point to 1%, following the Federal Reserve in slowing the pace of increases as inflation edges lower.
The SNB's decision kicks off a busy day for Europe's most influential central banks. Investors expect the Bank of England and European Central Bank to announce 0.5-point rate increases later Thursday. Both have been battling all year with inflation that has spiraled to multidecade highs, partly fueled by Russia's invasion of Ukraine.
Crypto Startups, Investors Seek to Move Past FTX
FTX founder Sam Bankman-Fried's arrest this week on charges of fraud and conspiracy is likely to chill venture investment in crypto startups further. Yet some entrepreneurs and investors say deals are happening, albeit with far more scrutiny than in the past.
"You see investor questions getting much tougher," said Alex Gluchowski, chief executive of blockchain-scaling startup Matter Labs.
China's Economy Struggled in Zero Covid's Final Month
China's economy took a big hit from Covid-19 restrictions in November, in what economists hope will be the last big squeeze on growth from a zero-tolerance strategy toward Covid-19 that Beijing has since abandoned.
Retail sales tumbled as locked-down consumers cut back on spending, while industrial production lost momentum as factories grappled with tight Covid restrictions and slowing overseas demand for their products. Unemployment rose and investment into buildings, machinery and other fixed assets slowed.
Jerome Powell's Grim Inflation Outlook Is at Odds With Markets
Falling prices of energy, automobiles and houses and soft readings on consumer prices have made investors borderline euphoric over the outlook for inflation.
The Federal Reserve is having none of it.
China's Central Bank Keeps Key Policy Rates Unchanged
China's central bank kept its key policy interest rates unchanged on Thursday, which may suggest a hold on the nation's benchmark loan rates as the world's second-largest economy faces mounting pressure from Covid-19 flare-ups.
The People's Bank of China kept the interest rate of the one-year medium-term lending facility at 2.75% while injecting 650 billion yuan ($93.52 billion) of liquidity into the financial market via MLF, according to a statement published on its website.
Prosecution of Sam Bankman-Fried Could Rise or Fall on Intent
FTX founder Sam Bankman-Fried stuck to a common refrain ahead of his indictment on fraud and conspiracy charges, saying that while bad decisions and lack of oversight led to the collapse of the crypto exchange, he didn't commit or know of any wrongdoing.
If his case goes to trial, his lawyers are likely to make the same argument to the jury. Prosecutors will need to rebut that narrative to win a conviction, proving that Mr. Bankman-Fried knowingly and willfully broke the law, former federal prosecutors and defense attorneys say.
Beijing's Parcel Pileup Shows Strain of Zero-Covid Exit
HONG KONG-Chinese e-commerce giant JD.com Inc. said it would dispatch 1,000 workers to Beijing to clear a backlog of deliveries, adding to mounting evidence that China's exit from its zero-Covid policies has been bumpy and uncertain.
A lack of data, after China abandoned widespread testing, has made it difficult to gauge the size of the wave of infections that experts said was bound to follow, as well as the impact on the economy.
House Passes One-Week Spending Bill Over Objections of Some Republicans
WASHINGTON-The House on Wednesday passed a one-week government funding measure to give congressional negotiators time to complete and pass a full-year omnibus spending bill, overcoming opposition from Republicans who urged postponing any deal until next year, when the GOP will take control of the chamber.
The measure passed 224-201. All Democrats voted in favor of the extension. Most Republicans voted no, including Rep. Kevin McCarthy (R., Calif.), whose bid to serve as House speaker next year hinges on his ability to demonstrate he is committed to waging tough fights against Democrats.
Suspect in Paul Pelosi Attack Spoke of 'Evil in Washington' in Police Interview
SAN FRANCISCO-A suspect in the beating attack on House Speaker Nancy Pelosi's husband was ordered Wednesday to stand trial on charges including attempted murder, assault and elder abuse, after a hearing which included the playing of a police interview where he spoke of an "evil in Washington."
Superior Court Judge Stephen Murphy set Dec. 28 date for David DePape, 42, to be formally arraigned on the charges, which also include burglary, false imprisonment and threatening family members of public officials. He is being held without bail in the Oct. 28 attack, which left 82-year-old Paul Pelosi seriously injured from a hammer blow that fractured his skull in two places.
Mississippi Executes Man for Murder of 16-Year-Old
A Mississippi man was executed Wednesday for the 2000 rape and murder of a 16-year-old girl, after he lost an appeal in federal court last week.
Thomas Edwin Loden Jr., 58 years old, was injected with a lethal concoction of drugs at the Mississippi State Penitentiary at Parchman-a process he and other death row inmates had called inhumane in a lawsuit against the state.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Empire 2Q
Enghouse Syss Limited 4Q
Gogold Resources 4Q
Transat A.T. 4Q
Economic Events (ET):
0815 Nov Housing Starts
0830 Oct Employment Insurance
Stocks to Watch:
BTB Real Estate Sells Montréal, Quebec Office Property for C$5.9M
Carlsberg to Aquire Waterloo Brewing In An All-Cash C$144 Million Transaction; Waterloo Brewing Bd Has Unanimously Approved Carlsberg Deal, Recommends Hldrs Vote in Favor; Shareholders to Receive C$4.00 Cash for Each Shr Held; Deal Puts Waterloo Brewing Equity Value at About C$144M on Fully Diluted Basis; Enterprise Value at C$217M; Waterloo Brewing-Carlsberg Deal Expected to Be Completed in 1Q 2023; Waterloo Brewing to De-List From TSX Once Deal Is Completed
Erdene Announces Financing to Fund Exploration and Development in the Khundii Gold District
Northland Power Announces Strategic Partnership in Hai Long With Gentari; Sale of 29.4% Interest in Hai Long Offshore Wind Project Brings Onboard Strategic Long-Term Partner; Will Remain as Single Largest Shareholder of Project With 30.6% and Will Continue to Take the Lead Role in Its Construction and Operation
Expected Major Events for Thursday
04:30/JPN: Oct Tertiary Industry Index
04:30/JPN: Oct Revised Retail Sales
07:00/GER: Nov WPI
07:45/FRA: Nov CPI
07:45/FRA: Dec Monthly business survey (goods-producing industries)
12:00/UK: Agents' Summary of Business Conditions
12:00/UK: UK interest rate decision
13:00/RUS: Weekly International Reserves
13:15/CAN: Nov Housing Starts
13:30/US: Dec Empire State Manufacturing Survey
13:30/US: Nov Advance Monthly Sales for Retail & Food Services
13:30/CAN: Oct Employment Insurance
13:30/US: Dec Philadelphia Fed Business Outlook Survey
13:30/US: 12/10 Unemployment Insurance Weekly Claims Report - Initial Claims
13:30/US: U.S. Weekly Export Sales
14:15/US: Nov Industrial Production & Capacity Utilization
15:00/US: Oct Manufacturing & Trade: Inventories & Sales
15:30/US: 12/09 EIA Weekly Natural Gas Storage Report
21:00/US: Oct Treasury International Capital Data
21:30/US: Foreign Central Bank Holdings
21:30/US: Federal Discount Window Borrowings
22:59/US: ISM Semiannual Report On Business Economic Forecast
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
Adobe Inc (ADBE) is expected to report $2.48 for 4Q.
BMTC Group is expected to report for 3Q.
Empire Co (EMLAF,EMP.A.T) is expected to report for 2Q.
Enghouse Systems (ENGH.T) is expected to report $0.39 for 4Q.
Forward Industries (FORD) is expected to report for 4Q.
Frequency Electronics (FEIM) is expected to report for 2Q.
Good Times Restaurants Inc (GTIM) is expected to report for 4Q.
Inspirato Inc (ISPO) is expected to report for 3Q.
Jabil Inc (JBL) is expected to report $1.93 for 1Q.
Live Ventures Inc (LIVE) is expected to report for 4Q.
Mega Uranium is expected to report for 4Q.
Provident Bancorp Inc (PVBC) is expected to report for 3Q.
Quanex Building Products Corp (NX) is expected to report $0.59 for 4Q.
Scholastic Corp (SCHL) is expected to report for 2Q.
Transat AT (TRZ.T) is expected to report for 4Q.
Urstadt Biddle Properties Inc - Class A (UBA,UBP) is expected to report $0.30 for 4Q.
Waterloo Brewing is expected to report for 3Q.
cbdMD Inc (YCBD) is expected to report for 4Q.
Powered by Onclusive and Dow Jones.
ANALYST RATINGS ACTIONS
Acadia Realty Trust Cut to Neutral From Buy by Citigroup
Acadia Realty Trust Cut to Sector Weight From Overweight by Keybanc
Ansys Raised to Outperform From Neutral by Baird
Armstrong World Cut to Hold From Buy by Jefferies
AutoZone Cut to Underperform From Neutral by B of A Securities
Best Buy Cut to Underperform From Neutral by B of A Securities
Caesars Entertainment Cut to Neutral From Buy by B of A Securities
Centerspace Cut to Neutral From Buy by Janney Montgomery Scott
Certara Cut to Neutral From Outperform by Baird
Chevron Cut to Underperform From Neutral by Exane BNP Paribas
Coupa Software Cut to Neutral From Buy by Citigroup
Coupa Software Cut to Sector Weight From Overweight by Keybanc
(MORE TO FOLLOW) Dow Jones Newswires
12-15-22 0643ET
