TOKYO-Japan's economy contracted in the first three months of this year, when restrictions related to a resurgence of Covid-19 infections held back consumer spending.
While economists expect a rebound in the current April-June quarter, the outlook for this year is cloudy because of factors including Russia's invasion of Ukraine, the rise in energy prices and the weakness of the yen, which is near a 20-year low against the dollar.
EU New Car Sales Slumped in April as Supply Squeezes Drag On
Continued supply chain pressures led to a big decline in new car registrations in the European Union in April, according to data from European Automobile Manufacturers Association, or ACEA.
Total new car registrations in the bloc fell 21% on year to 684,506 units sold. This was the lowest volume for the month of April since records began, barring the Covid-19 pandemic-hit April 2020, ACEA said. "[S]upply chain issues continued to weigh heavily on car production," the association said.
Finland, Sweden Apply for NATO Membership, Breaking Decades of Neutrality
Finland and Sweden formally applied for NATO membership on Wednesday, a move that, if approved, would fundamentally transform the security landscape of Northern Europe and give the alliance a valuable edge against Russia following Moscow's invasion of Ukraine.
The two Nordic countries' bid to join the North Atlantic Treaty Organization breaks with a decadeslong defense doctrine that has seen them balance political and security partnerships with other Western nations while staying out of formal military alliances.
North Korea Receives Aid From China as Covid Outbreak Spreads
SEOUL-North Korea, battling its first major Covid-19 outbreak, has reached out for help to its closest ally, China, while ignoring offers of vaccines from South Korea.
Three North Korean cargo planes flew to the Chinese city of Shenyang on Monday, returning the same day carrying basic medical supplies, according to diplomats familiar with the flights.
John Fetterman Wins Democratic Senate Primary in Pennsylvania; Trump-Backed Candidates in Focus Nationwide
Democratic voters in Pennsylvania nominated Lt. Gov. John Fetterman, a prominent liberal with an untraditional personal style, to be their party's nominee for an open U.S. Senate seat, as five states cast primary ballots on Tuesday.
In North Carolina, Republican voters chose Rep. Ted Buddas their nominee for an open Senate seat, but rejected a bid by gaffe-plagued Rep. Madison Cawthorn to return to the House.
Gov. Asa Hutchinson Says GOP Needs to Move Past Donald Trump
The Republican Party has to move past former President Donald Trump, said Arkansas Gov. Asa Hutchinson. To do so, voters need to see other leaders fighting for the same conservative issues Mr. Trump was passionate about.
"There is a linkage right now between him personally and those things that we care about...de-linking those takes time," Mr. Hutchinson said Tuesday at The Future of Everything Festival. "We have to show that we are the party of the future and not the last election. That is critical for us."
House Plans Vote on Baby Formula Legislation Wednesday
WASHINGTON-Democrats, responding to public anger over the baby-formula shortage, laid out plans for legislation and oversight hearings aimed at boosting supply and preventing a repeat of the problems that left store shelves empty in many locations.
The House plans to vote Wednesday on the Access to Baby Formula Act, a bill that would give emergency authority to the WIC federal nutrition program to relax some non-safety-related regulations. Democrats also unveiled a bill to provide $28 million to the Food and Drug Administration, including to add more inspectors who could clear additional manufacturers to supply U.S. customers.
Steve Wynn Sued by Justice Department
WASHINGTON-The Justice Department sued casino mogul Steve Wynn Tuesday to force him to register as a lobbyist in connection with his 2017 efforts to obtain a diplomatic favor long sought by Chinese authorities.
The lawsuit comes almost a year after the department told Mr. Wynn to register under the Foreign Agents Registration Act and signaled that it would go to court to compel him to do so if necessary, as The Wall Street Journal reported at the time, citing people familiar with the matter.
Prosecutors Seek Transcripts From Jan. 6 Committee
WASHINGTON-The Justice Department is seeking transcripts of interviews conducted by the House select committee investigating the Jan. 6, 2021, attack on the U.S. Capitol by Trump supporters, people familiar with the matter said, a possible signal that law enforcement's probe of the riot is expanding. Meanwhile, the chairman of the committee said Tuesday it doesn't plan to call former President Donald Trump to testify as a witness.
Department officials told the lead investigator for the panel in an April letter that some of the committee's interviews might be relevant to their criminal investigation, one of the people said. That inquiry has up to now largely targeted individuals who entered the Capitol building that day and assaulted police officers, though federal prosecutors have also issued subpoenas for information about the planning of the "Stop the Steal" rally of Trump supporters that preceded the attack.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
MAG Silver 1Q
Economic Indicators (ET):
0830 Apr CPI
Expected Major Events for Wednesday
04:30/JPN: Mar Revised Industrial Production
06:00/UK: Apr UK producer prices
06:00/UK: Apr UK monthly inflation figures
08:30/UK: Feb Card Spending statistics
08:30/UK: Mar UK House Price Index
11:00/US: 05/13 MBA Weekly Mortgage Applications Survey
12:30/US: Apr New Residential Construction - Housing Starts and Building Permits
12:30/CAN: Apr CPI
14:30/US: 05/13 EIA Weekly Petroleum Status Report
23:01/UK: 3Q Manpower UK Employment Outlook Survey
23:50/JPN: Mar Orders Received for Machinery
23:50/JPN: Apr Provisional Trade Statistics for the Month
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Wednesday
Analog Devices (ADI) is expected to report $1.22 for 2Q.
BARK Inc (BARK) is expected to report for 4Q.
Bath & Body Works Inc (BBWI) is expected to report for 1Q.
CSW Industrials Inc (CSWI) is expected to report $1.04 for 4Q.
Cisco Systems (CSCO) is expected to report $0.77 for 3Q.
Copart Inc (CPRT) is expected to report $1.14 for 3Q.
Dorian LPG Ltd (LPG) is expected to report $0.59 for 4Q.
Dynatrace Inc (DT) is expected to report for 4Q.
Encision (ECIA) is expected to report for 4Q.
Exscientia PLC - ADR (EXAI) is expected to report for 1Q.
Hawkins (HWKN) is expected to report $0.43 for 4Q.
IBEX Limited (IBEX) is expected to report for 3Q.
Lowe's Cos (LOW) is expected to report $3.26 for 1Q.
MAG Silver Corp (MAG,MAG.T) is expected to report for 1Q.
MICT Inc (MICT) is expected to report for 4Q.
Portage Biotech Inc (PBT.U-L,PRTG) is expected to report for 1Q.
Pressure BioSciences Inc (PBIO) is expected to report for 1Q.
Progressive Corp (PGR) is expected to report.
SOPerior Fertilizer Corp (SOP.H.V) is expected to report for 1Q.
Shoe Carnival (SCVL) is expected to report $0.74 for 1Q.
Smart Share Global Ltd - ADR (EM) is expected to report for 1Q.
Synopsys Inc (SNPS) is expected to report $1.76 for 2Q.
Sypris Solutions (SYPR) is expected to report for 1Q.
TJX Companies Inc (TJX) is expected to report $0.60 for 1Q.
Target Corp (TGT) is expected to report $3.06 for 1Q.
Torrid Holdings Inc (CURV) is expected to report for 1Q.
Triumph Group Inc (TGI) is expected to report $0.40 for 4Q.
Velan Inc (VLN.T,VLNSF) is expected to report for 4Q.
Powered by Kantar Media and Dow Jones.
ANALYST RATINGS ACTIONS
Advanced Micro Devices Raised to Overweight From Neutral by Piper Sandler
Alliant Energy Raised to Neutral From Underperform by B of A Securities
AutoWeb Cut to Underperform From Market Perform by Barrington Research
Avaya Holdings Cut to Underweight From Equal-Weight by Barclays
Ball Raised to Buy From Hold by Truist Securities
Byline Bancorp Raised to Buy From Neutral by Janney Montgomery Scott
Camden Property Trust Cut to Neutral From Buy by Goldman Sachs
Cooper Cos Raised to Buy From Neutral by Citigroup
Enjoy Technology Cut to Underperform From Market Perform by Telsey Advisory Group
Equity Residential Raised to Buy From Neutral by Mizuho
Essex Property Raised to Buy From Sell by Goldman Sachs
F45 Training Cut to Neutral From Buy by Roth Capital
Maxar Technologies Cut to Underperform From Neutral by B of A Securities
Molson Coors Beverage Cut to Market Perform From Outperform by Bernstein
Nerdy Cut to Neutral From Buy by Goldman Sachs
Paysign Raised to Buy From Neutral by Ladenburg Thalmann
Q2 Holdings Cut to Equal-Weight From Overweight by Stephens & Co.
Shake Shack Raised to Market Perform From Underperform by Raymond James
Tesla Raised to Hold From Sell by Tudor Pickering
Turtle Beach Raised to Outperform From Neutral by Wedbush
Upwork Cut to Hold From Buy by Stifel
Workday Cut to Neutral From Buy by UBS
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-18-22 0532ET
