European Midday Briefing: Stocks Extend Losses; -2-

Expectations for tighter monetary policy in the U.S. is also lifting the dollar, further weighing on dollar-denominated metals. The ICE Dollar Index is close to its highest level in 20 years.

“We see further macro-driven downside risk in the copper market as our strategists warn of further upside in both yields and the dollar,” Goldman Sachs said.

DOW JONES NEWSPLUS

   
 
 

EMEA HEADLINES

Richemont Reaches Deal to Sell YNAP Stake to Farfetch

Swiss luxury-goods group Cie. Financière Richemont SA said Wednesday that it has agreed to sell a majority stake in Yoox-Net-A-Porter to Farfetch Inc. and Dubai-based investor Mohamed Alabbar, securing a deal–first flagged at the end of last year–that could see Farfetch assume full ownership of YNAP in the future.

British-Portuguese e-commerce platform Farfetch will acquire an initial 47.5% stake in peer YNAP in return for 53 million-58.5 million of its own shares, or around 12%-13% of its issued share capital, Richemont said.

   
 
 

Telenor Shakes Up Executive Management

Telenor ASA said Wednesday that it is strengthening its Nordics and Asia regions management by combining its units into two groups, and is creating new units for infrastructure and adjacent services.

The Norwegian telecommunications provider said that all four of its Nordic business units in Norway, Sweden, Denmark and Finland will be brought together under new head of Telenor Nordics, Petter-Borre Furberg.

   
 
 

U.S. Military Strikes Bunkers in Northeast Syria Used by Groups Affiliated With Iran

WASHINGTON-The U.S. military said it struck ammunition and logistics bunkers Tuesday in northeast Syria used by groups affiliated with Iran’s Islamic Revolutionary Guard Corps.

Four jet fighters carried out the strikes near Deir Ezzour, in northeast Syria, dropping nine bombs on nine bunkers where Iranian-backed groups operate, military officials said. The strikes Tuesday were in retaliation for attacks U.S. military officials said were conducted by Iranian-backed groups on Aug. 15 at the al-Tanf garrison in southern Syria, and an area known as Green Village in northeast Syria.

   
 
 

Saudis, Allies Open Door to Oil-Output Cut to Keep Prices High

RIYADH, Saudi Arabia-Saudi Arabia and some of its oil-producing allies have suggested cutting crude production, disappointing U.S. officials who predicted the kingdom would be instrumental in cooling the market after President Biden met Crown Prince Mohammed bin Salman for the first time in office.

The Saudi-led Organization of the Petroleum Exporting Countries and a coalition of producers led by Russia-collectively known as OPEC+-agreed to a smaller-than-expected production increase earlier in August.

   
 
 

Volkswagen Turns to Canada for EV Battery Supplies

The German automotive giant Volkswagen is looking to Canada for help with electric vehicle batteries.

Tuesday, VW (ticker: VOW3.Germany) said it signed an agreement with Canadian officials designed to improve the auto maker’s supply chain for batteries and ensure it has access to the raw materials it needs.

   
 
 

U.S. Warns of Stepped-Up Russian Strikes in Ukraine

DNIPRO, Ukraine-The U.S. warned of a potential escalation in Russian attacks on civilian areas in Ukraine to coincide with the war-torn country’s Independence Day on Wednesday, urging Americans to leave as soon as possible.

The public holiday commemorates the August 1991 signing of a declaration that took Ukraine out of the collapsing Soviet Union and made it an independent state, and this anniversary also marks six months since Russia’s invasion.

   
 
 
   
 
 

GLOBAL NEWS

Big Oil’s Message to Investors: You’re Too Pessimistic

Saudi Arabia and Goldman Sachs agree: Investors have the oil market all wrong.

Money managers bracing for a global slowdown have pulled back from bets on oil and other commodities, helping push prices lower. But their focus on potentially waning demand isn’t shared with some of the most powerful figures in the industry, or with investment banks, who point to a host of other reasons why prices should be higher.

   
 
 

Chinese Developers Lean on Government Bond Guarantees as Doubts Persist

Chinese regulators are attempting to revive a sagging property market with new bond guarantees for a select group of developers. Investors think it will take a lot more to pull the real-estate sector out of its deepest slump in years.

Many of the country’s real-estate companies are struggling. More than 30 have defaulted on their dollar-denominated bonds, and even the strongest private-sector developers have faced challenges selling new debt as their bond prices have tumbled and yields have soared. In recent days, a flurry of large and small Chinese developers have put out profit warnings.

   
 
 

Fed’s Kashkari Says No Time To Back Off On Inflation Struggle

Federal Reserve Bank of Minneapolis President Neel Kashkari says the U.S. central bank needs to press forward with tighter monetary policy until it is clear that very high levels of inflation are moving back down.

“When inflation is 8% or 9%, we run the risk of un-anchoring inflation expectations,” Mr. Kashkari said at an appearance Tuesday, and if that happened, the Fed would likely have to embark on very aggressive rate rises to restore balance.

   
 
 

Saudis, Allies Open Door to Oil-Output Cut to Keep Prices High

RIYADH, Saudi Arabia-Saudi Arabia and some of its oil-producing allies have suggested cutting crude production, disappointing U.S. officials who predicted the kingdom would be instrumental in cooling the market after President Biden met Crown Prince Mohammed bin Salman for the first time in office.

The Saudi-led Organization of the Petroleum Exporting Countries and a coalition of producers led by Russia-collectively known as OPEC+-agreed to a smaller-than-expected production increase earlier in August.

   
 
 

New-Home Sales Fall to Their Lowest Level in 6 Years

New-home sales fell further than expected last month to the lowest level since early 2016, according to data released Tuesday. It is the latest indication of higher mortgage rates’ impact on the housing market.

New single-family homes in July were sold at a seasonally adjusted annual rate of 511,000, down 12.6% from June’s revised rate of 585,000, the Census Bureau and Bureau of Housing and Urban Development said Tuesday. It was the slowest seasonally adjusted rate of sales since January 2016, according to historic data.

   
 
 

Israeli Families of Munich Olympics Attack Victims to Boycott Anniversary Ceremony

Germany and the families of Israeli athletes killed in a terrorist attack at the 1972 Olympic Games in Munich have been unable to reach an agreement on compensation, putting the families’ participation in a 50-year anniversary ceremony in doubt.

Germany will commemorate the tragedy at a Sept. 5 event in the Bavarian capital but relatives of the victims said they wouldn’t attend unless the country agrees to pay the families what they believe they are owed for the German authorities’ mishandling of the attack and its aftermath.

   
 
 

Biden to Announce Student Loan Forgiveness Plan

President Biden is expected to announce Wednesday that he will cancel some federal student loan debt for tens of millions of Americans through a long-awaited executive action, which would provide unprecedented relief for borrowers but is certain to draw political and legal challenges.

The action would be the culmination of more than a year of debate within the Biden administration on debt forgiveness. Mr. Biden is also expected to extend the pandemic pause on student loan payments, likely through the end of the year. Loan payments were set to resume for millions of borrowers after Aug. 31.

   
 
 

U.S. Military Strikes Bunkers in Northeast Syria Used by Groups Affiliated With Iran

WASHINGTON-The U.S. military said it struck ammunition and logistics bunkers Tuesday in northeast Syria used by groups affiliated with Iran’s Islamic Revolutionary Guard Corps.

Four jet fighters carried out the strikes near Deir Ezzour, in northeast Syria, dropping nine bombs on nine bunkers where Iranian-backed groups operate, military officials said. The strikes Tuesday were in retaliation for attacks U.S. military officials said were conducted by Iranian-backed groups on Aug. 15 at the al-Tanf garrison in southern Syria, and an area known as Green Village in northeast Syria.

   
 
 

Twitter Comes Under Washington Spotlight With Whistleblower Complaint

WASHINGTON-A whistleblower’s complaint opens up new political and legal challenges for Twitter Inc. in Washington, as lawmakers and regulators examine possible responses to the social-media company’s alleged missteps.

The complaint from former Twitter security executive Peiter Zatko was filed to the Securities and Exchange Commission, the Federal Trade Commission and the Justice Department, which are expected to investigate.

   
 
 

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(END) Dow Jones Newswires

August 24, 2022 07:11 ET (11:11 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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