The U.K.'s statistics agency said Monday that gross domestic product-a broad measure of the goods and services produced in an economy-fell by 0.3% from March. Economists had expected to see a small increase in output, following a 0.1% fall in the previous month.
ING Sets Growth 2022-2025 Targets
ING Groep NV on Monday said that it is targeting total income growth of 3% a year for the period between 2022 and 2025.
In a statement ahead of an investor update, the Dutch multinational bank also said it is targeting annual average fee income growth of between 5% and 10% for the period.
Macron's Majority in French Parliament at Risk in Neck-and-Neck Races
PARIS-President Emmanuel Macron was at risk of losing his majority in the National Assembly after results of the first round of France's parliamentary elections Sunday showed his candidates running neck-and-neck with leftist rivals, complicating the French leader's efforts to press ahead with his pro-business agenda.
Results showed Mr. Macron's candidates won 25.75% of the nationwide tally and those of far-left firebrand Jean-Luc Mélenchon garnered 25.66%. Marine Le Pen's far-right National Rally got 18.68% of the first-round vote while the conservative Les Républicains and its allies garnered 10.42%.
Ukraine Fears Defeat in East Without Surge in Military Aid
The war in Ukraine has turned into a grinding artillery contest where Russia is steadily gaining ground thanks to its overwhelming advantage in firepower. As the U.S. and allies gather Wednesday to discuss fresh military aid to Kyiv, Ukraine's fate will largely depend on how fast and in what quantities these heavy weapons arrive.
Without a broad and rapid increase in military assistance, Ukraine faces a defeat in the eastern Donbas region, Ukrainian officials warn. That would pave the way for Russia to pursue its offensive to Odessa and Kharkiv after regrouping in coming months, they say, and potentially all the way back to the capital, Kyiv, after that.
Effort to Force Russia to Pay Reparations to Ukraine Faces Uphill Battle
Since Russian forces swept into Ukraine on Feb. 24, swaths of the country's buildings and infrastructure have been damaged or destroyed, leading to calls for Moscow to pay for the damage.
French, German and Italian Leaders to Meet With Zelensky in Kyiv
Three-Dose Pfizer Covid Vaccine Works Safely in Young Children, Review Says
Three doses of the Covid-19 vaccine from Pfizer Inc. and BioNTech SE were effective at preventing symptomatic disease in children ages 6 months through 4 years in studies, according to U.S. health regulators.
The FDA staff also said, in a review of study data posted online Sunday, that there were no new safety concerns using the vaccine in young children compared with older age groups.
White House Set to Announce Biden Trip to Saudi Arabia Soon
WASHINGTON-The White House plans to announce this week a trip by President Biden to Saudi Arabia, according to two officials with direct knowledge of the plans, a prospect that has prompted pushback from members of Congress critical of the kingdom and its leader.
Mr. Biden will travel to Saudi Arabia next month as part of a broader trip to the region that includes a stop in Israel, the officials said. The agenda currently includes a meeting with Saudi Crown Prince Mohammed bin Salman, one of the officials said.
GLOBAL NEWS
Sizzling Prices Complicate Fed's Inflation-Fighting Strategy
Federal Reserve officials have spent the past two months getting investors acclimatized to their plans to slow economic growth and combat inflation by raising interest rates in half-percentage-point increments until price pressures cool.
This coming week's policy meeting will show whether officials are still comfortable with that approach in light of reports Friday that inflation sizzled in May, hitting a new 40-year high, and that consumers' longer-term inflation expectations rose to a new 14-year high. The survey measure is important to central bankers because they believe such expectations can be self-fulfilling.
Big Crypto Lender Celsius Freezes All Account Withdrawals
One of the largest crypto lenders, Celsius Network, told users Sunday night that it is pausing all withdrawals, swaps, and transfers between accounts due to "extreme market conditions."
"We are taking this necessary action for the benefit of our entire community in order to stabilize liquidity and operations while we take steps to preserve and protect assets," the company said in a blog post.
Bitcoin Price Hits Late-2020 Levels as Crypto Market Suffers Fresh Selloff
HONG KONG-This year's rout in bitcoin deepened, with the world's biggest cryptocurrency dropping below $26,000 amid a broader selloff fanned by concerns about rising U.S. interest rates.
Digital currencies fell over the weekend and dropped further on Monday morning in Asia, after a fresh inflation shock heightened investors' fears that the Federal Reserve could be forced to act more aggressively to tame surging prices.
Japan's Yen Usually Benefits When Markets Get Ugly. Not This Time
A surge of U.S. inflation is hammering the Japanese yen, a currency that typically strengthens on bad economic news.
The yen is approaching its weakest point since 2002, stuck between a strong U.S. dollar and Japan's easy-money policy. The dollar rose as the global economy's prospects dimmed, hurt by Russia's invasion of Ukraine, a jump in U.S. inflation and an economic slowdown in China. An index that measures the dollar against a basket of 16 currencies is up more than 12% over the past year. The dollar has advanced 22% against the yen during that time.
Earnings Are Under Threat, Another Blow to Sagging Stock Market
Stocks have fallen this year in the face of rising interest rates. With inflation showing little sign of cooling, many investors fear corporate earnings could be the market's next support to fall.
The S&P 500 has dropped 18% in 2022, its worst start to a year since 1962, as the Federal Reserve embarks on a rate-rising campaign to bring down four-decade-high inflation. The tightening of monetary policy has trampled on the rich valuations stocks carried at the start of the year, leaving earnings growth as a key pillar for the market to regain its footing.
Bank of Japan Makes Biggest Fixed-Rate JGB Purchases in Four Years Amid Rising Bond Yields
The Bank of Japan said Monday that it bought 1.53 trillion yen ($11.38 billion) of Japanese government bonds via its fixed-rate operation, its biggest such purchase since July 2018, amid rising bond yields.
The central bank buys JGBs at a fixed rate every business day to keep the 10-year JGB yield below its 0.25% ceiling.
Pandemic, War in Ukraine Create New Challenges for Struggling WTO
WASHINGTON-Fallout from the Covid-19 pandemic and the war in Ukraine are creating new challenges for the World Trade Organization, which has struggled in recent years to play its role as the regulator and arbiter of global trade.
Trade ministers gathering in Geneva this week for the first meeting of top officials from WTO member countries since 2017 face a mountain of pressing issues, including increasing food security amid war-induced shortages and responding to the continuing pandemic, as well as resolving long-running issues such as depletion of global fishing stocks.
Abandon Stocks for Bonds? If Only Life Were So Simple.
The good news: At last, there is a worthwhile alternative to stocks. Bonds sport far more attractive yields than they have in years.
The bad news: Benchmark U.S. Treasurys have been crushed this year alongside stocks. Both the 10-year bond and the S&P 500 were down an unlucky 13% for the year up to the middle of this week, although stocks were then hit much harder by Friday's bad inflation figures than bonds were. Meanwhile junk bonds, the highest-yielding corporate bonds, bring similar exposure to a potential worsening of corporate fundamentals as shares.
Food Prices to Keep Going Up, as Costs Surge
Some of the nation's biggest food suppliers and restaurants, including Kraft Heinz Co. and some McDonald's Corp. franchisees, said they would continue to raise prices as they face starkly higher costs.
Kraft Heinz notified retailer customers this past Monday that it would raise prices in August on items ranging from Miracle Whip and Classico pasta sauce to Maxwell House coffee products and some deli meat.
China Defense Minister Says Nuclear Buildup Is Justified
SINGAPORE-China's defense minister said the country is developing its nuclear arsenal-a move he said was appropriate given the state of international security-and warned that Beijing would fight to block Taiwanese independence.
Gen. Wei Fenghe's comments Sunday at a conference in Singapore hewed to China's previously stated official lines. But the timing of the riposte was a direct pushback to Washington, which is seeking to bolster its own influence in Asia.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
06-13-22 0531ET
