North American Morning Briefing: Rate-Sensitive -2- | Morningstar

2022-06-16 09:33:28 By : Mr. Gary Hou

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Average new-home prices in 70 major Chinese cities declined 0.79% in May from a year earlier, compared with April's 0.11% year-over-year pullback, marking the first month in which home prices have fallen by this measure in more than six years, according to Wall Street Journal calculations based on data released Thursday by China's National Bureau of Statistics.

Japan's Exports Rose in May on Robust Demand

Japan's exports increased in May for the 15th consecutive month, driven by robust overseas demand for steel and mineral fuels, Ministry of Finance data showed Thursday.

Exports rose 15.8% in May from a year earlier, which was stronger than the 13.2% increase expected by economists surveyed by FactSet. Exports rose 12.5% in April.

Bank of England Could Be Forced to React to Pound's Weakness -- Market Insight

Weak economic data has complicated the picture for the Bank of England's monetary-policy meeting Thursday but policymakers' hands could be forced in the longer term by the pound's relative weakness against the dollar fuelling U.K. inflation.

Investors are pricing in 75 basis points worth of hikes across the next two meetings, with the major intrigue being whether a 50-point hike will come immediately. Data released Monday, which showed a surprise contraction of the U.K.'s gross domestic product in April, could tip the balance of the vote among the nine-member Monetary Policy Council toward a 25-point hike. Analysts at Capital Economics note that the winding down of pandemic health programs subtracted 0.5 percentage points from GDP growth in April, without which it would have increased by 0.1%, but say the coming months could still see a chance of recession as higher inflation and interest-rate effects filter through.

EU New Car Sales Continued Monthly Decline in May

New passenger car registrations in the European Union fell in May compared with the previous year, which was the tenth consecutive monthly decline, the European Automobile Manufacturers' Association said on Thursday.

The car registrations--a reflection of sales--fell 11% to 791,546 in May, according to the association. The region's key markets Spain, Italy, France and Germany all recorded double-digit drops, it said.

European Leaders Arrive in Ukraine as Kyiv Renews Calls for More Military Support

KYIV, Ukraine-The leaders of France, Germany and Italy arrived in Ukraine on Thursday for talks with President Volodymyr Zelensky as the war of attrition with Russia reaches a pivotal moment and Kyiv amplifies its calls for Western military support to counter Moscow's artillery barrages.

French President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Prime Minister Mario Draghi reached Kyiv by train after huddling en route. Anton Gerashchenko, an adviser to Ukraine's interior minister, posted a video showing the three leaders exiting a platform at a Kyiv railway station accompanied by armed guards.

House Republicans Request Investigation Into Reports of Vandalism, Arson at Antiabortion Offices

A group of 122 Republicans in the House of Representatives sent a letter Wednesday asking Attorney General Merrick Garland to investigate more than a dozen acts of vandalism and arson at locations run by organizations that seek to persuade women not to have abortions.

According to local media reports in locations including Madison, Wis., and Buffalo, N.Y., the acts of vandalism have taken place at numerous so-called pregnancy crisis centers over the past two months as well as the offices of antiabortion organizations

Write to paul.larkins@dowjones.com TODAY IN CANADA

Canadian National Railway: Received Strike Notice From Union Representing Signals, Communications Employees in Canada; International Brotherhood of Electrical Workers Represents About 750 Employees; Canadian National Railway Plans to Continue to Negotiate With Union in Good Faith; Remain Optimistic That Agreement Can Be Reached Without Labor Disruption

Dye & Durham's Takeover of Link Raises Australia Competition Concerns

Australia's competition watchdog is concerned that the proposed acquisition of Link Administration by Dye & Durham could give the Canadian software firm too much control over property conveyancing.

The Australian Competition and Consumer Commission on Thursday said it had identified significant preliminary concerns about the transaction related to Link's 43% holding in Pexa Group.

The ACCC noted that Pexa has a near monopoly over electronic lodgment network services, while Dye & Durham supplies software to lawyers and conveyancers. The ACCC said the proposed acquisition, which has been unanimously recommended by Link's board, would significantly increase vertical integration.

"We have significant preliminary concerns that this transaction would enable D&D and Pexa to engage in mutual preferential dealing that would hinder existing competition or raise barriers to entry in one or more markets in the conveyancing workflow," ACCC Commissioner Mick Keogh said.

The ACCC has invited responses to its concerns from interested parties. It is scheduled to decide by Sept. 8 whether to allow the takeover.

Expected Major Events for Thursday

11:00/UK: Agents' Summary of Business Conditions

11:00/UK: UK interest rate decision

12:30/US: May New Residential Construction - Housing Starts and Building Permits

12:30/US: Jun Philadelphia Fed Business Outlook Survey

12:30/US: 06/11 Unemployment Insurance Weekly Claims Report - Initial Claims

12:30/US: U.S. Weekly Export Sales

14:30/US: 06/10 EIA Weekly Natural Gas Storage Report

20:30/US: Foreign Central Bank Holdings

20:30/US: Federal Discount Window Borrowings

All times in GMT. Powered by Kantar Media and Dow Jones.

Adobe Inc (ADBE) is expected to report $2.50 for 2Q.

Armstrong Flooring Inc (AFIIQ) is expected to report $-0.26 for 1Q.

Bit Digital Inc (BTBT) is expected to report for 1Q.

Capstone Green Energy Corp (CGRN) is expected to report for 4Q.

Commercial Metals Co (CMC) is expected to report $1.97 for 3Q.

Jabil Inc (JBL) is expected to report $1.44 for 3Q.

Kayne Anderson Energy Infrastructure Fund Inc (KYN) is expected to report for Full year.

Kroger Co (KR) is expected to report $1.30 for 1Q.

National Energy Services Reunited Corp (NESR) is expected to report $0.11 for 1Q.

Nautilus (NLS) is expected to report $-0.72 for 1Q.

Republic First Bancorp (FRBK) is expected to report $0.07 for 1Q.

Singularity Future Technology Ltd (SGLY) is expected to report for 3Q.

Techprecision Corp (TPCS) is expected to report for 4Q.

Powered by Kantar Media and Dow Jones.

Armstrong World Raised to Buy From Hold by Loop Capital

Cano Health Cut to Neutral From Buy by B of A Securities

Community Health Sys Cut to Neutral From Buy by B of A Securities

Comtech TeleComm Cut to Hold From Buy by Jefferies

ContinentalRes Oklahoma Cut to Equal-Weight From Overweight by Wells Fargo

ContinentalRes Oklahoma Cut to Hold From Buy by Stifel

Cullen/Frost Bankers Raised to Overweight From Underweight by JP Morgan

Digital Realty Raised to Buy From Hold by Deutsche Bank

Globe Life Raised to Outperform From In-Line by Evercore ISI Group

Ichor Holdings Cut to Neutral From Buy by B. Riley Securities

indie Semiconductor Cut to Neutral From Buy by B. Riley Securities

Lam Research Cut to Neutral From Buy by B. Riley Securities

Marvell Technology Cut to Neutral From Buy by B. Riley Securities

Oak Street Health Cut to Underperform From Buy by B of A Securities

Oscar Health Cut to Underperform From Neutral by B of A Securities

Robinhood Markets Cut to Underweight From Neutral by Atlantic Equities

Semtech Cut to Neutral From Buy by B. Riley Securities

Snowflake Raised to Buy From Hold by Canaccord Genuity

Sonos Cut to Equal-Weight From Overweight by Morgan Stanley

Surgery Partners Cut to Neutral From Buy by B of A Securities

SW Energy Raised to Buy From Hold by Benchmark

Tapestry Raised to Buy From Hold by Jefferies

Transphorm Cut to Neutral From Buy by B. Riley Securities

This article is a text version of a Wall Street Journal newsletter published earlier today.

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