In a move that risks stoking a trade war with the EU, U.K. Foreign Secretary Liz Truss said Tuesday the government plans in the coming weeks to present a law allowing it to unilaterally alter the terms of a deal agreed in 2019 with its European counterparts that governs the movement of goods between Northern Ireland, which is part of the U.K., and the rest of the U.K.
U.S. Floats Tariff on Russian Oil as EU Oil-Sanction Talks Drag On
BRUSSELS-The U.S. is talking with the European Union about ways to limit global energy price increases that could be caused by an EU-proposed embargo on Russian oil, looking at additional options like setting a tariff on imports of Russian oil, according to U.S. Treasury officials.
Treasury Secretary Janet Yellen, who is in Brussels Tuesday ahead of a meeting of finance ministers of the Group of Seven major economies in Germany this week, has previously said that the proposed EU embargo on Russian oil could significantly raise oil prices globally.
Mariupol's Last Defenders Yield, Ending Long Russian Siege
KYIV, Ukraine-Soldiers defending the Ukrainian city of Mariupol laid down their arms at the sprawling steel plant that served for weeks as their final redoubt, ending months of bloody battle for the industrial port that has become a symbol of Russia's invasion and Ukraine's resistance.
More than 260 soldiers were taken to Russian-controlled territory on Tuesday morning after Ukraine announced the end of combat operations in Mariupol. Video footage released by Russia's Defense Ministry appeared to show the men being patted down and escorted to waiting buses. Some were on stretchers, some wrapped in bloodied bandages, and many were gaunt after weeks of surviving on minimal rations.
How Germany Is Racing to Sever Dependence on Russian Energy
WILHELMSHAVEN, Germany-Days after taking office as Germany's vice chancellor and economy minister in December, Robert Habeck asked his most senior officials for a detailed assessment of his country's dependence on Russian energy. The result shocked him.
The country heavily relied on Russian hydrocarbons to power vehicles and factories and heat homes, and there was no contingency plan to secure other supplies, Mr. Habeck said. The government had no viable alternative to Russian imports.
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Powell Says Fed Has Resolve to Bring U.S. Inflation Down
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Federal Reserve Chairman Jerome Powell said the central bank's resolve in combating the highest inflation in 40 years shouldn't be questioned, even if it requires pushing up unemployment.
Fed's Evans: Inflation Is Much Too High and Fed Must Act
Federal Reserve Bank of Chicago President Charles Evans said Tuesday that aggressive central bank rate rises are needed to get inflation back under control.
"Inflation is clearly much too high and monetary policy must be repositioned to address this," Mr. Evans said in a speech in New York.
China's New Home Prices Fall for the First Time in More Than Six Years
BEIJING-A monthly measure of new home prices in China fell for the first time in more than six years, offering further evidence of the pain that Beijing's regulatory campaign is inflicting on a sector that has long served as an economic growth engine.
Average new-home prices in 70 major cities edged 0.11% lower in April from a year earlier, according to Wall Street Journal calculations based on data released Wednesday by China's National Bureau of Statistics.
Chinese Bonds Suffer Third Straight Month of Foreign Outflows
Foreign investors cut their holdings of Chinese bonds in yuan by more than $16 billion in April, marking a third straight month of outflows.
Global investors started scaling back their investments in February, amid concerns about the geopolitical risks of investing in Chinese assets, and about the economic impact of China's tough approach to Covid-19. Yields on Chinese sovereign bonds last month fell below those on equivalent U.S. Treasury notes for the first time in more than a decade, further reducing the former's appeal.
Japan's Economy Shrank Slightly in First Quarter
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.
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.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-18-22 0548ET
