Russia's war in Ukraine has reinvigorated the North Atlantic Treaty Organization and ignited a boom in trade and investment between the U.S. and Europe. But after nearly a year of unity as the U.S. and its allies confronted the fallout from Russian President Vladimir Putin's invasion of Ukraine, European officials are starting to express frustration at their increasing reliance on Washington for security and economic stability.
GLOBAL NEWS
Powell Will Offer a New Mantra: Slow and Steady
Federal Reserve Chairman Jerome Powell will have an opportunity on Wednesday to lay the groundwork for where the central bank is headed when policy makers meet next month-and he'll likely use it to make the case for slower but steady interest rate hikes.
In a speech Wednesday afternoon at the Brookings Institution, Powell is expected to reinforce the dual message central bank officials have been making for weeks: that the Fed is on track to ease up slightly on its pace of monetary policy tightening, likely slowing to a 50 basis point increase next month after four straight 75 basis point hikes.
U.S. Not Seeking Decoupling From China, Commerce Chief Says
WASHINGTON-The U.S. isn't seeking to decouple from China, U.S. Commerce Secretary Gina Raimondo will assert Wednesday, even as she emphasizes steps the U.S. is taking to safeguard its technology to ensure its economic competitiveness.
Ms. Raimondo is scheduled to speak Wednesday on U.S. competition with China at the Massachusetts Institute of Technology. At a briefing with reporters in advance, Ms. Raimondo highlighted the importance of promoting trade and investment in areas outside of core economic and national security interests.
Junk Bonds Rally as Investors Speculate Inflation Has Peaked
Investors are driving a modest end-of-year rally in junk bonds, erasing some of 2022's biting losses in a bet that the economic outlook for next year has stabilized.
Yields on below-investment-grade corporate bonds tracked by Intercontinental Exchange's index have declined to 8.76% through Monday's trading, down from a recent high of 9.61% on Oct. 13. Investors say they are growing more confident that interest rates might peak without putting many lower-rated companies' ability to repay debt in serious jeopardy.
Biden Administration Pressed by Allied Nations to Revise EV Subsidy Program
WASHINGTON-The Biden administration finds itself caught between its domestic-policy goals and some of its closest allies as it races against the clock to set the ground rules for new electric-vehicle subsidies.
The Treasury Department's Internal Revenue Service faces a year-end deadline to propose a guideline for how to qualify for EV tax incentives of up to $7,500 per vehicle under the tax and climate spending legislation known as the Inflation Reduction Act that President Biden signed in August.
Covid Controls Hit Chinese Factories, Adding Risks to Global Growth
SINGAPORE-Economic activity in China contracted further in November, adding pressure to a global economy already losing momentum as the war in Ukraine drags on and central banks raise interest rates to combat high inflation.
Gauges of activity in Chinese manufacturing, services and construction deteriorated by more than expected this month, a sign of weakening economic output as authorities persist in using widespread curbs on business and daily life to respond to Covid-19 outbreaks.
China Officials Soften Tone on Covid Curbs Amid Protests
Chinese health officials softened their messaging on the risks of Covid-19, urging local governments to avoid unnecessary and lengthy lockdowns, after protesters across the country denounced the strict controls.
The Omicron variant has caused fewer deaths and less severe sickness than previous Covid variants, a health official said at a press conference Tuesday.
India's Central Bank to Launch Retail Pilot of Digital Rupee
India's central bank will launch its first pilot of a digital rupee for individual users on Thursday, putting it ahead of many major economies in the journey toward a sovereign virtual currency.
The Reserve Bank of India has said a digital rupee could provide Indians a safe alternative to risky private digital currencies.
Elon Musk's Neuralink Set to 'Show and Tell' Latest Brain-Computer Advances at Event
Elon Musk's neuroscience startup Neuralink Corp. is expected to give a progress report on its brain-implant technology in a highly anticipated streamed event Wednesday night.
In a tweet last week, the company teased a demo for the event, which begins at 9 p.m. New York time, with a short video that slowly spelled out the message "please join us for a show and tell." Some outside researchers said the video may indicate that a Neuralink device has been used to decode brain signals to type words on a screen, although they speculated that it would most likely be through a monkey or a wearable device.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
11-30-22 0618ET
