Russia’s war in Ukraine reinvigorated the North Atlantic Treaty Organization and sparked a trade and investment boom between the United States and Europe. But after nearly a year of unity as the United States and its allies dealt with the fallout from Russian President Vladimir Putin’s invasion of Ukraine, European officials are beginning to express frustration at their dependence. growing in Washington for security and economic stability.
WORLD NEWS
Powell will offer a new mantra: slow and steady
Federal Reserve Chairman Jerome Powell will have a chance on Wednesday to lay the groundwork for the central bank’s direction when policymakers meet next month — and he’ll likely use it to make the case for rate hikes. slower but steady interest rates.
In a Wednesday afternoon speech at the Brookings Institution, Powell is expected to reinforce the dual message that central bank officials have been pushing for weeks: that the Fed is on track to slightly accelerate its pace of monetary policy tightening. , likely slowing to a 50 basis point increase next month after four consecutive 75 basis point increases.
US not looking to decouple from China, says trade chief
WASHINGTON — The United States is not seeking to dissociate itself from China, U.S. Commerce Secretary Gina Raimondo will say Wednesday, while outlining the steps the United States is taking to protect its technology to ensure its economic competitiveness.
Ms. Raimondo is scheduled to speak Wednesday on US competition with China at the Massachusetts Institute of Technology. In a briefing with reporters ahead of time, Raimondo stressed the importance of promoting trade and investment in areas outside of core economic and national security interests.
Junk bonds rally as investors think inflation has peaked
Investors are driving a modest year-end rally in junk bonds, erasing some of the biting losses from 2022 in bets that the economic outlook for next year has stabilized.
Yields on lower-grade corporate bonds tracked by the Intercontinental Exchange index fell to 8.76% through Monday’s trading, from a recent high of 9.61% on Oct. 13. Investors say they are increasingly confident that interest rates could peak without putting the ability of many lower-rated companies to service their debt in serious jeopardy.
Biden administration pressed by allied nations to revise electric vehicle subsidy program
WASHINGTON — The Biden administration finds itself caught between its domestic policy goals and some of its closest allies as it races against time to set the ground rules for new electric vehicle subsidies.
The Treasury Department’s Internal Revenue Service faces a year-end deadline to come up with a guideline on how to qualify for electric vehicle tax incentives of up to $7,500 per vehicle under the tax and climate spending legislation known as the Cut Inflation 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 an already faltering global economy as the war in Ukraine drags on and central banks raise interest rates to fight against high inflation.
Activity gauges in China’s manufacturing, services and construction have deteriorated more than expected this month, a sign of weakening economic output as authorities persist in using widespread restrictions on business and daily life to respond to Covid-19 outbreaks.
Chinese officials soften tone on Covid curbs amid protests
Chinese health officials have softened their messages about Covid-19 risks, 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 fewer serious illnesses than previous Covid variants, a health official said at a press conference on Tuesday.
India’s central bank to launch digital rupee retail pilot
India’s central bank will launch its first digital rupee pilot for individual users on Thursday, putting it ahead of many major economies in the journey to a sovereign virtual currency.
The Reserve Bank of India said a digital rupee could provide Indians with a safe alternative to risky private digital currencies.
Elon Musk’s Neuralink to ‘show and tell’ latest brain-computer advances at event
Elon Musk’s neuroscience startup Neuralink Corp. is set to present a progress report on its brain implant technology at a highly anticipated streaming event on Wednesday evening.
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 states the message “Please join us for a show and narrate.” Some outside researchers said the video could indicate a Neuralink device was used to decode brain signals to type words into a screen, although they speculated it was most likely via a monkey or a portable device.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswire
November 30, 2022 06:18 ET (11:18 GMT)
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