North American Morning Briefing: Caution Likely -2-

WASHINGTON-President Biden downplayed the possibility of a recession in a television interview Tuesday, saying if there was one it was “very low.”

“I don’t think there’s going to be a recession. If it is, it’s going to be a very small recession. I mean, we’re going to go down a little bit,” Mr. Biden said in an interview with CNN. He later said: “Look, it’s possible. I don’t anticipate it.”

Yen Hits New 24-Year Low, Exceeds Levels Seen Before Govt Intervention

The Japanese yen fell to a fresh 24-year low against the dollar Wednesday morning in Tokyo, breaching levels seen before the Japanese government’s yen-buying intervention on September 22.

The dollar was recently at Y146.05 after rising to Y146.23 earlier, its highest level since August 1998. The US currency was at Y145.86 on Tuesday at 5 pm Eastern Time.

Bank of Korea Goes for Another Outsized 50Bp Rate Hike

South Korea’s central bank went for its second outsized rate hike in three months in response to aggressive US monetary policy tightening and high inflation at home.

The Bank of Korea raised its benchmark seven-day repurchase rate by 50 basis points to 3.00% on Wednesday. The bank’s latest move follows a quarter-percentage-point rate hike in August after its first half-percentage-point increase in July.

Talking Markets: China’s Onshore Stocks May Outperform Hong Kong Shares

For investors positioning themselves for the potential recovery of hard-hit Chinese equities, the country’s onshore stocks may offer more opportunities than those listed in trading powerhouse Hong Kong, said by some analysts.

In the third quarter of the year, the CSI 300 and the Shanghai Composite Index fell 15% and 11% respectively, hitting six-month lows amid a global risk-off environment, but still beat the Hang Hang Hong Kong’s Seng Index, which fell nearly 21%.

UK Economy Shrinks in August

The UK economy contracted in August as activity among manufacturers and oil and gas producers fell, according to data released on Wednesday.

Gross domestic product, a broad measure of all goods and services produced, shrank 0.3% in the month in August, following growth of 0.2% in July, according to data from the Office for National Statistics.

Biden Considers Creating Immigration Program for Venezuelans

The Biden administration is considering creating a new immigration program for Venezuelans that would allow them to enter the country legally if they have a US-based financial sponsor, according to a government official familiar with the deliberations. , a move designed to prevent Venezuelans from crossing into the US illegally.

More than 150,000 Venezuelans crossed the border illegally in the first 11 months of the government’s fiscal year, which ended Sept. 30, compared with about 48,000 a year earlier, according to US Customs and Border Protection data.

Trump Lawyer Meets With Investigators Over Mar-a-Lago Documents Certification

WASHINGTON—A lawyer for Donald Trump told federal investigators that a fellow lawyer assured him that he conducted a thorough search of the former president’s Mar-a-Lago estate before asking him to testify in June that all of government records requested in a subpoena have been returned, according to a person familiar with the matter.

Christina Bobb’s certification was undermined two months later when the FBI searched the Florida compound and seized boxes of presidential records belonging to the National Archives along with classified documents. The interview of Ms. Bobb with Justice Department investigators on Friday marked the latest twist in the confrontation between the former president and the government over the missing records.

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Earnings:

Aritzia 2Q

Economic Indicators:

Nothing is scheduled

Stocks to Watch:

Tricon Announces Sale of Interest in US Multi-family Portfolio, Raises $315M in Proceeds

Expected Main Event for Wednesday

06:00/JPN: Set Preliminary Machine Tool Orders

06:00/UK: August Production Index

06:00/UK: August trade in the UK

06:00/UK: August Index of services

06:00/UK: August Monthly GDP estimate

11:00/US: 10/07 MBA Weekly Mortgage Application Survey

11:30/UK: Set NIESR Monthly GDP Tracker

12:30/US: Set PPI

14:00/US: Set Online Help Wanted Index

16:00/US: World Agricultural Supply & Demand Estimates (WASDE)

20:30/US: 10/07 API Weekly Statistical Bulletin

23:01/UK: CBI and PwC Financial Services Survey

23:01/UK: Sep RICS Residential Market Survey

23:50/JPN: Set Bank Lending

23:50/JPN: Corporate Goods Price Index Set

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

Aritzia is expected to report $0.33 for 2Q.

Art’s Way Manufacturing (ARTW) is expected to report for 3Q.

Duck Creek Technologies Inc (DCT) is expected to report for 4Q.

Firan Technology Group is expected to report for 3Q.

Hingham Institution for Savings (HIFS) is expected to report for the 3Q.

Hyzon Motors Inc (HYZN) is expected to report for 2Q.

National American University Holding Inc (NAUH) is expected to report for 1Q.

PepsiCo Inc (PEP) is expected to report $1.82 for 3Q.

Winmark (WINA) is expected to report for 3Q.

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ANALYST RATINGS ACTIONS

ACM Research Cut to Underperform From Buy by Jefferies

AmerisourceBergen Raised to Buy From Neutral by B of A Securities

Amgen Raised to Overweight From Equal Weight by Morgan Stanley

BlackRock Cut to Neutral From UBS Buy

Bright Healthcare Group Downgraded to Underweight From Neutral by JP Morgan

Ciena Cut to In-Line From Evercore ISI Group’s Outperform

Cogent Communications Cut to Neutral From Credit Suisse’s Outperform

elf Beauty Raised to Overweight From Neutral by Piper Sandler

F5 Cut to In-Line From Evercore ISI Group’s Outperform

Getty Images Holdings Raised to Buy From Hold by Benchmark

Marvell Technology Raised to Overweight From Equal-Weight by Wells Fargo

Meta Platforms Cut to Neutral From Overweight Atlantic Equities

Qorvo Cut to Equal Weight From Wells Fargo’s Overweight

scPharmaceuticals Raised to Outperform From Market Perform by SVB Leerink

Seagen Raised to Outperform From Market Perform by BMO Capital

ServiceNow Raised to Overweight From Neutral by JP Morgan

Skyworks Cut to Equal-Weight From Overweight by Wells Fargo

SunPower Cut to Underperform From Neutral by B of A Securities

Zoom Video Communications Cut to Equal Weight From Morgan Stanley’s Overweight

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

(END) Dow Jones Newswires

10-12-22 0533ET

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