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
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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