In the biggest war between European countries since World War II, the death and destruction have no end in sight. Ukraine is still struggling against Russia's advantage in raw firepower, but the country's defenders are increasingly hitting Russian logistics and bases, including in Crimea, as they receive more Western weapons.
Eurozone Flash PMIs Point to GDP Contraction in Third Quarter
Eurozone business activity contracted in August for the second consecutive month following 16 months of growth, according to the flash purchasing managers indexes.
The S&P Global eurozone composite PMI dropped to 49.2 in August from 49.9 in July, according to the flash reading.
Adidas's Leadership Change Might Not Be Enough to Fuel Share-Price Recovery
Adidas AG's move to change its chief executive officer should be welcomed, analysts say, though some warn that a share-price recovery might not come without more clarity on medium-term goals that look increasingly out of reach.
The German sportswear major surprised the market Monday with the news that boss Kasper Rorsted would step down next year. He will remain in office until then to ensure a smooth transition for his successor, the company said. The move was unexpected but positive given recent challenges, RBC Capital Markets analyst Piral Dadhania said in a note.
U.S. Warns Turkish Businesses Against Work With Sanctioned Russians
ISTANBUL-The Biden administration warned Turkish businesses against working with sanctioned Russian institutions and individuals, intensifying U.S. pressure on a NATO ally that has maintained a strong relationship with Russia during its invasion of Ukraine.
In a letter dated Aug. 22 to the American Chamber of Commerce in Turkey viewed by The Wall Street Journal, Deputy Secretary of the Treasury Wally Adeyemo said that Turkish companies were at risk of coming under U.S. sanctions if they did business with sanctioned Russian individuals.
British Airways to Cut Over 10,000 Flights as Industry Woes Threaten to Stretch Through Winter
LONDON-British Airways is cutting more than 10,000 flights through the rest of the summer flying season and into the winter, threatening to extend the aviation industry's chaotic postpandemic recovery in Europe into next year.
The airline said it is cutting flights to comply with an extension of London Heathrow Airport's cap on departing passengers. It has also revised down its flying schedule from November through March, consolidating same-day flights to destinations and offering to rebook affected passengers on other airlines according to availability, it said in a statement Monday.
Ben & Jerry's Independent Directors Lose Request for Injunction Over Israel Business
A judge denied a court petition by Ben & Jerry's independent board members that sought to stop parent Unilever PLC from transferring assets to a local licensee in Israel-a setback for the ice cream brand in an unusual legal fight between a wholly owned subsidiary and its corporate owner.
A judge for the Southern District of New York ruled Monday that Ben & Jerry's had failed to demonstrate irreparable harm in its request for a preliminary injunction against Unilever. Ben & Jerry's board members earlier this month had asked the court to stop Unilever from making the transfer, arguing in a court hearing that the move could allow the brand's products to be used to oppose social issues that it supports.
GLOBAL NEWS
Global Economies Flash Warning of Sharp Slowdown
Business activity in Europe and Japan fell in August, according to new surveys, pointing to a sharp slowdown in global economic growth as higher prices weaken consumer demand and the war in Ukraine scrambles supply chains.
The second month of declining activity in Europe comes amid a renewed rise in energy prices over uncertainty about Russia's willingness to maintain its already reduced supply of natural gas ahead of the heating season.
Corporate Carve-Outs Seen Rebounding After Market Turmoil
Private-equity firm New Mountain Capital is scooping up a piece of manufacturer PerkinElmer Inc. for as much as $2.45 billion in a type of deal that industry insiders expect to see more of over the next few months: a carve-out.
Endless Demand Spurs U.S. Natural-Gas Prices to Shale-Era Highs
The 14-year highs reached this week by U.S. natural-gas futures show the unceasing demand for U.S. shale gas across the Atlantic-and likely point to higher prices ahead.
The latest price spike came in response to Russia's plans to shut down one of Europe's main fuel arteries for a few days at the end of the month. The shutdown announced Friday is either the latest episode of unplanned maintenance along the vital Nord Stream gas pipeline or an act of economic warfare on Russia's part in retaliation for Western Europe's support for Ukraine.
China's Yuan Slides to a Two-Year Low as Economy Stumbles, Dollar Soars
HONG KONG-China's currency has dropped to its weakest level against the U.S. dollar in two years. It is likely to depreciate further as the country's central bank moves to combat a slowing economy and a deep housing downturn.
On Tuesday, the yuan traded at more than 6.86 to the dollar in China's tightly controlled onshore market, hitting levels last seen in August 2020, according to FactSet. The currency weakened past 6.88 in the more freely traded offshore market, taking its year-to-date decline against the dollar to more than 8%.
America's Office Glut Started Decades Before Pandemic
A surplus of empty office space threatens to hollow out U.S. business districts. Don't blame the pandemic.
America's office glut has been decades in the making, real-estate investors, brokers and analysts say. U.S. developers built too many office towers, lured by federal tax breaks, low interest rates and inflated demand from unprofitable startups. At the same time, landlords largely failed to tear down or convert old, mostly vacant buildings to other uses.
Indonesia's Central Bank Raises Rates Unexpectedly as Inflation Bites
Bank Indonesia unexpectedly raised its seven-day reverse repo interest rate in a pre-emptive move to combat inflation that it expects will continue to climb.
The Indonesian central bank raised its benchmark interest rate by 25 basis points to 3.75%, against the expectations of eight economists polled by The Wall Street Journal, who had projected that the bank would stand pat.
Russia and Turkey's Deepening Ties Prompt Concern in West Over Sanctions Compliance
ISTANBUL-Turkey and Russia are stitching their economies more tightly together, heightening concerns among the U.S. and its allies that the burgeoning relationship could undermine sanctions imposed on the Kremlin as punishment for its invasion of Ukraine.
Expanding trade and financial ties show how the countries are turning to each other to shore up their troubled economies. Russia is increasingly leaning on Turkey to ease its international isolation after the West imposed sweeping sanctions on Russia since its assault on Ukraine began in February. Turkish President Recep Tayyip Erdogan needs foreign currency amid an economic crisis resulting largely from his own monetary policy, economists say.
House Democrats Fight for Redistricted Seats in New York Primaries
Voters in Florida and New York go to the polls Tuesday to decide primary races as well as a special House election in the Empire State that will test Democrats' efforts to use abortion access to motivate their base.
The contests in both states were heavily affected by redistricting, which scrambled the plans of several Democratic House members in New York and put several incumbents into jeopardy, including Reps. Jerrold Nadler, Carolyn Maloney and Mondaire Jones. Additionally, voters in Oklahoma will hold runoff elections in separate U.S. Senate races.
Write to nihad.ahmed@wsj.com.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
08-23-22 0720ET
