EUROPEAN MIDDAY BRIEFING - Stocks Edge Higher -2-

Uniper SE said late Tuesday that it has secured additional financing valued at 10 billion euros ($11.29 billion) to protect its liquidity in potentially volatile energy markets.

The German energy company said it secured up to EUR8 billion from its parent company, Finland's Fortum Oyj, which holds more than 76% of shares in Uniper, to "ensure additional liquidity and financial flexibility in future, potentially extreme, market conditions."

Iberdrola Sets Out Interim Dividend, Capital Increase

Iberdrola SA said Wednesday that it will issue a interim dividend of at least 16.8 European cents (19 U.S. cents) a share for 2021 and raise more than 1.10 billion euros ($1.24 billion) in a capital increase.

The Spanish energy company's interim dividend will at least match that of the last two years.

UK Grocery Sales Fell 0.2% in December From Record 2020 Levels

U.K. grocery spending fell by just 0.2% on year in December to 11.7 billion pounds ($15.83 billion) from record sales seen a year earlier, and sales remain well above pre-pandemic levels.

Consulting company Kantar said Wednesday that grocery spending accelerated in December from the previous months as many people celebrated Christmas at home due to the Omicron variant of the coronavirus. From March to November, sales had dropped 2.5% from the same period of 2020.

U.S. Ambassador to Russia Says De-Escalation Is Key Objective at Ukraine Talks

MOSCOW-The U.S. heads into talks with Russia next week determined to defend its allies and partners in deterring Moscow from any further incursion into Ukraine, but is also ready to engage in dialogue and diplomacy, America's top diplomat in Russia said on Tuesday.

The massing of tens of thousands of Russian troops on the border with Ukraine has rattled Western officials, while demands from Russian President Vladimir Putin to redefine the security architecture of Europe, including issuing sweeping new proposals to limit the reach of the North Atlantic Treaty Organization, have been met with determination from the U.S. and its allies to strengthen the alliance.

Fourth Pfizer Dose Spurs Sharp Jump in Antibodies, Early Results From Israel Show

TEL AVIV-Early data from Israel suggests a fourth dose of the Covid-19 vaccine from Pfizer Inc. and BioNTech SE will provide safe and effective protection against infection and severe illness for those with waning immunity.

There was a fivefold increase in antibodies of individuals one week after they got their fourth shot, according to data from Israel's Sheba Medical Center, which provided the dose to 154 medical workers of various ages. The personnel who took part in the trial had taken a third shot by Aug. 20 and their tests showed they lacked sufficient antibodies for good protection.

GLOBAL NEWS

Derby's Take: Aggressive Rate Increase Path Could Threaten Fed Profits, Report Warns

A top economist at J.P. Morgan says keeping the Federal Reserve's books in the black could motivate the central bank to start an earlier and faster runoff of its balance sheet.

Michael Feroli in a note to J.P. Morgan clients on Tuesday wrote that the status of Fed profits is politically fraught, because of the money the central bank makes for the federal government. As a self-funded government agency, the Fed collects interest on bonds it owns-it buys securities with money it creates out of thin air-and charges fees for services for banks. And after the Fed covers its expenses, it turns over the excess to the Treasury Department.

Companies Expect Funding to Stay Cheap, Despite Looming Rate Increases

Many U.S. finance chiefs secured cheap funding for their businesses in 2021 and anticipate similar conditions in 2022, although expected rate increases by the Federal Reserve are prompting companies to refinance some debt coming due over the next few years.

Monetary stimulus from the Fed coupled with strong investor demand for bonds, equity issuances and other financing instruments provided corporate finance executives across industries with good access to the capital markets in 2021. Businesses, however, didn't have the same urge to seek funds as they did in 2020, during the early months of the Covid-19 pandemic.

PBOC Poised to Inject Liquidity Before Lunar New Year, State Media Says

China's central bank will likely replenish liquidity shortfalls ahead of the Lunar New Year holiday, state-owned China Securities Journal said Wednesday.

The People's Bank of China normally maintains ample liquidity at the beginning of the year, the newspaper said. However, liquidity in January this year will be affected by various factors, especially the Lunar New Year holiday that falls earlier in February, it reported.

Chinese Tech Stocks Fall in Hong Kong Amid Tighter Regulation

Chinese technology companies' shares fell in Hong Kong trade, hit by concerns about new regulations and overnight tech-stock losses in the U.S.

The Hang Seng Tech Index dropped as much as 4.2% and hit an all-time low of 5350.06 early Wednesday before paring its losses. The index, which tracks the 30 largest technology companies listed in the city, was 3.5% lower at 5384.28 at the midday break.

North Korea Fires Missile Off Its East Coast

SEOUL-North Korea fired a suspected ballistic missile into waters off its east coast on Wednesday, South Korean and Japanese authorities said, the first such test in the new year.

The missile was launched around 8:10 a.m. local time, before splashing into the waters between Korea and Japan, South Korea's military said. It flew about 310 miles and landed outside of Japan's exclusive economic zone, officials in Tokyo said. The flight path suggests North Korea launched a short-range ballistic missile.

Texas Sues U.S. to Block Vaccine Requirement for National Guard

AUSTIN, Texas-Texas Gov. Greg Abbott sued the Biden administration Tuesday, seeking to halt a requirement that National Guard members be vaccinated against Covid-19.

Earlier in the day, Mr. Abbott sent a letter to the Texas Military Department, ordering it not to force Texas Guardsmen to receive vaccines. "Unless President Biden federalizes the Texas National Guard...he is not your commander-in-chief," the letter said. "I will not tolerate efforts to compel receipt of a Covid-19 vaccine."

As China Tensions Smoulder, Japan and Australia Move to Sign Defense Treaty

Japan and Australia plan to sign a treaty on Thursday that will allow their militaries to work more closely together, in the latest example of U.S. allies strengthening ties to counter the rising threat from China.

The treaty signing is a centerpiece of a virtual summit between Japan's Prime Minister Fumio Kishida and his Australian counterpart, Scott Morrison.

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

(END) Dow Jones Newswires

01-05-22 0553ET