By joining forces, Vistry and Countryside gain greater scale to better handle a possible slowdown in the U.K. housing market, amid record-setting inflation, rising interest rates and the prospect of a lengthy recession. Last year, Countryside built 5,385 homes across parts of Britain, while its bigger rival delivered 8,639 units, according to the companies' annual reports.
British Pound Falls to Lowest Level Since 1985 as U.K. Economic Pain Mounts
The British pound slid to its lowest level against the U.S. dollar since 1985, a reflection of the U.K.'s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries of trading across the Atlantic.
The pound fell 0.3% in early Monday trading in Asia to $1.1475, according to FactSet. That is the lowest since 1985. Sterling's descent is in part a side effect of the relentless U.S. dollar rally, which has driven both the euro and Japanese yen to multidecade lows in recent days.
Eurozone Retail Sales Rebounded Slightly in July
Eurozone retail sales picked up slightly in July, a sign that consumer spending in goods held up at the beginning of the third quarter despite high inflation and increasing concerns about a recession.
The volume of retail sales increased 0.3% in July on month, data from the European Union's statistics agency Eurostat showed Monday. Economists polled by The Wall Street Journal had forecast retail sales to increase 0.4%.
Russia Signals Opposition to OPEC+ Oil-Production Cut
Russia doesn't support an oil-production cut at this time, and it is likely OPEC+ will keep its output steady when it meets Monday, people familiar with the matter said, as Moscow maneuvers to thwart Western attempts to limit its oil revenue following its invasion of Ukraine.
Russian opposition to a production cut highlights a debate within the Organization of the Petroleum Exporting Countries and Moscow-led allies, collectively known as OPEC+, as oil consumers globally brace for a showdown this winter with the Kremlin over the price of its crude. Oil prices soared above $100 a barrel after Russia invaded Ukraine, hurting Western consumers and filling Moscow's coffers.
European Gas Prices Surge on Nord Stream Shut Down
European energy prices surged after Russia shut down natural-gas flows through a major pipeline, threatening to add to economic woes for businesses and households across the continent.
Natural-gas futures in northwest Europe, which reflect the cost of fuel in the wholesale market, jumped more than 30% in early trading Monday. They remain below the all-time high recorded in late August.
Europe's Energy Crunch Squeezes World's Largest Particle Collider
PARIS-Europe's energy crisis is threatening to slow experiments into the fundamental forces of nature.
The European Organization for Nuclear Research, or CERN, is drafting plans to shut down some of its particle accelerators at periods of peak demand, said Serge Claudet, chair of the center's energy management panel. CERN is also considering how it could idle the Large Hadron Collider, the world's largest accelerator, if necessary, Mr. Claudet said.
GLOBAL NEWS
Markets Struggle to Walk Tightrope With Focus on Fed
After a summer stock rally met with skepticism, investors are heading toward autumn with a feeling of discontent.
The Federal Reserve has pledged to aggressively raise interest rates to fight inflation, which remains near the highest in decades, and war in Europe and Covid-19 lockdowns in China are complicating efforts to predict how the economy withstands the pain.
China to Cut Banks' Forex Reserve Ratio
China's central bank said it would cut the amount of foreign exchange banks must hold as reserves, a move aimed at slowing the depreciation of the yuan, after the Chinese currency touched a more-than-two-year low against the dollar on Monday.
The People's Bank of China said it would lower the foreign-exchange reserve requirement ratio by 200 basis points to 6%, beginning Sept. 15. The move is to "improve financial institutions' ability to use foreign exchange funds," according to a statement.
China Caixin Services PMI Softened in August But Sector Growth Remained Strong
A private gauge of China's services activity expanded in August, as the drought-driven power crunch has yet to pose a threat to services activities and the sector continued to recover from the recent wave of Covid-19.
The Caixin services purchasing managers index edged down to 55.0 in August from 55.5 in July but remained firmly in expansion territory. Monday's reading was above the 50 mark that separates growth from contraction.
U.S. Dollar Strength Lifts Americans' Relative Spending Power
Inflation is high, but U.S. consumers' relative purchasing power has never been higher.
An index that considers inflation when measuring the dollar's strength relative to currencies of major U.S. trading partners in July topped its previous peak from 2002, showing how the dollar's surge has helped mitigate rising domestic prices.
Biden's Student-Debt-Forgiveness Plan May Cost Up to $1 Trillion, Challenging Deficit Goals
President Biden's plan to cancel student debt and modify payments for millions of Americans could cost as much as $1 trillion, according to budget analysts, challenging the administration's efforts to scale down the federal deficit.
Analysts expect strong interest in both debt cancellation and in programs that allow borrowers to pay a lower percentage of their income to keep up with their loans. The expected popularity of the policy could drive up costs and raise questions about whether the expense can be offset by other Biden administration policies, as the White House says.
Voters in Chile Reject a Constitution Targeting Economy, Indigenous Rights
SANTIAGO, Chile-Chileans on Sunday by an overwhelming margin rejected a draft constitution that would have reined in the country's market-based economy, undermined the balance of power in government and granted sweeping rights to indigenous people.
The outcome of a national referendum was a blow for the new leftist president, Gabriel Boric, a 36-year-old former student protest leader who pledged to expand the state's role in the economy and improve public services for poorer Chileans who feel abandoned in Latin America's most developed country. Though elected in December with strong support from young Chileans, Mr. Boric had in a recent Cadem poll slipped to a 39% approval rating as the economy faltered and violence surged in the heartland of the Mapuche indigenous community in Chile's central valley.
Biden's Climate-Bill Win Offers Fresh Chance to Woo Midterm Voters
President Biden and Democrats are promoting recent legislative wins in a bid to boost their support and overcome stiff economic headwinds as Labor Day kicks off the final sprint of midterm-election campaigning.
A new Wall Street Journal poll suggests that Democrats have a fresh opportunity to entice swing voters by pitching the components of the Inflation Reduction Act, which Mr. Biden signed into law in mid-August and plans to tout throughout the fall. The plan is designed to lower prescription-drug prices, bolster renewable energy and impose new taxes on large corporations.
Christian Church That Fled China Seeks Refugee Status From United Nations
HONG KONG-A congregation of Christians who left China to seek asylum in South Korea has now traveled to Thailand to ask the United Nations' refugee agency for protection from religious persecution.
Nearly 60 members of the Shenzhen Holy Reformed Church were scheduled to visit the U.N. refugee agency's office in Thailand's capital of Bangkok on Monday to submit applications for refugee status, according to the church's pastor, Pan Yongguang, who said he expected all of them to put in their documents by the end of the day.
Many Migrants Left in Legal Limbo as U.S. Fails to File Cases
Tens of thousands of migrants who crossed the border illegally in the past year are in limbo after the U.S. government failed to file the necessary paperwork in court, leaving them with no immigration case to fight and ambiguous legal status in the U.S.
Migrants released into the U.S. after crossing the border from Mexico typically have an initial court date set several weeks later, the first step to applying for asylum or other protections in the U.S. and the start of a legal process that can take years to complete when everything goes as planned. The brief first hearing often ends with the judge setting a second hearing weeks or months later, giving migrants time to find a lawyer.
Write to nihad.ahmed@wsj.com.
Write to us at newsletters@dowjones.com
We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
09-05-22 0650ET
