European Midday Briefing : Softer U.S. Earnings -2-

ISTANBUL-Turkey postponed a key meeting with Sweden and Finland that was intended to hash out differences over their bid to join the North Atlantic Treaty Organization, Turkish officials said Tuesday, intensifying a standoff over an expansion of the alliance in response to Russia's invasion of Ukraine.

The decision is the latest setback for Sweden and Finland in a diplomatic dispute that has unfolded since last May when Turkish President Recep Tayyip Erdogan first threatened to veto the countries' membership in NATO over their alleged ties to Kurdish militant groups.

Ukraine Pushes Back Russian Forces in East

Ukrainian forces repelled Russian attempts to advance in the country's east, the country's military said, while air-raid sirens across the country raised fears of possible Russian missile attacks.

Sirens wailed across Ukraine just after 9 a.m. Wednesday, including in the capital, Kyiv. The alert was lifted at around 11 a.m. The Ukrainian military warned of a "high threat" of Russian air and missile attacks.

Ukraine's Zelensky Removes Top Officials in Bid to Contain Corruption Scandals

Ukrainian President Volodymyr Zelensky has removed nearly a dozen top officials as he tries to contain a series of corruption scandals and shore up Western confidence in his administration at a critical moment in the war.

Though the scandals are small compared with those of previous Ukrainian governments-some of which were accused of stealing billions in public funds-they are nonetheless a blow to Mr. Zelensky, who has garnered praise at home and abroad for his leadership of the country during Russia's invasion.

Russians Mourn Ukrainians Killed in War at Statue to a Ukrainian Poet in Moscow

MOSCOW-Every few minutes, the mourners came, alone, in pairs or in families, to a statue of a Ukrainian writer standing in the center of the Russian capital, laying flowers and stuffed animals at her bronze feet.

Some said a prayer and left quickly. Others wept. Still others sat for hours on benches nearby, watching in silence as a small but regular flow of people visited what has become a makeshift memorial to victims of Russia's invasion of Ukraine.

International Paper Strikes Deal to Divest Russian Pulp Business

International Paper Co. said it has struck a deal to divest from a lucrative Russian pulp business, the latest U.S. company to leave Russia since Moscow invaded Ukraine.

IP said it would sell its 50% stake in Ilim Group to its Russian partners in the joint venture for $484 million. The Memphis, Tenn., company said those partners, led by Ilim chairman Zakhar Smushkin, also have indicated that they are interested in buying IP's stake in a related corporate entity for $24 million. IP said it intends to sell that stake as well as any residual interests in Ilim.

GLOBAL NEWS

Jittery Investors Turn to Cash in Hunt for Yield

The dash for cash on Wall Street is back on.

Investors have added about $135 billion to global money-market funds over the past four weeks, according to EPFR data through Jan. 18. That is the best stretch since the four-week period ended May 2020, when those funds logged roughly $175 billion in net inflows.

Joe Manchin to Introduce Bill to Delay EV Tax Credits

WASHINGTON-Sen. Joe Manchin (D., W.Va.) said he would introduce legislation Wednesday that delays implementation of new tax credits for electric vehicles amid disagreements with the Treasury Department over how to implement the program, a component of the Inflation Reduction Act.

The tax credits of up to $7,500 per vehicle have come under fire from European and Asian allies who say rules aimed at spurring domestic production of vehicles and batteries are unfair to foreign manufacturers.

Shift to Mined vs. Man-Made Graphite Raises Shortage Risk for EVs

Mining companies are ramping up supplies of critical minerals for rechargeable batteries such as lithium, cobalt and nickel. Graphite, a key battery component, has largely been overlooked.

That is about to change. Some of the world's biggest auto and battery makers and the U.S. government are racing to secure graphite supplies amid looming signs of shortages of the mineral suitable for batteries. So far graphite prices haven't reflected the tight supply.

McCarthy Kicks Two Democrats Off House Intelligence Panel

WASHINGTON-House Speaker Kevin McCarthy on Tuesday blocked Democratic Reps. Adam Schiff and Eric Swalwell from serving on the Intelligence Committee, a move he can make unilaterally because the panel is controlled by his office.

Mr. McCarthy (R., Calif.) said Messrs. Schiff and Swalwell were undeserving of the positions. Mr. McCarthy said that Mr. Schiff used his position as chairman of the panel when Democrats were in control of the chamber for political purposes. He alleged that Mr. Swalwell was targeted by a suspected Chinese spy nearly a decade ago.

Joe Biden, Chuck Schumer, Hakeem Jeffries Look to Project Unity Ahead of Spending Fights

WASHINGTON-President Biden met Tuesday with Democratic congressional leaders as the party tries to project a united front on the economy and the coming fight over lifting the debt ceiling.

At the start of the meeting, Mr. Biden warned that newly empowered House Republican lawmakers could cut Social Security and Medicare, and he criticized a proposal pushed by some in the GOP to impose a national sales tax. "I have no intention of letting the Republicans wreck our economy," he said.

Classified Documents Found at Mike Pence's Indiana Home

WASHINGTON-Former Vice President Mike Pence's lawyers discovered classified material at his private home, according to a letter his representative sent to the National Archives.

Lawyers hired by the former vice president recently discovered "a small number of documents bearing classified markings that were inadvertently boxed and transported" to Mr. Pence's home, according to a Jan. 18 letter to the National Archives from Gregory Jacob, who oversees Mr. Pence's records. Mr. Pence was unaware of the existence of the documents, the letter said.

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

(END) Dow Jones Newswires

01-25-23 0553ET