European Midday Briefing : Stock Gains Capped -2-

Remy Cointreau SA on Friday posted lower sales for the third quarter of fiscal 2023 as consumption trends in the U.S. normalized following years of pandemic-fueled growth.

The Paris-based owner of Remy Martin cognac said sales for October through December slipped to 437.6 million euros ($476.6 million) from EUR440.5 million in the third quarter of fiscal 2022. Overall, sales were down 0.7% on a reported basis and 6% organically.

SSAB Swung to 4Q Net Loss on Goodwill Impairment; Lifts Dividend

Swedish steelmaker SSAB AB on Friday swung to a fourth-quarter net loss after posting a hefty goodwill impairment, but reported a bigger-than-expected rise in revenue and raised its dividend.

SSAB made a goodwill impairment of 33.3 billion Swedish kronor ($3.24 billion), which includes all the goodwill related to the previous acquisitions of Ipsco and Rautaruukki.

Vestas Says Full-Year Earnings Hit by Impairment and Provisions

Vestas Wind Systems AS on Friday warned that full-year 2022 results have come in below expectations after project delays, an impairment and provisions all weighed in the fourth quarter.

The Danish wind-turbine maker pre-announced 2022 results with revenue of 14.49 billion euros ($15.78 billion), versus its guided EUR14.5 billion-EUR15.5 billion, with a negative earnings before interest and tax margin before special items of 8.0% versus the guided minus 5%.

GLOBAL NEWS

Consumer Spending, Inflation Data Due in Commerce Department Report

A report Friday will give details on the economic health of U.S. consumers at the end of a year, when they faced elevated inflation and rising interest rates.

The Commerce Department will release December spending, income and inflation figures at 8:30 a.m. ET. The report will offer a picture of the closing month of 2022 as the holiday season wrapped up, including spending on travel, medical care and other services.

Debt Ceiling Clash Revives Dispute Over Paying Bondholders First

The latest fight over raising the federal debt limit has renewed a debate over whether the government should pay some bills and delay others if the White House and Congress fail to raise the cap before it is breached.

Some Republicans say the Treasury Department can and should give priority to paying holders of U.S. government securities to prevent a default on the debt and to minimize any harm to the financial system. That would mean delaying payment of other government obligations, such as bills for transportation, agriculture and education programs.

Fed set to deliver quarter-point rate hike along with 'one last hawkish sting in the tail'

The Federal Reserve will downshift to a 25 basis point rise in its policy interest rate at their upcoming interest-rate meeting and will work overtime to make sure that the market doesn't get the idea that rate increases are finished, economists said.

"Despite the good news on inflation and being one step closer to done, it's likely too soon for the Fed to stop raising rates and likely too soon to signal a stop is imminent," said Jonathan Pingle, economist at UBS.

Israel's Tech Sector Says Judicial Overhaul Could Hurt Economy

TEL AVIV-Israel's technology sector is pushing back against the new government's planned judicial overhaul, saying the proposed changes are spooking investors worried about economic stability, the independence of the courts and a right-wing legislative agenda.

This week, a large Israeli software company said it would move its money out of Israel and the general partner of two venture-capital firms said future money raised could be kept abroad.

Republicans to Pick Party Leader as Some Call for Ousting Ronna McDaniel

DANA POINT, Calif.-The Republican National Committee on Friday is set to resolve a leadership fight that has revealed party divisions and opposition to incumbent Ronna McDaniel from both the grass-roots and some of the GOP's rising stars.

Interviews at the luxury Southern California resort where members are meeting this week suggest Ms. McDaniel is favored to win re-election as party chair following a contentious campaign within the traditionally clubby RNC.

Lawmakers Press for Access to Biden, Trump Classified Documents

WASHINGTON-Senate Intelligence Committee lawmakers are weighing how to force the intelligence community to turn over the classified documents that ended up in the personal possession of two presidents.

Special counsels are probing the discovery of classified documents in the home and former office of President Biden and the Mar-a-Lago residence of former President Donald Trump, and classified documents were also found recently at former Vice President Mike Pence's home. The Senate panel has been unable to obtain access to the underlying Biden and Trump material, thwarting its ability to assess the threat to national security, the extent of any damage, and the potential need for changes to procedures and laws.

Biden Administration Blocks Mining Near Minnesota Wilderness Area

The Biden administration moved Thursday to block mining upstream of the Boundary Waters Canoe Area of Northern Minnesota for 20 years, opting to protect a pristine wilderness over allowing production of minerals that could help fuel a potentially cleaner future.

The administration last year canceled two federal mineral rights leases held by Twin Metals Minnesota LLC, a unit of Chilean mining firm Antofagasta Minerals SA. The latest move could kill the company's planned underground copper-nickel mine, although Twin Metals said it would continue to fight the cancellation.

California Bar Seeks to Revoke Trump Adviser John Eastman's Law License

WASHINGTON-The State Bar of California is seeking to revoke the law license of John Eastman, saying the one-time lawyer for former President Donald Trump is unfit to practice law in light of his efforts to overturn the 2020 presidential election.

In a press release issued on Thursday, the state licensing body said it had launched a disciplinary proceeding against Mr. Eastman after determining that he violated an ethics rule prohibiting acts of "moral turpitude" and dishonesty.

U.S. Forces Kill Senior Islamic State Militant in Somalia

WASHINGTON-Nearly a dozen operatives with the Islamic State group in Somalia were killed in a U.S. military assault operation, including a senior militant who the U.S. had intended to capture but instead killed, U.S. officials said.

The raid, which took place in a mountainous cave complex in northern Somalia late Wednesday, killed Bilal al-Sudani, a key operative and facilitator of ISIS's global network who has been under U.S. sanctions. Ten other operatives were also killed. The operation resulted in no U.S. or civilian casualties, officials said, adding that the only injury suffered by an American servicemember was a dog bite from a U.S. military canine.

California to Provide More Water to Farmers and Residents After Recent Storms

The recent deluge of rain in California will mean increased water deliveries to cities and agricultural regions after years of cutbacks caused by the long-running drought.

The California Department of Water Resources said Thursday it expects to deliver at least 30% of the water supplies requested by agencies that serve 27 million people and nearly a million acres of farmland.

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

(END) Dow Jones Newswires

01-27-23 0622ET