North American Morning Briefing: Key Inflation -2-

The group, which counts Apple, Tesla and Samsung Electronics among its customers, said the new facility in Catania, Sicily, would produce silicon-carbide semiconductor products for power devices and modules.

Eurozone Inflation Rises as ECB Mulls Rate Cuts

Eurozone inflation picked up in May as prices of services rose more rapidly, but that is unlikely to deter the European Central Bank from proceeding with a heavily signaled interest-rate cut next week.

Consumer prices were 2.6% higher in May than a year earlier, an increase in the inflation rate from the 2.4% recorded in April, the European Union's statistics agency said Friday. That was slightly above expectations from a consensus of economists polled by The Wall Street Journal.

Chinese State Media Hint at Possible PBOC Bond Selling

For weeks investors have been watching for signs that China's central bank might start buying government bonds, a rarely used policy tool. It seems ready to step into the market, but as a seller, as it looks to tame a bond rally.

The People's Bank of China will sell Treasury bonds when necessary, the Financial News has reported, stoking fresh discussion about whether the bank should trade Treasury bonds on the secondary market as a way to manage liquidity.

U.S., Chinese Defense Chiefs Confirm Plan to Reopen Hotlines in First Face-to-Face Meeting

SINGAPORE-U.S. Defense Secretary Lloyd Austin met China's new defense minister face-to-face for the first time and reaffirmed plans to reopen direct lines of communication between their militaries, part of an effort by both sides to prevent frictions in Asia from shattering a fragile rapprochement.

Communication was a primary topic of discussion in Austin's meeting with his Chinese counterpart, Adm. Dong Jun, at the start of a security conference in Singapore, according to a readout of the encounter provided by the Pentagon.

Write to paul.larkins@dowjones.com TODAY IN CANADA

Earnings:

BRP 1Q

Canadian Western Bank 2Q

Economic Calendar [ET]:

0830 1Q Quarterly GDP

0830 Mar GDP

Expected Major Events for Friday

01:00/JPN: Apr Steel Imports & Exports Statistics

04:30/JPN: Apr Preliminary Report on Petroleum Statistics

05:00/JPN: Apr Housing Starts

05:00/JPN: Apr Construction Orders

05:30/FRA: 1Q Job creation

06:00/GER: Apr Foreign trade price indices

06:00/GER: Apr Retail Trade

06:00/UK: May Nationwide House Price Index

06:45/FRA: Apr Household consumption expenditure in manufactured goods

06:45/FRA: Apr PPI

06:45/FRA: May Provisional CPI

06:45/FRA: 1Q GDP - detailed figures

08:00/GER: May Baden-Wuerttemberg CPI

08:00/ITA: 1Q GDP

08:30/UK: Apr Money and Credit - Lending to Individuals, Lending to Businesses, Broad Money and Credit

08:30/UK: Apr Bank of England effective interest rates

08:30/UK: Apr Monetary & Financial Statistics

09:00/ITA: May Provisional CPI

09:00/ITA: May Cities CPI

10:00/ITA: Mar Industrial turnover

12:30/US: Apr Personal Income and Outlays

12:30/CAN: Mar GDP

12:30/CAN: 1Q Quarterly GDP

12:30/US: U.S. Weekly Export Sales

13:45/US: May Chicago Business Barometer - ISM-Chicago Business Survey - Chicago PMI

17:59/UK: REC JobsOutlook survey

19:00/US: Apr Agricultural Prices

All times in GMT. Powered by Kantar Media and Dow Jones.

Expected Earnings for Friday

Ampio Pharmaceuticals Inc (AMPE) is expected to report for 1Q.

Avalon GloboCare Corp (ALBT) is expected to report for 1Q.

BRP Inc (DOO.T,DOOO) is expected to report $0.92 for 1Q.

Canadian Western Bank (CWB.T) is expected to report $0.83 for 2Q.

Excellon Resources Inc (EXN.T) is expected to report for 1Q.

Genesco Inc (GCO) is expected to report for 1Q.

Hurco Cos (HURC) is expected to report for 2Q.

Laurentian Bank of Canada (LB.T,LRCDF) is expected to report $0.75 for 2Q.

MGT Capital Investments Inc (MGTI) is expected to report for 1Q.

Mesa Labs (MLAB) is expected to report $-0.12 for 4Q.

NantHealth Inc (NHIQ) is expected to report $-0.20 for 1Q.

Rennova Health Inc (RNVA) is expected to report for 1Q.

Siebert Financial Corp (SIEB) is expected to report for 1Q.

TVI Pacific Inc (TVI.V,TVIPF) is expected to report for 4Q.

Tel Instrument Electronics Corp (TIKK) is expected to report for 4Q.

Wins Finance Holdings Inc (WINSF) is expected to report for Interim.

Powered by Kantar Media and Dow Jones.

ANALYST RATINGS ACTIONS

Ameren Raised to Overweight From Equal-Weight by Barclays

Corning Raised to Overweight From Neutral by JP Morgan

Datadog Raised to Buy From Neutral by B of A Securities

FactSet Research Cut to Underperform From Neutral by B of A Securities

First Solar Cut to Neutral From Buy by Mizuho

Generac Cut to Sell From Neutral by Guggenheim

Hallador Energy Raised to Buy From Neutral by B. Riley Securities

International Game Tech Raised to Buy From Hold by Stifel

Okta Raised to Outperform From In-Line by Evercore ISI Group

Oscar Health Cut to Neutral From Buy by B of A Securities

PayPal Holdings Raised to Buy From Neutral by Mizuho

Pure Storage Cut to Market Perform From Outperform by Northland Capital Markets

Radius Recycling Raised to Neutral From Sell by Seaport Global

Surmodics Cut to Market Perform From Outperform by Barrington Research

Uge International Ltd Cut to Tender From Market Perform by Cormark Securities

UiPath Cut to Hold From Buy by Needham

UiPath Cut to Hold From Buy by TD Cowen

UiPath Cut to Hold From Buy by Truist Securities

UiPath Cut to Market Perform From Outperform by William Blair

UiPath Cut to Neutral From Buy by B of A Securities

UiPath Cut to Sector Weight From Overweight by Keybanc

US Cellular Raised to Overweight From Equal-Weight by Wells Fargo

USA Compression Partners Raised to Neutral From Underperform by Mizuho

Vivid Seats Coverage Assumed by DA Davidson at Buy

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

(END) Dow Jones Newswires

May 31, 2024 06:25 ET (10:25 GMT)

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