Grocery inflation for the four-week period to Dec. 25 slowed to 14.4% from November’s 14.6%–a second decrease in as many months–raising hopes that the worst has now passed, according to Kantar.

However, inflation is still painfully high, Kantar said, and while take-home grocery sales hit GBP12.8 billion in the four weeks to Dec. 25, sales measured by volume actually slipped by 1% on year.

French Inflation Unexpectedly Eased in December on Lower Energy Prices

France’s annual inflation rate fell in December to its lowest level in three months, driven by a moderation in energy prices.

Consumer prices rose 5.9% on year in December in the eurozone second-largest economy, easing from the 6.2% increase registered in November and the lowest rate since September, preliminary data from the country’s statistics office Insee showed Wednesday.

Economists polled by the Wall Street Journal expected inflation to accelerate to 6.3%.

A Third Major Storm to Bring Rain and Flooding to Northern California

The latest in a series of storms is expected to bring heavy rain, strong winds and mountain snow to the West Coast, especially Northern California, just days after another major system produced record-setting rain and flooding.

It will be the third storm system to drench the region since Dec. 26, according to the National Weather Service.The latest forecast predicts up to 3 to 6 inches of rainfall over the coastal hills of central and northern California, and up to 8 inches in isolated regions through Thursday.

Federal Reserve, FDIC and OCC Warn Banks About Cryptocurrency Risks

WASHINGTON-A group of powerful bank regulators on Tuesday highlighted what they said were a litany of risks stemming from cryptocurrencies and expressed skepticism that the assets can be safely held by the financial institutions they oversee.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency said that recent failures of major crypto firms led them to exercise caution in reviewing banks’ proposals to engage with the market. They highlighted fraud and scams, market volatility, legal uncertainty, and weak risk-management and governance practices at crypto firms, among other things, as reasons for concern.

Russia Blames Troops’ Cellphone Use for Deadly Ukrainian Strike

MOSCOW-Russia blamed the use of banned mobile phones by soldiers for a strike by Ukrainian forces on a facility that housed newly mobilized Russian soldiers and raised the death toll to 89, as Ukraine’s president warned that the Kremlin was preparing for a new offensive in the war.

The Russian Defense Ministry said the strike occurred at 12:01 a.m. local time on New Year’s Day. The regiment’s deputy commander was killed in the attack, the ministry said. It was the deadliest known assault on Russian forces during the war.

Kevin McCarthy Falls Short of House Speaker Win in Three Rounds of Voting

WASHINGTON-Republican Kevin McCarthy fell short of winning the House speaker’s gavel in three rounds of voting Tuesday, leaving the chamber without a leader as a determined bloc of conservative holdouts refused to relent over longstanding complaints about the direction of the party.

The failure to pick a speaker underlined the fractious nature of the GOP conference on its first day in control of the chamber after four years of a Democratic majority. After the third vote was officially tallied with no winner, the House then adjourned until the next day, with the leadership question still up in the air and neither side offering a way out of the deadlock. The speaker vote hadn’t gone past a first ballot since 1923, when lawmakers needed nine ballots to pick a leader.

Rick Singer, Mastermind of College-Admissions Cheating Scandal, Faces Sentencing

BOSTON-William “Rick” Singer, the mastermind behind a nationwide college-admissions cheating scheme that ensnared top universities, business executives and Hollywood celebrities, is scheduled to be sentenced in federal court here Wednesday.

Mr. Singer pleaded guilty in March 2019 to four felonies, admitting to running a complex operation that arranged for parents to fraudulently boost their teens’ ACT and SAT scores and to bribe college coaches to flag the clients as recruited athletes, all but guaranteeing their admission to schools including Georgetown University and the University of Southern California. Payments were often funneled through Mr. Singer’s sham charity, allowing parents to take tax write-offs for the bribes.

Bryan Kohberger Agrees to Extradition to Face Murder Charges in Idaho

Bryan Kohberger, the man accused of killing four University of Idaho students, has agreed to be extradited from Pennsylvania to Idaho, where he faces murder charges.

He signed a waiver in a Monroe County, Pa., court on Tuesday agreeing to the extradition, according to court records.

Write to ina.kreutz@wsj.com TODAY IN CANADA

Earnings:

Nothing major scheduled

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch:

Canfor Extending Temporary Curtailments in B.C.; Cites Ongoing Weak Market Conditions and the Lack of Available Economic Fiber; Plans Two-Week Curtailment Extensions in January at Select Solid Wood Facilities; Extension Will Remove Approximately 21M Board Feet in Addition to 150M Board Feet Announced Dec. 5

Peyto Exploration: Jean-Paul Lachance Assumed Position of CEO on Jan 1, Was Appointed as a Member of the Bd of Directors

Expected Major Events for Wednesday

00:01/UK: Dec Shop Price Index

00:30/JPN: Dec Japan Manufacturing PMI

07:00/GER: Nov Foreign trade price indices

07:45/FRA: Dec Provisional CPI

07:45/FRA: Dec Consumer confidence survey

08:45/ITA: Dec Italy Services PMI

08:50/FRA: Dec France Services PMI

08:55/GER: Dec Germany Services PMI

09:30/UK: Nov Money and Credit – Lending to Individuals, Lending to Businesses, Broad Money and Credit

09:30/UK: Nov Monetary & Financial Statistics

09:30/UK: Nov Bank of England effective interest rates

12:00/US: 12/23 MBA Weekly Mortgage Applications Survey

12:00/US: 12/30 MBA Weekly Mortgage Applications Survey

13:55/US: 12/31 Johnson Redbook Retail Sales Index

15:00/US: Dec ISM Report On Business Manufacturing PMI

15:00/US: Nov Job Openings & Labor Turnover Survey

21:00/US: Dec Domestic Auto Industry Sales

21:30/US: 12/30 API Weekly Statistical Bulletin

23:50/JPN: Dec Monetary Base

All times in GMT. Powered by Onclusive and Dow Jones.

Expected Earnings for Wednesday

ALJ Regional Holdings Inc (ALJJ) is expected to report for 4Q.

Allied Healthcare (AHPI) is expected to report for 1Q.

IronNet Inc (IRNT) is expected to report for 3Q.

Lifecore Biomedical Inc (LFCR) is expected to report $-0.12 for 2Q.

Mullen Automotive Inc (MULN) is expected to report for 4Q.

Mullen Group (MLLGF,MTL.T) is expected to report.

Resources Connection (RGP) is expected to report $0.44 for 2Q.

Richardson Electronics (RELL) is expected to report $0.29 for 2Q.

Schmitt Industries (SMIT) is expected to report for 1Q.

Simulations Plus Inc (SLP) is expected to report $0.08 for 1Q.

UniFirst Corp (UNF) is expected to report $1.54 for 1Q.

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ANALYST RATINGS ACTIONS

ACADIA Pharmaceuticals Raised to Buy From Neutral by Guggenheim

Ally Financial Inc Cut to Equal-Weight From Overweight by Barclays

American Homes 4 Rent Cut to Hold From Buy by Jefferies

Apellis Pharmaceuticals Cut to Equal-Weight From Overweight by Wells Fargo

Apollo Global Management Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Apple Cut to Neutral From Outperform by Exane BNP Paribas

Arvinas Cut to Equal-Weight From Overweight by Wells Fargo

Azenta Cut to In-Line From Outperform by Evercore ISI Group

Baudax Bio Cut to Market Perform From Outperform by Noble Capital Markets

Baxter International Cut to Neutral From Buy by B of A Securities

Becton Dickinson Raised to Buy From Neutral by B of A Securities

Block Raised to Outperform From Neutral by Baird

Blue Owl Capital Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Blueprint Medicines Raised to Equal-Weight From Underweight by Wells Fargo

Brilliant Earth Cut to Neutral From Overweight by JP Morgan

CACI International Raised to Overweight From Equal-Weight by Morgan Stanley

Capital One Cut to Equal-Weight From Overweight by Barclays

Carlyle Group Cut to Market Perform From Outperform by Keefe, Bruyette & Woods

Cigna Cut to Equal-Weight From Overweight by Wells Fargo

Citizens Financial Group Cut to Neutral From Outperform by Wedbush

Correction to PG&E Ratings Headlines

Coty Raised to Overweight From Neutral by Piper Sandler

CubeSmart Cut to Hold From Buy by Jefferies

CVS Health Cut to In-Line From Outperform by Evercore ISI Group

Douglas Emmett Cut to Underperform From Hold by Jefferies

Edison International Raised to Buy From Neutral by UBS

Enfusion Raised to Overweight From Equal-Weight by Morgan Stanley

Entergy Cut to Neutral From Buy by B of A Securities

Fate Therapeutics Cut to Neutral From Buy by Guggenheim

Fox Corp. Cut to Underperform From Peer Perform by Wolfe Research

Gilead Sciences Cut to Sector Perform From Outperform by RBC Capital

Health Catalyst Cut to In-Line From Outperform by Evercore ISI Group

Healthpeak Properties Raised to Buy From Hold by Jefferies

Illinois Tool Works Cut to Hold From Buy by Vertical Research

Immunovant Raised to Overweight From Equal-Weight by Wells Fargo

Independence Realty Trust Cut to Hold From Buy by Jefferies

Informatica Cut to Neutral From Buy by UBS

Intevac Raised to Buy From Hold by Benchmark

Invitation Homes Cut to Hold From Buy by Jefferies

KeyCorp Raised to Equal-Weight From Underweight by Barclays

Kilroy Realty Cut to Hold From Buy by Jefferies

Life Storage Cut to Hold From Buy by Jefferies

M&T Bank Cut to Equal-Weight From Overweight by Barclays

(MORE TO FOLLOW) Dow Jones Newswires

January 04, 2023 06:11 ET (11:11 GMT)

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