Top News in Finance for July 12, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• June’s cooler inflation data stirs market interest in the Federal Reserve’s actions.
• Judge rejects FTC’s bid to block Microsoft’s massive Activision Blizzard acquisition.
• Detroit’s auto industry bracing for a challenging bargaining period with the United Auto Workers.
• Illumina slapped with hefty fine by EU regulators over its unapproved Grail acquisition.
• Nvidia and Intel showing interest in chipmaker Arm’s initial public offering.

Slower Inflation Rate Fuels Speculation on Federal Reserve’s Strategy

In a twist of economic plot, June’s inflation figure wasn’t as intense as predicted. The consumer price index marked a lower-than-anticipated rise of 0.2% month-on-month, and 3% year-on-year. This milder inflation wave coupled with robust hiring data could be indicators that the Federal Reserve’s rate hike strategy is working its charm, raising investors’ eyebrows on the central bank’s forthcoming steps.

Microsoft Emerges Victorious in Antitrust Feud over Activision Blizzard Buyout

Microsoft successfully dodged the Federal Trade Commission’s attempt to hinder its near $70 billion takeover of gaming titan, Activision Blizzard. Judge Jacqueline Scott Corley was not convinced that the deal would dramatically stifle competition in the gaming industry, dealing a blow to the Biden administration’s robust antitrust campaign. With this ruling, Microsoft and Activision look forward to wrapping up the deal by Tuesday.

Tough Auto Industry Negotiations on the Horizon for United Auto Workers

Motor City is gearing up for intense labor discussions as the United Auto Workers (UAW) union initiates its negotiation period with car manufacturers. The union aims to secure a resilient contract before mid-September when the current agreement expires. With the shift towards electric vehicles, the UAW is expected to be particularly assertive, a failure of which could cost automakers hundreds of millions per week in the event of a strike.

Illumina Hit with Record Fine over Unauthorized Grail Deal

Regulatory woes continue to plague Illumina, the American DNA sequencing firm, slapped with a whopping $476 million fine by EU regulators. The penalty was imposed due to the company’s neglect in obtaining approval before finalizing the acquisition of cancer test developer, Grail. Despite its plans to appeal, the saga has already been a source of strife for Illumina, causing a significant plunge in its market value.

Nvidia and Intel Eye Investment in UK Chipmaker Arm’s IPO

Investor attention is focused on chipmaker Arm’s forthcoming initial public offering, with industry giants Nvidia and Intel among potential anchor investors. The company, acquired by SoftBank in 2016, is back in the spotlight, fueling pre-market trading growth for both potential investors.