BizBytes, Tuesday 13th June 2023
Tuesday, 13th June 2023
Big movers on the JSE courtesy of Sharenet, Platinum sponsor of the Fantasy Fund Manager game.
US inflation falls to 4%, lowest level in more than two years, stocks firmer
The annual US inflation rate dropped to its lowest level in over two years, easing to 4% in May compared to 4.9% in April. However, core inflation, which excludes volatile items like food and energy, remained at 0.4% for May, resulting in a 5.3% increase from the previous year. The Federal Reserve is under pressure to consider further interest rate increases due to lingering price gains. While the Fed is expected to hold off on raising rates during its policy meeting, economists predict at least two more rate increases this year to combat entrenched inflation. The S&P500 rose half a percentage point and the Nasdaq 0.6% on the news.
French soccer superstar Mbappe signals his intent to leave Paris Saint Germain
Kylian Mbappé, the French soccer superstar who scored a hattrick in last year's World Cup Final, has informed his Qatari owned club Paris Saint-Germain (PSG) that he will not renew his contract, suggesting his potential departure from the club. PSG will not allow him to leave on a free transfer, meaning they may have to sell the 24-year-old French striker this summer. Mbappé, who has been linked with Real Madrid, caused surprise by sending a letter stating his intent to not renew his contract. PSG is now trying to determine if this is a negotiation tactic or if Mbappé genuinely seeks a new challenge.
US joins the UK in blocking Microsoft's proposed $68bn takeover of Activision
The US and UK governments have blocked Microsoft's proposed acquisition of Activision, one of the largest video game companies. The decision was made due to concerns over potential anti-competitive practices and national security issues. The acquisition, valued at around $68 billion, would have given Microsoft significant control over the gaming industry. Both governments believed that such consolidation could harm fair competition and limit consumer choice. Microsoft's plans to expand its gaming portfolio have been thwarted by this regulatory intervention.
JP Morgan coughs up $290m for profits from Epstein's sex-trafficking operation
Wall Street super bank JPMorgan Chase has agreed to pay $290 million to settle a class-action lawsuit accusing the bank of profiting from and facilitating Jeffrey Epstein's sex-trafficking operation. The settlement, subject to court approval, was reached with an anonymous plaintiff representing victims of Epstein. Although JPMorgan denied wrongdoing, it agreed to the settlement without admitting guilt. The bank stated that any association with Epstein was a mistake and expressed regret. JPMorgan still faces a similar lawsuit from the US Virgin Islands and is involved in a legal dispute with a former executive, Jes Staley. Deutsche Bank recently settled a lawsuit related to Epstein for $75 million. Epstein committed suicide while awaiting trial. His long-time partner Ghislaine Maxwell, daughter of disgraced media owner Robert Maxwell, was found guilty in a British court and sentenced to 20 years in jail.