Business briefing

The daily business briefing: June 9, 2022

Deloitte said to be exploring a split, European Central Bank to confirm interest rate decision, and more

1

Deloitte reportedly mulling auditing, consulting split

Big Four accounting firm Deloitte is considering breaking apart its global audit and consulting arms, following a similar move from fellow accounting giant Ernst & Young, individuals familiar with the matter tell The Wall Street Journal. The splits would constitute a major industry change. Deloitte reportedly contacted investment bankers at Goldman Sachs — who, along with JP Morgan Chase, are advising EY on the possible restructuring — after news of EY's potential split broke.The talks at Deloitte are still in very early stages, one source said. A Deloitte spokesman, meanwhile, said the firm remains "committed to our current business model."

2

European Central Bank to confirm interest rate hike decision

The European Central Bank is expected to confirm whether or not it will raise interest rates next month, as policymakers gather in Amsterdam on Thursday amid record-high euro zone inflation. The hike, which would be the bank's first in 11 years, could only occur in July, after the ECB formally ends its net asset purchases. The size of the shift remains the key question for the bank, which will also provide updated forecasts on the economy Thursday.

3

Moderna to seek FDA authorization of Omicron booster

Moderna will seek authorization from the U.S. Food and Drug Administration in the coming weeks for an updated COVID-19 vaccine designed to protect against the Omicron coronavirus strain and its subvariants. The drugmaker described the Omicron-specific shot as its "lead candidate" for a fall booster, though it remains unclear how effective it would be against the versions of the variant circulating throughout the U.S. now and in the autumn. Data released Wednesday showed the booster to have produced 1.75 times as many antibodies against Omicron subvariant BA.1 versus the company's existing vaccine. "We're pretty confident this vaccine is going to provide a benefit even against the family of Omicron subvariants," Moderna President Stephen Hoge told reporters.

4

Twitter will reportedly turn 'firehose' of data over to Elon Musk

Social media giant Twitter reportedly plans to hand Elon Musk access to its "firehose" of data in the hopes of moving along the Tesla CEO's $44 billion acquisition of the platform. Musk has contended that without information on the platform's fake accounts, the deal cannot go forward. Whether the billionaire will now get full or partial access to Twitter's firehose — a millions-deep trove of daily tweet data — remains unclear, but the disclosure is bound to complicate any attempt from Musk to be released from the acquisition.

5

Abbott Nutrition was warned about Michigan plant earlier than known: Report

Abbott Nutrition, whose shuttering of its Michigan manufacturing plant contributed largely to the nationwide baby formula shortage, was alerted of problems at the Sturgis plant months earlier than was previously publicly known, a government official and a source familiar with the matter told The Wall Street Journal. "We know there have been various questions about the timeline of events leading up to the FDA's warning and Abbott's recall of products manufactured at their Sturgis facility," said an FDA spokesperson. "Our top priority right now is addressing the dire need for infant formula in the U.S. market and our teams are working day and night to make that happen."

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