The daily business briefing: April 13, 2023

1. Consumer prices rose less than expected in March

The Labor Department reported Wednesday that the consumer price index rose by just 0.1 percent in March, falling short of an expected 0.2 percent increase as gasoline prices fell. Consumer prices increased 5 percent from the same time last year, down from a 6 percent annual increase in February and a 40-year high of 9.1 percent in June. March's annual increase was the smallest since May 2021, and marked the ninth straight month of slowing inflation. Grocery prices fell 0.2 percent, the first monthly decline since September 2020. Still, high housing costs kept core inflation hotter than the Federal Reserve wants, so economists expect the central bank to raise interest rates again next month to continue its fight against inflation.

Reuters USA Today

2. Juul agrees to $462 settlement in youth vaping lawsuits

E-cigarette maker Juul Labs has agreed to pay $462 million to six states and Washington, D.C., to settle lawsuits over its role in a surge of vaping among young people, several attorneys general announced Wednesday. The agreement is Juul's largest multistate settlement yet. It includes "stringent restrictions on the company's marketing and sales to protect and to prevent minors from vaping," New York Attorney General Letitia James said in a news conference. "Juul's lies led to a nationwide public health crisis and put addictive products in the hands of minors who thought they were doing something harmless." Juul said the settlement, which brings its payouts to more than $1 billion, means it is "nearing total resolution" of its legal challenges.

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3. Warner Bros. launches renamed Max streaming service

Warner Bros. Discovery on Wednesday unveiled plans to rename its flagship streaming service as Max, which will combine HBO and Discovery+ content. The new service, which goes live May 23, will follow the lead of Walt Disney Co., which has offered new Star Wars and Marvel series on Disney+, by producing new shows building on already popular franchises. Max will seek to attract subscribers with a television series based on J.K. Rowling's Harry Potter books, and a new Game of Thrones prequel. "It's streaming's version of must-see TV," CEO David Zaslav said. HBO Max subscribers will not see a price change when Max debuts.

The Wall Street Journal Variety

4. Stock futures stable after Fed recession warning

U.S. stock futures were little changed early Thursday after March consumer price data came in cooler than expected and Federal Reserve minutes fueled ongoing recession fears. Futures tied to the Dow Jones Industrial Average were essentially flat, while S&P 500 and Nasdaq futures were up 0.1 percent and 0.2 percent, respectively, at 6:30 a.m. ET. The three main U.S. indexes closed lower on Wednesday after the Labor Department reported that the consumer price index rose 0.1 percent in March, less than expected, but the Fed minutes showed that the central bank's leaders and economists expect the recent banking crisis to cause a mild recession this year. On Thursday, investors will focus attention on the release of wholesale inflation data.

CNBC

5. Delaware judge sanctions Fox News in Dominion defamation case

Delaware Superior Court Judge Eric Davis on Wednesday sanctioned Fox News for delaying handing over documents ahead of the upcoming trial in Dominion Voting Systems' $1.6 billion defamation lawsuit against the network. Dominion lawyers accused Fox in a pretrial hearing of hiding documents in the discovery process, and Davis said he would appoint a special master to investigate. "I am very concerned ... that there have been misrepresentations to the court," Davis said. The sanctions will let Dominion take more depositions from some Fox witnesses, with Fox footing the bill. The sanctions marked the latest setback for Fox as it defends itself against Dominion's allegations that the network promoted false allegations that Dominion voting software was used to rig the 2020 presidential election.

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