The daily business briefing: August 11, 2023

1. Cooling core inflation eases pressure for Fed rate hikes

The consumer price index rose just 0.2% in July, the same increase as in June, the Labor Department reported Thursday. The annual inflation rate was 3.2%, up from a 3% pace in June. Core inflation, which excludes volatile food and energy prices, fell to an annual rate of 4.7% from 4.8% in June. The cooling price pressures raised expectations the Federal Reserve will hold off on raising interest rates again at its September meeting. Fed officials tend to focus on core inflation, and the new numbers added to recent data calling into question the need for another rate hike this year. "Core inflation has turned the corner faster" than the Fed expected, Laurence Meyer, a former Fed governor, told The Wall Street Journal.

Reuters The Wall Street Journal

2. California regulators approve expanded San Francisco driverless-taxi service

The California Public Utilities Commission voted 3-1 on Thursday to allow the expansion of driverless-taxi services in San Francisco. The decision will let Cruise and Waymo offer paid rides in autonomous vehicles any time during the day throughout the city. Before the vote, Google-owned Waymo and General Motors-owned Cruise had to operate under strict limits. Cruise could only take passengers paying fares between 10 p.m. to 6 a.m. in a few neighborhoods. Waymo couldn't charge for driverless rides. The commission's decision came after a seven-hour public hearing and months of objections by city officials and civic groups, who argue that driverless cars pose safety hazards.

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San Francisco Chronicle The New York Times

3. Supreme Court puts Purdue Pharma opioid settlement on hold

The Supreme Court on Thursday temporarily blocked Purdue Pharma's controversial bankruptcy settlement pending an appeal. The settlement with the OxyContin maker called for members of the Sackler family, who once controlled the company, to pay $6 billion but shielded them from future lawsuits over their liability in the nation's opioid epidemic. The high court's unsigned decision, which noted no dissents, came in response to the Justice Department's objection to the plan. The Biden administration argues that the settlement let the billionaire Sacklers use legal protections meant for debtors in "financial distress." The decision is expected to delay payments to the thousands of plaintiffs who have sued Purdue and the Sacklers, according to The New York Times.

USA Today The New York Times

4. Stock futures mixed ahead of July wholesale price data

U.S. stock futures struggled early Friday as traders awaited a federal report on July wholesale prices and digested Thursday's data on consumer prices. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.1% and 0.2%, respectively. Wall Street edged higher Thursday after consumer price index data showed core inflation cooled slightly in July. Economists surveyed by Dow Jones expect the producer price index, due out at 8:30 a.m. ET, to show a 0.2% monthly increase in July. European and Asian stocks fell on Friday as investors avoided risk after San Francisco Reserve Bank President Mary Daly said the Fed has "more work to do" to fight inflation.

CNBC Bloomberg

5. Report: Amazon dropping most of its in-house brands

Amazon is eliminating 27 of its 30 in-house clothing brands, including Lark & Ro, Daily Ritual, and Goodthreads, as it pares down its private-label business to boost profit and deflect antitrust concerns, The Wall Street Journal reported Thursday. Amazon will be left with three brands — Amazon Essentials, Amazon Collection, and Amazon Aware. Amazon also will phase out private-label furniture brands Rivet and Stone & Beam once it sells off current inventory, the Journal reported, citing people familiar with the matter. Amazon Basics' popular home goods and tech accessories will remain a focus, Matt Taddy, vice president of Amazon Private Brands, said in a statement to the Journal, but the online retailer will continue eliminating products that "aren't resonating with customers."

The Wall Street Journal