The daily business briefing: August 14, 2023

1. US Steel rejects Cleveland-Cliffs offer

U.S. Steel has rejected an unsolicited offer from rival Cleveland-Cliffs that valued U.S. Steel at more than $7 billion, The Wall Street Journal reported Sunday. Cleveland-Cliffs called the rejection of its bid by U.S. Steel's board "unreasonable." Cleveland-Cliffs had offered $17.50 a share plus 1.023 shares of its stock, with an implied value of $35 a share, marking a significant premium over U.S. Steel's $22.72 closing price on Friday. U.S. Steel said it would continue to go over "strategic alternatives." A deal would have reshaped the nation's steel industry, which is dominated by U.S. Steel, Cleveland-Cliffs, Nucor and Steel Dynamics.

The Wall Street Journal TheStreet

2. Democrats target 'junk fees'

Congressional Democrats and President Biden are targeting "junk fees" in a series of public events geared toward connecting with voters on economic issues, The Associated Press reported Sunday. Biden promised in this year's State of the Union address to do something about the fees, which are frequently added to everything from plane tickets to hospital bills. The effort is connected to the Biden administration's effort to spotlight "Bidenomics" policies aimed at stimulating the economy by increasing social spending and boosting the middle class. Will Reinert, a spokesman for the National Republican Congressional Committee, said Democrats want "to talk about 'junk fees' because they know Biden's economy is trash."

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The Associated Press

3. Goldman Sachs predicts 1st Fed rate cut by June 2024

Goldman Sachs economists said in a Sunday note that they expected the Federal Reserve to start gradually lowering interest rates by the end of June 2024. The Fed has aggressively raised interest rates since last year to bring down high inflation. The federal government last week released data showing that core inflation, which excludes volatile food and energy costs, was down to an annual pace of 4.7% in July, with overall inflation at a slower-than-expected 3.2%, still above the central bank's 2% target. Goldman said it expects the Federal Open Market Committee to pause its rate hikes next month and conclude at its November meeting "that the core inflation trend has slowed enough to make a final hike unnecessary."

Bloomberg

4. US stock futures rise slightly after rough August start

U.S. stock futures edged higher early Monday after a shaky start to August trading that disrupted Wall Street's long rally. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% at 7 a.m. ET. Nasdaq futures were up 0.4%. The Dow gained 0.6% last week — its fourth positive week in the last five — but the S&P 500 and the tech-heavy Nasdaq fell 0.3% and 1.9%, respectively. Earnings and data due out this week are expected to show how consumers are doing as inflation eases but remains above the Federal Reserve's 2% target. Home Depot, Target and Walmart report quarterly earnings. July retail sales data is set to be released Tuesday.

CNBC

5. 'Barbie' leads domestic box office for 4th week

"Barbie" led the domestic box office for the fourth straight weekend, bringing in another $33.7 million. The hit movie made another $45 million in weekend ticket sales overseas, lifting the Greta Gerwig comedy's global earnings to $1.2 billion. The film about the iconic doll, starring Margot Robbie and Ryan Gosling, is now the second-highest-grossing Warner Bros. release ever. "Oppenheimer," the second half of the "Barbenheimer" duo that has supercharged the summer movie season, bounced back to the No. 2 spot in its fourth week after slipping to No. 3 a week ago. The Christopher Nolan–directed Universal Pictures film about the atomic-bomb scientist added another $18.8 million to bring its overall domestic total to $264.3 million.

Variety The Associated Press