The daily business briefing: October 13, 2023
Annual inflation remains steady, UK watchdog approves Microsoft's Activision Blizzard takeover, and more
- 1. Month-to-month inflation edges down but annual rate holds steady
- 2. UK watchdog approves Microsoft's Activision Blizzard takeover
- 3. Social Security recipients to get smaller cost-of-living boost
- 4. Oil prices surge as US tightens Russia sanctions
- 5. FDA bans sale of Vuse Alto flavored e-cigarettes
1. Month-to-month inflation edges down but annual rate holds steady
The Bureau of Labor Statistics reported Thursday that consumer prices rose 3.7 percent in September compared to a year earlier, the same rate as August, due to stubbornly high housing and fuel costs. Month-to-month inflation improved slightly to 0.4% in September, compared to 0.6% in August. That was not enough to let Federal Reserve policymakers declare victory in their campaign to raise interest rates to slow the economy and bring inflation down to their 2% target, but it showed prices were trending in the right direction. "This report still suggests that we have stepped out of the higher inflation regime," Laura Rosner-Warburton, a senior economist at MacroPolicy Perspectives, told The New York Times, but "we're not out of the woods." The Washington Post, The New York Times
2. UK watchdog approves Microsoft's Activision Blizzard takeover
Britain's competition regulator approved Microsoft's purchase of video game maker Activision Blizzard on Friday, reversing its earlier decision to block the $69 billion deal. The Competition and Markets Authority's approval, which was expected after its preliminary approval last month, removed a final obstacle to the deal, one of the biggest technology acquisitions in history. Microsoft, maker of the Xbox gaming platform, revised the proposal to ease concerns it would hurt gamers by reducing competition. The companies had extended the deal's mid-July deadline to mid-October to allow time to address the British antitrust watchdog's objections. Microsoft has to pay Activision, maker of the "Call of Duty" game franchise, a $4.5 billion penalty if the deal doesn't close. The Associated Press
3. Social Security recipients to get smaller cost-of-living boost
Social Security recipients will get a 3.2% annual cost-of-living adjustment for 2024, down from 8.7% in 2023 and 5.9% in 2022. The adjustments in the last two years were the biggest in four decades. The lower increase for next year reflects recent data showing inflation has eased. "It's a small amount, but it's providing some cushion," said Mary Johnson, Social Security policy analyst at The Senior Citizens League advocacy group. "We have the hope that things are going to be more affordable." On average, retirees will get $59 more per month, giving them a monthly total of $1,907 starting in January 2024. The average annual increase over the last two decades was 2.6%. CNN
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4. Oil prices surge as US tightens Russia sanctions
Oil prices jumped about 4% on Friday after the Treasury Department tightened sanctions against Russian oil exports, a move the department said demonstrated the United States' commitment to "responsibly reducing Russian government oil profits and constraining the Russian war machine." International benchmark Brent crude and U.S. benchmark West Texas Intermediate both rose 4.2%, to $89.55 per barrel and $86.38 per barrel, respectively. Fears that the Israel-Hamas war could spread and threaten Middle East oil supplies also helped push prices higher. The turmoil pressured stocks as investors avoided risk. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down slightly early Friday ahead of earnings reports from major banks. JPMorgan Chase reported better-than-expected profits. Bloomberg, CNBC
5. FDA bans sale of Vuse Alto flavored e-cigarettes
The Food and Drug Administration on Thursday banned the sale of Vuse Alto menthol and fruit-flavored e-cigarettes, which surpassed Juul as the top-selling brand after that company was targeted in a crackdown against marketing vaping products to young customers. Vuse, made by R.J. Reynolds Vapor Co., makes sleek vape pens sold at gas stations and convenience stores. The FDA said Reynolds American, which also makes Camel and Newport cigarettes, failed to provide sufficient evidence that keeping the vaping products on the market would not harm public health. Reynolds' parent company, British American Tobacco, said it would seek a stay of the decision, arguing it "flies in the face of proven science" and would deny cigarette smokers allegedly less-harmful products. The Hill, The Wall Street Journal
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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