Bonds: Markets tumble on recession signal
The U.S. bond market flashed a reliable recession warning this week after the yield curve briefly inverted, said William Watts and Sunny Oh in MarketWatch.com. The return on a 10-year Treasury note dipped below that of a 2-year note for the first time since 2007, sending stocks plunging. The same phenomenon has “preceded each of the past seven recessions.” Typically, rates are higher for longer-term bonds. But an inversion may occur when “investor worries about future economic growth are stoking demand for safe, long-term Treasurys, pushing down long-term rates.”
Media: Shari Redstone reunites CBS-Viacom
CBS and Viacom “agreed to merge on Tuesday in a deal that will reunite a roster of once mighty media businesses,” said Edmund Lee in The New York Times. “Viacom’s Paramount film studio and MTV and Nickelodeon cable networks will be added to the broadcast giant CBS and the book publisher Simon & Schuster.” The two companies had been a single entity, owned by Sumner Redstone, until 2006. Redstone’s daughter Shari, who will be chairwoman of the combined company, had fought to merge them, against fierce opposition from CBS chief Leslie Moonves, who was pushed out after sexual assault allegations.
Platforms: Trump seeks to regulate social media
The White House drafted an executive order last week that calls on government agencies to address Silicon Valley’s perceived anti-conservative bias, said Brian Fung in CNN.com. The order would put the Federal Communications Commission “in charge of shaping how Facebook, Twitter, and other large tech companies curate what appears on their websites.” It would also narrow the protections tech companies have for content that users post on their platforms. The draft comes a few weeks after President Trump met with right-wing social media activists.
Video games: Microsoft teams with ‘Ninja’
Microsoft signed an exclusive deal with the world’s leading celebrity video gamer to challenge Amazon in the game streaming business, said Sarah Needleman in The Wall Street Journal. Streaming—“watching others play games online”—is an increasingly big part of the $150 billion–a-year video game industry. Last year, viewers spent 8.42 billion hours watching live-streamers on Twitch, which Amazon bought in 2014. Tyler Blevins, known as Ninja, “had 14 million Twitch followers” before leaving Twitch for Microsoft’s Mixer earlier this month.