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Top stories today:
1. FTC applies for restraining order to block Microsoft from buying Activision
2. EU antitrust case against Google might ask for breakup of ad-tech business
3. Chinaās VC industry is decimated: from $49B in 2021 to $1B so far in 2023
4. Larry Ellison climbs to #4 richest as Oracle reports revenue +17% YoY
5. CPI (core) expected to drop to 4.1% (5.3%), today at 8:30 AM ET
0. Data and calendar
All values as of 6 AM ET / 3 AM PT, other than S&P500 close (4 PM ET / 1 PM PT).
All times are ET.
1. FTC applies for restraining order to block Microsoft from purchasing Activision
Microsoft allegedly wants to pursue the deal anyway, according to the FTC, even with the agency having sued them and the UK authorities having preliminarily blocked the deal.
Aug. 2: hearing on the FTCās date.
Microsoft President Brad Smith: āWe welcome the opportunity to present our case in federal court. We believe accelerating the legal process in the U.S. will ultimately bring more choice and competition to the market.ā - CNBC
Activision stock fell 1% while Microsoftās rose 2%, both little affected by the news
Our view: it is bad for markets that any global regulator can halt a deal
Too many regulators: Western companies now have to respect the whims of the regulators of the U.S., the EU, and the UKā¦ what's next: India, Brazil, and Mexico too?
Solution: free markets with fines: It would be much preferable if deals like these were approved by default, and any illegal action tackled later via fines. The current situation brings too much uncertainty to M&As.
2. EU antitrust case against Google might ask for breakup of ad-tech business
As soon as Wednesday: expected filing date.
āNo obvious behavioral changes that Google could make to address their concerns,ā regulators reportedly believe. - WSJ
Google has already paid ā¬8B in fines to the EU; maximum fine is $28B (10% of revenue)
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- āYouāre the average of the people you keep closest; Sidebar helps you raise that bar.ā - Global Director, Reddit
- āTap into a new level of coaching support, professional development, and peer-driven accountability.ā - Senior Director, Credit Karma
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4. Chinaās VC industry is decimated: from $49B in 2021 to $1B so far in 2023
The above only includes funds raised in USD.
U.S. investors are pulling out.
Chinese VCs are now having to court Middle East investors.
Yuan-denominated VC funds are also down significantly: from $81B in 2021 to $12B in 2022, -85% YoY. - The Information
5. Larry Ellison climbs to #4 richest as Oracle reports revenue +17% YoY
Quarterly revenue jumped 17% YoY to $13.8B, while net income rose 4% to $3.3B, both beating expectations
Read more: CNBC, Oracle earnings release.
6. Today at 8:30 AM ET: CPI (core) expected to drop to 4.1% (5.3%)
7. Rent prices start to drop on a yearly basis on some websites
This is in line with existing-home sale price data, which were -1.7% YoY in April, its deepest fall since 2012
8. Amazon tests summarizing reviews with AI
Read more: Mark Wieczorek, CNBC.
9. Other headlines
AI
OpenAI, Google Deepmind, and Anthropic to share models with UK for safety.
Salesforce increases AI fund from $250M to $500M, launches AI Cloud.
Googleās beta AI search does a lot of plagiarism: a negative review.
Tech
Reddit crashes as some subreddits black out due to protests.
Jack Dorsey: India threatened to block Twitter, raided employeesā homes.
Twitter CEO: mission is to be global town square.
Netflix to live stream its 1st sporting event: celebrity golf.
Vision Pro: Huawei holds trademark for name in China.
Biotech
Business
Taiwan, Korean chip makers allowed by U.S. to keep China operations.
Insight Ventures cuts new fund from $20B to $15B, only $2B raised.
TCV, Tiger also reducing the size of their funds.
Softbank prepares new layoffs at VC unit, up to 30% of staff.
Elizabeth Holmes says she cannot pay the $250/month for victims.
Ex-Samsung exec accused of stealing designs to copy chip plant in China.
Fox sends Tucker Carlson cease-and-desist letter.
WaPo: Fred Ryan to leave; former Gates Foundation CEO is interim CEO.
The Athletic cuts 4% of its newsroom, 20 journalists.
Crypto
Robinhoodās crypto volume is -43% MoM and -68% YoY.
Binance USās market depth is -78% since SEC lawsuit.
BitGoās lawsuit against Galaxy over canceled $1.2B purchase dismissed.
Cardano developer restructuring as venture studio after SEC suits.
GOP lawmakers introduce bill to fire Gary Gensler as SEC chair.
UK to ban promoting crypto as inflation hedge.
U.S. politics
U.S. government is buying āsensitive and intimate informationā on citizens.
Trump still interviewing lawyer candidates for todayās Miami hearing.
Poll: Trump's lead over DeSantis drops, from 49% - 19% to 43% - 22%.
Biden denies $5M bribe, talking to DOJ about Trump charges.
House to vote on resolutions calling on Russia to release 2 American prisoners.
World
Xi again warns China about āextremeā conditions, including war with West.
Russia hits residential building in Zelensky hometown, 6+ dead.
Prigozhin has 2% in tentative poll for Russiaās 2024 race.
EU wants to use interest from Russiaās frozen $237B to rebuild Ukraine.
NATO does largest military air exercises in Europe since Cold War.
South Africa: Congressmen ask WH to punish them for Russian aid.
Israel to announce 4K+ new housing units in West Bank.
10. Interesting tweets, memes, and videos
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