📈 Is inflation Making A Comeback?

Good morning. US stock futures moved higher in Wednesday morning trading as US inflation came in slightly hotter than expected.

📈 US inflation comes in hotter than expected

📝 Our report: Hold onto your wallets! Price hikes in the US took a breather last month, but not quite as much as folks hoped, as higher housing and food costs offset a decline in petrol prices. Annual inflation, the pace at which prices rise, was 3.1%, down from 3.4% a month earlier, the Labor Department said.  

 🔑 Key points:

• Many analysts had expected inflation to fall to 2.9%. It is the latest economic reading to suggest that authorities have not got inflation fully under control.

• Inflation - which measures the pace at which prices are rising - in the US took off in 2021 as a booming post-pandemic economy created shortages of supplies and strong demand, spurring many firms to put up prices.

• Grocery prices were up a more modest 1.2%, as the cost of some items, such as eggs, dropped back. But restaurant prices were 5.1% higher than in January 2023. In other areas, prices for car insurance jumped a hefty 20.5% over the year, while personal care was up 5.3%.

💡 So what: It is imperative for the US to rein in inflation due to its far-reaching implications. Inflation erodes the purchasing power of money, impacting consumers' ability to afford goods and services and potentially dampening economic activity. The Federal Reserve plays a crucial role in getting inflation to its target level of 2% by adjusting interest rates and the money supply.

Wednesday - Chicago Fed President Austan Goolsbee Speaks

Thursday - Initial Jobless Claims, Atlanta Fed President Raphael Bostic Speaks

Friday - Consumer Sentiment, Producer Price Index

✈️ Vacation on a budget with these 9 tips!

💰 Here are 18 startup ideas you can try in 2024

🏡 Should you rent or buy a home?

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⚖️ Amazon trial set for 2026

WHAT: A U.S. federal judge just marked October 2026 on the legal calendar for a showdown between the Federal Trade Commission and Amazon. The consumer protection agency filed the long-awaited antitrust lawsuit against Amazon in September 2023, accusing the online retailer of operating an illegal monopoly, in part by fighting efforts by sellers on its online marketplace to offer products more cheaply on other platforms.

WHY: Amazon in December asked the court to dismiss the suit, saying the FTC confused "common retail practices" with anticompetitive conduct and failed to identify harm to consumers. The FTC said Amazon used a series of illegal strategies to boost profits, including an algorithm that pushed up prices U.S. households paid by more than $1 billion.

📺 Walmart in talks to acquire TV manufacturer

WHAT: Get ready for some smart shopping! Walmart's apparently eyeing a TV upgrade with talks to snag smart-TV maker Vizio for over $2 billion, according to the Wall Street Journal. By acquiring Vizio, Walmart could also command ownership of about 22% of TVs sold in the U.S. between its private-label own brand and Vizio.

WHY: The move comes as Walmart shifts its focus to higher margin businesses including Walmart Connect, its retail media advertising business, which allows brands to sell targeted ads to Walmart shoppers on its website and in-store such as on digital displays, connected TVs and radio.

🤖 About those “AI claims”…

WHAT: The head honcho at the US Securities and Exchange Commission says publicly traded companies should steer clear of "AI washing" when chatting up investors about their tech exploits. Corporations need to be specific about how they’re using it, risks to operations, and decide if executives’ comments regarding the technology must be disclosed to investors, SEC Chair Gary Gensler said.

WHY: Companies from a range of industries have been advertising how they’re harnessing AI to improve operations. More than 40% of S&P 500 companies discussed the technology in their annual reports to the SEC, according to a recent Bloomberg Law analysis.

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