Good morning. US stock futures rose in Thursday morning trading as Wall Street digested news of a cooler than expected inflation report which eased worries about the Federal Reserve continuing to pursue additional rate hikes.

"Not money, not skills, but time is the biggest lever for massive wealth creation"

Manoj Arora

Top News

US inflation cools

WHAT: US inflation seems to be cooling off like a popsicle on a summer day! Consumer prices rose by a modest 0.2% in June, and was up 3% year over year, the lowest level since March 2021.

WHY: US President Joe Biden said that inflation and wages data were evidence that his economic policy, dubbed by economists as “Bidenomics” was delivering results and vowed to “continue to fight for lower costs for families every day.”

Digital taxes put on hold

WHAT: Countries with digital service taxes have decided to hit the pause button on applying them for another year with the exception of Canada. According to the Organization for Economic Co-Operation and Development (OECD), a global multinational tax deal has been pushed back with the earliest date of implementation being 2025.

WHY: More than 140 countries were supposed to start implementing next year a 2021 deal overhauling decades-old rules on how governments tax multinationals that are widely considered to be outdated as digital giants like Apple or Amazon can book full profits in low-tax countries.

Musk launches AI startup

WHAT: Elon Musk has finally unleashed his long anticipated artificial intelligence startup, xAI. The startup includes several former engineers and scientists from Alphabet, Microsoft and even ChatGPT parent OpenAI.

WHY: According to Musk, the reason for the launch of xAI is “to understand the true nature of the universe”. Musk was also a co-founder of OpenAI but later left the startup before the AI frenzy began.

In Other News

FTC fights back against Microsoft-Activision deal

WHAT: The US Federal Trade Commission isn’t ready to let Microsoft conquer the world of gaming just yet! They’re appealing a federal judge’s ruling that gave the green light to Microsoft’s colossal $69 billion purchase of gaming powerhouse Activision Blizzard.

WHY: Microsoft President Brad Smith spoke out against the FTC’s appeal saying: “We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.”

Disney extends Iger’s run

WHAT: Disney has officially given Bob Iger an additional two years in the magical CEO seat. To top of the deal, Iger’s new contract includes an annual bonus target that is a whopping 500% of his salary according to Disney’s filing with the Securities and Exchange Commission.

WHY: Iger, who stepped back into the CEO position in November, has remained hyper-focused on profitability as investors shift focus away from subscriber growth and put more emphasis on margins.

Kia doubles down on US investment

WHAT: Kia is bringing some electrifying vibes to Georgia! The company announced that it will invest over $200 million in its assembly plant in the Peach State to begin production of its electric EV9 SUV next. Kia said it estimated that about 200 jobs would be created to build the three-row SUV alongside four other models at the Georgia facility.

WHY: Georgia Governor Brian Kemp said more than $22.7 billion has been invested in Georgia with more than 28,400 jobs created since 2020 in the EV supply chain.

Key Economic Events

• Thursday - Initial Jobless Claims (wk end 8-Jul)

• Friday - U. Of. Mich. Sentiment

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