Good Morning! This time, a European media tycoon seeking world domination. Sometimes, it just feels like a different version of Succession every week

Today’s Headlines:

• US inflation finally cooling down 📉 

• Axel Springer splitting up its assest 📰 

Enjoy your weekend

Nils

INFLATION
US Inflation Is Finally Dropping

What Happened
U.S. inflation eased substantially in June, with the consumer-price index (CPI) falling slightly from May and the year-over-year inflation rate dropping to 3%, the lowest since June 2023. Core prices, which exclude volatile food and energy items, rose just 0.1% since May, the mildest increase since January 2021. The report showed prices cooled broadly in the second quarter, falling below economists' expectations and reversing the trend from the first three months of the year.

Why It Matters

• The slowdown in inflation clears a path for the Federal Reserve to cut interest rates by the end of the summer, potentially as early as September.

• The report is especially comforting to policymakers because it shows housing costs, which account for about one-third of the CPI, are slowing after a significant run-up following the pandemic.

• The subdued price increases across various categories, including air travel and hotel stays, suggest that the economy is cooling in a way that reduces inflationary pressures.

• While many Americans have taken little comfort from milder inflation readings due to the abnormally large price increases since 2021, the latest figures could provide some relief for inflation-weary shoppers.

What's Next 
Investors are now betting that the Fed will cut rates twice this year, with the odds of a third cut climbing, implying that the central bank could lower rates at its last three meetings of the year in September, November, and December. As the Fed balances the risks of cutting rates too soon and allowing inflation to persist against waiting too long and causing unnecessary damage to the job market, the latest inflation report provides a strong case for a shift towards rate cuts in the coming months. The implications of such a move could be significant for businesses, consumers, and the broader economy.