Axios

The Federal Trade Commission on Wednesday said it would appeal a decision by a U.S. court to allow Microsoft to acquire gaming giant Activision Blizzard for nearly $70 billion.

Why it matters: It's likely the FTC's last chance to block a merger before an injunction barring the deal expires this weekend.

Elon Musk officially launched his AI startup, xAI, on Wednesday afternoon.

Why it matters: The announcement, made on Twitter, comes amid a heated race across tech giants to develop generative AI products for businesses and consumers, and as workers grow more anxious about the implications that artificial intelligence will have on their jobs.

Circle, the top U.S.-based stablecoin issuer, announced layoffs today.

Why it matters: The company is best known for its usd coin (USDC) cryptocurrency. Stablecoins have been one of the most successful segments of the crypto economy, enabling traders across the world to quickly close out positions without leaving blockchains or paying expensive fees to return to fiat.

What they're saying: "To maintain our strong balance sheet, Circle is redoubling its focus on core business activities and execution," a statement from the firm said. To that end, it is reducing its financial exposure to what it calls "non-core activities."

• Without giving numbers, it described the layoffs as a "marginal reduction in headcount."

Flashback: In February, Circle told the Wall Street Journal that it was looking to up its headcount by 15 to 25%, roughly representing 135 to 225 employees.

• Circle's USDC had a moment last year as traders abandoned the terraUSD stablecoin following the unraveling of LUNA. For a short time, its chief rival, tether (USDT), lost market cap while USDC benefited from the turmoil.
• That trend reversed in July 2022, where the market cap of USDC has trended down ever since. Currently sitting at $27 billion, well down from its peak of just under $56 billion.

Of note: Circle had planned to go public via a SPAC deal, but that plan was scuttled in late 2022.

• CFO Jeremy Fox-Green said the company intended to make another bid to go public, but likely not this year.

The bottom line: Tether, meanwhile, is back over its all time high market cap, reporting $83.3 billion of USDT in the market today.

Amazon's annual, global Prime Day has become a tide that lifts all boats in retail.

Driving the news: Shoppers spent $6.4 billion across U.S. e-commerce platforms on Tuesday, the first day of Amazon's Prime Day, data from Adobe Analytics reveals.

The latest Consumer Price Index data, out Wednesday, was a crowd-pleaser: Inflation has plunged from its peak, helping provide relief for consumers.

Why it matters: The worst of the inflation crisis looks to be firmly behind us. Price gains appear to be on a path to returning to normal, but there is huge uncertainty around how long that will take, with plenty of hurdles still ahead.

Americans' paychecks have gotten bigger in the last two years, but not enough to keep up with inflation. Now, lower inflation means the average worker is seeing rising purchasing power.

By the numbers: Real average hourly earnings are up 1.2% in the 12 months ended in June, the Labor Department said Wednesday following the release of the latest inflation data.

U.S. antitrust regulators are zeroing in on private equity, after mostly ignoring the industry for decades.

Driving the news: The Justice Department "is nearing a decision" on whether to challenge Thoma Bravo's proposed $2.3 billion take-private buyout of identity management firm ForgeRock, per Politico.

Saudi Arabia's Public Investment Fund reported an $11 billion investment loss for 2022, compared to a $19 billion gain in 2021.

Why it matters: It's a reminder that all that glitters isn't always gold, and came on the same day that U.S. senators grilled PGA Tour officials on their proposed partnership with PIF-backed LIV Golf.

Domino's Pizza reached a deal to list its food on Uber Eats and Postmates for the first time in the U.S.

Why it matters: The chain had resisted third-party food delivery apps in the U.S. until now, choosing to handle all of its orders through its own app and restaurants.

The Consumer Price Index rose 3% in the 12 months through June — the smallest increase since March 2021 — while the gauge excluding fuel and food costs rose 4.8%, the government said Wednesday.

Why it matters: Overall inflation has plunged from a peak of 9% last summer, a relief for American consumers. The core measure, watched by economists, also showed notable signs of cooling in June.

The vibes from small business owners are still pretty pessimistic — but they seem to have stopped getting worse. The NFIB's Small Business Optimism Index, out Tuesday, ticked up in June to the highest level so far this year.

Why it matters: Small businesses often feel an economic slowdown more quickly or sharply than large corporations — they have less scale, less margin for error, and less access to capital markets.

Nasdaq is rebalancing its widely traded Nasdaq 100 Index to offset the growing heft of the giant tech companies known as the Magnificent Seven.

Why it matters: It's another indication of the top-heavy quality of the markets at the moment.

Mexico supplanted China this year as the United States' top trading partner.

Why it matters: The milestone reflects a real shift in the dynamics of the global economy — away from prioritizing low prices and greater efficiency (via super fragile supply chains) to something more nuanced.

Microsoft’s $69 billion bid for Activision hasn't closed yet, but it has already changed the tech giant — and stands to significantly alter the overall video game industry.

Driving the news: The deal is nearer to closing than ever thanks to a federal judge’s ruling Tuesday denying the Federal Trade Commission’s request for a preliminary injunction.