The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
MICROSOFT-ACTIVISION BLIZZARD WIN
Microsoft's acquisition of Activision Blizzard got an important go-ahead on Friday from British regulators. The agency signaled that a revised proposal did a god job of addressing how the massive gaming giants will be able to combine without running ramshod over its smaller competitors. It was one of the last hurdles the companies faced to closing the $69 billion deal. Microsoft stock ended the week down 3 percent and Activision was up 2 percent.
UAW STRIKE
Autoworkers marched on picket lines in 38 locations in 20 different states on Friday. The United Autoworkers union is taking a new tact in contract negotiations with wildcat walkouts, which allow many teamsters to stay on the job, but affected the auto companies' supply chains. Stellantis and GM were targeted with this week's job actions, although the UAW is still in fierce negotiations with Ford as well. The union is calling for 40 percent raises for members, which would align with the 40 percent raises the companies' CEOs have seen as of late. Stellantis ended the week up 2 percent, GM closed down more than 3 percent, and Ford wrapped up the week down a fraction of a percent.
FOX HANDOVER
Rupert Murdoch, who reshaped the face of cable news in America with Fox News, a conservative alternative to the options available, announced he is stepping down. The 92-year-old billionaire is handing the reins of Fox Corp. and News Corp. over to his son Lachlan. The handover wasn't necessarily a surprise, but the timing was. The elder Mudoch will stay on as chairman emeritus of both companies. Fox Corp. stock ended the week down more than a percent. News Corp. ended the week down 3 percent.
INTEREST RATE HOLDS
The Federal Reserve this week announced that it will hold a key interest rate steady for the time being. While inflation rates have come down significantly since its height of 9.1 percent, we are not yet at the 2 percent figure the Fed is aiming for. Fed Chair Jerome Powell signalled in his statements that Americans should brace themselves for another potential rate hike before we ring in 2024.
SPLUNKED
Tech giant Cisco is snapping up cybersecurity firm Splunk for a cool $28 billion. Cisco says it plans to use the acquisition as part of its plan to use artificial intelligence to improve security. Cisco's stock dropped on the news, ending the week down 4 percent. Investors were hotter on the Splunk side, with its stock ending the week up more than a whopping 2o percent.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
