Weekly Market Update - 12 December 2022

Microsoft's Activision Deal

The US Federal Trade Commission is seeking to block Microsoft’s $69 billion acquisition of Activision Blizzard on grounds a tie-up between the Xbox maker and gaming publisher would harm competition. Regulators said the deal could hurt other players in the $200 billion gaming market by limiting rivals’ access to the company’s biggest games. The transaction would turn Microsoft into the No. 3 gaming company, behind Tencent Holdings and Sony Group.

Source: Bloomberg

Tesla’s Urgent Issues

While Elon Musk is busy overhauling Twitter, Tesla is facing increasingly urgent issues. That’s testing the faith of some of its chief executive’s biggest fans. Weakening demand in China, troubles in Texas and stock that’s lost $500 billion in market value this year are just some of the issues facing the electric car company, as shareholders voice concerns about Musk’s priorities. Even Musk himself has complained he has “too much work” on his plate. Meanwhile, over at Twitter Musk is embroiled in a spat with San Francisco city officials — over makeshift bedrooms at the company HQ.

Source: Bloomberg

Sky High

Bad news travelers, airfares are set to soar in 2023. Prices will climb by as much as 12% on Europe-Asia routes and 10% for North America-Asia flights, according to American Express Global Business Travel. Drivers of fare increases globally include inflation, rising fuel costs, capacity constraints and rerouting to avoid Russian airspace. The increase won’t be as sharp within North America, where fares are set to rise about 3%.

Source: Bloomberg