Plus, U.S. soccer journalist Grant Wahl suffered a ruptured aortic aneurysm in Qatar.
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The Federal Reserve approved a 50-basis-point interest rate increase at its meeting on Wednesday. The move comes after four consecutive 0.75% rate hikes. The recent increase brings the central bank’s benchmark federal-fund rate to a range between 4.25% and 4.5%, its highest in 15 years. More: - Fed Chair Jerome Powell said the Fed would consider the more traditional quarterly interest rate increases next year.
- November inflation numbers came in lower than expected, with CPI rising 7.1% YoY and core CPI up 6% compared to last year.
- Fed officials expect core CPI to fall to about 3.5% by the end of next year.
- Economic forecasts project a slowdown in the U.S. economy in 2023 and unemployment rising to 4.6%.
- November’s unemployment rate was 3.7%.
- U.S. stocks fell on Wednesday following the Fed’s announcements:
- The Dow fell 142.29 points, or 0.42%, to 33,966.35.
- The S&P 500 dropped 0.61% to 3,995.32, and the tech-heavy Nasdaq fell 0.76% to 11,170.89.
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Apple plans to allow different app stores on its mobile devices to comply with upcoming EU requirements. According to sources, Apple is working on allowing customers to be able to download third-party software directly to their iPhones and iPads, bypassing Apple’s App Store and the platform’s up-to-30% fee on payments. More: - The move comes following years of criticism of the tech giant’s App Store policies and their impact on app developers and consumers.
- The EU also approved new legislation called the Digital Markets Act (DMA), which aims to level the playing field for third-party developers and consumers.
- The DMA will go into effect in 2023; however, companies do not have to comply with the rules until 2024.
- Some of the upcoming requirements for technology companies noted in the DMA include the installation of third-party apps and allowing third-party developers to get equal access to core features within apps and services.
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The SEC and the Justice Department have charged eight social media influencers with engaging in a $114M “pump and dump” scheme. Seven individuals were charged with using Twitter and Discord to commit securities fraud and conspiracy to commit securities fraud by the DOJ. More: - The eighth influencer was charged with aiding and abetting the alleged scheme by the SEC and conspiracy to commit securities fraud by the DOJ.
- Prosecutors accused the group of using Twitter and Discord to manipulate exchange-traded stocks in a scheme going back to January 2020.
- The defendants are Perry Matlock (@PJ_Matlock), Edward Constantinescu (@MrZackMorris), Thomas Cooperman (@ohheytommy), Gary Deel (@notoriousalerts), Mitchell Hennessey (@Hugh_Henne), Stefan Hrvatin (@LadeBackk), John Rybarcyzk (@Ultra_Calls), and Daniel Knight (@DipDeity).
- The criminal and civil lawsuits were filed in the U.S. District Court for the Southern District of Texas.
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The U.S. Commerce Department plans to add more than 30 Chinese companies to a trade blacklist that would prevent them from buying certain U.S. parts. According to sources, China’s leading memory chip maker Yangtze Memory Technologies is among those to be added to the Entity List. More: - Companies added to the Entity List must get a special export license from the Commerce Department to buy tech from U.S. suppliers.
- Previous firms added to this list include Huawei and Semiconductor Manufacturing International Corp.
- During a press briefing on Wednesday, Chinese Foreign Ministry spokesman Wang Wenbin said the U.S. has politicized and weaponized economic cooperation.
- Wenbin added that the U.S. actions disrupt supply chains and China would take steps to protect the rights of its companies.
- In October, the Biden administration unveiled export restrictions to curb China’s ability to purchase advanced semiconductors and other chip-making equipment.
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Delta Airlines expects a 15% to 20% increase in revenue in 2023. The airline has been optimistic about travel demand in the new year. CEO Ed Bastian said consumers are prioritizing investing in themselves and their experiences. The U.S. airline industry returned to profitability following a massive drop in demand due to the pandemic. More: - Delta raised its Q4 earnings forecast to $1.35 to $1.40 a share, up from $1 to $1.25 per share, as previously stated.
- The airline expects a 7% to 8% increase in Q4 revenue compared to Q4 2019.
- Bastian said business travel at the airline is about 80% recovered compared to 2019.
- He added the airline is seeing solid bookings for early 2023.
- Delta shares closed at $34.31, up ~2.7% for the day.
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The U.S. has approved Germany to purchase F-35 fighter jets from Lockheed Martin as part of military procurement projects worth €13B ($13.9B). Germany’s budget committee approved the spending, which includes funds for encrypted digital radios and assault rifles. More: - The funds are from a €100B ($106B) special fund German Chancellor Olaf Scholz announced in February following Russia’s invention of Ukraine.
- The special fund is meant to bring Germany’s military weapons and equipment up to date.
- Germany plans to buy 35 F-35 stealth fighter jets and other weapons and equipment.
- The first eight jets are expected to be delivered in 2026.
- German Defense Minister Christine Lambrecht said the €100B fund might not be enough for the country to get back up to standard following years of neglect.
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- U.S. soccer journalist Grant Wahl, who died last week in Qatar while covering the World Cup, suffered a ruptured aortic aneurysm. Wahl’s wife, Dr. Céline Gounder, shared the findings of an autopsy performed by the New York City medical examiner’s office.
- Goldman Sachs is considering cutting down its bonus pool by 40%. Other banks, including JPMorgan Chase and Citigroup, are also considering cutting their investment banking pools by 30%.
- The SEC voted Wednesday to advance sweeping changes to the U.S. stock-market rules. The vote opens the proposed regulations for public comment until at least March 31. The new rules are expected to face opposition from brokerages and wholesalers like Citadel Securities and Virtu Financial.
- In its first week of release, Prince Harry and Meghan’s Netflix documentary received 81.55 million viewing hours globally, becoming the streaming giant’s biggest documentary debut.
- A judge has blocked wage increases for Uber and Lyft drivers imposed by the New York City Taxi & Limousine Commission. The wage increase was supposed to go into effect on Dec. 19 but has been paused until Jan. 31.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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