Tonight’s Highlights | Fed’s Preferred Inflation Gauge Incoming, Netflix Down Over 4% Pre-Market

Thursday pre-market: U.S. index futures are nearly flat, while major European indices are broadly higher.

 

As of press time, Netflix shares are down over 4% pre-market after the streaming giant announced an agreement to acquire Warner Bros. Discovery's film and streaming assets for $72 billion. The deal is expected to close in 12-18 months.

 

Markets will receive a batch of new economic data on Friday.

 

The U.S. Commerce Department will release delayed September consumer spending and income data, along with the Fed’s preferred inflation gauge — the Personal Consumption Expenditures (PCE) Price Index. Delayed by the 1.5-month federal government shutdown, this PCE report will provide the final inflation assessment before the Fed’s rate decision next Wednesday.

 

Additionally, the University of Michigan will release its December consumer survey, offering sentiment and short-/long-term inflation expectations.

 

“Current data is mixed, with conflicting signals. Inflation remains stubbornly sticky,” said iCapital Chief Investment Strategist Sonali Basak. “2026 inflation trajectory is unknown – no one can predict the future. The labor market overall maintains a ‘low hiring-low firing’ state. If this reverses, the market’s position next year could get tricky.”

Corporate News  

Netflix to acquire Warner Bros. film & streaming business for $27.75/share  

 

Netflix announced on December 5 a definitive agreement to acquire Warner Bros. Discovery's film studio and streaming business for $27.75 per share in cash and stock, valuing the enterprise at ~$82.7 billion (equity value $72 billion).  

 

The deal is expected to close after WBD completes the spin-off of its global networks business, Discovery Global, now projected for Q3 2026.

 

EU rules U.S. social platform X violates transparency under DSA, fines €120M  

 

The EU Commission on December 5 issued its first DSA “non-compliance decision,” ruling Elon Musk’s X violates transparency rules and fining it €120 million.  

 

X has 60 days to propose solutions and 90 days to implement fixes.

 

NEXTDC & OpenAI sign MOU for sovereign AI infrastructure in Sydney  

 

On December 4 local time, Australian data center operator NEXTDC signed an MOU with OpenAI to establish a sovereign AI infrastructure partnership.

 

The two will jointly plan, develop, and operate a next-gen hyperscale AI campus and large-scale GPU supercluster at NEXTDC’s S7 site in Sydney’s Eastern Creek precinct.

Soccer star Ronaldo invests in Perplexity AI  

Football legend Cristiano Ronaldo has acquired a stake in U.S. AI startup Perplexity AI.  

 

Thursday’s statement did not disclose the investment size or terms. Perplexity said Ronaldo is now an investor and they’ve signed a global partnership, launching a “C. Ronaldo interactive zone” in its search engine for fans to ask real-time questions and generate personalized content.

 

Microsoft to raise commercial Office subscription prices starting July 2026  

 

Microsoft announced on December 4 local time that it will increase Office productivity software subscription prices for business and government customers starting July 1, 2026.

 

LG Electronics: No confirmed data center contract with Microsoft yet  

 

LG Electronics announced on December 5 at the Korea Exchange that while the company and U.S. Microsoft are conducting comprehensive cooperation on data center-related business, no specific confirmed contract has been signed as of now.