Microsoft’s Revised Offer for Activision Blizzard Gains Traction with UK Regulators
The UK’s competition watchdog, the Competition Markets Authority (CMA), has indicated that Microsoft’s revised offer to acquire video game giant Activision Blizzard is moving in a direction that could lead to regulatory approval. The CMA noted that the updated proposal appears to address concerns previously raised by the authority.
Under the new terms of the deal, Microsoft has opted not to acquire the cloud gaming rights owned by Activision Blizzard. The initial deal, valued at $69 billion (£59 billion), faced resistance from UK regulators, leading to its blockage.
Earlier this year, the CMA expressed apprehensions that Microsoft’s acquisition of Activision could negatively impact competition in the cloud gaming sector within the UK. In response, Microsoft submitted a restructured proposal for the CMA to review, which is currently under consideration.
In a statement issued on Friday, Sarah Cardell, the Chief Executive of the CMA, emphasized the watchdog’s consistent stance on the matter: “The CMA’s position has been consistent throughout – this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved.” The CMA will open a consultation period before making a final decision regarding the deal.
In the ever-evolving landscape of gaming and technology, this potential acquisition has garnered significant attention, with regulators worldwide closely monitoring its progress.
Chancellor Jeremy Hunt Warns of Tax Cuts’ Impossibility Amid Economic Challenges
UK Chancellor Jeremy Hunt has cautioned that delivering tax cuts will be “virtually impossible” until the country’s economic conditions improve. The Chancellor’s remarks come amidst calls for tax reduction measures in the upcoming Autumn Statement, scheduled for November, due to a more optimistic economic outlook and the rising cost of living.
During an interview on LBC, Hunt acknowledged the challenges posed by the nation’s substantial debt levels, which currently stand at 98.8% of GDP, a level not seen since the early 1960s. These financial constraints have left him facing “very difficult decisions.”
With the Conservative Party trailing in the opinion polls, the debate intensifies over how to regain political ground before the anticipated general election in May. While some Conservative MPs advocate for lowering taxes, especially given the high cost of living, others are calling for a clear plan outlining the path to tax reduction.
A slight drop in inflation last month prompted the Bank of England to maintain interest rates at 5.25%, bucking expectations of further increases and potentially averting an additional burden on national borrowing costs.
Labour Party’s Pledge to Ensure Fiscal Oversight Ahead of National Election
Britain’s opposition Labour Party has promised to enshrine in law the requirement for government tax and spending plans to undergo review by fiscal regulators. This pledge comes a year after former Prime Minister Liz Truss’s uncosted “mini-budget” raised concerns in financial markets.
Labour’s prospective finance minister, Rachel Reeves, outlined the proposal, stating, “We will guarantee in law that any government making significant, permanent tax and spending changes will be subject to an independent forecast of its impact from the OBR (Office for Budget Responsibility).” In cases of emergency, where rapid budgetary changes are necessary, the OBR would be permitted to set a publication date for its forecast.
As the nation anticipates a general election in 2024, Labour aims to present itself as a more capable custodian of the economy compared to the ruling Conservative Party. Prime Minister Rishi Sunak replaced Liz Truss shortly after the “mini-budget” controversy, emphasising a commitment to sound fiscal management. However, Labour currently maintains a substantial lead over the Conservatives in opinion polls.
Reeves also announced Labour’s commitment to unveiling a single budget plan by the end of November each year, affording businesses and families four months to prepare for the new tax year, which commences in April in the UK.
Central Banks of Britain and Sweden Reiterate Oversight Commitment to London Clearing House
The central banks of Britain and Sweden have reaffirmed their dedication to overseeing London Clearing House Limited (LCH). A joint statement from the Bank of England and the Riksbank confirmed their strong commitment to effective oversight cooperation regarding LCH.
