FTSE 100 Live 22 August: Arm IPO, public sector deficit at £4.3 billion

Microsoft submits fresh Activision merger proposal after CMA rejection

Microsoft has submitted a new version of its blockbuster Activision deal after a previous proposal was rejected by the Competition and Markets Authority.

Under the new deal, Microsoft will not acquire the cloud streaming rights to all current and future Activision games released during the next 15 years.

Microsoft said the restructured deal would address concerns set out by the CMA. In particular, the transaction is intended to provide an independent third-party content supplier, Ubisoft, with the ability to supply Activision’s gaming content to all cloud gaming service providers.

The CMA said it will begin a new investigation and the statutory deadline for a decision is 18 October 2023.

Sarah Cardell, Chief Executive of the CMA, said: “This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments.

“Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”

UK July budget deficit comes to £4.3 billion

The UK’s budget deficit in July was £4.3 billion, a significant decline from recent months but still the fifth-highest July borrowing figure in history.

The figure was less than the expected £5.0 billion.

For the tax year to date, public borrowing has come to £56.6 billion, which is £11.3 billion less than forecasted by the OBR, suggesting the Government may have more room for spending increases or tax cuts than expected.

Public sector net debt came to £2,578.9 billion, representing 98.9% of GDP having recently crossed the 100% mark.

Recap: Yesterday’s top stories

Good morning. Here’s a summary of our headlines from yesterday: