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Good morning. US inflation is in focus, an Epic court win in the mobile app industry and more scrutiny of the AI chips sector. Here’s what’s [View in browser]( [Bloomberg]( Good morning. US inflation is in focus, an Epic court win in the mobile app industry and more scrutiny of the AI chips sector. Here’s what’s moving markets. — [Sam Unsted]( Flat inflation Treasuries are higher and the [dollar is weaker]( with the US consumer inflation report coming later set to dominate the agenda. The rate of inflation is [expected to be unchanged again in November](, adding to speculation that the Fed can begin unwinding the tightest monetary policy in a generation. Near-term inflation expectations for US consumers dropped to the [lowest level since April 2021]( last month. Epic win Google-owner Alphabet [lost an antitrust court battle]( with Epic Games, maker of Fortnite, in a ruling that threatens to upend the mobile app industry and which could ultimately cost the tech giant billions in revenue. Google and Apple [charge commissions]( of as much as 30% to software developers to distribute their apps, with typically few other options available. This ruling could weaken app store rules further, following scrutiny in recent years from regulators and lawmakers globally. Chip probe The US is [probing the specifics of three new artificial intelligence accelerators]( developed by chipmaker Nvidia for China, according to Commerce Secretary Gina Raimondo. The investigation will help ensure that the chips don’t violate export controls, following a pledge earlier this month to restrict any new semiconductors that could provide AI capabilities to China. Raimondo also said the US will take the [“strongest possible” action]( to protect national security following the recent chipmaking breakthrough for China’s Huawei Technologies. Cloud travails Software group Oracle saw [sales growth for its cloud business slow]( in the quarter to the end of November, fueling fears that its expansion into the competitive area is struggling to gain traction. Oracle shares have dropped by around 8% in premarket trading on that news. Elsewhere, Warren Buffett’s Berkshire Hathaway has [nearly-halved its stake]( in PC maker HP while investor Cathie Wood has [increased her holdings]( in Microsoft and Facebook to add to her AI bets. US stock futures are marginally higher, while Bitcoin has stabilized following its recent pullback, and toymaker [Hasbro is cutting jobs](. Oil wavers Oil prices [fluctuated]( after a missile attack on a tanker in the Red Sea, which the US military said came from [Houthi-controlled territory in Yemen](. The key focus for the market, however, remains on the supply picture and whether the production cuts announced by the OPEC+ group last week will be delivered. Surging production from non-OPEC countries, notably the US, is also keeping a lid on crude prices. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - Harvard’s [deepening disunity](. - Sam Altman returns and [talks AI ethics](. - JPMorgan’s fight over an [investor’s lost fortune](. - Secrecy for [Swiss shell companies]( may be next to go. - Crypto industry sets its [sights on Abu Dhabi](. - [English country homes]( join the property gloom. - The best and worst [cities for expats](. And finally, here's what Joe’s interested in this morning Hello and happy CPI Day. Expectations are for a flat sequential reading at the headline level (thank you, falling gasoline prices) and for a 0.3% increase in the core. That core reading, if it comes in line with forecasts, would be a slight acceleration versus the previous reading of 0.2%. In a note to clients, Bank of America cited used cars and lodging as categories that would be the likely drivers of the higher print. As of the time I'm typing this, the 10-year yield is back below 4.2%. Equity futures are in the green, adding to yesterday's gains, which follow on from Friday's gains, putting the S&P 500 at its highest level since March 2022. What's particularly interesting about the last few days is that the stock market climb has come in the wake of the better-than-expected jobs report, which saw the unemployment rate fall to 3.7% from 3.9%. One might have anticipated the opposite. It would be easy to imagine stocks falling on the drop in unemployment, over concerns of it pushing back the timing of rate cuts. But perhaps this reflects a general change in the market regime. While the odds of near-term rate cuts have in fact dropped over the last couple of days, there's still no apparent fear of further tightening or a sustained re-acceleration of inflation. It may be getting easier for the market to treat good news as good news. Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Tell us what you want to see in the Five Things newsletter! Please [take our quick survey here.]( [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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