Europe hikes interest rates, China cuts

The European Central Bank raises interest rate to highest level since 2001, Disney CFO Christine McCarthy steps down, and more [What makes a subscription to The Week so valuable now? Click here.]( [The Week Logo]( [Subscribe to The Week magazine]( [Subscribe to The Week magazine]( Daily business briefing 1. [ECB raises interest rate to highest level in more than 20 years]( The European Central Bank on Thursday hiked its benchmark interest rate to the highest level since 2001, warning that the fight to bring down high inflation isn't over. "Are we done? Have we finished the journey? No, we are not at destination," Christine Lagarde, the president of the bank, told reporters in Frankfurt. The ECB raised its deposit rate a quarter percentage point to 3.5% after concluding that inflation was on track to remain too high for too long. The move marked the ECB's eighth straight increase, and came after the U.S. Federal Reserve paused its aggressive campaign to raise borrowing costs but signaled two more increases were coming later this year. [[The New York Times]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=ECB+raises+interest+rate+to+highest+level+in+more+than+20+years&body=Read the story here: utm_campaign=business_briefing_newsletter_20230616&utm_source=business_briefing_newsletter) 2. [Disney CFO Christine McCarthy steps down]( Disney Chief Financial Officer Christine McCarthy is stepping down after eight years in the job to take a family medical leave of absence, the entertainment giant said Thursday. Kevin Lansberry, Disney's CFO of Parks, Experiences and Products, will take over on an interim basis in July. McCarthy's "impact on The Walt Disney Company during 23 years of dedicated service cannot be overstated," Disney CEO Bob Iger said in a statement. McCarthy said she would help in the transition and "will always be rooting for the success of my extended Disney family." Disney shares slipped in after-hours trading following news of the change, the biggest shakeup since November, when [Disney brought back Iger as CEO]( after he left the job in 2020. [[CNN]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Disney+CFO+Christine+McCarthy+steps+down&body=Read the story here: utm_campaign=business_briefing_newsletter_20230616&utm_source=business_briefing_newsletter) Advertisement by Enbridge [Is hydrogen the key to reducing GHG emissions? Learn more.]( [Advertisement by Enbridge]( 3. [China cuts interest rates as pandemic rebound weakens]( China's central bank cut a key interest rate for the first time since August on Thursday as it tries to stimulate the world's second-largest economy amid its sputtering recovery from the coronavirus pandemic. Beijing is planning several major stimulus programs, including billions of dollars in infrastructure projects. China's economy came back strong after it abruptly abandoned [draconian "zero Covid" restrictions]( late last year, but new economic data released this week showed that industrial output and retail sales growth slowed sharply in May. Many economists question whether the stimulus measures will be enough to counter weakening confidence and investment as multinational companies diversify their supply chains after disruptions caused by the pandemic and trade frictions with the West. [[Bloomberg]( [The Wall Street Journal]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=China+cuts+interest+rates+as+pandemic+rebound+weakens&body=Read the story here: utm_campaign=business_briefing_newsletter_20230616&utm_source=business_briefing_newsletter) 4. [Stock futures flat ahead of data on consumer sentiment]( U.S. stock futures were little changed early Friday ahead of fresh data on consumer sentiment. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were essentially flat at 6:45 a.m. ET. All three of the main U.S. indexes were on track to finish the week with gains after the Federal Reserve paused its aggressive campaign to raise interest rates while warning that two more inflation-fighting increases were likely this year. The S&P 500 is up nearly 3% this week, on track for its best week since March. The Nasdaq has risen 4% on the way to its eighth straight weekly gain, its longest winning streak since a 10-week run in 2019. [[CNBC]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Stock+futures+flat+ahead+of+data+on+consumer+sentiment&body=Read the story here: utm_campaign=business_briefing_newsletter_20230616&utm_source=business_briefing_newsletter) ADVERTISEMENT BY ENBRIDGE [Is hydrogen the key to reducing GHG emissions? Learn more.]( [ADVERTISEMENT BY ENBRIDGE]( 5. [Report: DOJ to conduct antitrust review of PGA Tour-LIV Golf merger plan]( The Justice Department has notified the PGA Tour it plans an antitrust review of its proposed [merger with LIV Golf's Saudi backers]( The Wall Street Journal reported Thursday, citing people familiar with the matter. The golf leagues, which have been locked in a divisive rivalry, said the agreement would stabilize the sport. The Justice Department had already been investigating concerns about anticompetitive practices in professional golf. The review could significantly delay the planned joint venture between the PGA Tour and Saudi Arabia's Public Investment Fund, the Journal said. A senior Tour executive told employees this week that the fate of the deal might remain unclear for a year or more. [[The Wall Street Journal]( [Share to Facebook]( [Share to Twitter]( [Send in email](mailto:?Subject=Report:+DOJ+to+conduct+antitrust+review+of+PGA+Tour-LIV+Golf+merger+plan&body=Read the story here: utm_campaign=business_briefing_newsletter_20230616&utm_source=business_briefing_newsletter) [Read more business stories at theweek.com]( MOST POPULAR [Related image]( [Researchers say they created first synthetic human embryo model]( Theara Coleman [Related image]( [6 beach reads to look forward to this summer]( Theara Coleman [Related image]( [Why Republicans are trying to make Trump's trial about Hillary Clinton]( Peter Weber [Related image]( [Southern Baptists expel Saddleback, 2nd church over female pastors, approve further clampdown]( Peter Weber [Related image]( [Miami Mayor Francis Suarez becomes 3rd Floridian to join crowded GOP presidential race]( Peter Weber [Speed reads banner] [Article image]( [RNC declines request to amend loyalty pledge to free candidates from supporting convicted felon]( June 16, 2023 [Article image]( [Researchers say they created first synthetic human embryo model]( June 15, 2023 [Article image]( [Southern Baptists expel Saddleback, 2nd church over female pastors, approve further clampdown]( June 15, 2023 [Article image]( [Miami Mayor Francis Suarez becomes 3rd Floridian to join crowded GOP presidential race]( June 14, 2023 [Read more of today's best articles at theweek.com]( [What makes a subscription to The Week so valuable now? 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