Fed Bets Lift Stocks; Netflix-WBD Deal Stuns

Rate-cut odds strengthened after soft inflation signals, pushing equities higher. A blockbuster Netflix–Warner Bros. Discovery tie-up headlined corporate news while global markets tracked the Fed.

TL;DR:

• 🏦 Morgan Stanley backs 25 bps cut
• 📈 PCE cools, Wall St advances
• 🎬 Netflix to buy WBD for $72B
• 🌍 UAE markets climb on Fed bets

Morgan Stanley Now Sees a 25 bps Fed Cut

Morgan Stanley reversed its December call and now expects a 25 basis point rate cut, citing cooling inflation and a clearer path to easing. The shift reinforced market pricing for softer policy into year-end and kept front-end yields under pressure. Traders leaned into duration and rate-sensitive equities. Source

PCE Eases; Wall Street Extends Gains

Softer PCE inflation strengthened rate-cut bets and lifted major U.S. averages, with growth and housing-linked names catching a bid. The disinflation print supported a lower-yield backdrop and steady risk appetite into the Fed meeting window. Momentum favored mega-cap tech and rate sensitives. Source

Netflix to Acquire Warner Bros. Discovery for $72 Billion

Netflix agreed to acquire Warner Bros. Discovery in a $72 billion deal, a move that could redefine streaming scale and content economics. Consolidation at this size signals a push for cost synergies, library breadth, and global distribution leverage. Investors will watch antitrust risk and debt structure. Source

UAE Markets Rise on Fed Rate-Cut Expectations

Gulf equities advanced as investors priced a friendlier Fed path, supporting financials and real estate on lower-rate prospects. Regional risk tone improved alongside global markets, with defensive flows easing. Oil correlation stayed secondary to rates. Source