A mixed bag for UK consumers today. The good news is that inflation for June has come in lower than expected at 7.9%, after remaining sticky at 8.7% in May. The bad news is that the pound has fallen against other major currencies as a result, so if you are in the UK and were planning on a foreign holiday, that’s going to cost you more now.

The lowdown

• 📉 UK inflation falls to 7.9%, falling more than the 8.2% expected by the market.

• 🚧 Chinese property developer Evergrande posts losses of $81 billion over two years.

• 📎 Microsoft to launch AI copilot for Office, allowing it to charge customers at least 53% more.

Featured story

Novartis announces share buyback, outlines planned spinoff

Swiss pharma giant Novartis has raised its full year guidance and announced a $15 billion share buyback plan on the back of strong drug sales. Novartis completed a similar size buyback program last month, using cash reserves accrued from selling its stake in Roche in 2021.

It also outlined the separation and stock market debut of its generic medicines division Sandoz, planned for early October. Novartis will focus more on its patented (read higher margin) prescription medicines.

Novartis shareholders will vote on the proposed Sandoz spin-off and complete separation at an EGM in September. The listing of Sandoz shares in Switzerland and depositary receipts in the US is scheduled for the following month.

The content we're consuming today

• The Diff: It's Hard to Build a Durable Business Selling Durable Goods.

• FT: South Korean ‘ant’ traders battle hedge funds in swarm on battery shares ($).

• Bloomberg: Wall Street Pranksters Admit to $2 Bear Stearns Gag 15 Years Later ($).

Off-balance sheet items

• If you are like me, you MUST listen to something as you work (a hangover from working in a very loud office). My go to is Spotify’s Deep Focus playlist, but today I have been trying this Lo-fi playlist overdubbed with live air traffic control radio.

The bottom line