Analysts say that Mattel is likely to see a boost in earnings next quarter thanks to an increase in doll sales driven by the success of the Barbie movie. They are not the only ones. In addition to enormous ticket sales, movie theaters have been reporting shortages of accompanying Barbie merchandise. All of this indicates that consumer spending remains strong, so don’t be surprised if the Fed raises rates today and you can no longer make payments on your Dream House©.

The lowdown

• 💃 Barbie maker Mattel likely to see a boost in earnings next quarter thanks to the movie’s success, though sales are not expected to be enduring.

• 🏦 Banc of California and PacWest to merge and raise $400 million in new equity, in wake of mini banking crisis.

• 🏕️ IMF lifts its growth forecast for the world economy but warns we are not out of the woods.

Featured story

US national security scrutinizes Mubadala’s $3 billion takeover of Fortress

In May, Abu Dhabi's sovereign wealth fund Mubadala announced its plans to acquire a majority stake in US distressed debt lender Fortress Investment Group from SoftBank.

SoftBank bought Fortress in 2017 for $3.3 billion and has been selling assets to strengthen its balance sheet due to fluctuations in the value of its tech portfolio. Mubadala already owns a 10% stake in Fortress.

The acquisition has caught the attention of US national security officials due to concerns about Mubadala’s connections to China. CFIUS, an agency that reviews potential threats to national security posed by foreign investments, is conducting the review. This is not the first time CFIUS has taken an interest in Fortress’ ownership. In 2017, it intervened in SoftBank’s takeover of Fortress, forcing SoftBank to relinquish day-to-day control over the firm.

The content we're consuming today

• Acquired podcast: Nike.

• WSJ: The Hidden Career Cost of Being Overweight ($).

• Unhedged podcast: Big week for central banks.

Off-balance sheet items

• There is so much interesting Barbie movie content out there at the moment. I still haven’t seen the movie, but I am really enjoying all the memes. This stop motion journey ($) through Barbie’s homes over the years is probably my favorite though.

The bottom line