A promising sign

The US got the strongest sign yet that inflation may have finally peaked. Excluding food and energy, the consumer price index rose only 0.2% in November, the smallest monthly increase since August 2021. This inflation gauge is a key one for economists and a favorite of Federal Reserve Chair Jerome Powell, who has steered significant interest rate hikes to rein in soaring prices—including an expected half point raise this week. It’s a promising sign that the central bank’s strategy is working.

Nevertheless, the war isn’t over yet and high prices are here to stay for some time. And the Fed is unlikely to stop raising rates anytime soon either, as it chases down that magical unicorn known as the “soft landing.” For now anyway, Wall Street was filled with holiday spirit: Stocks and bonds rallied. Here’s your markets wrap. —Margaret Sutherlin

Sam Bankman-Fried was indicted by a federal grand jury on eight counts including conspiracy and wire fraud for allegedly misusing billions of dollars in customers’ funds before the spectacular collapse of the FTX cryptocurrency empire. Police in the Bahamas arrested Bankman-Fried on Monday evening, hours before he was due to testify remotely before Congress about his company’s downfall. At the first hearing today of that House panel, John Ray, the man tasked with cleaning up the FTX wreckage, said he didn’t know when customers would be getting their money back—let alone how much.

The Biden administration faces roadblocks in its effort to address national-security concerns surrounding the social media platform TikTok after the FBI warned about the dangers of the Chinese-owned app and five states banned it from employee phones. A final agreement between the administration and TikTok has been stalled at the Justice Department, and questions remain about whether any deal could actually keep all US users’ data from being leaked to the Chinese government.

The US is poised to send Patriot air and missile defense batteries to Ukraine pending final approval from Biden. Ukraine’s government has urgently sought them, saying defense systems are needed to counter a relentless barrage of Russian missiles that have targeted its military and civilian and energy infrastructure. In a possible sign that things are going badly for Vladimir Putin at home, he’s skipping his annual marathon news conference.

In a major shift, Apple is preparing to allow third-party app stores on its iPhones and iPads. It’s part of a sweeping overhaul aimed at complying with strict European Union requirements coming in 2024. The EU says the laws are aimed at improving competition and thus consumer’s experiences —but for Apple it means giving up a big revenue source.

Just two milligrams of fentanyl, equal to a few grains of salt, can cause a fatal overdose. The pandemic paved the way for its ascent, and the cheap, abundant street drug is now making its way into cocaine, black-market Adderall, methamphetamine, marijuana and other substances. It’s led to a surge in overdose deaths, bringing on the most dangerous phase yet in the US’s decades-long opioid epidemic.

Just over two years ago, AmEx faced an existential crisis. It had already been losing customers to the likes of JPMorgan, but when the pandemic hit and just about everyone curtailed traveling and dining out, the 172-year-old credit card giant was pushed to the brink. What AmEx did next may be the marketing coup of the century.

Tesla’s market value slid below $500 million Tuesday with shares trading at their cheapest ever—and with room to fall. The electric-vehicle giant grapples with an array of challenges, from waning demand in China to investor concern over the Twitter-related antics of billionaire CEO Elon Musk. By the way, he’s no longer the richest person in the world.

Bloomberg continues to track the global coronavirus pandemic. Click here for daily updates.

Gardens. A village square. Autonomy. A growing number of communities around the world are experimenting with new models for memory care. The concept is resonating as societies grapple with aging populations, raising fundamental questions about what care for Alzheimer’s disease and other degenerative disorders should look like and whether the traditional nursing home model is outdated.

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