European gas prices soar on supply disruption fears; Microsoft-Activision deal cleared by CMA – business live

Sarah Cardell, the head of the Competition and Markets Authority, has defended the CMA’s decision to drop its opposition to Microsoft’s takeover of Activision.

Cardell insists the CMA was prepared to defend its initial decision in court, before Microsoft made a “major concession” and “fundamentally restructured the deal” by licensing Activision’s cloud streaming rights outside of the European Economic Area to Ubisoft.

Otherwise, Cardell tells the Today programme, the combination of Microsoft and Activision would have led to “real problems in cloud gaming”, given Microsoft’s strong position in cloud gaming through its Xbos and Windows platforms.

Cardell adds that other businesss should not emulate Microsoft’s approach, saying:

My very clear advice to businesses looking at this, is that that is not the best way to engage with the CMA.

There is nothing about this restructured deal that Microsoft couldn’t have brought forwards months ago.

That would have saved Microsoft, frankly, a lot of time and a lot of money, and led to the same outcome that we have now a lot sooner in the process.

The world’s largest ever video games deal has moved close to completion this morning, as the UK competition regulator approves Microsoft’s $69bn (£54bn) acquisition of Activision Blizzard.

The UK’s Competition and Markets Authority has announced that it will now allow the deal, after Microsoft adjusted it following the CMA’s initial decision to block it.

The tech giant will now sell Activision Blizzard’s cloud gaming rights outside Europe to Activision’s French rival Ubisoft, which addresses the CMA’s concerns that takeover would hurt competition.

The CMA says:

The new deal will stop Microsoft from locking up competition in cloud gaming as this market takes off, preserving competitive prices and services for UK cloud gaming customers. It will allow Ubisoft to offer Activision’s content under any business model, including through multigame subscription services.

It will also help to ensure that cloud gaming providers will be able to use non-Windows operating systems for Activision content, reducing costs and increasing efficiency.

Here’s the full story:

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European gas prices have climbed to their highest level since March as geopolitical risks, shortage fears, and colder weather grips the market.

The Israel-Hamas war and damage to the pipeline between Finland and Estonia are both causing disruption to the gas sector.

And with the first Arctic cold blast into Western and Central Europe forecast for this weekend, more households will be flicking on the thermostat as temperatures drop.

The benchmark month-ahead European gas price has climbed to its highest level since late February, closing at €53.29 per megawatt hour – up from €25 per megawatt hour in July.

UK gas prices have also gained this week, with the day-ahead price the highest since early April at 121p per therm, and the month-ahead contract the highest since mid-March at 133p per therm.

Gas climbed at the start of this week, as Israel suspended production at the Tamar gas field in the Eastern Mediterranean due to security fears.

The mysterious damage to the Balticconnector pipeline and parallel Estlink telecommunications cable between Estonia and Finland this week has also shaken the market, with Helsinki saying last night that the involvement of a state actor in this job cannot be ruled out.

Rising gas prices will squeeze consumers and businesses this winter, and could also undermine central bank efforts to bring inflation down to target.

Jim Reid of Deutsche Bank says:

The latest moves follow several concerns about global supply over recent days, as well as forecasts showing much cooler weather in Europe over next week.

Fortunately, gas prices are still some way beneath their levels from this time last year, and European gas storage is also fuller than at this point in 2021 and 2022, but this is still a concerning trend at a time when recent CPI prints have already been returning the focus back to inflationary pressures.

Europe is now facing its second winter without much of the gas it used to receive from Russia, before the Ukraine war.

Bloomberg says:

Some forecasts suggest Europe will have a relatively warm winter, which should reduce gas needs. But the energy crisis is still far from over, and a cold snap is set to hit in the coming days.

The agenda

• 7.45am BST: French inflation report for September

• 8.45am BST: IMF/World Bank hold plenary session of their annual meeting in Marrakech

• 10am BST: Eurozone industrial production for August