Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning, today is Tuesday, July 25th, and I'm your host Julie Morgan.

Morgan Stanley's Michael Wilson reportedly says we were wrong.

Adobe will not offer remedies to address the EU's concerns over the Figma deal

and Kellogg files to officially separate into two companies.

Here's what's making headlines today.

After years of investors worrying about high inflation, Morgan Stanley's Michael Wilson reportedly said we were wrong and argued on Monday that disinflation may become a new headwind in financial markets.

Wilson stated in one of the financial institutions investor notes,

2023 has been a story of higher valuations

than we expected amid falling inflation and cost cutting.

He went on to say, however, disinflation is now eating into sales growth,

which means investor focus is likely to shift toward top lineline growers rather than just companies exhibiting

cost efficiencies.

As Wall Street heads into the thick of earnings season, Morgan Stanley predicted that performance

dispersion will increase and

recommended that financial participants look for stock ideas with

high earnings quality, strong free cash flow generation and improving earnings revisions driven by sales growth.

Adobe is increasingly likely to face an in-depth review from the European Union's

antitrust regulator concerning his proposed $20 billion Figma acquisition.

Bloomberg reported citing two people familiar with the matter that Adobe will not offer remedies

to address the concerns of the agency.

An Adobe spokesperson told seeking Alpha, quote,

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