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Starting July 1, minimum wage increases have boosted pay for over 880,000 workers in Alaska, Oregon, and Washington, D.C., with D.C.'s rate rising from $17.50 to $17.95 per hour. Additionally, cities like Chicago, Los Angeles, and San Francisco, among others, have implemented wage hikes, impacting nearly 3 million minimum wage earners and over 6.2 million others indirectly through pay structure changes. According to the Economic Policy Institute, nearly 60% of affected workers are women, and almost half are full-time employees. These raises are crucial for combating inflation, which hit a 40-year high of 9.1% in 2022 before dropping to 2.4%, yet experts argue more federal action is needed as the national minimum wage remains at $7.25, unchanged for over 15 years. Variations exist by state and sector, with California’s healthcare workers seeing rates up to $24 per hour, and tipped employees in some regions also benefiting. Overall, 88 jurisdictions across 23 states are set to raise wages by the end of 2025, addressing an ongoing affordability crisis as highlighted by Yannet Lathrop of the National Employment Law Project. Legislative efforts like the Raise the Wage Act aim to push the federal minimum to at least $17 per hour over five years, reflecting a broader push for economic relief.
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The upcoming June Consumer Price Index (CPI) report, set for release on Tuesday, is expected to reflect a faster pace of inflation, with a projected year-over-year rise of 2.6% compared to 2.4% in May, and a monthly increase of 0.3%. Core CPI, excluding volatile food and energy prices, is forecasted to edge up to 2.9% annually. This comes as President Trump’s proposed tariffs, ranging from 15% to 50% on imports from countries like Canada, Mexico, and the EU, raise concerns about their impact on consumer prices. Economists note a potential reversal in declining car and apparel prices, which could push core inflation higher. Amid renewed trade tensions, the Federal Reserve’s rate-cutting path remains uncertain, though markets expect rates to hold steady for now. Analysts from Wells Fargo, Bank of America, and Goldman Sachs suggest tariffs will likely contribute to a gradual rise in core goods inflation, driven by factors like rebounding used car prices and broader cost increases. However, they anticipate limited pass-through to consumers and expect inflation pressures to cool later in the year due to softening housing and labor market dynamics. The June CPI data is seen as a critical indicator of whether inflation is strengthening, though not yet at a level to alarm Fed officials.
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Nvidia announced plans to resume sales of its H20 AI chip to China, following U.S. export restrictions that previously halted sales due to national security concerns, costing the company $15 billion in revenue and a $5.5 billion inventory write-off. The company is seeking U.S. government licenses to restart deliveries and has developed a new, compliant AI chip, the RTX Pro GPU, for the Chinese market. CEO Jensen Huang, visiting Beijing, underscored China’s critical role as a massive and innovative market during a supply chain expo. Despite facing competition from Chinese firms like Huawei and ongoing geopolitical uncertainties, Nvidia remains committed to the region, which accounted for 13% of its $17 billion revenue last fiscal year. Huang’s visit coincides with easing U.S.-China tensions, including relaxed rare earth export controls by China and resumed U.S. chip design software services. However, U.S. senators have urged caution regarding engagements with Chinese military or intelligence-linked entities. Analysts note that while the H20 ban pause offers relief, Chinese companies are diversifying supply chains to safeguard against future disruptions.
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Standard Chartered has launched spot trading for bitcoin and ether through its UK branch, specifically targeting institutional clients like corporates, investors, and asset managers. Announced on Tuesday, the bank positions itself as the first global systemically important bank to offer secure, regulated, and scalable access to these cryptocurrencies. Clients can now trade digital assets using familiar foreign exchange (FX) interfaces, with plans to introduce non-deliverable forwards trading in the near future. This move comes in response to rising demand for crypto assets among institutional investors. Chief Executive Bill Winters highlighted the bank’s focus on providing a safe and efficient platform for clients to transact and manage digital asset risks while adhering to regulatory requirements. This initiative marks a significant step for Standard Chartered in integrating cryptocurrency trading into its services, catering to the evolving needs of the financial market.
