Fed Expected to Raise Rates Again, China Ends Crackdown on Tech
Good afternoon. Here's what you need to know to end your day. Solid job numbers are making it likely that the Fed will hike rates again this month. China signals an end to its tech crackdown; Yellen visits. Want to work from home full-time? There could be some upfront costs. U.S. job growth slowed in June, while wages held steady, indicating inflation still poses a threat to the Fed's efforts to ward off price increases. Non-farm payrolls rose by 209,000, the smallest gain since the end of 2020. Hiring was concentrated in a few sectors, led by health care, government, and construction. Wages grew at a faster-than-expected pace, while the overall unemployment rate fell to 3.6%, though the jobless rate for black workers rose to 6%.
These numbers show the labor market is losing momentum, but remains tight, making the Fed ready to hike rates again. The optimistic view is that policymakers are on a "goldilocks" path of easing price increases without triggering a recession, said Chicago Fed President Charles Evans. U.S. stocks closed lower in the first week of July, as traders parsed labor market data.
China levied more than $1 billion in fines against Ant Group and Tencent, signaling an end to its tech crackdown, which caused billions of dollars in market value to evaporate. U.S. Treasury Secretary Janet Yellen's visit to China is drawing attention, and she said the competition between the world's two largest economies is not a "zero-sum game".
Apple plans to launch its $3,500 Vision Pro headset. The World Health Organization fired seven staff members for misconduct in the past six months. Despite concerns for civilians, the U.S. is sending cluster bombs to Ukraine. Two credit-trading funds were dumped for $2 billion, as a bet against hawkish Fed rate hikes. The future of digital news is now centering on Canada. More drone surveillance will be added along New York's coast after shark bites and sightings.
Columnist Adam Mintz asks, will AI be the next moneyball in baseball? Shoulder injuries for Major League pitchers are almost as frequent as their fastballs, but Major League could use AI to slow the growth of injuries with nothing more than an iPhone and a tripod, though such a simple technology could also put Major League in another bind.
She was once an astronaut, scientist, and U.S. president. Now Barbie is about to become a movie star. Read more about the toy maker's venture in this week's Bloomberg Businessweek. We spoke to the CEO of a Moroccan pharmaceutical company who is working to change the supply of drugs and vaccines in Africa. Read about how mobile payments are providing electricity to the world's poorest areas.
Remote work positions are in high demand. These coveted roles vanish from job sites within 48 to 72 hours, as people tire of commuting, cubicles, and fluorescent lights. Job seekers are even willing to pay $3,000 for a chance to work from home full-time. The career coaching industry is booming.
Finally… Taylor Swift's sing-alongs got more material. The re-recorded version of her Speak Now album includes six previously unreleased tracks. Swift's Thai fans still hope she will make up for the concert she canceled due to the coup in 2014. The frontrunner for the role of Thai prime minister, Piyabutr Lenglaorat, proclaimed himself a "Swiftie" and invited her to tour Thailand. "Come on, I'll sing Lavender Haze with you!" the politician wrote on Twitter.