Central Texas Global Business Pulse - October 6th 2024 - Big Plan

Central Texas Global Business Pulse

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US port workers and operators reach deal to end East Coast strike immediately

U.S. dock workers and port operators reached a tentative deal that will immediately end a crippling three-day strike that has shut down shipping on the U.S. East Coast and Gulf Coast, the two sides said Thursday. The tentative agreement is for a wage hike of around 62% over six years, two sources familiar with the matter told Reuters, including a worker on the picket line who heard the announcement. That would raise average wages to about $63 an hour from $39 an hour over the life of the contract.

New ‘4/5 Bridge’ conditionally approved for South Texas border

The bridge would be the fourth international bridge connecting the Mexican state of Tamaulipas with Laredo, and the fifth bridge in Webb County, one of which leads to the neighboring Mexican state of Nuevo León. Biden signed the presidential permit on Thursday. It is subject to certain environmental conditions but allows the project to start.

His approval comes nearly four months after the president issued construction and expansion permits for three other international bridges in South Texas.

Mexico's first female president vows 'it's time for women'

The passing of the presidential sash every six years is always an important and symbolic occasion in Mexico.

But on Tuesday, when it was placed over the shoulder of Claudia Sheinbaum - the first woman to hold the highest office in the country - it was truly an historic watershed moment in more than 200 years of modern Mexican history.

It has been a long road which led the first female mayor of Mexico City to break the glass ceiling in Mexican politics again, this time at national level.

Big Plan Highlights

At the historic inauguration of Claudia Sheinbaum as Mexico’s first female president on October 1, 2024, Big Plan's CEO Fang Fang had the privilege of attending this significant moment in Mexico City. The event, which drew global attention, marked a major milestone for women in leadership. President Sheinbaum's inauguration speech was an inspiring call for gender equality and national progress, as she outlined her administration’s ambitious plans, including 100 policy initiatives focused on economic reforms, expanding social programs, and tackling pressing issues such as violence and infrastructure development.

News & Updates

International

China’s plan to get around Western tariffs: Fill the world with factories

China has entered a new phase of global expansionism. Its technology companies — linked to the green transition — have begun to sow seeds in countless territories. Every so often, an agreement is announced to lay the groundwork for a production plant that will churn out electric vehicless, batteries, electrolyzers for the production of green hydrogen, or solar panels. This is happening across the world, including in Spain, Brazil, Germany, Vietnam, Mexico, Turkey and Hungary.

EU states greenlight extra tariffs on EVs from China

EU countries gave a definitive green light on Friday to hefty additional tariffs on electric cars made in China, despite strong German opposition and fears it will trigger a trade war with Beijing.

The European Commission -- which provisionally approved the step in June after an inquiry found that Beijing's state aid to auto manufacturers was unfair -- now has free rein to impose steep tariffs for five years from end October.

Eurozone Inflation Comes Below Target for First Time in Three Years

Eurozone inflation fell below the European Central Bank’s target for the first time in more than three years, suggesting a lengthy struggle to bring price rises under control is nearing an end.

Consumer prices increased by 1.8% on year in September across the 20 nations that make up the eurozone, falling from a month earlier and marking the first time since June 2021 that annual inflation has stood below the ECB’s 2% target.

Global supply chain pressures easing, New York Fed index shows

The resolution of a U.S. port strike is likely to keep global supply chain pressures on a calm footing, allowing for a continued slowdown in inflation, an index tracked by the New York Federal Reserve showed on Friday. The regional Fed bank's global supply chain pressure index, which measures how readings deviate from historical averages, eased to a reading of 0.13 in September. That ended an upward trend which saw the index move from -0.96 in April to 0.2 in August.

USA

US adds a robust 254,000 jobs and unemployment dips to 4.1% in sign of still-sturdy labor market

America’s employers added a surprisingly strong 254,000 jobs in September, easing concerns about a weakening labor market and suggesting that the pace of hiring is still solid enough to support a growing economy.

Last month’s gain was far more than economists had expected, and it was up sharply from the 159,000 jobs that were added in August. And after rising for most of 2024, the unemployment rate dropped for a second straight month, from 4.2% in August to 4.1% in September, the Labor Department said Friday.

U.S. Pushes AI for Sustainable Chip Manufacturing to Regain Global Leadership

The U.S. Department of Commerce recently announced a Notice of Intent (NOI) to launch a competition to accelerate the development of sustainable semiconductor materials and processes using artificial intelligence (AI).

The initiative, part of the CHIPS for America program, comes with up to $100 million in funding for university-led, industry-informed collaborations focused on AI-powered autonomous experimentation (AI/AE). The goal is to develop innovative semiconductor materials and manufacturing processes that are both commercially competitive and environmentally sustainable.

OpenAI closes the largest VC round of all time

The startup announced it raised $6.6 billion in a funding round that values OpenAI at $157 billion post-money. Led by previous investor Thrive Capital, the new cash brings OpenAI’s total raised to $17.9 billion, according to Crunchbase. As part of the round, OpenAI also secured a massive credit line.

Texas

Texas will connect to the US grid for the first time via a fed grant

The US Department of Energy (DOE) announces $1.5B for four transmission projects – including connecting the Texas grid to the Southeast grids for the first time ever.

The projects, spanning multiple states, will add nearly 1,000 miles of new transmission lines and increase grid capacity by 7,100 megawatts (MW). They’ll boost grid reliability, lower energy costs, and support the clean energy transition.

Texas Stock Exchange moves closer to launch with leadership team, board

The Texas Stock Exchange announced a board of directors on Monday in its latest step toward building a national exchange to rival long-established platforms in New York and said it was gearing up to launch trading next year.

TXSE announced in June that it plans to register with the U.S. Securities and Exchange Commission with backing from BlackRock (BLK.N), and Citadel Securities. It said on Monday it had secured $135 million.

International homebuyers spent $618M in Central Texas last year

International homebuyers pumped $618 million into the Central Texas economy last year, and most of them hail from our neighbor just to the south: Mexico.

That’s according to the Austin Board of Realtors and Unlock MLS’ latest Central Texas International Homebuyers report, which found that Mexico surpassed India as the top country of origin for international buyers from April 2023 to March 2024, with 20% from Texas’ southern neighbor. India, Canada, China and Brazil rounded out the Top 5.

Houston chosen to host Texas' inaugural Michelin Guide ceremony

Michelin collaborated with marketing organization Houston First and Travel Texas, part of the Texas Economic Development and Tourism office, to choose Houston for the inaugural Michelin Guide Texas ceremony, according to a Sept. 30 news release.

Austin

Unionized restaurant and retail workers at Austin airport win $25 minimum wage

Some food service and retail workers at Austin-Bergstrom International Airport are getting a bump in minimum wage a few weeks after authorizing a potential strike.

Unite Here Local 23, a union representing the workers, announced Sept. 30 that it successfully negotiated the increase — from $20.80 an hour to $25 an hour — for ABIA workers employed by Delaware North Co., one of the airport's independent concessionaires that operates restaurants and other businesses at the facility.

Round Rock ISD’s RRock International Program Brings Global Education To Local Classrooms

Round Rock Independent School District is proud to showcase its RRock International Program, an innovative initiative that brings highly-qualified international teachers to local classrooms, enriching the educational experience for students and addressing critical teacher shortages. Studio 512 spoke with two international teachers, Cristian Camilo Arias Acevedo and Arga Almárcegui Bozal, alongside Lisa Marie Rosales, Assistant Director of Staffing and Recruitment, about the success of the program.

PepsiCo to buy Siete Foods

PepsiCo Inc. has entered a definitive agreement to acquire Austin-based Siete Foods for $1.2 billion.

The deal is expected to close in the first half of 2025, although the transaction is subject to customary closing conditions, including regulatory approval.

Austin-Bergstrom International Airport celebrates completion of steel installation on key expansion project

Austin-Bergstrom International Airport (AUS) celebrated a significant milestone in the Journey With AUS airport expansion program with the completion of structural steel installation for the West Infill project. This marks the first project of the Barbara Jordan Terminal improvements to reach this stage of construction and is one of several milestones achieved by the Journey With AUS program in recent weeks.

Opinion Editorial

A Recipe for a Striving America

I travel a lot. Just over the last several weeks, for example, I’ve been in some rural and redder parts of America (in Idaho, Kansas, Nebraska, Ohio, Texas) and some bluer parts (in California, Illinois, New York). My overall impression is that the social, economic and psychological chasms between these two zones are wider than ever.

Business owners and foreign governments are preparing for high tariffs and trade disruptions, depending on the outcome of the election.

Both former President Donald J. Trump and Vice President Kamala Harris have embraced tariffs, but their plans differ significantly. Ms. Harris’s campaign has said she would use tariffs in a “targeted” fashion — possibly mirroring the approach of President Biden, who recently imposed tariffs on Chinese electric vehicles, silicon chips and solar panels. Like Mr. Biden, she has emphasized working closely with allies.

Mr. Trump, in contrast, has said his approach to trade would be even more aggressive than the trade wars of his first term, when he imposed stiff tariffs on allies and rivals to obtain concessions and try to bolster American manufacturing. He has proposed a 60 percent tariff on products from China and a tariff of more than 10 percent on other goods from around the world.

Events

Community Solutions: Continuing Houston’s Clean Energy Transition (Oct 9th at 9am to 10 am)

State of the City (Oct 15th at 8am to 10 am)

Tagged airlines, asia, austin, austintx, battery, china, cleantech, economicdevelopment, entrepreneurship, minorityownedbusiness, news, smallbusiness, solar, southkorea, supplychain, tariff, technews, texas, tx, usa