Business Briefs - July 2, 2025
Mexican banks face cascading consequences following US sanctions
Mexico City (AP) — Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels. All three companies have fiercely rejected those claims. It comes after the U.S. Treasury Department announced that it was blocking transactions between American banks and Mexican branches of the banks CIBanco and Intercam Banco as well as the brokering firm Vector Casa de Bolsa. Mexican President Claudia Sheinbaum said Tuesday that the Mexican government is doing everything within it's power to ensure that creditors aren't affected.
Senate strikes AI regulatory ban from GOP bill after uproar from the states
WASHINGTON (AP) — A proposal to deter states from regulating artificial intelligence for a decade was soundly defeated in the U.S. Senate on Tuesday, thwarting attempts to insert the measure into President Donald Trump's big bill of tax breaks and spending cuts. The Senate voted 99-1 to strike the AI provision after weeks of criticism from both Republican and Democratic governors and state officials. Originally proposed as a 10-year ban on states doing anything to regulate AI, lawmakers later tied it to federal funding so that only states that backed off on AI regulations would be able to get subsidies for broadband internet or AI infrastructure.
As Trump ramps up attacks on the Federal Reserve, Chair Powell refuses to change course
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell is sticking to his position that the central bank will keep its key rate on hold while it waits to see how President Donald Trump's tariffs effect the economy, defying the steady stream of criticism from the White House, which wants lower borrowing costs. Powell repeated his view Tuesday that U.S. inflation is likely to pick up later this summer, though he acknowledged that the timing and magnitude of any price increase from the duties is uncertain. But he said the Fed will stay on hold while it evaluates how the economy evolves.
US job openings in May hit 7.8 million in a continuing display of labor market resilience
WASHINGTON (AP) — U.S. job openings unexpectedly rose in May, showing resilience in the labor market despite high borrowing costs and rising economic uncertainty. The Labor Department reported Tuesday that employers posted 7.8 million vacancies, up from 7.4 million in April. Economists had predicted a decline to 7.3 million. Openings increased in sectors like hospitality and finance but fell in federal government roles as the Trump administration slashes spending. The report also showed more Americans quitting jobs, fewer layoffs, but a drop in hiring. Job openings remain historically high but have declined since their peak in March 2022. Higher interest rates and trade policies continue to cool the labor market.
Senate GOP tax bill could crush wind and solar power, advocates say
WASHINGTON (AP) — A Republican plan heading to a vote in the Senate would quickly end incentives for clean energy and impose new taxes on some wind and solar projects, while boosting production of coal used to make steel. Democrats said the plan, part of President Donald Trump's big tax cut bill, is "a death sentence" for American wind and solar industries and said it could jeopardize hundreds of renewable energy projects, raising electricity prices for American consumers. Republicans said the bill represents historic savings for taxpayers and supports production of traditional energy sources such as oil, natural gas and coal, increasing reliability.
Lululemon files lawsuit against Costco, claims company is selling 'dupes' of some of its products
Lululemon has filed a lawsuit against Costco that accuses the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure clothing. Lululemon Athletica claims in its lawsuit filed in the U.S. District Court for the Central District of California that Costco has "unlawfully traded" on its reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel that uses knockoff, infringing versions of its patents.