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A new California law could raise the minimum wage for some workers to $22 an hour. Europe is heading toward recession, the Commerce Department releases plan for $50B computer chip subsidy, oil prices rise, and more financial news
California Governor Gavin Newsom signed a bill into law on Tuesday that creates a “Fast Food Council” to determine standards for pay, hours, and working conditions for fast food workers in the state. The law only goes into effect for fast food chains that operate at least 100 locations nationally, CBS reported.
It’s estimated that under the legislation, the Council could raise the minimum wage for fast food workers as high as $22 an hour, which is well above the $15 per hour the state currently requires for employers who have more than 26 workers.
Following OPEC+ members agreeing to a small production cut of 100,000 barrels per day to bolster its prices, the price of oil rose roughly 3% on Monday.
Brent crude futures for November delivery bumped up $2.72 higher at $95.74 a barrel, a 2.92% gain, US News reported. US crude also rose by 2.3% for a bump of $2 to $88.85 per barrel.
Economists and analysts say that Europe is almost certainly entering a recession, as surveys taken on Monday showed that a crisis in the cost of living is deepening, leaving consumers hesitant to spend.
Inflation in Europe is running over four times its target of 2%; as it reached a record of 9.1% in August, US News reported. The euro also dropped below 99 cents (USD) for the first time in 20 years on Monday, driven largely by Russia shutting down its main pipeline that supplies gas to Europe, announcing it will stay closed indefinitely.
The Porsche brand will go public, as Volkswagen officially confirmed it will make the initial public offering in late September or early October, “subject to further capital market developments,” CNN reported. Reportedly, up to 12.5 percent of Porsche will be offered to investors in the form of preference shares. Nearly half of the proceeds from the IPO will be distributed to Volkswagen shareholders in the form of a special dividend, the company said.
The US Department of Commerce released a plan for implementing a $52.7 billion program approved by Congress for subsidizing domestic chip manufacturing, as well as expanding research, Newsmax reported. Congress also approved a 25% investment tax credit, which is estimated to be worth $24 billion, for building new facilities and chip manufacturing plants to expand US production.
The move is part of the CHIPS (Creating Helpful Incentives to Produce Semiconductors) for America Fund, which is geared toward boosting efforts to make the United States more competitive against China’s science and technology efforts. The Commerce Department is hoping to begin seeking applications by February, Reuters reported.
