OpenAI, Microsoft back new academy to bring AI into classrooms
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
MANUFACTURING
Advertisement
Boeing delivers most jets in 18 months with boost from Beijing
Advertisement
Boeing Co. 737 Max airplanes outside the company's manufacturing facility in Renton, Wash.
David Ryder/Bloomberg
Boeing Co. said it delivered 60 aircraft in June, its best showing in 18 months that reflects improvements in its factories and the resumption of US jet exports to China. The US planemaker handed over 42 of its 737 Max models last month, the most since a near-catastrophe plunged it into crisis in early 2024. Eight of Boeing's deliveries went to China after President Trump and Chinese leader Xi Jinping backed away from a showdown over tariffs. In all, Boeing delivered 150 aircraft in the second quarter, and 280 commercial planes during the first six months of the year, according to a statement. The manufacturer said it recorded 668 gross jet orders during the first half against 43 cancellations and conversions. The US manufacturer has begun to make progress in returning its factories to a steadier tempo. It's also cushioned by a surplus of inventory as a consequence of a strike in late 2024 and its decision earlier in the year to slow production to address quality shortfalls after a door-shaped panel blew out of an airborne 737 Max. However, Boeing is again in the spotlight after a 787 Dreamliner operated by Air India crashed seconds after take-off last month, days before the Paris Air Show. — BLOOMBERG NEWS
CLIMATE
Texas disaster adds to US flood costs that exceed $200 billion
A child helps volunteers organize donations for victims of flash flooding in Texas inside the gym at Center Point Elementary in Center Point, Texas, on July 7.
Ashley Landis/Associated Press
The deluge in Texas last week ranks as one of the deadliest and costliest flash floods in US history, highlighting the mounting threat to communities that aren't prepared for extreme rainfall. It's too early to know the exact toll of the flooding in Texas, which killed more than 100 people. But a preliminary estimate from AccuWeather Inc. puts the total damage and economic loss at $18 billion to $22 billion, a figure that includes direct and indirect impacts as well as long-term effects on businesses like tourism. 'Flood risks are escalating under climate change,' said Megan Mullin, a professor of public policy at the University of California, Los Angeles. 'We're getting wetter storms, and they're becoming really concentrated in time in many places, and our infrastructure isn't set up to protect people from those kinds of storms.' From 1980 through last year, flooding killed hundreds of people nationwide and inflicted at least $203.3 billion in losses, according National Centers for Environmental Information data adjusted for inflation. That's about $50 billion more than the toll of wildfires over the same period. The United States stopped collecting this data, which captures only direct losses from disasters that cost $1 billion or more, after President Trump took office for his second term. — BLOOMBERG NEWS
Advertisement
LABOR
Trash and tension mount in Philadelphia on Day 8 of workers strike, while some seek pop-up haulers
Trash piles up at a garbage collection site on July 3 in Philadelphia.
Matt Slocum/Associated Press
As trash and tempers heat up across Philadelphia on Day 8 of a strike by blue-collar city workers Tuesday, some residents and small business owners are hiring pop-up hauling services to clear their blocks of garbage, even as they broadly support the union's quest for higher pay. Mayor Cherelle Parker, a Democrat, is standing firm in her offer of raises of about 3 percent per year over a three-year contract, which comes on top of a 5 percent raise she gave as an olive branch to all four major city unions after taking office last year. The strike by District Council 33 of the American Federation of State, County and Municipal Employees involves nearly 10,000 workers, although judges have sided with the city in ordering some critical employees back to work at the city's 911 centers, water department, and airport. Judges have also decreed a temporary halt on evictions. The two sides have met only intermittently since the strike began, but there was hope they would return to the bargaining table on Tuesday. — ASSOCIATED PRESS
Advertisement
RETAIL
Michaels pulls line of coffee products made by former CEO's romantic partner
A Michael's craft store in Albany, N.Y., on March 24, 2020.
GABBY JONES/NYT
Michaels Cos. is trying to rid its shelves of a line of coffee products launched by a romantic partner of its former CEO as the arts and crafts retailer tries to move past a corporate ethics scandal that ensnared multiple chains over more than a decade. Incredibrew, a company founded by Chandra Holt that sells coffee pods infused with vitamins and supplements like collagen and melatonin, appears to have been pulled from Michaels' website. Now it's being discontinued at some stores, and heavily discounted at at least one location in order to move the products off the shelves faster, according to people familiar with the products who were not authorized to speak publicly on the matter. Holt had a personal relationship with Ashley Buchanan, who was once the CEO of Michaels. Buchanan was terminated from the top job at Kohl's Corp. earlier this year only months into his tenure after the board determined he had directed millions of dollars of business toward Holt and had not disclosed his personal relationship with her. — BLOOMBERG NEWS
FEDERAL RESERVE
Trump says Powell should 'resign immediately' if he misled Congress
Fed Chair Jerome Powell.
Al Drago/Photographer: Al Drago/Bloomberg
President Trump said Jerome Powell should 'resign immediately' if allegations from an administration official that the Federal Reserve chair misled lawmakers prove true, while deepening his personal attacks against the head of the central bank over interest rate policy. Trump, speaking in a Cabinet meeting Tuesday, called Powell 'terrible,' and told reporters that if allegations he deceived Congress over renovations to the Federal Reserve's headquarters proved true, it would be grounds for a swift exit. 'Then he should resign immediately,' Trump said. 'We should get somebody in there that's going to lower interest rates.' In a subsequent social media post, Trump accused the Fed chair of 'whining like a baby about non-existent Inflation for months, and refusing to do the right thing.' 'CUT INTEREST RATES JEROME — NOW IS THE TIME!' Trump wrote. A Fed spokesperson declined to comment after Trump's Cabinet meeting remarks. Trump has repeatedly assailed Powell over the bank's decisions to hold rates steady this year, saying last month that he would choose a successor who will cut borrowing costs. Powell's term as chair expires in May 2026. Some media reports have asserted the Fed's renovation of its headquarters has seen swelling costs and includes several extravagant features. Fed budget documents for 2023 attributed rising renovation costs to 'significant increases in raw materials costs which far exceed standard cost escalations, higher labor costs and changes in construction schedule expectations.' While acknowledging cost overruns before lawmakers, Powell disputed portions of the media reports about the project, calling them 'flatly misleading.' — BLOOMBERG NEWS
Advertisement
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
3 minutes ago
- USA Today
Trump's latest legal victory
Hi! Rebecca Morin here. Breaking: President Donald Trump said he plans to join law enforcement on the streets of Washington D.C. on Thursday night amid his federal takeover of the city. Trump's civil fraud court loss thrown out President Donald Trump just got another personal legal victory. The $454 million penalty imposed against Trump in his New York civil fraud case has been thrown out by an appeals court. In a Thursday ruling, the five-judge Manhattan-based appeals court determined the penalty was improper. Some members of the panel said that the penalty violated the U.S. Constitution's prohibition on excessive fines. Others said Trump should get a new trial due to errors in the trial judge's determinations. Why was Trump facing a penalty? Trump and some of his entities were hit with that hefty penalty, plus interest, in February 2024, after New York trial Judge Arthur Engoron concluded that Trump had inflated the value of his assets for years to get better loan and insurance terms. Engoron also imposed about $10 million in separate penalties against Trump's eldest sons, Eric and Don Jr., and former Trump Organization executive Allen Weisselberg. Why Trump claimed 'TOTAL VICTORY' after the appeals court decision. A look at Trump's holdings: Trump has bought more than $100 million in company, state and municipal bonds since taking office in January, according to government disclosures about the billionaire's holdings posted online Tuesday. Trump and his family have no involvement in directing or influencing what to buy or sell, which are decisions made by a third-party investment manager, according to a White House source familiar with the report. The Office of Government Ethics certified the report in compliance with legal requirements, the source said. See which bonds the president bought. A politics pit stop A new Texas voting map It could be as early as Thursday when Texas Republicans fully pass a new state congressional map intended to flip five Democratic-held U.S. House seats up for grabs in the 2026 elections. Republican legislators in the state House passed the map in an 88-52 vote on Wednesday. Earlier this month, dozens of Democratic lawmakers ended a two-week walkout, temporarily delaying the bill's passage. The map will now go to the Senate, where it is set to pass, and then head to Republican Gov. Greg Abbott's desk. Texas undertook a rare mid-decade redistricting to help Trump improve their party's odds of holding a narrow U.S. House majority amid political turmoil. How the new map will set off a 'redistricting arms race.' A pause on White House tours If you were coming to Washington in the fall and hoping to get a tour of the White House, you're out of luck. The White House has suspended popular public tours of the historic building starting Sept. 1 during Trump's planned construction of a new ballroom. The White House hasn't announced how long the hiatus in tours will last. But lawmakers who arrange tours for their constituents – subject to White House approval – are warning that none are expected for the indefinite future. What to know about Trump's ballroom project. Got a burning question, or comment, for On Politics? You can submit them here or send me an email at rdmorin@
The Hill
3 minutes ago
- The Hill
The ‘big beautiful bill's' smart tax reform will grow wealth in every zip code
Democrats joined together to vote 'no' on the One Big Beautiful Bill Act, with one senator calling it 'bad for our country' and 'bad for our families.' But is that an accurate critique? While the legislative package signed into law by President Trump on July 4 traces its lineage to the Tax Cuts and Jobs Act, this updated version goes well beyond tax reduction — it's about expanding opportunity. From child savings accounts to stronger investment in Opportunity Zones and education choice, the new law gives American families the tools to rise — and to build. At its core, the 'big, beautiful bill' expands economic opportunity in every zip code. One of the law's most immediate benefits is the massive tax relief it delivers to working- and middle-class households. For example, a married family of four earning $100,000 is expected to see its tax bill shrink by close to $3,000 annually. That's not just down to lower tax rates, but to the doubling of the standard deduction. Moreover, a single restaurant server will realize up to $1,300 in tax relief with the act's No Tax on Tips provision. Additionally, a veteran working an overtime job, like 4.8 million other veterans, will receive $1,400 in tax savings. These savings aren't just pennies to the dollar. This is money for child care, car repairs, rent or groceries — real expenses that a family relies on to survive. Small businesses stand to benefit from these tax breaks too, giving entrepreneurs the breathing room needed to hire at a decent wage, expand and reinvest in their businesses. What sets this law apart is how it pairs near-term relief with long-term wealth building. The new child savings account provision is a prime example. Every American newborn will receive an account with $1,000 from Uncle Sam that grows tax-free over time, generating the kind of seed capital that could one day fund higher education, a first home, or a small business. It's a simple but transformative tool. Whether a child is born in Seattle or South Bend, this provision offers a path to generational wealth that doesn't depend on zip code, income level or political affiliation. It provides every American access to a head start in life. Just as access to financial opportunity is essential for every child, so too is the freedom to pursue a quality education. Through Opportunity Scholarships, the legislation empowers parents to choose the learning environment that best fits their child's needs. Families will receive financial support to send their children to private, charter, or faith-based schools — a powerful lifeline for families in communities where public education has failed their children. That kind of flexibility shouldn't be a luxury. With this bill, it will become a national standard. The new law also extends and expands the Opportunity Zones program. Originally established under the Tax Cuts and Jobs Act, Opportunity Zones channel private capital into historically overlooked communities through smart tax incentives. Under the new provisions, Opportunity Zones will prioritize rural communities and include enhanced transparency measures to ensure investments translate into real impact. According to the White House Council of Economic Advisers, the program's expansion is projected to drive more than $100 billion in private investment into underserved regions across the country. Taken alone, these provisions support American workers, parents, and entrepreneurs. Put together, the new law forms a unified strategy for upward economic mobility — one that aligns tax relief, education reform, savings, and local investment into a coherent framework for growth. The One Big Beautiful Bill Act lowers costs for families today while investing in the next generation's ability to grow, save, and thrive. That's a law that creates real opportunity for every American.
Forbes
5 minutes ago
- Forbes
China Softens Stance: What A Yuan-Backed Stablecoin Could Mean
For years, Beijing's position on digital assets seemed resolute: cryptocurrencies were a threat to financial stability, a distraction from carefully managed capital controls, and a vehicle for speculation and fraud. When China banned crypto mining and trading in 2021, it looked like the end of any serious domestic experiment with blockchain-based money. Yet in a striking reversal, Chinese policymakers are now quietly preparing to consider yuan-backed stablecoins as a tool to strengthen the renminbi's role in the global economy. What was once prohibited may soon be actively promoted, but under strict guardrails. Reports indicate that the State Council is reviewing a roadmap for stablecoins pegged to the yuan, with Hong Kong and Shanghai tipped as pilot zones for rollout. Senior leadership is expected to convene in the coming weeks to clarify who will issue them, what regulations will govern their use, and how risks like capital outflows or illicit finance will be contained. For an economy still deeply cautious about capital flight, the idea of authorizing even state-linked stablecoins marks a profound recalibration. The shift reflects a convergence of pressures: the growing dominance of dollar-pegged stablecoins in cross-border trade, lobbying from Chinese tech giants eager to issue offshore digital yuan tokens, and the realization that without innovation, China risks ceding digital finance leadership to the U.S. and its allies. In other words, stablecoins are no longer just a speculative fringe product. they have become a geopolitical tool. From Prohibition to Pragmatism China's 2021 ban was sweeping. The government targeted everything from Bitcoin mining operations in Inner Mongolia to offshore exchanges serving domestic investors. The rationale was straightforward: crypto was volatile, energy-hungry, and capable of undermining state authority over money. But the world has changed in four short years. Stablecoins have moved from crypto curiosity to mainstream financial infrastructure, powering billions of dollars in daily settlement and serving as working capital for exporters in markets with scarce access to dollars. For Chinese merchants, the rise of dollar-linked stablecoins has been particularly compelling. Exporters paid in USDT or USDC can bypass some banking friction and settle faster with overseas buyers. That reality has alarmed Beijing, which fears an even greater US dollar entrenchment in global digital commerce. The answer for policymakers may be to create tightly regulated yuan-backed stablecoins as a counterweight. The logic is compelling. A digital asset denominated in renminbi could be efficient instrument for Belt and Road transactions, for trade with African and Southeast Asian partners, and for Chinese technology platforms that increasingly straddle global markets. It would also work with the existing e-CNY. The Role of Hong Kong and Shanghai The geography of China's stablecoin experiment is telling. Hong Kong has already implemented a Stablecoin Ordinance, requiring issuers to be licensed and subjecting them to strict oversight of reserves and redemption rights. The city has positioned itself as the experimental laboratory for digital finance within a 'one country, two systems' framework, where more liberal regulatory sandboxes are possible. Shanghai, meanwhile, is being readied as the mainland's operations hub. The city has always had ambitions to be a global financial center on par with New York and London, and an internationalized stablecoin market would fit neatly into that vision. By situating stablecoin pilots in these two hubs, China can cautiously test global use cases while keeping its capital account firewall intact. Global Currency Ambitions The strategic aim here is clear: to internationalize the yuan in digital form. Today, the renminbi accounts for just under 3% of global payments; the U.S. dollar constitutes just under half. A yuan-backed stablecoin could create a parallel channel for cross-border settlement, one that bypasses SWIFT and U.S. correspondent banks. If successful, the impact could be big. For decades, U.S. dollar dominance has rested on economic strength and the infrastructure of payments and settlement. Stablecoins erode some of that infrastructure advantage. For China, introducing a yuan stablecoin would provide a credible alternative currency in strategic corridors, particularly in Asia, Africa, and parts of Latin America, where Chinese trade and investment already loom large. The Belt and Road Initiative is the obvious proving ground, as many of the primarily infrastructure-related projects funded by Chinese banks already involve yuan lending and repayment. A stablecoin denominated in renminbi would streamline these flows, reduce reliance on third-party currencies, and perhaps even lock partners more firmly into the Chinese financial orbit. Balancing Innovation and Control Still, Beijing's caution is visible. Policymakers remain deeply concerned about capital flight and money laundering. One reason the e-CNY was built as a centralized, state-controlled system was to ensure full traceability. Some stablecoins, even if issued by licensed banks or tech platforms, would inevitably operate on distributed systems. That raises questions about how to allow programmability and flexibility without undermining the PBOC's grip on the capital account. Reports suggest that only a handful of state-linked institutions, possibly the major state banks, will be initially authorized to issue yuan stablecoins. Redemption may be tightly geofenced, limited initially to B2B trade settlement rather than retail use. The PBOC is expected to impose real-time reporting obligations, reserve requirements, and redemption caps to prevent destabilizing flows. That balance will define the success of the project. Too much control, and the stablecoins will be clunky, unattractive, and irrelevant. Too little, and they risk fueling exactly the kind of capital flight Beijing fears. Implications for Fintech and Global Markets For fintech firms, the opening of yuan-backed stablecoin markets could be transformative. Custody providers, compliance technology firms, and payment processors will all find new opportunities to support the infrastructure of issuance and redemption. Chinese tech giants such as and Ant Group, which have reportedly lobbied for offshore stablecoins, may be essential levers in building consumer and merchant-facing applications. For emerging markets, the implications could be even larger. Platforms in Africa or Southeast Asia could integrate yuan stablecoins as settlement tools, reducing dependence on dollars and smoothing trade with Chinese suppliers. In places where dollar liquidity is limited, having a yuan alternative could reshape regional FX dynamics. Global investors, too, will be watching closely. If yuan-backed stablecoins gain traction, they could enable new asset classes and ETFs tied to Chinese digital currency infrastructure. They may also challenge the valuation of dollar-linked stablecoins, forcing issuers like Circle and Tether to rethink their positioning in Asian markets. Risks on the Horizon Of course, risks abound. International backlash is possible. Washington may view yuan stablecoins as a direct attempt to erode dollar hegemony, potentially prompting sanctions or controls on their use in U.S.-linked systems. Capital flight remains another concern: even carefully geofenced systems can be gamed, and sophisticated users could find ways to move yuan offshore without authorization. Domestically, the coexistence of e-CNY and stablecoins may create confusion or competition. The government has been pushing adoption of the e-CNY for years, but uptake has been uneven. If consumers or businesses perceive stablecoins as more practical, the state may face the awkward task of promoting one digital form of the yuan while restraining another. Finally, there is a risk of over-engineering. If regulatory requirements make yuan stablecoins cumbersome in the form of slow settlement, strict redemption limits, limited interoperability, then their adoption will likely be limited and the experiment will fizzle. A Quiet Paradigm Shift Even with these risks, China's willingness to consider yuan-backed stablecoins signals something important: a recognition that the future of money is digital, borderless, and programmable. While Beijing once hoped that the e-CNY alone would suffice, it now appears to understand that competing in the global arena will require a new, more flexible approach. Stablecoins are not about to dethrone the dollar overnight. But they could chip away at its dominance at the edges, especially in regions where China has strategic influence. For fintechs, they open new commercial opportunities. For policymakers, they introduce new regulatory challenges. And for the global financial system, they signal a future where digital money is not an experiment but a battleground of economic strategy. In that sense, the yuan-backed stablecoin debate is about more than technology. It is about whether China can use digital finance to accelerate its long-running project of currency internationalization. The coming months, as pilots are announced and regulations clarified, will show whether this is a cautious trial balloon or the start of a genuine re-engineering of the global monetary system.
