3. Bumpy ride ahead for Detroit
The United Auto Workers voted for a dramatic change in leadership. The union, which represents hundreds of thousands of laborers in the North American auto industry, narrowly elected reform candidate Shawn Fain as its president. Fain has vowed to take a harder line in negotiations later this year with Detroit automakers, which are all in the costly process of making the transition to electric vehicles, to varying degrees. Fain wants stronger benefits for members, as well as better job security and a return of cost-of-living adjustments to compensation. The leadership change also comes after a yearslong federal corruption investigation that saw more than a dozen UAW officials, including two past presidents, convicted of crimes such as bribery and embezzlement.
4. Food stamp cliff
Millions of Americans in most states are losing a big chunk of their food budget this month as pandemic-era emergency funding for Supplemental Nutrition Assistance Program, or SNAP, benefits run out. For many families, they will be left without at least $95 a month to pay for food. The change comes at a particularly precarious time for low-income Americans, as commodity inflation and corporate price increases make it even more expensive to put food on the table. The Fed, meanwhile, has been raising interest rates to fight inflation and cool the economy. In turn, retailers are going to feel the pinch, too, since shoppers have largely shifted their spending toward necessities like groceries and away from discretionary items like electronics.
5. Crisis in Israel
Israel erupted into widespread civil unrest after Prime Minister Benjamin Netanyahu fired Defense Minister Yoav Gallant, who urged the government to pause its controversial judicial reforms. Hundreds of thousands of Israelis took to the streets in recent days, a culmination of months of protests against reforms pushed by Netanyahu's right wing government, which has a narrow majority. Opponents say Netanyahu's judicial plan will push the country toward autocracy and weaken a key check on political power. Israel's largest union called for a general strike; work shut down at the Haifa port and Tel Aviv's Ben Gurion Airport. Netanyahu, however, survived a no confidence vote in the Knesset, the country's parliament.
— CNBC's Mike Calia wrote this newsletter. Alex Harring, Hugh Son, Michael Wayland, Melissa Repko, Natasha Turak and Ruxandra Iordache contributed.
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