USA OUTLOOK JANUARY 29 TO FEBRUARY 02, 2024

USA OUTLOOK WEEKLY NEWSLETTER JANUARY 29 TO FEBRUARY 02 0000000022 19 10001111NOVEMBER 00

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JANUARY 29, 2024

JANUARY 30, 2024

US Chamber sues to block FCC digital discrimination rule

The U.S. Chamber of Commerce and two Texas business groups sued the Federal Communications Commission on Tuesday seeking to overturn the Biden administration's new digital discrimination rule.

Photo REUTERS/Srdjan Zivulovic/File Photo Acquire Licensing Rights

Pharma price cut proposals from US government could be steep, analysts say Pharmaceutical companies are due to receive by Thursday the U.S. government's opening proposal for what are expected to be significant discounts on 10 of its high-cost medicines, an important step in the Medicare health program's first ever price negotiations.

The FCC in November adopted final rules to prevent digital discrimination in access to broadband services under a directive from Congress. Under the new rules, the FCC can investigate broadband access discrimination complaints and issue penalties to companies violating the rules.

The FCC said the rules are aimed at preventing "digital discrimination of access to broadband services based on income level, race, ethnicity, color, religion, or national origin."

Five Wall Street analysts and two investors told Reuters they expect the negotiations over prices that will go into effect in 2026 to result in cuts ranging from the statutory minimum of 25% to as much as 60% when the final numbers are set in September.

The drugmakers and the government are expected to wait until then to disclose them.

President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows Medicare, which covers 66 million Americans mostly aged 65 and older, to negotiate prices for some of its most costly drugs.

Souce: https://www.reuters.com/business/healthcare-pharmaceuticals/pharma-industryget-us-government-price-cut-proposals-by-thursday-2024-01-29/

Souce: https://www.reuters.com/legal/us-chamber-sues-block-biden-administrationdigital-discrimination-rule-2024-01-30/

JANUARY 31, 2024

FEBRUARY 01, 2024

Strong US worker productivity keeps labor costs in check in fourth quarter

U.S. worker productivity grew faster than expected in the fourth quarter, keeping unit labor costs contained and giving the Federal Reserve another boost in the fight against inflation.

Photo: REUTERS/Tingshu Wang/File Photo Acquire Licensing Rights

California cannot require background checks to buy ammunition, judge rules

Labor market momentum is also fading, though gradually, which could further help to curb wage inflation.

First-time applications for unemployment benefits rose to a two-month high last week, other data from the Labor Department showed on Thursday. The number of people on unemployment rolls was also the highest in two months.

The reports followed news on Wednesday that compensation costs rose in the fourth quarter at the slowest pace since 2021.

California cannot enforce a law requiring people to undergo background checks to buy ammunition, because it violates the constitutional right to bear arms, a federal judge has ruled.

In a decision made public on Wednesday, U.S. District Judge Roger Benitez in San Diego said the background checks have "no historical pedigree," and violate the Second Amendment by treating all citizens as having no right to buy ammunition.

"A sweeping background check requirement imposed every time a citizen needs to buy ammunition is an outlier that our ancestors would have never accepted for a citizen," wrote Benitez, an appointee of Republican President George W. Bush.

Photo: REUTERS/Christine Kiernan/File Photo Acquire Licensing Rights Souce: https://www.reuters.com/legal/government/judge-blocks-california-requiringbackground-checks-buy-ammunition-2024-01-31/

Souce: https://www.reuters.com/markets/us/us-worker-productivity-strong-fourthquarter-weekly-jobless-claims-rise-2024-02-01/

FEBRUARY 02, 2024

Photo: REUTERS/Carlin Stiehl Acquire Licensing Rights

Pacific storm douses California, flooding roads, in first of one-two punch

The first in a one-two punch of atmospheric river storms soaked Southern California with drenching rains on Thursday, triggering scattered flooding and rush-hour road closures in a precursor to a larger, wetter blast expected to sweep ashore over the weekend.

The city of Long Beach, just south of Los Angeles, was one of the hardest-hit areas, with rainwater flooding a stretch of freeway and adjacent streets beneath a railroad bridge, leaving several vehicles submerged up to their roofs.

At least one motorist, Franklin Capitulo, 54, a hotel employee who was driving home from work, had to be rescued after his car stalled in the middle of an inundated roadway, leaving him trapped in his vehicle as water steadily rose around him.

"I ran into this water, but I didn't expect it was that deep already," said Capitulo, recounting that he grew panicky and called his brother for help, and was ultimately pulled through a window by firefighters who arrived at the scene.

Souce: https://www.reuters.com/business/environment/pacific-storms-douse-californiaflooding-roads-first-one-two-punch-2024-02-01/