The daily business briefing: July 10, 2023

1. Yellen hails 'step forward' in tense China ties at end of Beijing trip

Treasury Secretary Janet Yellen concluded a high-stakes visit to Beijing on Sunday that had included 10 hours of talks with top Chinese economic officials. Her first real interactions with Chinese President Xi Jinping's newly installed economic team were "direct, substantive and productive," Yellen said in a press conference Sunday, and her trip marked a "step forward" in the Biden administration's efforts to stabilize rocky relations between the world's top two economies, though "significant disagreements" remain. Yellen told Chinese officials the U.S. has no interest in decoupling from China's economy, and could be flexible on export restrictions of advanced microchips and other technology. Her warm reception contrasted with the chillier tone of Secretary of State Antony Blinken's recent trip to Beijing.

The Wall Street Journal The Washington Post

2. India will overtake U.S. economy by 2075, Goldman projects

India, the world's fifth-largest economy by gross domestic product (GDP), will jump to the No. 2 position in the next 50 years, Goldman Sachs economists predict. Thanks largely to its progress in technology and innovation, investments in infrastructure, and a large pool of young workers, India will leapfrog Germany, Japan and the U.S. by 2075, coming in second only to China, according to a report by Goldman Sachs Research's India economist Santanu Sengupta. According to Goldman's projections, China will have a GDP of $57 trillion in 50 years versus India's $52.5 trillion and the U.S.'s $51.5 trillion.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

CNBC

3. Schumer calls on FDA to investigate caffeine levels in influencer-backed energy drink

Senate Majority Leader Chuck Schumer (D-N.Y.) is asking the Food and Drug Administration to launch an investigation into PRIME, an energy drink with elevated levels of caffeine. "One of the summer's hottest status symbols for kids is not an outfit or a toy — it's a beverage," Schumer said Sunday. "But buyer and parents beware, it's a serious health concern for the kids it so feverishly targets." PRIME launched in 2022, and is backed by YouTubers Logan Paul and KSI. The sugar-free beverage has 200 milligrams of caffeine per 12 ounces, the equivalent of roughly six cans of Coke. Too much caffeine can lead to heart problems, anxiety, and digestive issues, and the drink has been banned from schools in the United Kingdom and Australia. PRIME representatives said they offer another drink called PRIME Hydration, which is caffeine-free, and PRIME itself is labeled as "not recommended for children under 18."

The Associated Press

4. Stock futures edge down ahead of inflation data

Stock futures were down slightly Monday morning as the second-quarter earnings season kicked off. Futures for the Dow Jones Industrial Average were down 0.1%, while those for the S&P 500 dropped 0.3%. Nasdaq futures were down 0.4%. The market is bracing for inflation data expected Wednesday, which could help inform the Federal Reserve's next move on interest rate hikes. Last week's jobs report "showed that hiring is beginning to ease," said Barron's, but wage growth remains high, and that "reaffirmed expectations that the Fed will hike rates next week." Quarterly earnings reports from "finance behemoths" including JPMorgan Chase and Citi are also expected this week.

CNBC Barron's

5. Powerball jackpot rises to an estimated $650 million

With no winners on Saturday, the Powerball jackpot for Monday's drawing is up to an estimated $650 million. The jackpot was last hit in April, and Monday's top prize is the ninth largest in Powerball history. The odds of winning Monday's jackpot are 1 in 292,201,338, Powerball said, and if there is a winner, they will be able to select an annuitized prize or a lump sum payment estimated at $328.3 million. The largest-ever Powerball jackpot was hit in November 2022, when a California resident won $2.04 billion. Powerball drawings are held on Mondays, Wednesdays, and Saturdays, with tickets available in 45 states as well as Washington, D.C., Puerto Rico, and the U.S. Virgin Islands.

CBS News