Member Briefing January 2, 2024
Top Story
Ahead of Dec. 31 Deadline, Hochul Vetoes Non-Compete, Consent to Jurisdiction Bills
New York Governor Kathy Hochul vetoed Senate Bill S3100A, a bill passed by both houses of the legislature in June, that would prohibit all non-compete agreements. As drafted, the New York bill had many problems. It created a total ban on all non-compete agreements, regardless of the context or the level of employees signing them. The ban applied equally to CEO’s as well as the lowest level employees in the organization. It did not include a salary minimum or other compensation threshold above which non-compete agreements could be used. Likewise, there was no carve-out for agreements or clauses calling for forfeiture of incentive compensation of any type if the employee left to go to a competitor.
The Governor also vetoed a bill that would have required every corporation registered in New York to consent to be sued in the state’s courts. This would have meant that trial attorneys could sue out-of-state corporations in New York based on conduct that took place anywhere in the world simply because the company did business in the state. Most of the country’s largest corporations are registered to do business in New York even if they are headquartered elsewhere. The bill’s intent was to enable trial lawyers to sue businesses in New York’s tort-friendly courts, which would have increased the pressure to pay up to settle meritless suits.
Read more at Jackson Lewis and Crains New York
Global Headlines
Gaza
- Israel and Hamas: The Latest News – The Guardian
- Israel Pulls Some Troops from Gaza to Manage Forces – Financial Times
- UN Appoints Veteran Dutch Diplomat to Coordinate Humanitarian Aid for Gaza – The Hill
- What is Egypt's Peace Proposal for Gaza? – Reuters
- South Africa Accuses Israel Of Genocide In UN Filing - Forbes
- Israel Says War in Gaza Expected to Continue Throughout 2024 - BBC
- Israel Seeks Full Control of Gaza-Egypt Border, Netanyahu Says - Yahoo
- NY Times Investigation: Hamas Weaponized Sexual Violence on Oct 7 - NYT
- Israeli Forces Reveal Footage of K9 Unit Clearing Houses in Gaza, Uncovering Hamas Weapons – Fox
- Israel Expands Operations in Southern Gaza Amid Worsening Humanitarian Crisis - WSJ
- Interactive Map- Israel’s Operation in Gaza – Institute for the Study of War
- Map – Tracking Hamas’ Attack on Israel – Live Universal Awareness Map
Ukraine
- Ukraine and Russia: The Latest News – The Guardian
- Ukraine Downs Almost All 90 Drones in Russian New-Year Eve Raid – Bloomberg
- Russia Uses POWs as a Political Weapon Against Kyiv – Politico
- DOD Announces Aid Package for Ukraine - DOD
- Germany Expects EU Deal on Ukraine Aid Package, Even Without Hungary – Bloomberg
- Russia Launches One of Its Largest Attacks Yet on Ukrainian Civilians - WSJ
- Russian Factory Activity Expands at Fastest Pace in Seven Years in December - Reuters
- The Biden Administration Is Quietly Shifting Its Strategy in Ukraine - Politico
- Ukrainian Troops Help Recreate a 19th Century Masterpiece "Reply of the Zaporozhian Cossacks" – Insider
- Interactive Map: Assessed Control of Terrain in Ukraine – Institute for the Study of War
- Map – Tracking Russia’s Invasion of Ukraine – Live Universal Awareness Map
Other Headlines
- Tsunami Waves Hit Japan After 7.6 Magnitude Earthquake - AP
- Iran Adds to Pressure on U.S. With Nuclear Program Acceleration - WSJ
- China Names Dong Jun as New Defence Minister to Replace Ousted Li Shangfu - SCMP
- Explainer: What is in Javier Milei's Sweeping Argentina Reform Bill? – Reuters
- US Sinks 3 Houthi Boats in Red Sea After Attack on Maersk Merchant Ship – The Hill
- Houthi Militants Attack Container Ship, Maersk Halts Red Sea Sailing - Reuters
- Venezuela Deploys Soldiers Amid Dispute With Guyana Over Essequibo Territory - Bloomberg
- China Confronts a New Political Reality in Taiwan: No Friends - WSJ
- China’s Xi Says Reunification With Taiwan ‘Inevitable,’ Ahead of Crucial Jan. 13th Vote - Politico
- 2023: The Year in Figures and Charts – Politico
Policy and Politics
5 Big Funding Questions Awaiting Congress in January
Lawmakers departed the Capitol earlier this month without an agreement on overall spending levels, which are a critical prerequisite to negotiating a broader funding deal. They wanted that Step One agreement weeks ago, but disagreements over issues such as how severely to cut non-defense spending and how to handle controversial riders have held up discussions. Even when they can get those numbers, it typically takes Congress several weeks to hammer out the thousands of details needed to write a government spending pact.
When lawmakers return, they’ll have only two weeks before the first deadline on Jan. 19 — which could shutter parts of the government — and another two weeks after that before a total shutdown on Feb. 2. That does not include the Supplemental Spending stalemate over border security and Ukraine aid. These five sticking points remain as negotiations continue: More defense spending, cuts to non-defense spending, ending ‘emergency’ cash payments, ‘poison pill’ riders, selling an omnibus.
No Border Deal Yet as Senators Prepare to Return This Week
Resumed discussions to reach a bipartisan border deal and unlock Ukraine aid still have not yielded a deal, according to lead Democratic negotiator Sen. Chris Murphy. The Connecticut senator said the core negotiating group took a couple days off over the Christmas break but has otherwise continued meeting virtually, with the latest call occurring Friday morning. He said negotiators are “at the point where we're working through text.”
Murphy declined to say what the remaining sticking points are in negotiations, but said the group is aiming to have a deal to shop among their fellow senators when members return on Jan. 8. Adding to the complications, the negotiations have mainly included senators and the White House. There’s still no indication of whether GOP leadership in the House has given any assurances on passage of the supplemental. A large contingent of House Republicans remain opposed to additional Ukraine aid — and the Senate's potential border deal could struggle to meet conservatives' standards.
Health and Wellness
Employers Are Offering a New Worker Benefit: Wellness Chatbots
More workers feeling anxious, stressed or blue have a new place to go for mental-health help: a digital app. Chatbots that hold therapist-like conversations and wellness apps that deliver depression and other diagnoses or identify people at risk of self-harm are snowballing across employers’ healthcare benefits. “The demand for counselors is huge, but the supply of mental-health providers is shrinking,” said J. Marshall Dye, chief executive officer of PayrollPlans, which began providing access to a chatbot called Woebot in November. PayrollPlans expects about 9,400 employers will use Woebot in 2024.
Amazon about a year ago gave employees free access to Twill, an app that uses artificial intelligence to track the moods of users and create a personalized mental-health plan. The app offers games and other activities that the workers can play, as well as live chats with a human “coach.” The app “allows you to address mental health concerns the moment they arise and can be used as a supplement to your daily well-being routine,” the company said in a blog post. Amazon declined to comment.
COVID 19 News – JN.1 Now Dominate. The Latest on Symptoms, Severity and Spread
As always, it’s impossible to distinguish COVID from the flu, RSV, and other common winter illnesses like rhinoviruses, enteroviruses, and parainfluenza viruses by symptoms alone. Even with the new, highly mutated COVID variant “Pirola” JN.1, now globally dominant, this remains true. What’s more, it’s possible to have two or more infections at the same time. As always, testing—at a health care facility or at home, in the case of COVID—is the only true way to determine the source of your illness. And while you should consult your health care provider, if your symptoms are mild and you don’t have other health conditions, the cause may not matter.
Still, with a new COVID variant making a splash, it’s fair to wonder if coronavirus symptoms have changed or if precautions like masking are again warranted. Here’s what you need to know to manage the winter illnesses that are likely headed your way.
NYS COVID Update
The Governor updated COVID data for the week ending December 29th.
Deaths:
- Weekly: No data
- Total Reported to CDC: No data
Hospitalizations:
- Average Daily Patients in Hospital statewide: 2,774
- Percent Available ICU Beds: 19%
7 Day Average Cases per 100K population
- 21.2 positive cases per 100,00 population, Statewide
- 24.7 positive cases per 100,00 population, Mid-Hudson
Useful Websites:
Industry News
A Look Back at the Top Innovations from the Year in Manufacturing, Science, and Engineering
With the New Year Upon us we thought it would be fun to take a look back at what new, fun, and whimsical innovations happened throughout the year. There is a clear trend with restaurants getting into the automation game along with automation taking over the home & garden space as well as healthcare.
Robots Are Here To Mow Your Lawn. Chipotle is Using Robots to Cut, Core, and Peel Avocados. New Technology Generates Electricity 'Out of Thin Air'. 3D Printer Uses Lasers and Cameras to Print Intricate Designs With a Wider Variety of Materials. Pangolin-Inspired Robot Is Designed to Travel Within the Human Body. Robotics and AI: From the Plant Floor to Your Local Fast-Food Restaurant. Cosmic Concrete to Build Homes on Mars. A Rechargeable, Edible Battery.
Read more at New Equipment Digest
Thruway Authority Announces Significant Local Lane Closure This Weekend
On Saturday, January 6 at 7 p.m., the northbound lanes of the Thruway (I-87) from exit 17 in Newburgh to exit 18 in New Paltz will fully shut down to all traffic for at least 12 hours so a portion of the damaged Brookside Road overpass in New Paltz can be safely removed over the northbound lanes, weather permitting. The Plattekill Service Area will be closed during this operation. Motorists should seek alternate routes while this work takes place or avoid travel in the area during these times, if possible.
A detour will be in place on January 6 (see map). Motorists can read more about the operation here:
Read more at the Thruway Authority
Two Space Stories In 2024 Will Determine The Future Of Humanity
The first story you’ve probably already heard about. NASA aims to launch its Artemis II mission by the end of the year, carrying humans on a journey around the moon and back. This marks the first time anyone has traveled farther than low-earth orbit in more than 50 years. The last time NASA astronauts made such a trip, the original impetus was Cold War competition between rival empires. Looking back now, there’s some sense that we got to the moon a little bit too soon. We made it, and then didn’t quite know what to do next.
The next year is lining up to be the riskiest time yet for something like Kessler Syndrome (in which a large collision in orbit could create a cloud of debris traveling at high speeds that leads to more collisions making all of space essentially inaccessible to either human or machine) to actually occur over our heads. This is due to two things: 1. The amount of objects in space has grown exponentially this century, accelerating in recent years, and this growth has happened without much in the way of international coordination to avoid collisions. And, 2. The peak of the sun’s solar cycle is forecast to occur sometime in 2024, meaning that many satellites in orbit could be disabled by the most powerful solar flares seen in decades.
Global Commercial Vehicle Market to Expand at 8.7% CAGR from 2022 to 2029 Bolstered By EVs
The global commercial vehicle market size was valued at USD 821.28 billion in 2021. The market could surge from $955.57 billion in 2022 to $1,712.44 billion by 2029 at a CAGR of 8.7% during the forecast period. Fortune Business Insights™ has deep-dived these inputs in its latest research report titled, “Commercial Vehicle Market, 2022-2029.” The growth of the e-commerce sector has encouraged automakers and OEMs to emphasize the production of light & heavy vehicles.
According to the analysis, freight vehicles, including heavy and light vehicles, have become sought-after to streamline business operations. Governments have triggered investments to utilize and develop freight vehicles. To illustrate, the European Union has reportedly regulated automakers to install Advanced Driver Assistance Systems (ADAS), Lane Departure Warning (LDW), and AEB in all heavy vehicles with a weight of almost 15,400 pounds. With respect to fuel type, the market is segregated into electric vehicle and I.C. engine. The electric vehicle segment will expand at the highest CAGR during the forecast period. The trend is mainly attributed to the demand for autonomous driving and the implementation of rigorous regulations on fuel economy standards.
Why Corporate Bankruptcies Were Up in 2023
While most major indicators, like inflation finally cooling off and consumer confidence improving, show the economy turning the corner, corporate bankruptcies this year have moved in the opposite direction. A confluence of forces including rising interest rates, stubborn inflation earlier in the year and companies dealing with crushing debt piled up during an era of easy money have resulted in one of the busiest years for corporate bankruptcies in more than a decade.
According to S&P Global Intelligence, there were 591 corporate bankruptcies in 2023, one of the highest bankruptcy totals since 2011. Only 2020, with 639 corporate bankruptcies, witnessed more. "This is the market swing we've been expecting for some time," said Brook Gotberg, a professor at Brigham Young University who specializes in bankruptcy law. Gotberg said bankruptcy watchers have long been expecting a surge in bankruptcies following the boom in corporate borrowing that accompanied the Fed's years of near-zero interest-rate policies.
Rich-World Labor Markets Will Remain Strong in 2024
After the lifting of lockdowns in 2021, rich-world labor markets roared back to life faster than anyone had expected. In 2022 and 2023 they continued to strengthen, as consumers, flush with government stimulus payments and accumulated savings, and looking to make up for lost time, splurged on labor-intensive services. Total demand for labor across the rich world quickly outpaced the available supply of workers. The unemployment rate, at less than 5%, is at historical lows.
In 2024, expect rich-world labor markets to remain strong for several reasons. Demand and supply remain so out of whack that it would probably take a deep recession to truly damage jobs markets. Companies will also be more inclined to hoard workers, scarred by pandemic-era struggles to rehire those they let go during lockdowns. And as baby-boomers retire, the available pool of labor is shrinking fast. Whatever happens in 2024, finding a job will rarely have been so easy.
Global Steel Output Fell Again in November
Global steel production fell by 4.5 million metric tons or -3.1% from October, finishing November at 145.5 million metric tons. While that total is 3.3% higher than the November 2022 result, it shows that steelmakers worldwide continue paring their outputs in response to weak demand. For the 11 months to date of 2023, the World Steel Association reports total production for 71 countries stands at 1.715 billion metric tons, or 0.5% higher than last year’s January-November total. Total 2022 production was 1.875 billion metric tons, -4.2% less than 2021 and the first annual decrease in production since 2015.
In October World Steel issued a short-term forecast for global steel consumption, predicting that 2023 demand will grow just +1.8% year-over-year over 2022, to 1.814 billion metric tons. This would follow the -3.3% decline in demand recorded for 2022. Steelmakers in most of the largest producing nations have been curbing output during much of the current year, in apparent response to weakening demand brought on by continuing high inflation and high interest rates impacting industrial and construction activities.
Read more at American Machinist
Boeing Says Chinese Airlines Resumed Operating All 737 MAXs in 2023
All Boeing 737 MAX jets operated by Chinese carriers are back in service at the end of 2023, the U.S. planemaker's China head said on Friday, nearly a year after they started flying following a global grounding in 2019. The best-selling Boeing model was grounded after fatal crashes in Indonesia and Ethiopia. The MAX returned to service around the world starting in late 2020 after modifications to the aircraft and pilot training, but Chinese airlines started to fly them again only in January 2023.
The culmination of the MAX's return to service in China comes as Boeing conducts preparatory activities and flight tests on a number of 737 MAX jets designated for Chinese customers, raising speculation that the U.S. planemaker could soon restart deliveries of the MAX to China, which have been suspended since 2019.
Treasury Proposes Strict Climate Rules for Lucrative Hydrogen Energy Tax Credit
Producers of hydrogen energy would have to comply with strict climate rules to qualify for a lucrative tax credit under new proposed guidelines from the Treasury Department. The Biden administration and climate advocates say these guidelines would ensure the nascent power source develops in a sustainable way rather than becoming a significant contributor to global warming. Hydrogen power is seen as a key tool to transition industries, such as aviation, steel and cement — whose emissions are particularly difficult to eliminate — to a cleaner power source.
Many industry players say the rules would stifle hydrogen’s growth — with negative implications for companies and the planet in the long run. The tax credits are key for making hydrogen from low- or no-emitting sources economically viable. Frank Wolak, president and CEO of the Fuel Cell and Hydrogen Energy Association, said without access to the credit, hydrogen produced from renewable sources is “not market feasible.”
How Electric Vehicles Are Losing Momentum with U.S. Buyers, in Charts
Electric-vehicle sales growth hit a speed bump in the U.S. last year, and the impact is being felt throughout the industry. Carmakers around the world have invested billions of dollars in EV technology, spurred on by tailpipe emissions regulations designed to boost sales of battery-powered models. But as customers in the U.S. hesitate to make the switch from traditional gas-engine vehicles, some auto companies are delaying plans on electric-vehicle spending.
In the near term, the cooling buyer interest has weighed on U.S. makers that had ramped up vehicle and battery production in anticipation of a larger surge in customer demand. Electric-vehicle sales began to stall in the latter half of this year, a move that car executives attributed to the relatively high prices of electric models. As a result, electric cars and trucks are piling up on dealer lots, causing auto companies to reassess their investment plans. It takes a dealership around three weeks longer to sell an EV than a gasoline vehicle, according to data from car-shopping website Edmunds. A year ago, battery-powered models were selling faster than their gasoline counterparts.
Read more – see the charts at the WSJ