US
Walmart to Open Automated Distribution Centers
Walmart has announced plans to open 5 automated distribution centers in the US to enhance its online grocery supply chain and maintain its grocery sector dominance. The initiative involves constructing, expanding, and upgrading grocery distribution centers, with new centers in California and Texas, and more planned in South Carolina, Illinois, and New Jersey. These centers will create around 2,000 jobs and improve efficiency, with automated services expected in two-thirds of stores by early 2026. Walmart’s high-tech centers will double the storage and processing capacity compared to traditional centers.
US Retailers Face Supply Chain Challenges
Despite monthly growth in cargo volume at major US ports, retailers face supply chain issues, including high shipping costs and unresolved labor negotiations. Retailers are experiencing the strongest sales growth in two years, preparing for back-to-school and holiday seasons. In May, US ports handled 2.08 million TEUs, a 3% increase from April and 7.5% rise from the previous year. Projections show continued growth, but high shipping costs and labor issues remain concerns.
Globe
BYD to Invest in Turkish EV Plant
Chinese electric vehicle manufacturer BYD has signed a nearly $1 billion investment agreement with Turkey to establish a factory producing 150,000 electric and plug-in hybrid vehicles annually. The plant, expected to start operations by the end of 2026, will create about 5,000 jobs. This investment leverages Turkey’s strategic location, strong supplier base, and skilled workforce to meet Europe’s growing demand for new energy vehicles. The initiative also aims to enhance Turkey’s role as a competitive automotive production and export center.
Brazil Adjusts Taxes on Cross-Border Shopping
Brazil has passed Law No. 914/2024, changing the tax standards for international cross-border shopping starting August 1, 2024. Goods over $50 on platforms participating in the ‘Conforme Remessa’ program will benefit from reduced import taxes. Previously, purchases over $50 incurred a 60% import tax and a 17% ICMS state tax. The new regulation introduces a $20 tax discount for goods over $50, reducing the overall tax burden, but higher-value purchases will still face significant taxes.
AI
Alibaba’s International Expansion with AI
Alibaba is leveraging generative AI technology to boost its international expansion efforts. The company’s e-commerce division is using AI models to help cross-border sellers overcome language barriers, create content, and manage refunds. With about 500,000 cross-border sellers using Alibaba’s AI tools, some applications have increased orders by 30% and product exposure by 37%. The international e-commerce division, now Alibaba’s fastest-growing sector, saw a 45% sales increase in the first quarter, driving the company’s global market competitiveness.
Costco Hikes Membership Fees for the First Time Since 2017
Costco announced it will increase its annual membership fees in the U.S. and Canada starting September 1st. The fee for a standard membership will rise from $60 to $65, and the “Executive Membership” will increase from $120 to $130 annually. This change affects approximately 52 million memberships, including both standard and executive plans. Despite holding off on previous hikes due to inflation concerns, Costco relies heavily on membership fees for revenue. Shares rose by 2% following the announcement. This is Costco’s first fee hike since June 2017, with the company typically raising rates every 5 and a half years.
Elon Musk Confirms Grok 2 Launch in August, Grok 3 by Year-End
Elon Musk has confirmed the upcoming release of Grok 2 in August, with Grok 3 expected by the end of the year. Grok, a natural language processing (NLP) model, aims to enhance AI capabilities in various applications. Musk’s announcement highlights the rapid development and deployment of advanced AI models by his ventures. Grok 2 and 3 are expected to bring significant improvements in understanding and generating man-like text, potentially revolutionizing industries reliant on NLP technologies.
New York Times Challenges OpenAI’s Bid for Journalistic Materials
The New York Times is opposing OpenAI’s unprecedented request for access to its journalistic content. OpenAI seeks to use the Times’ materials to train its AI models, raising concerns about intellectual property rights and the potential impact on journalism. The legal battle underscores the tension between AI developers and content creators over the use of proprietary information. The outcome of this dispute could set important precedents for the relationship between AI technologies and traditional media.
SoftBank Acquires British AI Chip Company Graphcore
SoftBank Group has acquired British AI chip company Graphcore, furthering its investments in artificial intelligence. Graphcore, known for its innovative AI processing chips, will bolster SoftBank’s portfolio and enhance its capabilities in AI hardware. This acquisition is part of SoftBank’s strategy to dominate the AI industry by integrating advanced technologies and infrastructure. The move reflects the growing importance of specialized AI hardware in supporting the development and deployment of sophisticated AI systems.
