US Business Newsletter

March 01 - March 31, 2023

Greetings from Consulate General of India,

New York!

Welcome to the March 2023 edition of our newsletter, bringing you important policy and high-impact news.

We hope you find it useful.

Biden Finalizes ‘Buy American’ Rule for Government Procurements



 The Biden administration has completed rules that will increase the threshold for American-made components in products obtained under the "Buy American" program. The new requirements will mean that products must have at least 60% of the value of components made in the US, with the standard increasing to 65% in 2024 and 75% by 2029.

  Operators of hotels, bars and restaurants have become some of the fastest-growing employers in the US, offsetting a slowdown in tech-related hiring. The leisure-and-hospitality industry is rebuilding its workforce after cutting back during the pandemic's early days, and this has helped keep the overall job market tight and the US unemployment rate at a 53-year low.

EVs Boost Chip Demand Despite Semiconductor Makers’ Woes

  While many customer segments experience declining chip sales, the demand for chips in cars is rising due to increased automation of vehicles and the surge of electric vehicles that use more semiconductors than traditional gas-powered ones. The auto-chip sales are driving the growth of companies such as NXP Semiconductors, Infineon Technologies, Renesas Electronics, Analog Devices, and Texas Instruments, which reported surging sales and gave strong outlooks for this year, and this trend is expected to continue in the coming years.

Uber, Lyft Score Victory as California Court Affirms Right to Treat Drivers as Contractors

 Uber, Lyft, and other gig economy companies won a legal victory in California as a state appeals court ruled that their drivers can continue to be treated as independent contractors under a ballot measure known as Proposition 22. The court did, however, remove a clause that made it tough for workers to unionize, allowing the door to be opened for workers to join together in a union.

Silicon Valley Bank Creditors Form Group in Advance of Possible Bankruptcy

  Creditors of Silicon Valley Bank's parent company, SVB Financial Group, have formed a group with Centerbridge Partners, Davidson Kempner Capital Management, and Pimco to profit from the sale of SVB Financial's nonbanking businesses, including its private-wealth and other units, through a court-supervised sale process. The investor group purchased SVB Financial's bonds as they traded down to around 30 cents on the dollar, and they want the parent company to file for bankruptcy so that they can recover their investment if SVB Financial's assets fetch a high enough valuation in any such auction.

Microsoft, Google, Amazon Look to Generative AI to Lift Cloud Businesses

   Major tech companies like Amazon, Microsoft, and Google are relying on generative AI to rejuvenate their slowing cloud-computing businesses. They are promoting new artificial-intelligence tools that can revolutionize work, learning, and creativity while trying to capitalize on the rise of interest in generative AI.

More States Join Antitrust Lawsuit to Block JetBlue-Spirit Merger



Attorneys general from four US states have joined a lawsuit seeking to block the proposed $3.8bn takeover of Spirit Airlines by JetBlue Airways. They argue that the merger could lead to decreased competition in the air travel industry, resulting in fewer flight options and increased costs for travelers, and have joined the US Department of Justice and other attorneys general in challenging the deal.