Costco to hike starting wage to $14
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Costco Wholesale shares fell Friday morning as investors grew concerned about its plan to hike wages. The discount retailer's pretax costs could rise further, now that it'll raise the starting wage for workers in the U.S. by $1 to as much as $14.50 an hour and boost pay for its other hourly workers. The move comes amid a tight job market. Just today, the Labor Department reported that average wage growth accelerated, rising 0.3 percent in May as the unemployment rate dipped to an 18-year-low of 3.8 percent. Spartan Capital Securities chief market economist Peter Cardillo: "In the skilled labor sector, there is a shortage. And if this continues, obviously, even the lower end of the service sector is going to wind up with shortages." Partly covering the cost of the wage hikes: the savings Costco got from the federal tax cuts. Costco is just the latest retailer to boost wages. In February, Walmart, the largest retail chain, hiked entry-level wages to $11 an hour. Target, which also raised wages in October to $11, plans to raise them again to $15 by the end of 2020. Earlier this week, Dollar General cited higher driver wages in its earnings results.
Whale dies after swallowing 80 plastic bags
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These are some of 80 plastic bags found in the stomach of a whale. On Sunday, Thailand's Marine and Coastal Resources Department announced that this pilot whale had died on Friday, another victim of the eight million tons of plastic that the UN says are dumped into the ocean every year. The whale was found in a canal in the southern Thai province of Songkhla on Monday and for the next five days a team of veterinarians struggled to rescue it. Before its death, the whale spat out five plastic bags. An autopsy found 17lb, or eight kg, of plastic in its stomach. A Thai marine official said the pilot whale, which mostly feeds on squid, probably thought the floating bags were food. Thai people use huge numbers of plastic bags and authorities there have introduced campaigns to encourage people to cut back or introduce reusable bags. And the death of this whale also comes just before the UN's World Environment Day on the June 5. The theme this year is "Beating Plastic Pollution." This death serving as a symbol, perhaps, of the scale of that challenge.
Drinks companies bank on an unusual cocktail recipe: less alcohol
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When it comes to responsible drinking, it turns out the younger generation may be on to something. "Younger people tend to be drinking less than previous generations. People want to stay in control – they want to be able to hang out with their friends longer and people, they are more conscious of their social media image. They know pictures they will turn up on Facebook. So they want to look good." From bars like this one in London to New York, sales of 'aperitifs' such as Aperol are growing rapidly over traditional spirits like vodka - which are twice as strong. Aperol is the poster child - made by Italian company Campari - it's the world's bestselling aperitif and in the past year has had a 59% profit boost in the U.S. But drink giants like Diageo and Pernod Ricard are also jumping on the aperitif bandwagon. They all see this as a long term trend that could be key for future growth and are all rolling out either new aperitif brands or marketing drives for old ones. "Diagio has recently dipped a toe into the market by buying a craft Vermouth brand Belzarare and Pernot Ricard has been pushing hard with its Lillet aperitif brand with a new advertising campaign." But born in Italy and France - Aperitifs do still remain a continental drink and for big markets like the U.S., this growth could just be a passing fad.
iPhones to go OLED in 2019
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Apple will use next generation OLED screens in all three new iPhone models next year. That's according to South Korea's Electronic Times. Organic light-emitting diode screens provide crisper images than current liquid crystal display screens because each pixel is illuminated. They're thinner and consume less power. Right now, Apple sources all of its OLED screens from an affiliate of its archrival, Samsung. But Samsung phones also use those OLEDs from Samsung Display, and Samsung Display dominates the OLED market for smartphone screens. So some analysts like GBH Insights technology research head Daniel Ives wonder whether Apple can secure enough OLED screens by next year. GBH Insights technology research head Daniel Ives: "I think that's really the question. They could weigh the strategy out. But just like we saw with iPhone X, supply was a big issue coming out of Asia. So I think that's going to be a big sort of question mark: are they able from a supply perspective to meet the demand and ultimately fulfill the strategy in 2019 which to us seems a bit aggressive." The news sent shares of LG Display higher. Analysts say it could raise hopes that Apple may want to diversify its sources for OLED displays, giving LG a shot at gaining market share. Shares of one of the main suppliers of LCD screens to Apple, Japan Display, tumbled nearly 8 percent.
Starbucks closing stores for anti-bias training
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If you're looking for a cup of coffee at Starbucks Tuesday afternoon, you may have to go elsewhere. The coffee chain is closing 8,000 company-owned stores in the U.S. at 2 PM local time. They'll be training 175,000 employees on racial tolerance. This stems from the protests the chain faced in Philadelphia, Pennsylvania, in April. That's when two black men who were waiting for a friend at a Starbucks outlet were arrested after the cafe manager called police. NeuroLeadership Institute director David Rock's firm has done research on anti-bias training. "Look I really applaud Starbucks for making this a priority and sending out a very clear signal that this matters, and making something a priority is definitely the first step to culture change as well as individual behavior change." Employees will see training videos like this one featuring Starbucks CEO Kevin Johnson and co-founder Howard Schultz. They'll also participate in discussions and problem-solving sessions on how to identify and avoid bias. Black leaders advising Starbucks on its training program hope that it will set an example for other corporations. Starbucks says it intends to share its program with other companies.