Meta, Alphabet, and Microsoft earnings will be all about AI and whether one of them deserves to be on the ‘wall of worry’
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The earnings calls of Meta, Alphabet, and Microsoft will focus on AI. OpenAI's ChatGPT has sparked interest in AI, with executives mentioning it nearly 200 times in each earnings cycle since its debut in November 2022. Microsoft's Azure is the star of its AI portfolio, offering a suite of AI tools to businesses. Google's revenue comes from search and related services, which could be replaced by AI from other companies. Meta is using AI to improve its social media algorithms and generate more revenue from advertising. Analysts expect AI to be the central theme in earnings calls for the first three months of 2024.
A U.S. manufacturing renaissance won't create many good jobs—just look at Germany, S. Korea and China, Harvard economist says
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Harvard economist Dani Rodrik argues that a U.S. manufacturing renaissance will not create many jobs, citing examples from Germany, South Korea, and China. Rodrik points out that while U.S. manufacturing productivity has surged, employment in the sector has declined, with 6 million manufacturing jobs lost since 1980. Despite efforts by the Biden administration to encourage domestic production, manufacturing's share of non-farm employment has continued to decline. Rodrik suggests that services such as retail and care work will remain the primary engine of job creation.
#Manufacturing #Jobs #Economy #UsManufacturing #DaniRodrik #Germany #SouthKorea #China #Productivity #Employment #BidenAdministration
https://fortune.com/2024/04/21/us-manufacturing-jobs-economy-chips-act-ira-joe-biden-donald-trump/
Single women are scraping by: Held down by the wage gap and inflation, they struggle to build wealth or emergency savings
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Single women are struggling to build wealth or emergency savings due to the wage gap and inflation. According to a survey by Credit Karma, 36% of women don't feel financially stable, with 40% of single women reporting a lack of financial security compared to 34% of partnered women. Women earn 16% less than men on average and have less emergency savings. The number of single women in the workforce has increased, but their journey to autonomy and building wealth remains elusive. Women who were never married have a wealth gap of 29%. Single women face challenges in affording basic necessities, going on vacations, and saving for the future. Some single women have gone into debt, and 21% are tired of spending money on their friends' life milestones. Financial factors are a motivator for 24% of single women looking to be in a couple. Women in couples are not necessarily financially dependent, with 47% saying they are financially independent and 25% outearning their partner. However, an extra salary can help buffer the impact of the economy.
https://fortune.com/2024/04/19/single-women-are-scraping-by/
Our entire approach to summer internships is broken–and many students don’t stand a chance
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Access to paid summer internships is not equally available to every student, with significant gaps persisting across most industries. Less than half of seniors reported having an internship experience, and first-generation, Black, Latino, and female students are less likely to engage in paid internships. Paid internships are valuable, with participants earning $3,000 more than their non-internship peers one year after graduation. However, prestigious and lucrative internships often go to students who already have resources and connections. Housing and temporary relocation costs pose barriers for students without financial support. Universities can employ students in campus jobs related to their field of study and incorporate skills development into these experiences. Employers should collaborate with colleges and universities to provide high-quality work experiences that help students build their resumes, generate networking opportunities, and develop career-relevant skills. Work designed for students should be flexible to accommodate their academic obligations and extracurricular activities. Employers can benefit from the innovative energy that students bring to the workplace while contributing to their early career development. Employers and higher education institutions should work together to build models that best serve students, higher education, and employers.
#SummerInternships #PaidInternships #AccessToOpportunities #Inequality #HigherEducation #CareerDevelopment
https://fortune.com/2024/04/19/summer-internships-broken-students-jobs-summer-education-careers/
Luxury brands have a new headache in China: Stingy shoppers are returning their goods, erasing up to 75% of their sales value
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Luxury brands in China are facing a significant challenge as stingy shoppers are returning their goods, resulting in up to 75% of their sales value being erased. This trend of high returns, well above the global luxury industry average of 20% to 30%, has persisted since China exited Covid Zero more than a year ago. The majority of shoppers on platforms like Tmall are middle class, who are now seeking discounts or shifting away from pricier purchases due to the country's ongoing economic slowdown. The trend has worsened in the first quarter of this year, with return and cancellation rates for luxury brands on Tmall increasing. Shoppers are increasingly requesting returns and cancellations before their products are even shipped, taking advantage of promotional campaigns that offer discounts. This has artificially inflated initial sales figures. The weakening consumer sentiment has already affected some global luxury brands, with slower sales growth reported by LVMH and a decline in China sales for Kering's Gucci. However, luxury brands at the highest end, such as Hermes, Chanel, and Dior, have limited their reliance on e-commerce channels and sales campaigns, focusing on cultivating wealthier customers. Online orders accounted for 42% of China's total high-end market revenue last year. E-commerce platforms in China have made returns and refunds easier, allowing customers to return purchases with no reason given within seven days. Despite the challenges, premium brands cannot afford to walk away from China's e-commerce platforms and have been investing in concierge services and private sales to build long-term relationships with wealthy customers. Bain & Co. predicts that China's luxury sales will slow to the mid-single-digits this year, primarily driven by high-net-worth individuals. Luxury brands need to refine their strategies for the Chinese market and focus on very important customers.
#LuxuryBrands #China #Shoppers #SalesReturns #EcommercePlatforms
Jamie Dimon says he feels tremendous pressure to guard over the economy and make society better
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Jamie Dimon, CEO of JPMorgan Chase, feels pressure to do good for his country. He wants to make sure he’s doing good for his nation as a whole and considers it part of his role to improve the lives of U.S. citizens. Dimon also has opinions on social and economic policy, such as measuring schools on job occupancy instead of college admission rates and taxing the rich more to support the poor. He believes Washington faces a global market "rebellion" if it doesn’t address its $34 trillion national debt. Dimon forms his outlooks by talking to everyone and keeping an open mind. He prioritizes his role as a father and grandfather and enjoys spending time with his family. Dimon has a strict divide between work and family and believes in the importance of love in parenting. He also revealed that his kids have grown up and they enjoy traveling together, listening to music, barbecuing, and drinking wine.
https://fortune.com/2024/04/18/jamie-dimon-pressure-good-job-for-country-family-first/
After a failed Linux backdoor attempt grabs headlines, open-source leaders warn of more attacks
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A failed Linux backdoor attempt was discovered in XZ Utils, a data-compression toolkit used in many Linux operating systems. The backdoor could have enabled a major cyberattack on corporate servers. The identity of the culprit, known as 'Jia Tan,' remains unknown. Open-source leaders have warned that this incident is likely not a one-off and have called on maintainers of open-source projects to be alert for social engineering takeover attempts. There have been recent attempts to persuade the OpenJS Foundation to grant administrative access to a popular JavaScript project, similar to the tactics used by Jia Tan. Experts believe that many more attempts to infiltrate open-source projects are already underway. The vulnerability of open-source projects, which are often underfunded and run by a small group of maintainers, makes them susceptible to social engineering attacks. Open-source leaders advise maintainers to be cautious and pay attention to interactions that create self-doubt or feelings of inadequacy, as these may be signs of a social engineering attack.
After a failed Linux backdoor attempt grabs headlines, open-source leaders warn of more attacks
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A failed Linux backdoor attempt was discovered in XZ Utils, a data-compression toolkit used in many Linux operating systems. The backdoor could have enabled a major cyberattack on corporate servers. The identity of the culprit, known as 'Jia Tan,' remains unknown. Open-source leaders have warned that this incident is likely not a one-off and have called on maintainers of open-source projects to be alert for social engineering takeover attempts. There have been recent attempts to persuade the OpenJS Foundation to grant administrative access to a popular JavaScript project, similar to the tactics used by Jia Tan. Experts believe that many more attempts to infiltrate open-source projects are already underway. The vulnerability of open-source projects, which are often underfunded and run by a small group of maintainers, makes them susceptible to social engineering attacks. Open-source leaders advise maintainers to be cautious and pay attention to interactions that create self-doubt or feelings of inadequacy, as these may be signs of a social engineering attack.
United took a $200 million hit from Boeing 737 MAX 9 grounding, driving it to a quarterly loss
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United Airlines reported a $200 million impact after being forced to ground its Boeing 737 MAX 9 fleet for three weeks due to a door plug ripping off an Alaska Airlines jet in January. As a result, United asked its pilots to take unpaid time off. The company also announced changes to its long-term fleet strategy, converting a portion of Boeing MAX 10 orders to MAX 9 from 2025 to 2027. United reported a net loss of $124 million for the first quarter, compared to $194 million during the same quarter in 2023. The airline sources nearly all of its aircraft and parts from Boeing or Airbus. The grounding of the Boeing 737 MAX 9 fleet has impacted United's operations, financial position, and cash flows. United's long-term fleet strategy, known as United Next, has been disrupted by the Boeing incidents. The plan involved exercising options to buy Boeing 787-9 and A321 neo aircraft, with the goal of replacing older, smaller jets and regional jets with larger, more fuel-efficient planes. However, delays in Boeing's deliveries and supply chain issues have led United to reduce the number of aircraft it expects to receive. United now has letters of intent to lease 35 new Airbus A321s in 2026 and 2027.
#UnitedAirlines #Boeing #737Max9 #Grounding #QuarterlyLoss
https://fortune.com/2024/04/16/united-hit-boeing-grounding-quarterly-loss-200-million/
The U.S. economy is looking red hot this year while China is showing signs of fatigue, top economists say
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The U.S. economy is projected to grow 2.7% this year, double the rate of the next closest country in the G7. China's growth is projected to slow to 4.6% for the year. China's real estate crisis could exacerbate its economic problems. The U.S. performance in the years to come is uncertain due to still-elevated inflation numbers. The IMF and Fed Chairman Jerome Powell express concerns about inflation. The U.S. economy reflects strong demand factors and a fiscal stance that is out of line with long-term fiscal sustainability.
#UsEconomy #ChinaEconomy #EconomicGrowth #Imf #Inflation #RealEstateCrisis
Some ex-TikTok employees say the social media service worked closely with its China-based parent despite claims of independence
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Several former TikTok employees have claimed that the social media service worked closely with its China-based parent company, ByteDance, despite claims of independence. The ex-employees allege that TikTok's operations were intertwined with ByteDance during their tenures, contradicting the company's assertions of independence. They also claim that TikTok shared user data with ByteDance, including names, email addresses, IP addresses, and demographic information. The allegations raise concerns about the potential for the Chinese government to access and misuse user data collected by TikTok. Cybersecurity experts differ on the significance of the alleged data sharing, with some expressing concern about the potential for targeted attacks and others dismissing the claims as paranoia. The House of Representatives has voted to ban TikTok unless ByteDance sells the app to a non-Chinese company, but the Senate has yet to decide its next step. TikTok has denied the allegations, calling them unfounded and asserting that they are spread by disgruntled ex-employees with clear motives and agendas.
#Tiktok #Bytedance #DataSharing #China #UserData
https://fortune.com/2024/04/15/tiktok-china-data-sharing-bytedance-project-texas/
Jamie Dimon cashes out more JPMorgan stock, bringing his total share sales this year to $183 million
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Jamie Dimon, Chairman and CEO of JPMorgan Chase, has sold $32.8 million in the bank's stock, bringing his total share sales this year to nearly $183 million. This is the second time Dimon has sold JPMorgan stock since becoming CEO in 2005. In February, he sold over 800,000 shares worth $150 million. Dimon and his family planned to sell 1 million shares of JPMorgan for financial diversification and tax planning purposes. As of last year, Dimon held 8.6 million shares of JPMorgan stock. The share price was $182.89 at the time of the article. Another high-profile executive at JPMorgan, global chief information officer Lori Beer, also sold stock recently. In an earnings announcement, JPMorgan reported first-quarter profits of $13.4 billion. Dimon mentioned that the company's capital is abundant, leading to an increase in the dividend.
#JamieDimon #JpmorganChase #StockSales
https://fortune.com/2024/04/15/jamie-dimon-cashes-out-jpmorgan-stock-million/
Here's what Wall Street expects from financial markets after Iran's attack on Israel
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Financial markets will face fresh volatility as investors weigh the risk of a strike and counter-strike cycle following Iran's attack on Israel. Many expect oil prices to surpass $100 a barrel and anticipate a flight to safe-haven assets such as Treasuries, gold, and the dollar. Bitcoin initially dropped 9% but recovered to trade near $64,000. Stock markets in Israel, Saudi Arabia, and Qatar posted modest losses. The conflict in the Middle East could disrupt tanker shipments from the Persian Gulf through the Strait of Hormuz. Analysts suggest that the reaction of Israel and the US, as well as the escalation or de-escalation of the situation, will determine market impact. Investors and analysts are cautious, expecting risk assets to trade lower and seeking opportunities to buy at lower prices. The geopolitical situation will take precedence over central bank actions and the strong US economy in the coming days. The market impact may extend beyond the Middle East, affecting global inflation outlook and energy prices. The reaction of Israel and Iran will be crucial in determining the duration of the market rally or stall. The situation in the Middle East may influence the Federal Reserve's rate cuts and the decisions of the European Central Bank and the Bank of England. Traders will be monitoring the bond market for the impact of more expensive energy bills on inflation fears. Gold and the US dollar have seen increased demand as safe-haven assets. The market may see a rotation in favor of the US dollar. The events in the Middle East may lead to a more cautious approach to rate cuts by the Federal Reserve. The first rate cut is expected in September. The ECB and BOE are expected to cut rates in June, assuming energy prices remain stable. The market is uncertain, and the impact will depend on the reaction of Israel, the US, and Iran.
#WallStreet #FinancialMarkets #Iran #Israel #OilPrices #SafehavenAssets #Bitcoin #StockMarkets #MiddleEast #Geopolitics #Inflation #InterestRates #Treasuries #Gold #Dollar #EnergyPrices #TankerShipments #FederalReserve #EuropeanCentralBank #BankOfEngland
Americans fear the end: Economic collapse looms largest on the nation’s mind, potentially costing Biden the presidency
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A poll by Ipsos' Consumer Tracker reveals that a third (33%) of Americans fear the end of the U.S. will be the result of a total economic collapse. Other fears include World War III (25%), climate change (19%), another pandemic (12%), and killer robots (2%). Republicans are more concerned about economic turmoil (48%) compared to Democrats (22%) and independents (37%). President Biden's success in the next seven months will depend on the economy's performance and inflationary pressure easing. The U.S. economy is stronger than it may feel to many Americans, but people are still feeling down due to the pandemic and looming recessions. Another concern is the possibility of another worldwide war, which is a concern for 25% of Americans. The next president will have to address these crises and anxieties, including the cost of groceries and less-apparent problems like killer robots.
#EconomicCollapse #UsPresidency #Fears #IpsosPoll
https://fortune.com/2024/04/12/american-armageddon-economic-collapse-biden-presidency-ipsos-poll/
Jamie Dimon says stagflation is real estate’s worst-case scenario: ‘That will filter through the whole economy in a way that people haven’t really experienced since 2010’
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Jamie Dimon, Chairman and CEO of JPMorgan Chase, warns of the possibility of a moderate recession and stagflation in the real estate industry. He highlights that rising interest rates due to persistent inflation could lead to a devaluation of assets by 20%. Dimon explains that if interest rates rise due to a strong economy, it may not be bad for real estate as hiring would increase. However, if stagflation occurs, it would have a negative impact on vacancies, company cutbacks, and leases, affecting the entire economy. He compares this scenario to the one experienced in 2010 after the Global Financial Crisis.
#JamieDimon #JpmorganChase #Recession #Stagflation #RealEstate #InterestRates #Inflation #Economy
Millennial boss of OpenAI challenger says AGI predictions driven by 'very religious' ideals
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Arthur Mensch, CEO of Mistral AI, a French challenger to OpenAI, believes that the predictions of Artificial General Intelligence (AGI) outsmarting humans are driven by a 'very religious' fascination. He disagrees with the idea of AGI becoming a reality and sees it as an attempt to create a god-like entity. Mensch also calls for a light touch to regulations in Europe and believes that AI will fundamentally change how workers do their jobs, creating an urgency for retraining. Mistral AI has raised $113 million in funding and aims to be a European champion in the AI space.
#Ai #Agi #Openai #MistralAi #ArthurMensch #ElonMusk #SamAltman #GeoffreyHinton #DemisHassabis #Europe
Huawei continues its comeback from U.S. sanctions, unveiling a new laptop with a homegrown OS and AI—and an Intel processor
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Huawei, the U.S.-blacklisted Chinese tech giant, unveiled several new products on Thursday, including a new premium AI-capable laptop called MateBook X Pro. The laptop features Intel's Core Ultra 9 processor and uses Huawei's homegrown operating system and AI large language model Pangu. Huawei's return to the premium consumer market is a result of a lifeline from Intel, which received a license from the Trump administration to continue selling laptop processors to the Chinese company. Huawei is also developing its own AI chips and expanding into China's EV sector. The company reported $12 billion in net profit for 2023, a 144% year-on-year increase.
#Huawei #Laptop #Ai #Intel #Processor #HomegrownOs #Pangu #MatebookXPro #UsSanctions #China #EvSector
87% of CEOs Confident in the U.S. Economy, KPMG Survey
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According to a survey by KPMG, 87% of CEOs are confident in the growth prospects of the U.S. economy. The survey featured responses from 100 CEOs from companies with at least $500 million in revenue. CEOs expressed more confidence in the U.S. economy than in their own companies. The CEOs cited newfound stability, a strong labor market, and decreased inflation as factors contributing to their optimism. They also expect to increase their organization's headcount and are leveraging generative AI to fill workforce gaps. However, geopolitical disruptions and upcoming elections are seen as potential threats to the economy.
#Ceo #UsEconomy #Kpmg #Survey #Confidence #LaborMarket #Inflation #Headcount #Ai #Geopolitics #Elections
https://fortune.com/2024/04/11/us-economy-recession-ceo-inflation-consumer-job-market-ai-executive/
Jamie Dimon, Larry Fink, Jeff Bezos and Jerome Powell dined on salmon and ribeye at White House dinner with other business and world leaders
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Jamie Dimon, Larry Fink, Jeff Bezos, and Jerome Powell attended a White House dinner honoring Japanese Prime Minister Fumio Kishida. The dinner aimed to strengthen security and economic ties between the US and Japan. Other notable attendees included Tim Cook, Lisa Jackson, Jon Gray, Neil Bluhm, Arvind Krishna, Masayoshi Son, Ken Kobayashi, Brad Smith, Sanjay Mehrotra, Megan Myungwon Lee, Mark Walter, David McCall, Shawn Fain, Gary Cohn, Albert Bourla, Ted Colbert, David Goeckeler, Robert De Niro, Kristi Yamaguchi, Bill Clinton, Hillary Clinton, Janet Yellen, Jay Powell, Kathy Hochul, and Cecile Richards. The dinner featured a three-course meal with house-cured salmon and dry-aged ribeye steak, paired with wines from Washington state and Oregon. The event focused on defense issues and initiatives to strengthen partnerships and investment in technology. The state dinner for Kishida is the fifth of Biden's presidency.
#JamieDimon #LarryFink #JeffBezos #JeromePowell #WhiteHouse #Dinner #JapanesePrimeMinister #FumioKishida #Security #EconomicTies #TimCook #LisaJackson #JonGray #NeilBluhm #ArvindKrishna #MasayoshiSon #KenKobayashi #BradSmith #SanjayMehrotra #MeganMyungwonLee #MarkWalter #DavidMccall #ShawnFain #GaryCohn #AlbertBourla #TedColbert #DavidGoeckeler #RobertDeNiro #KristiYamaguchi #BillClinton #HillaryClinton #JanetYellen #JayPowell #KathyHochul #CecileRichards
https://fortune.com/2024/04/10/dimon-fink-bezos-jerome-powell-dined/
Small business optimism just hit an 11-year low. 'Will depressed small business owners depress the economy?'
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The National Federation of Independent Business's (NFIB) Small Business Optimism Index fell to 88.5 in March, the lowest level since December 2012. Small businesses employed 61.6 million Americans in 2023 and generate roughly 45% of U.S. economic activity. Small business owners are concerned about inflation, high labor and input costs, and difficulty finding talent. However, the details of the NFIB's survey suggest that the economy is running hot, not cooling rapidly. The net percentage of small business owners expecting higher sales volumes fell to a net negative 18% in March. Despite the pessimism, economist Ed Yardeni believes the U.S. will avoid a recession in 2024 and sees a 'Roaring 2020's' economy with fading inflation and new technologies boosting the economy and markets.
#SmallBusiness #Optimism #Economy #Inflation #LaborMarket
https://fortune.com/2024/04/10/small-business-optimism-low-inflation-recession-ed-yardeni/