A historic labor shock may be about to hit the job market. That's according to London Business School professor Ekaterina Abramova.She said AI is advancing so quickly that it could trigger mass layoffs long before new jobs emerge to replace them — a mismatch that has historically fueled social unrest. Abramova, who studies technology-driven economic transitions, said the past three years of AI advances mark a sharp break from earlier waves of mechanization.In past eras — from 18th-century textile automati ...

Core Insights - The One Big Beautiful Bill Act, signed into law on July 4, will have significant market implications starting in January, particularly benefiting cyclical sectors outside of tech and AI [1] Beneficiary Categories Defense Beneficiaries - General Dynamics Corp (GD) is positioned for defense modernization funding under the OBBBA - L3Harris Technologies Inc (LHX) will benefit from investments in advanced defense systems - Northrop Grumman Corp (NOC) is well-placed for missile defense and space programs - Huntington Ingalls Industries (HII) is supported by naval modernization initiatives [7] Capex Incentive Beneficiaries - United Rentals Inc (URI) is set to gain from increased construction activity - Jacobs Solutions Inc (J) will benefit from infrastructure upgrades - Trimble Inc (TRMB) aligns with manufacturing investment pushes - Caterpillar Inc (CAT) benefits from accelerated depreciation incentives - Cummins Inc (CMI) is supported by R&D expensing and industrial investment [11] Small and Midsize Enterprises & Private Market Beneficiaries - Citizens Financial Group (CFG) is positioned for expanded credit demand - KeyCorp (KEY) is set for higher loan growth and tax relief for small businesses - Wells Fargo & Co (WFC) aligns with increased funding flows from OBBBA - Apollo Global Management (APO) benefits from tax-efficient deal structures [11] Consumer Beneficiaries - Ralph Lauren Corp (RL) will benefit from higher disposable income among affluent households - Ulta Beauty Inc (ULTA) is positioned for a boost in discretionary spending - Apple Inc (AAPL) benefits from increased high-income spending and a favorable tax environment - Costco (COST) is well-positioned to capture incremental consumer spending from tax relief [12][11] Energy Policy Beneficiaries - Exxon Mobil Corporation (XOM) benefits from expanded drilling rights under OBBBA - ConocoPhillips (COP) is positioned for lease expansions in Gulf and Alaska [13]

Core Points - TikTok has reached a deal with investors to form a new joint venture for its US operations, following a law that required its owner, ByteDance, to divest or face a ban due to being classified as a "foreign adversary-controlled" company [1][3] - The new joint venture will operate independently in areas such as US data protection and content recommendation algorithm training, while still being connected to TikTok's global business lines like e-commerce and advertising [2] - The deal comes after a lengthy legal battle, where TikTok argued that the divest-or-ban law violated the First Amendment, but the Supreme Court upheld the law [3] Financial Aspects - The sale of TikTok's US operations is valued at around $14 billion, as approved by an executive order signed by President Donald Trump [4] - The buyer group is expected to include "four or five world-class investors," with Oracle and Larry Ellison mentioned as part of the deal [4]

Core Points - President Trump signed an executive order to reclassify marijuana as a Schedule III drug, easing some federal restrictions and allowing for more research opportunities [1][3] - The reclassification is aimed at addressing the medical needs of individuals suffering from extreme pain and incurable diseases, positioning marijuana as a substitute for opioid painkillers [2][4] - Marijuana stocks experienced a surge in value following rumors of the executive order prior to its announcement [3] Industry Impact - The reclassification could provide tax relief for marijuana businesses in states where the substance is already legalized, potentially boosting the industry [2] - Trump's campaign for a third term in 2024 indicates a shift towards a more favorable stance on marijuana, suggesting future legislative support for the industry [4][5] - The executive order does not fully legalize marijuana but represents a significant step towards more lenient regulations, which could enhance market conditions for marijuana-related businesses [1][4]

Core Viewpoint - Nasdaq plans to submit paperwork to the SEC for approval of around-the-clock stock trading for 23 hours a day, potentially disrupting the traditional trading hours established since the 1980s [1] Group 1: Pros of 23-Hour Trading - The initiative could democratize markets and enhance accessibility for traders outside the US, particularly those with standard 9-5 jobs [4] - José Torres from Interactive Brokers highlights that extended trading hours would allow for real-time reactions to overnight events, benefiting a broader demographic [5] - Bob Lange from Explosive Options supports the move, suggesting it will encourage more individuals to participate in trading [5] Group 2: Cons of 23-Hour Trading - Concerns exist that the trading environment may favor institutional players like hedge funds and quant firms, who possess advanced tools for rapid trading [6] - Michael Ashley Schulman warns that retail investors may face challenges in the thinner overnight market, leading to unpredictable price movements [6] - Louis Navellier expresses concerns about potential market manipulation by short sellers and overseas markets after regular trading hours [8] Group 3: Competitive Landscape - Nasdaq's push for extended trading hours appears to be a response to competition, as Robinhood has already implemented 24-hour trading for certain stocks, and the NYSE has filed for a 22-hour trading day [9]

Economic Overview - US stocks experienced a significant rise following a cooler-than-expected inflation report, with consumer prices increasing by 2.7% year-over-year, lower than the anticipated 3.1% [1][5] - The latest Consumer Price Index (CPI) data is viewed as a positive development for the market, which has been under pressure due to high valuations and concerns regarding the AI sector [4] Tech Sector Performance - The tech sector rebounded after a period of weakness, with chip stocks, particularly Micron Technology, seeing a notable increase of up to 14% following strong earnings and robust guidance [2][8] - Micron reported $13.6 billion in revenue, surpassing Wall Street's expectation of $12.8 billion, and projected $18.7 billion in revenue for the current quarter, exceeding the $14.2 billion forecast by analysts [7][8] Federal Reserve Outlook - The combination of cooler inflation and a weaker job market has increased the likelihood of the Federal Reserve continuing its rate-cutting cycle, with expectations for a potential 25 basis point cut by March [5][6] - Analysts suggest that the latest CPI reading indicates the Fed may be ahead of its inflation targets for the upcoming year, supporting a narrative that job market risks are rising faster than inflation risks [6][7]

Core Insights - The concept of unicorns, defined as tech startups with a valuation of $1 billion, has evolved into the notion of hectocorns, which are valued at over $100 billion [1][2] Group 1: Industry Evolution - The emergence of hectocorns marks a significant shift in the tech startup landscape, with companies like OpenAI and SpaceX leading this new valuation standard [1] - The number of companies achieving hectocorn status is small but increasing, indicating a trend towards higher valuations in the tech sector [1] Group 2: Potential New Entrants - Waymo, a self-driving robotaxi startup owned by Alphabet Inc., is reportedly in discussions to raise billions in funding, which could elevate its valuation beyond $100 billion [2] - The article mentions seven startups that have already achieved hectocorn status, highlighting the growing exclusivity of this valuation tier [2]

Core Insights - The article provides an overview of the daily routine and leadership philosophy of Stacey Kennedy, the US CEO of Philip Morris International (PMI), highlighting her extensive experience within the company and her focus on innovation and strategic planning. Group 1: Leadership and Experience - Stacey Kennedy has been with PMI since 1995, holding various positions before becoming the US CEO in January 2023 [1][2] - She has spent half of her career in the US and half internationally, indicating a broad understanding of global markets [3] Group 2: Daily Routine - Kennedy starts her day early, focusing on personal well-being to enhance her leadership effectiveness [4][5] - Her mornings are filled with meetings and strategic planning, emphasizing the importance of innovation and urgency in the business [7][8] - The office environment is designed to foster collaboration, featuring open spaces and coffee corners [7] Group 3: Strategic Focus - PMI is actively involved in regulatory matters, working with policymakers to ensure adult smokers have access to better alternatives [8] - The company is expanding its manufacturing capabilities with a flagship factory in Owensboro, Kentucky, and a new factory in Aurora, Colorado [8] Group 4: Meeting Management - Kennedy's calendar is typically scheduled a year in advance, with fixed global management team and board meetings [9] - The company employs P.O.D.D. meetings to address issues and seize opportunities effectively [10] Group 5: Personal Insights - Kennedy emphasizes the importance of gratitude practices to maintain a positive perspective amidst a demanding job [16] - She maintains a Mediterranean-style diet and prioritizes family time, reflecting a balance between work and personal life [17][18]

Core Insights - Amazon has withdrawn funding from Fermi America's significant data-center project, leading to a substantial drop in the developer's stock price [1][2] - Fermi America is developing an 11-gigawatt data-center campus in Texas, which aims to meet the increasing energy demands driven by the AI boom [8] Company Developments - Fermi's stock fell nearly 50% after a securities filing revealed the cancellation of a $150 million advance for construction, following the end of an exclusivity period [2] - The CEO of Fermi, Toby Neugebauer, confirmed that Amazon was the prospective tenant and that negotiations were ongoing, with the deal potentially worth over $20 billion over 20 years [3][6] - The project, known as Project Matador, relies on a 99-year ground lease with the Texas Tech University System, contingent on a signed letter of intent with a tenant [9] Financial Context - Fermi America went public in September, pricing shares at $21 and raising over $680 million, but its valuation has since dropped from nearly $14 billion to below $6 billion due to recent stock performance [8][12] - Analysts noted that the anchor tenant attempted last-minute changes to the agreement pricing that were deemed unacceptable by Fermi [10] Market Position - Fermi's project is among the most ambitious efforts to address the energy needs of data centers, with plans to bring 11 gigawatts of new power online over the next decade from various sources [8] - The company is reportedly in discussions with additional tenants, indicating ongoing interest in the project despite the setback with Amazon [11]

Core Insights - Warner Bros. Discovery (WBD) rejected Paramount's $30-per-share offer and advised shareholders to accept Netflix's bid of $27.75 per share, citing superior value and certainty [2] - The bidding war revealed significant behind-the-scenes dynamics, including offers made to WBD's CEO David Zaslav and the involvement of multiple bidders [3][7] Group 1: Bidding Dynamics - David Ellison attempted to leverage his influence by requesting a meeting with WBD's CEO after a rejected bid, but WBD expressed concerns about the bid's reliance on a revocable trust [3] - Paramount offered Zaslav a compensation package worth over $500 million and the position of co-CEO and co-chairman, which Netflix did not [4][5] - A previously unknown bidder, referred to as "Company C," proposed acquiring WBD's cable channels and 20% of its streaming and studio businesses for $25 billion in cash, speculated to be Starz [7][8] Group 2: Financial Implications - Major investment banks, including Allen & Co., J.P. Morgan, and Evercore, stand to earn a total of $225 million from the potential sale to either Netflix or Paramount [9] - The media and telecom M&A deal value increased by 61% in the past year, indicating a strong investor appetite for valuable intellectual property [10] Group 3: Regulatory Considerations - The Ellisons' bid included $24 billion from Middle Eastern sources, raising concerns but not deemed a dealbreaker by WBD [11] - Both Paramount and Netflix argued their bids would pass regulatory scrutiny, with WBD's board not considering regulatory risk as a significant differentiator between the two proposals [12][14]