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☆ The creator of a famed recession indicator says the Fed is 'playing with fire' by not cutting rates now
▼ + stars: | 2024-06-21 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Read previewThe Federal Reserve's reluctance to lower interest rates in the near term is a risky gamble that could drive the US towards a recession, Claudia Sahm told CNBC. "But it's a real risk, and I do not understand why the Fed is pushing that risk. At current readings, that likely means just one rate cut in 2024, the Fed said. For this reason, Sahm told CNBC that the Fed should start a gradual cutting cycle now, and take the economy off a path that could require more severe action if not addressed. Markets, meanwhile, remain convinced that the Fed will follow with more than just one cut.

Persons: —, Claudia Sahm, I'm, Sahm, Mohamed El Organizations: Service, CNBC, Business

☆ AI is replacing human tasks faster than you think
▼ + stars: | 2024-06-20 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

That’s in addition to creative tasks for which some businesses are already relying on ChatGPT and other AI chatbots to assist, including crafting job posts, writing press releases and building marketing campaigns. The findings show companies are increasingly turning to AI to cut costs, boost profits and make their workers more productive. Nearly 60% of all companies (and 84% of large companies) surveyed said that over the past year they have already leaned on software, equipment or technology including AI to automate tasks employees previously did. Bosses are turning to AI for a variety of reasons, including to trim what they are spending on human workers. Human jobs will be replaced — but will be replaced by other humans using AI,” he said.

Persons: ” Duke, John Graham, Duke, ”, Graham, “, Reid Hoffman, ” Hoffman, Janet Yellen, Democratic Sen, Gary Peters, ” Graham Organizations: New, New York CNN — Corporate, Duke University, Federal Reserve Bank of Atlanta, ”, CNN, Survey, Atlanta Fed, LinkedIn, Democratic, Homeland Security, Government Affairs Committee Locations: New York, That’s, ChatGPT

☆ It might be your fault you can't afford a house, says finance guru Dave Ramsey
▼ + stars: | 2024-06-18 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

Read previewBuying a house has become especially hard, but some people can't afford one because they're mismanaging their money, personal finance guru Dave Ramsey says. "It is mathematically tough right now, it is economically tough. Overspenders can't complainDespite those challenges, the talk show host and author called out people who make bad financial decisions and then complain they can't afford a house. "Well I just told you why you can't afford a house: Your stinking overspending." "When you are broke and in debt, don't have an emergency fund, and sign up for a mortgage payment you can't afford, that is not smart real estate.

Persons: —, they're, Dave Ramsey, Overspenders, Ramsey, Warren Buffett Organizations: Service, Business, Federal Reserve, Disney

☆ The Fed is 'playing with fire' by not cutting rates, says creator of 'Sahm Rule' recession indicator
▼ + stars: | 2024-06-18 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Economist Claudia Sahm has shown that when the unemployment rate's three-month average is half a percentage point higher than its 12-month low, the economy is in recession. "My baseline is not recession," Sahm said. "The worst possible outcome at this point is for the Fed to cause an unnecessary recession," she added. That's the highest the Sahm reading has been on an ascending basis since the early days of the Covid pandemic. The value essentially represents the percentage point difference from the three-month unemployment rate average compared to its 12-month low, which in this case is 3.5%.

Persons: Claudia Sahm, Sahm, I'm, Jerome Powell Organizations: Exchange, CNBC, Federal, Fed, Bureau of Labor Statistics, Committee

☆ It's the hottest stock in the S&P 500 this month. When the charts say it's time to sell
▼ + stars: | 2024-06-17 | by ( Katie Stockton | ) www.cnbc.com time to read: +7 min

—Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC ("Fairlead Strategies") for informational purposes only. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies.

Persons: AVGO, Katie Stockton Organizations: Broadcom Inc, Nvidia, Fairlead, CNBC Pro, Securities Locations: AVGO

☆ Class action suit alleges Raytheon discriminates against older job seekers
▼ + stars: | 2024-06-11 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

New York CNN —A class action lawsuit filed Tuesday alleges that RTX Corporation, the multinational aerospace and defense systems giant formerly known as Raytheon Technologies, has been discriminating against job seekers who are 40 years or older. The ads that refer to “Recent Graduate Positions” indicate that applicants should either have graduated from college or graduate school very recently or have no more than 12 or 24 months of related work experience. While the positions may be lower level, they are not necessarily low paying, with salary ranges that can run north of $100,000. We believe these claims are entirely without merit and we will actively defend our hiring practices,” company spokesman Chris Johnson told CNN. Between 2019 and 2023, Goldstein applied to at least seven of Raytheon’s recent graduate positions for which he met all the qualifications save those requiring the newness of his degrees or the short duration of work experience.

Persons: RTX, “ RTX, we’re, Chris Johnson, — Mark H, Goldstein, Peter Romer, Friedman, ‘ EEOC, Romer Organizations: New, New York CNN, RTX Corporation, Raytheon Technologies, AARP Foundation, Court, District of, Raytheon, Virginia Human, CNN, US Department of Homeland Security, Commission Locations: New York, District of Massachusetts, Massachusetts, Virginia

☆ 6 sports-betting execs break down the biggest challenges facing the industry and how they're trying to solve them
▼ + stars: | 2024-06-11 | by ( Tiara White | Ashley Rodriguez | ) www.businessinsider.com time to read: +6 min

download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read previewLegal sports betting is becoming more mainstream in the US, and regulators and leagues are starting to scrutinize it more closely. The industry's evolution is creating new challenges in areas like player protection, responsible gaming, and product innovation. "They're really trying to squeeze out as much profit and as much margin as they can, and it's starting to feel that way," Doctor told BI, describing what he considers one of the biggest challenges facing the industry. "When it comes to responsible gaming and responsible betting," she said.

Persons: —, Tucupita Marcano, sportsbooks, Zach Doctor, They're, Joe Maloney, Ashley Cahill, Dave Foppert, DraftKings, Foppert, Christiana Yebra, Max, Yebra, we'll, Mark Nerenberg Organizations: Service, San Diego Padres, Major League Baseball, Business, PNC Bank VP, American Gaming Association, Sports, Netflix

☆ Euro slips to one-month low as Macron calls French election
▼ + stars: | 2024-06-10 | by ( ) www.cnbc.com time to read: +4 min

It was last down 0.24% at $1.0776 as investors weighed the implications of renewed political uncertainty in the euro zone's second-biggest economy in a key election year. "But the exchange rate is still more likely to be influenced by this week's U.S. inflation data and FOMC meeting." The jobs data led traders to once again shift their expectations of when the Fed will cut rates and by how much. Markets are now pricing in 36 basis points of cuts this year compared to nearly 50 bps — or at least two cuts — before the jobs data. U.S. inflation data is also due on Wednesday.

Persons: Emmanuel Macron, Macron, Mansoor Mohi, Uddin, Ryan Brandham, Jerome Powell, Marc Chandler, Sterling Organizations: European Union, Federal Reserve, Bank Of Singapore, European Central Bank, Reuters, North America, Validus Risk, Bannockburn Global, The Bank of Japan Locations: European, Asia, France's, U.S, ., Bannockburn, New York

☆ Bitcoin ETFs bring in a new investor who bucks the 'HODL' culture and rebalances as bitcoin soars
▼ + stars: | 2024-06-08 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

Crypto's culture encourages investors to "HODL," or hold on for dear life, in the rollercoaster ride of bitcoin 's extreme fluctuations. But this long-prized practice may diminish as adoption of ETFs grows, particularly if traditional investors who are accustomed to rebalancing their portfolios regularly add in bitcoin exposure. "From a risk management point of view, rebalancing is a good thing. But rebalancing also means that they're going to be sellers along this journey." At the moment, long-term holders are selling, as is normal during bull markets, after accumulating bitcoin during the bear market.

Persons: Donald Marron, rebalancing, Julio Moreno Organizations: Urban Institute Locations: Austin , Texas

☆ Janet Yellen warns AI in finance poses ‘significant risks’
▼ + stars: | 2024-06-05 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

For instance, Yellen will note that the “complexity and opacity” of AI models could cause problems. The problem is that many AI models operate as a “black box,” meaning their inner workings are impenetrable to outsiders. If Wall Street firms are relying on mysterious AI models, regulators will struggle to understand how safe their systems truly are. Likewise, Yellen will say there is a “concentration” risk linked to the fact that there are only a few companies providing AI models. AI models have a history of making stuff up, often in a convincing way.

Persons: Janet Yellen, Yellen, OpenAI’s ChatGPT, “, ” Yellen, ”, “ We’ve Organizations: CNN, US Treasury Department, Brookings Institution, Treasury, IRS, Treasury Department

☆ It’s hurricane season. Good luck getting affordable homeowners’ insurance
▼ + stars: | 2024-06-01 | by ( Samantha Delouya | ) edition.cnn.com time to read: +6 min

For decades, homeowners insurance was considered a very stable line of business for insurance companies, said Chuck Nyce, a professor of risk management and insurance at Florida State University. The US homeowners insurance industry saw net losses jump to $101.29 billion in 2023, according to the report. Only two of the 20 largest US homeowners’ insurance companies were profitable last year. Kaylee Greenlee Beal/ReutersWhile property insurance is not mandated by law, most lenders require it for mortgage holders. Last year, Florida’s state-backed Citizens Property Insurance Corp. became the 10th largest homeowners’ insurer in the US, S&P Global said.

Persons: it’s, aren’t, Chuck Nyce, Nyce, Mario Tama, ”, Lynne McChristian, policyholders, Greenlee Beal, Aris Papadopoulos Organizations: CNN, P Global, Florida State University, Volunteers, P, University of Illinois, Property Insurance Corp, Florida Locations: States, Arizona , Illinois, Utah, Lahaina , Hawaii, Hawaii, Urbana, Champaign, Florida, California, Louisiana, North Carolina, Texas, Houston, Florida’s

☆ Warren Buffett is worried about potential for 'huge losses' in booming, but still tiny insurance market
▼ + stars: | 2024-05-31 | by ( Kevin Williams | ) www.cnbc.com time to read: +11 min

Cyber insurance has become "a very fashionable product," Jain said at the annual meeting. Shokrai says categorizing how to attribute an event is the topic of much debate between insurance companies. "That is a big debate between insurance companies; it is an important distinction that needs clarity," Shokrai said. "I will tell you that most people want to be in anything that's fashionable when they write insurance. "Probably Warren Buffet would have called cybersecurity insurance an opportunity when he was younger," he said.

Persons: Buffett, Glombicki, Gerald Glombicki, Fitch, Berkshire Hathaway, Chubb, Jain, it's, Warren Buffett, Ajit Jain, Michael Chertoff —, Mark Friedlander, Friedlander, " Friedlander, Monica Shokrai, Warren Buffet, Shokrai, isn't, Josephine Wolff, Steve Griffin, they'll, They're, Charlie, Munger, Griffin, Warren Organizations: Industry, AIG, Berkshire Hathaway's, Berkshire, Homeland Security, Insurance, Google, The Fletcher School, Tufts University, L3 Networks Locations: Fitch Rating's, Berkshire, Omaha, California, . Berkshire

☆ I quit my job at Goldman Sachs to risk it all on a crypto startup. Then the industry crashed.
▼ + stars: | 2024-05-24 | by ( Lauren Crosmedlicott | ) www.businessinsider.com time to read: +8 min

Luckily, Goldman hadn't filled the role, so I started working for them in November 2018. Working at Goldman Sachs would always be limitingI liked working as a trader at Goldman, but it wasn't fulfilling. I slowly realized that working for Goldman or any company, the end goal is limited to possibly being a partner. At the same time all this was happening, Luna Crypto, followed by the crypto market, crashed. AdvertisementThe crypto industry had been decimated, and I'd lost around two-thirds of my savings in cryptocurrency.

Persons: —, Hong, Goldman Sachs, wasn't, Goldman hadn't, There's, I'd, Matthew, Aaron, He'd, Aron, Goldman, Luna Crypto, I, FTX, We're Organizations: Service, Credit Suisse, Business, Amazon, Goldman Locations: Hong Kong, Canada, Barcelona, Singapore, cryptocurrency

☆ A Microsoft under attack from government and tech rivals after 'preventable' hack ties executive pay to cyberthreats
▼ + stars: | 2024-05-22 | by ( Trevor Laurence Jockims | ) www.cnbc.com time to read: +13 min

The decision by Microsoft to link executive compensation to successful cybersecurity performance is another is prompting discussions at other firms. One change the tech giant is making in response: linking executive compensation more closely to cybersecurity. In recent years, many Fortune 500 companies, including Apple, have added bonus pay tied to ESG metrics. The conversations about cybersecurity-linked executive pay have started taking place at other companies since Microsoft made its move, according to Aalap Shah, managing director at executive compensation consultant Pearl Meyer. Madnick's research shows that gaps in corporate culture are often culprits in high-profile hacks, not just the Microsoft example.

Persons: Brad Smith, Charlie Bell, Aalap Shah, Pearl Meyer, It's, I've, Shah, —, Stuart Madnick, Madnick, Ryan Kalember, unavoidability, Jen, Kalember, ransomware, Mike Doonan, Doonan Organizations: Microsoft, U.S, Hill, Google, U.S . Department of Homeland, Initiative, Microsoft Security, Team, Companies, Fortune, Apple, MIT, Infrastructure Security Agency, CNBC, Technology, State Department Locations: China, Russia, cybersecurity, U.S

☆ Family offices become prime targets for cyber hacks and ransomware
▼ + stars: | 2024-05-21 | by ( Robert Frank | ) www.cnbc.com time to read: +3 min

A quarter of family offices surveyed reported suffering a cyberattack in 2023, up from 17% in 2020. With their large wealth and small staffs, family offices have become lucrative targets for hackers and cybercriminals, experts say. Since family offices value efficiency and speed over risk management, he said, today's family offices often don't have adequate technology and planning in place for possible cyberattacks. Less than a third of family offices say their cyber risk management processes are well-developed, according to the survey. Marshall said family offices need to take a more proactive stance on overall assessment that goes beyond cyberattacks.

Persons: Robert Frank, Willie Sutton, Edward Marshall, Marshall, cyberattacks Organizations: Wharton, Family Alliance Locations: cybercriminals, EY U.S, cyberattacks

☆ A stock trader who's up nearly 200% this year shares the filter that finds high-conviction plays, and explains how he doubles down during earnings season using the same process
▼ + stars: | 2024-05-18 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

This time, he stuck to the spot market, both day trading and swing trading. AdvertisementHis next filter is stocks trading above $1 to avoid any really volatile penny stocks. All this is done before the stock market opens. He doubles down with this filter by using it during earnings season as well. He determined that $2.48 was a resistance point based on where selling pressure appeared during the previous month's chart.

Persons: James Hatzigiannis, William O'Neill, Hatzigiannis, Mark, Goverdhan Gajjala Organizations: Service, Nike, Business, BI, Photonics Corp, L3Harris Technologies, Rail, Systems Locations: Chicago

☆ AI is leading to the 'revenge of the liberal arts,' says a Goldman tech exec with a history degree
▼ + stars: | 2024-05-17 | by ( Meghan Morris | ) www.businessinsider.com time to read: +1 min

Goldman's George Lee said AI will empower non-technical workers, including those in risk management. The history major turned tech banker said AI enhances skills like critical thinking, creativity, and logic. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementA longtime tech banker with a history degree says AI could be a boon for non-technical workers. George Lee, the co-head of applied innovation at Goldman Sachs, told Bloomberg Television on Tuesday that he thinks AI will lead to the "revenge of the liberal arts" in the workforce.

Persons: Goldman's George Lee, Banks, —, George Lee, Goldman Sachs, Lee Organizations: Service, Bloomberg Television, Business

☆ Meme stocks extend short-squeeze rally to massive 100%+ gains with GameStop and AMC leading the way
▼ + stars: | 2024-05-14 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

GameStop and AMC Entertainment extended their gains on Tuesday to more than 100%. AMC Entertainment took advantage of the massive rally by selling shares to raise capital. AdvertisementWhat began with a Sunday evening tweet from Keith Gill, AKA Roaring Kitty, has materialized into a massive short-squeeze rally that has taken shares of GameStop and AMC Entertainment up 74% and 78% on Monday alone. Before the opening bell, shares of GameStop and AMC soared as much as 158% and 132%, respectively. The rallies have pushed a massive short-squeeze in the stocks, not unlike the 2021 rally that caught Wall Street short sellers off guard and sank a prominent hedge fund.

Persons: Keith Gill, —, Wall, DataTrek, Nicholas Colas, Colas Organizations: GameStop, AMC Entertainment, Service, AMC

☆ In the rush to adopt AI, ethics and responsibility are taking a backseat at many companies
▼ + stars: | 2024-05-12 | by ( Lakshmi Varanasi | ) www.businessinsider.com time to read: +4 min

Companies are rapidly integrating generative AI technology to boost productivity. AdvertisementCompanies have been racing to deploy generative AI technology into their work since the launch of ChatGPT in 2022. She added that the "demand for AI governance and risk experts is outpacing the supply." "The venture capital environment also reflects a disproportionate focus on AI innovation over AI governance," Singh told Business Insider by email. But with the pace of innovation in AI, government regulations may not be enough right now to ensure companies are protecting themselves.

Persons: —, haven't, Tad Roselund, Nanjira Sam, Navrina Singh, Singh Organizations: Service, Companies, Microsoft, Boston Consulting Group, MIT Sloan Management, Stanford's Institute for, Intelligence, Biden Administration Locations: EU

☆ I worked at SpaceX where Elon Musk was a cubicle away. At Elon's companies, it's add value or leave.
▼ + stars: | 2024-05-08 | by ( Jamie Killin | ) www.businessinsider.com time to read: +8 min

Vincent Peters worked in military compliance when he was poached to work at SpaceX. So I graduated on medical leave, couldn't be deployed, and continued on medical leave for another six months before being discharged. I was introduced to people on the SpaceX Mission team, and ultimately, they asked me to interview with them for a job at SpaceX. AdvertisementThat mentality is how I started working on Starlink. In 2020, I asked to help and was allowed to work on their projects in addition to my work at SpaceX.

Persons: Vincent Peters, —, couldn't, Freddie Mac, I'd, Gwynne Shotwell, I've, it's, It's, We're Organizations: SpaceX, Service, Federal Aviation Administration, US Government, SpaceX Mission, International, NASA, Department of Defense, SpaceX SpaceX, Elon Locations: West, cubicles, Elon

☆ I worked at SpaceX. It was the most ruthlessly efficient company I've ever worked for.
▼ + stars: | 2024-05-08 | by ( Jamie Killin | ) www.businessinsider.com time to read: +7 min

This is an as-told-to essay based on a transcribed conversation with Vincent Peters, founder of Inheritance AI and former SpaceX employee discussing his career path and experience at SpaceX. I was introduced to people on the SpaceX Mission team, and ultimately, they asked me to interview with them for a job at SpaceX. What it's like working at SpaceXSpaceX is the most efficient company I've ever worked for. AdvertisementThat mentality is how I started working on Starlink. In 2020, I asked to help and was allowed to work on their projects in addition to my work at SpaceX.

Persons: Vincent Peters, couldn't, Freddie Mac, I'd, Gwynne Shotwell, I've, it's, It's, We're Organizations: Service, SpaceX, Business, Federal Aviation Administration, US Government, SpaceX Mission, International, NASA, Department of Defense, SpaceX SpaceX, Elon Locations: West, cubicles, Elon

☆ This 'locked-in' risk management advisor gets his followers hyped about 'hammering spreadsheets' and quarterly meetings
▼ + stars: | 2024-05-05 | by ( Camilo Fonseca | ) www.businessinsider.com time to read: +6 min

Davis Clarke, a risk management advisor at Citizens, has gained quite a following on social media. AdvertisementYou don't have to look far on social media to find people who are sick and tired of their office jobs. But one office worker has gained a following for his unabashedly upbeat and positive content. In one video, he's walking through downtown on a Monday morning, ready to start "hammering spreadsheets and chugging waters." Build a social media account and use it to show the world the values he cared about.

Persons: Davis Clarke, Clarke, —, he's, he'll, Tom Ranucci, Ranucci, wasn't, they'll Organizations: Citizens, Service, Citizens Bank, Business, selfies, University of Massachusetts, Amherst, Boston Marathon Locations: Boston, America, Seattle

☆ 'A lot of money on the sidelines': Calamos Investments thinks ETFs should target CD, money market customers
▼ + stars: | 2024-05-04 | by ( Meredith Mutter | ) www.cnbc.com time to read: +1 min

According to Calamos investments' Matt Kaufman, there are trillions of dollars across CD and money market accounts, and it is a market ETFs should look to capture. "That's larger than almost the ETF space itself," the firm's head of ETFs told CNBC's "ETF Edge" earlier this week. Kaufman, who is in the interest rates will stay higher for longer camp, thinks structured and options ETFs designed for risk management and income can provide stability. "We saw it being difficult to get risk management and income from bonds when rates were so low," he said. Kaufman's firm Calamos just started launching a suite of 12 structured protection ETFs.

Persons: Matt Kaufman, Kaufman, Calamos

☆ 'Trader justice': Ex-SocGen trader fired for risky bets claims he was made a 'scapegoat'
▼ + stars: | 2024-05-03 | by ( Karen Gilchrist | ) www.cnbc.com time to read: +3 min

A former Societe Generale trader who was fired for unauthorized risky bets has lambasted the French bank for making him a "scapegoat" and failing to take its share of responsibility for missing the trades. A SocGen spokesperson declined to comment on the post, but provided a statement on the pair's dismissal. Kataria said the trades were auto-booked and a "daily email was sent to the entire group mentioning the trades have been reconciled." "It's very easy for other people to say that we were not aware of the trades done by me," he wrote. "Trading Industry is so big but there are no rules or regulations which fight for trader justice," he said.

Persons: Kavish Kataria, Kataria, SocGen, Kevin Ng, Jerome Kerviel Organizations: Societe Generale, Hong, Financial Times, LinkedIn Locations: Hong Kong, Paris

☆ Federal prosecutors are examining financial transactions at Block, owner of Cash App and Square
▼ + stars: | 2024-05-01 | by ( Gretchen Morgenson | ) www.cnbc.com time to read: +13 min

Cash App, introduced in 2013, allows users to send and receive money instantaneously among themselves and to buy stocks and Bitcoin. As of December, Cash App had 56 million active transacting accounts and $248 billion in inflows during the previous four quarters, the company said. (Merchants are considered customers at Square, while users are considered customers at Cash App.) Cash App is not a bank, but it uses external banking partners to conduct various services. On March 29, Sutton Bank settled a consent order with the Federal Deposit Insurance Corp. that echoed the whistleblowers' allegations.

Persons: Jack Dorsey, Block, Venezuela —, Edward Siedle, Prosecutors, Cash, OFAC, Lawrence Summers, Sharon Rothstein, Summers, Rothstein, Lord Paul Deighton, Goldman Sachs, Deighton, Dorsey, Banks, Sutton, James Booker Organizations: Twitter, Southern, of, NBC, NBC News, Securities and Exchange Commission, Block, Foreign Assets Control, U.S . Treasury, Cash, OFAC, Goldman, Financial Market, Bank of Lithuania, Payments Lithuania UAB, PayPal, Consumer Finance Protection Bureau, Sutton Bank, Federal Deposit Insurance Corp, FDIC Locations: of New York, Cuba, Iran, Russia, Venezuela, Ohio, Sutton

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