Tackling World Economics in Uncertain Times | Weekly Business Briefs w/ Martin Perdomo

Strap in as we navigate some of the stormiest financial waters we've seen in decades, guided by the sobering prognosis of JPMorgan Chase CEO Jamie Dimon. As we pull back the curtain on a world grappling with escalating wars, skyrocketing national debt, and the looming threat of high inflation and interest rates, your understanding of the global economic landscape will be fundamentally transformed. Alongside discussions about the multi-faceted impacts of current geopolitical tensions on international trade, we'll also dissect JPMorgan's robust third-quarter profits and what they signify in these uncertain times.

But the turbulence doesn't end there. We're also dissecting the surprising pivot from Philadelphia Federal Reserve President Patrick Harker, who's calling for a halt in rising interest rates. With in-depth analysis on this monetary policy U-turn and its potential repercussions on the economy, we're arming you with valuable insights for navigating these economic roller-coaster rides. Then, we shift gears to grapple with the unsettling trend of job cuts at LinkedIn, even as the company grows exponentially. We'll explore the role AI might be playing in this and its implications for the future of work. This is one journey you can't afford to miss.

Transcript

Speaker 0: 0:00

JPMorgan Chase CEO Jamie Dimon warns this is the most dangerous time for the world in decades. Philadelphia Fed President Patrick Harker wants interest rates where they are and LinkedIn lays off hundreds of employees for the second time this year. These are the top three headlines in this week's weekly business briefs. First up this may be the most dangerous time the world has seen in decades, said Jamie Dimon, ceo of JPMorgan Chase. According to CNBC, jpmorgan Chase delivered strong profits for the third quarter, along with the Stern warning Friday from his top executives About the pearls the world faces from multiple threats. This may be the most dangerous time the world has seen in decades, ceo Jamie Dimon said in a statement that accompanied the bank's earnings news release.

Speaker 0: 0:40

The head of the US's largest bank bi-assets cited the ongoing war in Ukraine, as well as the attacks on mass launch in Israel last weekend that he said may have far reaching impacts on energy, food markets, global trade and geopolitical relationships. Beyond the military conflicts, dimon cited the ongoing national debt, the largest peacetime fiscal deficits ever and the quote that he said are rising the risk that inflation and interest rates remain high. Dimon recently has said he has been warning clients about the possibility that interest rates may not only stay elevated but also could rise significantly from here. This is not good interest rates continuing to go up, along with now two wars in different parts of the world and potentially additional countries joining. On this world, you got Israel and Gaza, iran threatening that if Israel goes in the ground and occupies Gaza, that they're going to join this war. You got on the other side of the border for Israel. You got the Lebanese Hezbollah, which is another terrorist group, attacking Israel. So it's just interesting time what's happening around the world right now with all these wars and the financial market. So we just have to be prepared and make sure we're listening and preparing for ourselves and our family accordingly.

Speaker 0: 2:01

Next up, philadelphia Federal Reserve President Patrick Harker said Friday he thinks the central bank can stop raising interest rates. Hallelujah, sir, a stark turn in what I see, the data and hear from contacts. I believe that we are at the point where we can hold rates where they are, harker said in a prepared remark for the Delaware State Chamber of Commerce look, we did a lot and we did it very fast as a voting member this year on the rate set link federal open market committee. Harker's words carry extra weight as policymakers contemplate their next steps forward. Though his remarks align with what several other officials said recently, they are perhaps the most explicit endorsement yet of a halt to rate hikes. The Fed's has rates its benchmark-smarring rate 11 times since March of 2022, totaling 5.25% points.

Speaker 0: 2:58

In September, the FOMC chose to hold rates steady as members differed over where inflation is headed. In recent days, multiple Fed officials have cited tightening financial conditions, bought on by the Surgeon Treasury yields, as helping the Central Bank in its quest to slow the economy and bring down inflation. However, harker did not rely on the market moves, but instead said the Fed simply has made substantial progress in bringing down prices without causing a surge in unemployment or otherwise tanking the economy. He said it can now watch the impact that its rate hikes are having and use incoming data as its guide to where policy needs to go. I think that's a wise move, sir, and that is a man that's finally thinking. Let some of these rate hikes that the Fed's, that you guys, have already done, cycle through the market. Let it cycle through. We're starting to feel some of that pain right now. You've slowed down real estate. You've slowed down a lot of things, the car market. You've slowed down a lot of areas in the economy. Let that thing cycle through before you continue to raise interest rates.

Speaker 0: 4:25

Lastly, linkedin is laying off on about 668 employees across various teams, the Microsoft-owned company announced on Monday. According to the Verge, it's the second time LinkedIn announced cuts this year. It laid off 716 employees in May, saying at the time that the move was meant to reorganize for greater agility and growth. This time, the cuts are about streamlining our decision making. According to LinkedIn statement, microsoft also announced multiple rounds of layoffs recently, including 10,000 positions it eliminated at the start of this year. Linkedin, for its part, is growing. Its revenue surpassed 15 billion for the first time the last fiscal year, and there have been numerous headlines recently about its resurgence. Like nearly every tech company these days, linkedin has been aggressively leaning into AI this year, putting out tools for generating profiles and job descriptions and AI-powered conversation starters. It's also rumored to be developing an AI job coach. Wow, that's interesting. What do you think? Do you think AI had something to do with these recent layoffs? What are your thoughts? And this has been your weekly business brief. I'll see you guys next week. Peace.