Is the AI Boom Real? And Will We See It in This Week’s Jobs Report?
Mar 31, 2024
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Gabriela Santos from J.P. Morgan Asset Management discusses key takeaways from the latest earnings season. LinkedIn's chief economist, Karin Kimbrough, talks about the growing importance of AI in the job market. Santander Bank CEO Tim Wennes addresses the issue of Americans missing out on high interest rates from their savings accounts.
AI is creating a fundamental shift towards increased productivity and automation in various industries.
The labor market is evolving with a growing demand for AI expertise, reshaping job opportunities and skill acquisition.
Deep dives
Earnings Season Highlights Strong Hypercap Tech Earnings and AI Trends
The latest earnings season revealed better-than-expected results and an upward trend for earnings, especially in hypercap tech companies. The focus on artificial intelligence (AI) was prominent, with companies showcasing actual implementations rather than just mentions. The importance of monetizing AI for various industries was emphasized, signaling a fundamental shift in the economy towards increased productivity and automation.
Labor Market Dynamics and AI Impact on Job Seeking
LinkedIn's data indicates a shift in the labor market from tight to looser conditions, with job seekers now competing as employers slow down hiring. The increasing demand for AI expertise is reshaping tech sector hiring, leading to a surge in job postings for AI talent. AI's impact on job opportunities is expected to unfold gradually, with a significant rise in skill acquisition and learning courses supporting this transformative trend.
Savings Trends and Interest Rates in a Changing Economic Landscape
A survey by Santander Bank highlights that most middle-income Americans miss out on higher interest rates due to inertia and perceived complexities. The reluctance to switch savings accounts despite the significant financial gains reflects consumer uncertainty and comfort with existing arrangements. With the Federal Reserve expected to cut interest rates, high rates offered by banks may continue, creating opportunities for savers to benefit from increased earnings.
The latest earnings season is coming to a close and we are looking forward to the next quarter to learn where profits are headed. What have investors learned about U.S. companies and the economy and which sectors should they be paying close attention to? Gabriela Santos, managing director and chief market strategist for the Americas on the Global Market Insights Strategy Team at J.P. Morgan Asset Management, joins the conversation to share her big takeaways from the latest earnings season. Then, we're shifting gears to jobs as we prepare for the monthly employment report expected on Friday. LinkedIn's chief economist, Karin Kimbrough, shares what’s happening with jobs and the growing importance of AI for U.S. employers and job-seekers. Plus, we’re talking savings, or lack thereof. A new report from Santander Bank expected this Tuesday shows that most middle-income Americans are missing out on high interest rates from their savings account. We hear from Tim Wennes, president and CEO of Santander U.S. about why he believes people aren’t switching to high-interest savings accounts and what banks, like Santander, can do about it. How can we better help you take on the week? We’d like to hear from you. Send us an email to takeontheweek@wsj.com.
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