Squawk on the Street SOTS 2nd Hour: AI Arms Race, Tariffs Hit Prime Time, Big Banks Downgraded 7/8/25
Jul 8, 2025
Ron Kirk, former U.S. Trade Representative, shares his insights on how recent tariffs might affect Amazon's Prime Day sales and broader trade relations. Deirdre Bosa, CNBC's tech reporter, discusses Meta's strategic poaching of talent from Apple, particularly an AI researcher, signaling fierce competition in the tech sector. They dive into the impact of these dynamics on market perceptions and the banking sector, especially following downgrades of major banks ahead of earning reports. This lively conversation reveals critical intersections between trade, technology, and market behaviors.
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Tariffs Are Mild Economic Seasoning
- Tariffs are viewed as "just a little seasoning" in the economic mix, likely to be somewhat absorbed rather than causing acute pricing shocks.
- The U.S. economy's service orientation and digital dominance help mitigate the impact of tariff hikes on overall margins and pricing.
Tariffs More Political Than Strategic
- The current U.S. tariff policy is more performative and politically driven than strategic or effective.
- Such broad, aggressive tariff threats create uncertainty and damage trust with trading partners, who question the U.S. commitment to deals.
Meta Leads AI Talent Wars
- Meta's AI hiring spree targets superintelligence and AGI, more aggressively than Apple's stalled AI efforts.
- Competition for AI talent is intensifying, with Meta positioning itself as the frontier leader in AI research and application.