Squawk on the Street SOTS 2nd Hour: Live from Pebble Beach - Citi, IBM CEOs; Plus: Goldman Sachs Chief Economist 11/7/25
Nov 7, 2025
Jane Fraser, CEO of Citigroup, discusses the bank's transformation and AI adoption, noting the risks of exuberance amidst early gains. Arvind Krishna, CEO of IBM, addresses the hype around AI, asserting growth potential while justifying rising investments. David Kelly from J.P. Morgan analyzes weak consumer sentiment and labor dynamics, while Jan Hatsias from Goldman Sachs warns of a struggling jobs market, highlighting looming layoffs and inflation risks. These insights provide a vibrant snapshot of the current economic landscape amid transformative technological shifts.
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Sentiment Near 1970s Lows
- Consumer sentiment has plunged to near 50, the weakest since 2022 and close to 1970s lows.
- Inflation expectations rose short-term while longer-term readings eased, signaling mixed consumer outlook.
Tortoise Economy With Sparkling Markets
- David Kelly calls the economy a 'tortoise' with pockets of strength driven by markets and AI.
- He warns the shutdown and data blackout are depressing sentiment and slowing growth despite no recession yet.
Labor Market Is Softening And Mismatched
- Labor is softening with falling participation and fewer available workers, partly due to lower immigration.
- Businesses struggle to find quality skilled workers, creating a low-demand, low-supply labor market.