Marketplace Morning Report

Nobel laureate Joel Mokyr discusses how technological advancements can drive economic growth, provided institutions keep pace. He emphasizes that failing institutions can stifle progress and warns about the risks of rapid change. Mokyr also highlights AI's potential as a valuable research tool, rather than a threat to jobs. Additionally, recent bankruptcies in private credit markets raise alarming questions about overall financial stability, with concerns about hidden risks linked to major banks.

Greece is debating a controversial bill that could extend the workday to 13 hours, sparking widespread strikes from labor unions. Amid high debt and rising inflation, workers fear for their rights. Meanwhile, Japan's largest tech show showcases innovative AI solutions aimed at addressing both workplace demands and an aging population. Exciting prototypes, including pocket AI companions, hint at the future, yet uncertainty looms over their market release. Economic indicators reveal shifts globally, influencing industries from France to China.

Nearly 250,000 Chinese students are in the U.S. this fall, reflecting a 36% drop since 2017. Geopolitics and inflation are making American universities less appealing, although they remain a top choice. Chinese families are considering backup options in the UK, Hong Kong, and Canada. Meanwhile, U.S. tariffs of up to 39% threaten Swiss exports, raising costs for American patients and impacting Swiss jobs. This complex interplay of education and trade highlights shifting global dynamics.

As the government shutdown lingers, federal employees aren’t the only ones feeling the pinch—contract workers face significant financial uncertainty with no guarantee of pay. Meanwhile, new tariffs have been rolled out affecting lumber and furniture imports, hitting markets hard. Despite a decrease in overall merger activities, large companies are striking mega-deals, drawn by lower risks and strategic advantages. Experts weigh in on the implications of these high-stakes corporate moves and their potential impact on mid-sized firms.

Chief executives are being advised to prepare for cyberattacks by reverting to pen and paper strategies after escalating incidents cost companies millions. The U.K. has reported a surge in serious cyber breaches impacting major brands. Meanwhile, U.N. discussions on greener shipping are facing obstacles, and Swiss businesses are reeling from a shocking 39% tariff imposed by the U.S., which could lead to higher costs for medical devices and ultimately affect U.S. patients.

The discussion kicks off with the Pope's urgent call to combat poverty and inequality, directly challenging mainstream economic principles. Anna Rowlands highlights the church's longstanding focus on these issues, emphasizing that poverty should not be accepted as inevitable. The conversation shifts to Nobel Prize-winning research that explores the relationship between economic growth and technology, raising important questions about education and the evolving job market. Also featured are Trump’s efforts to stabilize markets amidst rising tensions with China.

The recent Nobel Prize winners in economics delve into the dynamics of technological innovation and its impact on economic growth. The discussion highlights how these scholars examine the historical shifts that shaped economies, like those during the Industrial Revolution. It also touches on the importance of policy in fostering innovation amid AI disruptions. Meanwhile, changes to SNAP eligibility spark concerns about tight deadlines for states, raising questions about support for families and local economies.

Trade tensions heat up as China defies U.S. tariffs with a surprising increase in exports. Conversations reveal China’s strategic pivot to new markets and investments in renewable energy, showcasing its resilience. Meanwhile, Nigeria's shea nut industry faces challenges from export bans affecting local women and traders. The episode highlights how global trade dynamics are shifting, alongside China's call for predictable relations with the U.S.

The impact of government shutdowns on tribal nations is highlighted, revealing severe disruptions to health services and food aid. Experts explain the federal trust responsibility that exacerbates these challenges. Meanwhile, a Las Vegas waiter shares firsthand experiences of an economic slowdown, detailing canceled conventions and reduced tips. He reflects on how immigration crackdowns affect families and the local workforce, leading to abandoned properties and decreased spending. The interconnectedness of these issues paints a vivid picture of struggle amid changing economic landscapes.

The U.S. tourism industry, valued at $2.9 trillion, faces challenges amid changing border policies. Las Vegas reports a 6.7% decline in visitors, with fears stemming from anti-immigrant rhetoric affecting international travel. Canadian tourists are notably absent, impacting local businesses reliant on their patronage. Additionally, proposed tariffs threaten coffee prices and supply chains. Meanwhile, the U.S. has enacted a $20 billion bailout for Argentina, highlighting global economic intertwining. The outlook suggests this downturn may be temporary rather than a fundamental collapse.