LA Wildfire $50 billion loss | Wall Street 200,000 Job Loss to AI | Chinese Money Rushes Offshore

Market Update

• Bitcoin fell below $92,000 per coin, with Both Bitcoin and Ethereum experiencing a daily decline of over 3%.

• Project Liberty announces a formal offer to acquire TikTok U.S.

• Biden plans additional limits on Nvidia AI chip exports.

• Microsoft plans to slash jobs again.

• S&P 500 positive for first 5 day.

• US 30-year fixed-rate mortgage rate hovers just under 7%.

Los Angeles wildfire economic loss estimates top $50 billion

Economic Loss Estimates: The wildfires in Los Angeles have caused economic losses estimated between $52 billion and $57 billion.

Impact on Real Estate: The fires are affecting some of the most expensive real estate in the U.S., with median home values over $2 million in the impacted areas.

Evacuations and Casualties: More than 130,000 people have been evacuated, and at least five people have lost their lives2.

Ongoing Threat: The fires continue to spread, and if they reach more densely populated areas, the economic loss could increase substantially. [Learn more]

Wall Street job losses may top 200,000 as AI replaces roles

Job Cuts Due to AI: Global banks are expected to cut up to 200,000 jobs over the next three to five years as artificial intelligence takes over tasks traditionally performed by humans.

Affected Roles: Positions in the back office, middle office, and operations are most at risk, along with customer service and know-your-customer roles.

Productivity and Profits: AI tools are anticipated to boost bank productivity and profits, potentially increasing pretax profits by 12% to 17% by 2027.

Workforce Transformation: While some jobs will be eliminated, many roles will be transformed rather than completely replaced, leading to a shift in the skills required for banking jobs. [Learn more]

Chinese money rushes offshore via Hong Kong mutual funds

Increased Demand: Chinese investors are rapidly buying Hong Kong mutual funds that invest overseas, especially bonds, following the expansion of a cross-border trading channel.

Sales Quota Lifted: China has increased the sales quota for these funds to 80% of total assets from the previous 50% limit, leading to a surge in subscriptions.

Popular Funds: Funds focusing on U.S. Treasuries and other bonds are particularly popular, with some funds reaching their subscription limits within 24 hours.

Economic Factors: The demand is driven by low bond yields in China, a weakening yuan, and a struggling stock market, prompting investors to seek better returns abroad. [Learn more]

Joke of the Day!

What do you call a sleeping T-rex?

A dino-snore

Generative AI Photo of the Day!