Financials

AI Will ‘Destroy Employment in Some Areas’ and Boost Others, Says Top Goldman Economist

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By William Watts ‘It will destroy employment in some areas. There will be parts of the labor markets where tasks can be replaced. And to a degree that is going to result in reduced employment there. But then you’ll also find other ways of innovating and creating more jobs somewhere else.’Jan Hatzius, chief economist, Goldman Sachs That’s Jan Hatzius, chief economist at Goldman Sachs Group, offering his views on the impact that artificial intelligence will have on the jobs market in an interview with CNN. Goldman Sachs (GS) has previously estimated that AI could lead to the automation of as many as 300 million full-time jobs around the world, CNN noted. Hatzius told the cable news channel that AI is “very, very likely” to be a productivity enhancer for the economy. Goldman last year upgraded its long-term forecast for U.S. gross domestic product in part due to expectations around productivity.

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JPMorgan to Hike Dividend After Notching Record Profit — Barrons.com

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By Liz Moyer JPMorgan Chase said Tuesday it would hike its quarterly dividend by 9.5%, its second raise in the past year after notching a record profit for 2023. The bank said its board approved a quarterly dividend of $1.15 a share, up from $1.05 a share. JPMorgan last raised its dividend in October, to $1.05 a share from $1. The company reported net income of $49.5 billion for last year. The announcement arrived on a day when JPMorgan’s stock hit a record high. It also comes as banks push back against proposals to increase the amount of capital they need to hold in case of an economic downturn. JPMorgan CEO Jamie Dimon testified to the Senate Banking Committee in December the proposed increase to capital requirements would have a harmful ripple effect on the economy. The Federal Reserve will publish the results of its annual stress test on the

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Morgan Stanley on The “Great Unwind:” Global Central Bank Balance Sheets

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With rate cuts coming, attention will turn to central bank balance sheets, said Morgan Stanley. The bank laid out in a note where the balance sheets are now and where they are going. Market attention on central bank balance sheets will likely increase this year, including the composition of balance sheets and the form of quantitative tightening (QT), stated Morgan Stanley. For example, the United States Federal Reserve, the Euroepan Central Bank (ECB) and the Bank of Japan (BoJ) will have very different paths forward. While balance sheets may or may not revert to pre-COVID levels, the bank thought they will certainly not revert to pre-GFC (global financial crisis) norms. Morgan Stanley draws four lessons from the cross-country comparison: — QT isn’t the opposite of quantitive easing (QE). QE took place amid market disruptions and widespread slumps in growth; QT is happening with healed markets, amid growth and inflation. With

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Corporate Defaults Are Happening at Fastest Pace Since Financial Crisis, According to SP

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By Joseph Adinolfi Companies around the world are defaulting on their debt at the fastest pace since the global financial crisis as high interest rates and stubborn inflation continue to take their toll, according to a report from S&P Global Ratings. According to S&P, the number of corporate defaults has climbed to 29 since the start of the year, the most highest tally at this point in a year since 2009. While the majority of defaults occurred in the U.S., an uptick in European bankruptcies is alarming analysts. Since January, eight European companies have defaulted, more than double the three defaults that had been seen by this point in 2023. By comparison, 17 defaults occurred in the U.S., slightly less than the 18 seen at this juncture from last year. While the U.S. has seen a plurality of defaults, Europe has seen companies fail to make payments on their debt

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CFRA Keeps Hold Opinion On Shares Of Franklin Resources, Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target price by $2 to $30, valuing BEN shares at 10.5x our FY26 (Sep.) EPS estimate of $2.87, 11.3x our FY25 EPS estimate of $2.65, and 12x our FY24 EPS estimate of $2.50. This compares to BEN’s 3-year average forward multiple of 9.7x and the broader asset management and private equity peer group average of 16.6x. After a 5% revenue decline in FY23, we look for revenues to be flat to up 5% in FY24 and FY25. However, BEN has been acquisitive in recent years and could alter its top line growth trajectory with a deal. We do not, however, foresee much organic revenue growth, as BEN remains beset with asset outflows, like the $17B in FY 23 and $28.6B in FY22. Weighing

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