Bank of America CEO Brian Moynihan reassures that recession fears have faded, thanks to effective inflation control by the Biden administration and the Federal Reserve. In other news, the business world mourns former YouTube CEO Susan Wojcicki's passing and Stellantis announces up to 2,450 job cuts. All this and more on the August 12 edition of World Street.
Recession Fears Fade
Bank of America CEO Brian Moynihan announced that the bank no longer expects a recession in the U.S. economy, suggesting that efforts by the Biden administration and the Federal Reserve have successfully stabilized inflation.
"Our research team at Bank of America no longer forecasts a recession," Moynihan stated. "A year ago, the outlook was different." He noted that consumer spending is currently growing at around 3 percent, down from last year's rate. Despite the strain of high interest rates, the overall outlook remains optimistic.
Former YouTube CEO Passes Away
Former YouTube CEO Susan Wojcicki, a pivotal figure in Google's early days, has passed away at 56, as confirmed by her husband Dennis Troper and Google CEO Sundar Pichai in social media posts on Friday evening.
Her husband, Dennis Troper, announced on Facebook, "With deep sorrow, I share that my beloved wife Susan Wojcicki, mother of our five children, passed away today after battling non-small cell lung cancer for two years."
Stellantis Cuts Jobs
Stellantis intends to lay off as many as 2,450 factory workers in the U.S. indefinitely this year. The decision follows the company's plan to end production of an older Ram 1500 model in Michigan, which has served as an affordable option for entry-level buyers and fleet customers since the newer version debuted in 2018.
Record CEO Pay
In 2023, top executives at Britain's largest companies received record-breaking compensation, with nine firms granting packages exceeding £10 million, according to a report. As British workers continue to push for higher wages, the median pay for a CEO in a FTSE-100 company increased by 2.2 percent to £4.19 million last year.
However, the High Pay Centre noted that the pace of CEO pay growth has slowed compared to the previous two years. The research also highlighted that the median CEO earnings in these firms were 120 times higher than that of a typical full-time British worker.
JPMorgan's AI Push
JPMorgan Chase recently introduced a generative AI assistant, LLM Suite, to over 60,000 employees. This AI tool aids in drafting emails and reports as part of a larger strategy to integrate the technology across the company. The bank plans for LLM Suite to become as commonly used as Zoom, according to sources familiar with the initiative.
Marriott Sues Queens Hotel
Marriott International is suing a Queens hotel for $2.6 million, alleging it breached their franchise agreement by turning into a migrant shelter. According to the lawsuit filed last week, the Pride Hotel in Jamaica was set to open as a dual-branded Aloft and Element hotel in November 2024, under a 2015 contract with Marriott.
However, the complaint claims that just before opening, Pride Hospitality Group struck a deal with the city to accommodate migrants and asylum seekers, violating the agreement and forfeiting the right to use Marriott's brand.
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