Risk Management
AI surpasses geopolitics as the biggest business risk in CEOs' eyes
A quarterly survey released by The Conference Board on Thursday shows that for the first time, CEOs view artificial intelligence as the biggest risk, with its threat level exceeding geopolitical turmoil, cyber intrusions, and financial and economic instability. At the same time, the proportion of CEOs planning to increase capital expenditure jumped from 22% in the previous quarter to 35%, and the CEO confidence index also rose to its highest level since the first quarter of 2025.
Fed cuts interest rates by 25 basis points, predicts only one cut in 2026
The Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 3.5%-3.75%, despite opposition from three officials. The latest economic projections suggest only one rate cut in 2026, with core PCE inflation expectations lowered to 2.5% and economic growth expectations raised to 2.3%. Chair Powell emphasized rising downside risks to the labor market.
US job openings rise to five-month high in October, hiring activity slows
Data released by the US Bureau of Labor Statistics on Tuesday showed that job openings rose to their highest level in five months in October, but hiring activity slowed, indicating signs of cooling in the labor market. Healthcare, retail, and wholesale trade industries pushed up the total number of job openings. Meanwhile, the quits rate fell to a near three-year low, increasing expectations of a Federal Reserve interest rate cut.
EY survey: Enterprise AI investment is growth-oriented, layoffs are not the primary goal
An EY survey released Tuesday found that among companies investing in artificial intelligence, only 17% have reduced their workforce due to productivity gains from AI. In contrast, more companies are reinvesting AI benefits into new AI capabilities (42%), cybersecurity (41%), R&D (39%), and employee upskilling (38%). Dan Diasio, EY's global consulting AI leader, noted that the data challenges the common narrative that "AI primarily replaces labor," as companies shift from a productivity mindset to a growth agenda.
Trump Promises to Sign Executive Order to Unify State AI Regulations
U.S. President Trump said on Monday that he will sign an executive order this week aimed at promoting a nationwide "unified rules" approach to regulating artificial intelligence technology. This move comes as U.S. companies face increasingly fragmented AI regulations across states. The White House declined to comment further, and National Economic Council Director Kevin Hassett said the order would help companies clarify the "rules of the game." Florida Governor DeSantis criticized the plan, arguing that an executive order cannot preempt state legislation. Previously, industry groups' efforts to push Congress to pass legislation had failed, and related disputes have recently intensified, leading to divisions within the Republican Party.
Stable Inflation Strengthens Expectations for Fed Rate Cut in December
Data from the U.S. Bureau of Labor Statistics shows that the core personal consumption expenditures price index rose 0.2% month-over-month and 2.8% year-over-year in September, with inflation holding steady. Analysts believe this provides a basis for the Federal Reserve to cut rates by 25 basis points on December 10, but there are divisions within the Fed regarding the policy path.
ADP Report: Private Sector Cuts 32,000 Jobs in November, Fed Rate Cut Expectations Rise
The ADP employment report shows that the U.S. private sector saw a net loss of 32,000 jobs in November, with small businesses cutting 120,000 jobs and large businesses adding 90,000. Wage growth slowed, with pay increases for job switchers falling to 6.3%. Federal Reserve officials are divided over whether to cut rates at next week's policy meeting, with market expectations for a rate cut rising to 89%.
Outgoing PCAOB Board Member Calls for 'Common-Sense Audit Regulation'
PCAOB board member Christina Ho announced on Tuesday that she will not seek reappointment, with her term having ended on October 24. She urged future board members to adhere to 'common-sense audit regulation' and noted that during her tenure she acted as a 'credible independent dissenter' in blocking certain potentially harmful rules. Ho will step down on January 31, 2025, or upon the SEC appointing a successor.
Costco sues Trump administration to return tariffs, citing 'imminent' harm
Warehouse retailer Costco filed a lawsuit on Friday with the U.S. Court of International Trade, alleging that tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) are illegal and demanding a full refund of paid duties. The complaint emphasizes that because customs 'liquidation' procedures for some imported goods could be completed as early as December 15, 2025, the company faces 'imminent and irreparable harm' if legal action is not taken promptly.
U.S. Manufacturing Contracts for Ninth Consecutive Month, New Orders Continue to Decline - ISM Report
The ISM manufacturing PMI fell to 48.2%, remaining in contraction territory for the ninth straight month. New orders declined for the third consecutive month, employment contraction accelerated, and tariff and policy uncertainty suppressed export demand. Meanwhile, manufacturing activity in New York state unexpectedly accelerated, and S&P Global reported output growth, but high inventories and profit pressures suggest deeper concerns. Federal Reserve officials hinted at possible interest rate cuts to support the economy.