Welcome back to our Sunday edition, a roundup of some of our top stories. Do you shop before school? We hope you have at least $1000 in the budget. That’s the total cost of nine hot items that Gen Z TikTokers say are must-haves.
But first: Some good news from the west.
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This week’s shipment
Chip Somodevilla/Getty Images; BI
Layoffs are coming
“It’s time to adjust the policy.
With those eight words, Federal Reserve Chairman Jerome Powell virtually guaranteed a rate cut in September, promising to give the market and the economy the relief they’ve long been praying for.
A rate cut in September felt like a sure thing before Powell even took the stage Friday in Jackson Hole, Wyoming. But given how volatile market movements and economic data have been over the past 12 months, nothing feels certain these days.
Powell also avoided directly answering market watchers’ other question: How big will the rate cut be? The favorite odds are the traditional quarter point. But data showing the labor market is starting to collapse has led some to believe a 50 basis point cut could be in the offing.
Still, there is a belief among some that cutting interest rates will not be a good bullet.
A BCA Research strategist said signs continue to point to the economy turning in a way that cuts cannot be fixed, which could threaten the kind of growth scare that rattled markets earlier this month.
And Neil Dutta, who last year dismissed Wall Street’s more general forecast of an impending recession, has reversed his stance. Now he sees the job market going downhill in a way that is not easily reversed.
That makes the next jobs report due out on September 6 all the more important.
Getty Images; Alyssa Powell/BI
Goodbye casual house hunting
Thanks to a rule that went into effect last weekend, prospective home buyers must now sign a buyer’s representation agreement that spells out the terms of their broker’s services and how much they expect to be paid.
The new rule, part of a sweeping legal settlement, promises to fundamentally reshape the housing market. The good news? It can help you save thousands.
What the new rule includes.
Read also:
Amazon; Getty Images; Tyler Le/BI
AI can take over the coding
Software engineers may need to start developing other skills as artificial intelligence automates coding. At least that’s according to Amazon Web Services CEO Matt Garman, who made the comment in a leaked memo obtained by BI.
Garman’s comments were intended as advice rather than a clear warning. But he’s not the first high-profile executive to make this type of prediction. Nvidia CEO Jensen Huang previously said that “everyone is a programmer now” because of the new AI coding assistants.
More on Garman’s advice to his employees.
Read also:
Getty Images; Alyssa Powell/BI
HR technology is terrible
Have you ever entered a PTO request into your workplace management system, only to be completely thwarted by the system’s confusing interface? Has it left you feeling frustrated, like you’ve never used a computer before?
you’re not alone Workplace apps have become miserable, creating a huge waste of time and many headaches. Weaknesses in automation and the priorities of app designers may be to blame.
Behind the hype of terrible technology.
Business Wire/Associated Press
Saudi Arabia wants to buy the world
Saudi Arabia’s public investment fund, led by Crown Prince Mohammed bin Salman, is going global, investing in everything from Uber to LIV Golf. This is part of the country’s efforts to reduce its economic dependence on oil and fulfill its Vision 2030 agenda.
As Saudis continue to put their money abroad, the PIF faces several risks, such as high-profile overseas investments struggling financially. It is still too early to predict how successful its global investments will be.
Inside Saudi Arabia’s Global Investments.
This week’s quote:
“I try to follow the rules quite a bit.”
— James Robart, a federal judge who revealed that he bought and sold Boeing stock while he was litigating a case against Boeing.
More of this week’s best reads: