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140k Tech Jobs Cut. Now what?

140k Tech Jobs Cut. Now what?

Morning Byte Weekly

Keith Andrade
October 20, 2024

🚨 Welcome to Your Morning Byte Weekly Rundown!

Brace yourselves—last week alone saw tech layoffs spike by 160%, with over 140,000 workers getting the boot. Meanwhile, oil prices plummeted by 6%, sending shockwaves through the market. As AI continues to mislead voters and policy changes threaten your next business move, staying informed has never been more crucial. Let’s dive into the chaos together.

💻 Tech Updates

1. Amazon's AI Chips Cut Costs
The Wall Street Journal
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Amazon introduced its Trainium chips, significantly lowering AI expenses. Databricks expanded AI services, AWS generated $1 billion in revenue, and NinjaTech saved $500K per month thanks to these advancements.

📈 Market Insights

1. Aug Job Openings Up
Bureau of Labor Statistics
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Texas saw job openings increase by 69,000, while Florida's hires surged by 94,000. Conversely, California faced 42,000 layoffs, and the overall separation rate declined.

2. TSMC Q3 Revenue Up
Decode Investing AI Assistant
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TSMC reported a 12.8% increase in Q3 revenue, driven by a tripling of AI sales. Margins rose by 4.6%, and the company planned a $30 billion capital expenditure.

3. Morgan Stanley Invests $272M Bitcoin
BeInCrypto
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Morgan Stanley invested $272 million in Bitcoin ETFs, pushing ETF assets to $64 billion. Bitcoin rose by 12% last week, with institutional demand potentially boosting BTC further.

4. Oil Drops 6% This Week
ETEnergyworld
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Oil prices fell by 6%, marking the largest loss of the week. China's slowing growth dampened demand, while OPEC and the IEA lowered their demand forecasts, prompting investors to adjust strategies accordingly.

5. Netflix Shares Near Peak
Bloomberg
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Netflix shares soared by 340%, but Q3 growth declined to 14%. With the P/E ratio at a 32x high, analysts predict flat returns ahead.

6. Imports Fall Big in Sept
Bureau of Labor Statistics
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Imports fell by 0.4% in September. Fuel prices dropped by 7%, while non-fuel imports rose by 0.1%. Lower import costs aided profits.

7. TSMC's AI Revenue Triples
The Wall Street Journal
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TSMC's AI sales tripled this year, with Q3 profit up by 54%. The company invested $30 billion in growth and began trial operations at its Arizona plant.

8. Mining Production Up, Future Down
Wall Street Journal
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Copper production rose, and iron ore shipments increased. However, EV demand declined, and market uncertainty persisted.

9. Goldman Reports 45% Income Jump
Business Insider
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Goldman Sachs beat earnings forecasts, with revenue up by 7%, banking fees jumping by 20%, and net income rising by 45%.

10. BlackRock Reaches Record Inflows
Decode Investing
mbyte.co/nwm

BlackRock reached record net inflows of $221 billion. Its iShares managed $250 billion, Aladdin ACV increased by 15%, and ETFs surpassed $1 trillion in assets.

11. JPM Struggles with Yield Curve
Decode Investing AI Assistant
mbyte.co/e62

JP Morgan saw the yield curve lower income, with regulations creating uncertainty. Fintech competition rose, leading JPM to be cautious with capital.

🏛️ Policy Updates

1. FTC Makes Cancellations Easier
AP News
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The FTC approved the click-to-cancel rule following 16,000 comments. This rule starts in 180 days, making it easier for customers to cancel services.

2. Senators Demand TikTok Safety Docs
NPR
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Senators demanded safety documents from TikTok amid 14 lawsuits alleging the platform knew about child-related risks. This move pushed for stricter safety laws.

3. Lufthansa Fined $4M in Anti-Semitism Case
NBC News
mbyte.co/5dw

Lufthansa was fined $4 million for denying 128 Orthodox Jewish passengers in May 2022. This was the largest DOT civil fine, and the airline implemented stricter policies.

4. $750M for Wolfspeed Chips
AP News
mbyte.co/pcf

President Biden granted $750 million to build two factories in NY and NC, creating 2,000 jobs. The total funds allocated reached $2.5 billion.

5. States Sue TikTok Over Teens
NPR
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95% of TikTok users were under 17. Fourteen states filed lawsuits, citing that time limits cut usage little and algorithms favored beauty standards.

6. Trump Threatens Guard Use
WSJ
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Former President Trump called internal enemies, threatening the use of the National Guard. Operation Aurora targeted gangs, and strengthened security policies were expected.

🔄 Industry Trends

1. Tech Hiring Drops 160%
Fortune
mbyte.co/xqj

The tech industry laid off 140,000 workers, with software jobs dropping by 160%. Students turned to small businesses, and the broader market offered new paths.

🚀 Emerging Tech

1. AI Images Misled Voters
NPR
mbyte.co/ksp

Millions of views on X featured AI-generated images that misled voters. Politicians misused AI, fueling polarization.

2. Amazon, Google Invested in Clean Nuclear
AP News
mbyte.co/o8b

Amazon and Google invested in Small Modular Reactors (SMRs), aiming to power data centers with clean nuclear energy by 2030. These SMRs supported AI operations.

3. Apple Vision Pro Saved Surgeons
AppleInsider
mbyte.co/76e

Apple's Vision Pro was used since February worldwide, helping surgeons reduce pain and preventing 20% from early retirement. The device was priced affordably at $3,500.

4. Predicting Unicorns with Smart Tech
Fast Company
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TRAC ranked as the top VC fund by identifying startups likely to soar by combining AI with expert insights, thereby boosting investor success rates.

5. Starship’s Booster Catch Success
The Verge
mbyte.co/dqz

SpaceX achieved a historic booster catch with Starship, redesigning the heat shield effectively. The FAA approved fast launches, making Super Heavy reusable soon.

6. Tesla Robots Needed Humans
The Verge
mbyte.co/yeb

Tesla's robots mimicked human behaviors, with humans remotely controlling each bot's unique voice. Full autonomy had not yet been achieved.

📣 Final Roundup

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