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Tag: Personnel

  • 4 killed, 6 injured: Florida attorney general investigating deadly incident in Cuba

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    Cuba’s government has accused a group of armed Cubans living in the U.S. of attempting to infiltrate the island and unleash terrorism, following a deadly shootout near Cayos Falcones.The Cuban Embassy in the United States announced that its personnel engaged a speedboat registered in Florida when the boat entered Cuban territorial waters located a little more than 100 miles southeast of Marathon and east of Havana.Speedboat registered in FloridaThe Cuban Ministry of the Interior announced on social media Wednesday afternoon that on Wednesday morning, a speedboat with a Florida registration number of FL7726SH entered Cuban territorial waters.The speedboat approached one nautical mile northeast of the El Pino channel, in Cayos Falcones, Corralillo municipality, Villa Clara province.According to Cuba’s Ministry of the Interior, when border guard troops approached the boat, the crew opened fire, prompting the soldiers to return fire, resulting in four deaths and six injuries.The Cuban government claims to have seized assault rifles, handguns, explosive devices, and Molotov cocktails from the boat.Public records indicate that the boat’s owner resides in Miami Lakes.Men identifying themselves as FBI agents were seen approaching the home and speaking with residents through a Ring camera, as reported by a sister station in Miami. “In the face of current challenges, Cuba reaffirms its determination to protect its territorial waters, based on the principle that national defense is a fundamental pillar of the Cuban State in safeguarding its sovereignty and ensuring stability in the region,” the Cuban Ministry of the Interior said in a statement. “Investigations by the competent authorities continue in order to fully clarify the events.”Florida leaders and representatives respondRick Scott took to X and said a full investigation into this deeply concerning situation was needed. Florida Attorney General James Uthmeier stated on X that he’s directed the Office of Statewide Prosecution to work with the federal, state and law enforcement partners to begin an investigation. “The Cuban government cannot be trusted, and we will do everything in our power to hold these communists accountable,” Uthmeier said.

    Cuba’s government has accused a group of armed Cubans living in the U.S. of attempting to infiltrate the island and unleash terrorism, following a deadly shootout near Cayos Falcones.

    The Cuban Embassy in the United States announced that its personnel engaged a speedboat registered in Florida when the boat entered Cuban territorial waters located a little more than 100 miles southeast of Marathon and east of Havana.

    Speedboat registered in Florida

    The Cuban Ministry of the Interior announced on social media Wednesday afternoon that on Wednesday morning, a speedboat with a Florida registration number of FL7726SH entered Cuban territorial waters.

    The speedboat approached one nautical mile northeast of the El Pino channel, in Cayos Falcones, Corralillo municipality, Villa Clara province.

    According to Cuba’s Ministry of the Interior, when border guard troops approached the boat, the crew opened fire, prompting the soldiers to return fire, resulting in four deaths and six injuries.

    The Cuban government claims to have seized assault rifles, handguns, explosive devices, and Molotov cocktails from the boat.

    Public records indicate that the boat’s owner resides in Miami Lakes.

    Men identifying themselves as FBI agents were seen approaching the home and speaking with residents through a Ring camera, as reported by a sister station in Miami.

    This content is imported from Twitter.
    You may be able to find the same content in another format, or you may be able to find more information, at their web site.

    “In the face of current challenges, Cuba reaffirms its determination to protect its territorial waters, based on the principle that national defense is a fundamental pillar of the Cuban State in safeguarding its sovereignty and ensuring stability in the region,” the Cuban Ministry of the Interior said in a statement. “Investigations by the competent authorities continue in order to fully clarify the events.”

    Florida leaders and representatives respond

    This content is imported from Twitter.
    You may be able to find the same content in another format, or you may be able to find more information, at their web site.

    Rick Scott took to X and said a full investigation into this deeply concerning situation was needed.

    This content is imported from Twitter.
    You may be able to find the same content in another format, or you may be able to find more information, at their web site.

    Florida Attorney General James Uthmeier stated on X that he’s directed the Office of Statewide Prosecution to work with the federal, state and law enforcement partners to begin an investigation.

    “The Cuban government cannot be trusted, and we will do everything in our power to hold these communists accountable,” Uthmeier said.

    This content is imported from Twitter.
    You may be able to find the same content in another format, or you may be able to find more information, at their web site.

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  • German Economy Shows Signs of Revival

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    The German economy may be showing signs of a life after more than half a decade of stagnation.

    Europe’s largest economy has suffered a series of recent blows, including a surge in energy costs after Russia’s full-scale invasion of Ukraine, higher tariffs on its exports to the U.S and fierce competition from China in key sectors such as automobiles.

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    Don Nico Forbes

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  • Rheinmetall Turns to Former Auto Workers to Fuel Hiring Spree

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    Germany’s largest arms manufacturer, Rheinmetall RHM -3.85%decrease; red down pointing triangle, expects its sales will be five times as much as they were last year by the end of the decade. A big factor underpinning its confidence—it is being flooded by job applications.

    The company is now looking to draw from a pool of workers laid off by the car industry and other big employers to fill the roles needed for its expansion plans, its head of human resources operations said.

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    Cristina Gallardo

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  • Canada Plans Wider Deficits to Jolt Economy

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    OTTAWA—Canada said Tuesday it intends to run wider deficits to finance spending and tax measures aimed at unleashing the massive private-sector investments the economy needs to rebuild amid a protectionist U.S.

    To offset some of the elevated costs, Prime Minister Mark Carney’s government said it would cut the size of the federal public-sector workforce by about 5%, or 16,000 jobs.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Paul Vieira

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  • How Venezuela’s Maduro Became Coup-Proof After Years of Military Purges

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    For years, Venezuelans fighting to unseat President Nicolás Maduro have hoped the country’s military would do the job for them. But even with a menacing U.S. Navy buildup currently offshore, the strongman is virtually coup-proof.

    The leftist leader has purged officers accused of conspiring against him, jailing and sending them into exile. The vaunted intelligence service of close ally, Cuba, has worked to identify plots and renegades, with intelligence officers placed in every unit.

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    Juan Forero

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  • CPI inflation report will be released by Labor Department, while other data is delayed by shutdown

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    A large US flag is seen on the facade of the Department of Labor headquarters building in Washington DC, United States on September 8, 2025.

    Celal Gunes | Anadolu | Getty Images

    The Labor Department will bring back staff to work on a key consumer inflation report despite the ongoing federal government shutdown, CNBC has learned.

    The department’s Bureau of Labor Statistics will “promptly resume” work on September’s consumer price index data, a White House official said. The report will come out at 8:30 a.m. ET on Oct. 24, nine days after it was originally scheduled, according to the BLS.

    The department had originally paused work on the CPI report – which tracks a broad basket of goods and services for price changes over time — because of its shutdown plan, the official said. But the Social Security Administration needs third-quarter CPI data for calculating and publishing annual cost-of-living adjustments before Nov. 1.

    Other BLS data releases including the nonfarm payroll report haven’t been published as originally intended since the federal government shutdown due to a lapse in funding. The Senate on Thursday failed to pass funding bills for the seventh time that would have ended the closure, which began last week.

    Bloomberg News first reported that the BLS was calling employees back to work on the CPI data.

    — CNBC’s Steve Liesman contributed to this report.

    Correction: The Social Security Administration needs third-quarter CPI data for calculating and publishing annual cost-of-living adjustments before Nov. 1. An earlier version misstated the organization’s name.

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  • Trump’s National Guard deployment in Portland, Oregon halted as Chicago braces for troops

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    President Donald Trump’s crime and immigration crackdown hit a legal roadblock in Portland, Oregon, as new details emerged about the administration’s plan to send federal troops into Chicago. On Saturday, a federal judge temporarily blocked Trump’s effort to federalize 200 members of the Oregon National Guard. U.S. District Judge Karin Immergut said the plan to send troops to Portland likely overstepped Trump’s authority and threatened state sovereignty. “This is a nation of Constitutional law, not martial law. Defendants have made a range of arguments that, if accepted, risk blurring the line between civil and military federal power — to the detriment of this nation,” Immergut said. The decision was celebrated by state and local leaders who brought the lawsuit, but the White House vowed to appeal. “President Trump exercised his lawful authority to protect federal assets and personnel in Portland following violent riots and attacks on law enforcement — we expect to be vindicated by a higher court,” said White House spokesperson Abigail Jackson. An Immigration and Customs Enforcement (ICE) facility in Portland has been at the center of recent protests. On Saturday, hundreds marched to the building, prompting federal agents to deploy tear gas, among other crowd-control munitions. At least six people were arrested. Similar demonstrations and a similar debate have been playing out in Chicago. On Saturday, the Department of Homeland Security said federal agents shot and injured one woman during what the agency described as a “defensive” response to an alleged vehicle-ramming attack. On Saturday, Trump authorized 300 troops to protect federal officers and assets in Chicago, despite opposition from Illinois Democratic Governor J.B. Pritzker. The timeline of the National Guard’s arrival was not immediately clear. More from our Washington Bureau:

    President Donald Trump’s crime and immigration crackdown hit a legal roadblock in Portland, Oregon, as new details emerged about the administration’s plan to send federal troops into Chicago.

    On Saturday, a federal judge temporarily blocked Trump’s effort to federalize 200 members of the Oregon National Guard. U.S. District Judge Karin Immergut said the plan to send troops to Portland likely overstepped Trump’s authority and threatened state sovereignty.

    “This is a nation of Constitutional law, not martial law. Defendants have made a range of arguments that, if accepted, risk blurring the line between civil and military federal power — to the detriment of this nation,” Immergut said.

    The decision was celebrated by state and local leaders who brought the lawsuit, but the White House vowed to appeal.

    “President Trump exercised his lawful authority to protect federal assets and personnel in Portland following violent riots and attacks on law enforcement — we expect to be vindicated by a higher court,” said White House spokesperson Abigail Jackson.

    An Immigration and Customs Enforcement (ICE) facility in Portland has been at the center of recent protests. On Saturday, hundreds marched to the building, prompting federal agents to deploy tear gas, among other crowd-control munitions. At least six people were arrested.

    Similar demonstrations and a similar debate have been playing out in Chicago. On Saturday, the Department of Homeland Security said federal agents shot and injured one woman during what the agency described as a “defensive” response to an alleged vehicle-ramming attack.

    On Saturday, Trump authorized 300 troops to protect federal officers and assets in Chicago, despite opposition from Illinois Democratic Governor J.B. Pritzker. The timeline of the National Guard’s arrival was not immediately clear.

    More from our Washington Bureau:

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  • Man pleads guilty to throwing Molotov cocktail at deputies during L.A. protest

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    A man admitted Wednesday that he lit a Molotov cocktail and threw it toward Los Angeles County sheriff’s deputies during protests against immigration crackdowns over the summer.

    Emiliano Garduno Galvez, 23, who authorities said is a citizen of Mexico in the country illegally, pleaded guilty in federal court to possessing an unregistered destructive device and civil disorder tied to his actions the evening of June 7 in Paramount.

    Galvez is set to be sentenced Jan. 30, and he faces up to 15 years in prison.

    On the morning of June 7, Border Patrol agents were spotted gathering in Paramount, across the street from the Home Depot. Word quickly spread on social media. Passersby honked their horns. Soon, protesters arrived.

    Already tensions were high, with federal officials raiding a retail and distribution warehouse in downtown L.A. the day before, arresting dozens of workers and a top union official.

    According to the plea agreement, several people gathered near Hunsaker Avenue and Alondra Boulevard in Paramount and began amassing around personnel of federal agencies and later local law enforcement. People threw rocks or chunks of cinder blocks, lit objects on fire and set off fireworks in the direction of law enforcement, Galvez’s agreement states.

    Authorities said the protest interfered with “the coordination of federal agencies’ personnel and preparation for immigration enforcement activities,” and also “obstructed, delayed, and adversely affected commerce.”

    Specifically, according to the plea agreement, the Home Depot at the location had to close temporarily “and had products stolen during the civil disorder, including cinder blocks that were thrown at law enforcement.”

    Galvez admitted he was in Paramount that evening and that he saw the sheriff’s deputies engaged in crowd control. As the deputies tried to disperse and move the crowd back, Galvez admitted in the plea agreement to going behind a stone wall, lighting the wick inside the Molotov cocktail and then throwing it over the wall toward where he had seen the deputies.

    The Molotov cocktail landed in a grassy area near the foot of a protester and around 15 feet from the deputies, according to the plea agreement. Galvez admitted that he then ran from the area.

    Galvez threw the Molotov cocktail “intending to obstruct, interfere with, and impede the LASD deputies who were lawfully engaged in performance of official duties,” according to the agreement.

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    Brittny Mejia

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  • An AI Wake-Up Call From Walmart’s CEO

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    This is an edition of the WSJ Careers & Leadership newsletter, a weekly digest to help you get ahead and stay informed about careers, business, management and leadership. If you’re not subscribed, sign up here.


    In the Workplace

    Walmart’s CEO issued an AI wake-up call, saying the technology will wipe out some jobs and reshape the company’s workforce. Doug McMillon’s remarks—which echo those made by leaders at Ford, JPMorgan Chase and Amazon—reflect a rapid shift in how executives discuss the potential human cost of AI.

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  • Padilla, Schiff request detailed breakdown of National Guard, Marine deployments in L.A.

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    U.S. Sens. Alex Padilla and Adam Schiff have sent a letter to Defense Secretary Pete Hegseth requesting a detailed breakdown of military deployments to Los Angeles amid recent immigration enforcement protests in the city.

    The two California Democrats wrote Monday that they wanted to know how thousands of National Guard troops and U.S. Marines were specifically used, whether and how they engaged in any law enforcement activity and how much the deployments have cost taxpayers to date.

    The deployments were made over the objections of Gov. Gavin Newsom, L.A. Mayor Karen Bass and other local officials, and sparked a lawsuit by the state alleging they were illegal. The letter came just hours before a federal judge agreed with the state in a ruling Tuesday that Padilla and Schiff both cheered.

    Padilla and Schiff wrote that the deployments were unnecessary and that greater detail was needed in light of similar operations now being launched or threatened in other American cities.

    “The use of the U.S. military to assist in or otherwise support immigration operations remains inappropriate, potentially a violation of the law, and harmful to the relationship between the U.S. public and the U.S. military,” they wrote.

    The Department of Defense declined to comment on the letter to The Times, saying it would “respond directly” to Padilla and Schiff.

    President Trump ordered the federalization of some 4,100 National Guard troops in California in June, as L.A. protests erupted over his administration’s immigration policies. Some 700 Marines were also deployed to the city. Most of those forces have since departed, but Padilla and Schiff said 300 Guard troops remain activated.

    Trump, Hegseth and other administration leaders have previously defended the deployments as necessary to restore law and order in L.A., defend federal buildings and protect federal immigration agents as they conduct immigration raids in local communities opposed to such enforcement efforts.

    Under questioning from members of Congress at the start of the deployments in June, Hegseth and other Defense officials estimated that the mission would last 60 days and that basic necessities such as travel, housing and food for the troops would cost about $134 million. However, the administration has not provided updated details as the operation has continued.

    Padilla and Schiff asked for specific totals on the number of California Guard troops and Marines deployed to L.A., and details as to which units they were drawn from and whether any out-of-state Guard personnel were brought in. They also asked whether any other military personnel were deployed to L.A., and how many civilian employees from the Department of Defense were assigned to the L.A. operation.

    The senators asked for a description of the “specific missions” carried out by the different units deployed to the city, and for a breakdown of military personnel who directly supported Department of Homeland Security teams, which would include Immigration and Customs Enforcement agents. They also asked which units were assigned to provide security at federal sites or were “placed on stand-by status outside of the immediate protest or immigration enforcement areas.”

    They asked for “the number of times and relevant detail for any cases in which [Defense] personnel made arrests, detained any individuals, otherwise exercised law enforcement authorities, or exercised use of lethal force during the operation.”

    They also asked for the total cost of all of the work to the Department of Defense and for a breakdown of costs by operation, maintenance, personnel or other accounts, and asked whether any funding used in the operation was diverted from other programs.

    Padilla and Schiff requested that the Department of Defense provide the information by Sept. 12.

    Unless it is “expressly authorized by the Constitution or Act of Congress,” the use of military personnel for civilian law enforcement on U.S. soil is barred by law under the Posse Comitatus Act. The 1878 law applies to U.S. Marines and to Guard troops who, like those in L.A., have been federalized.

    In its lawsuit, California argued the deployments were a violation of the Posse Comitatus Act. In response, the Trump administration argued that the president has the legal authority to deploy federal troops to protect federal property and personnel, such as ICE agents.

    On Tuesday, a federal judge ruled for the state, finding that the deployments did violate the Posse Comitatus Act. The judge placed his injunction on hold for 10 days, and the Trump administration is expected to appeal.

    Schiff said Trump’s “goal was not to ensure safety, but to create a spectacle,” and that the ruling affirmed those actions were “unlawful and unjustified.”

    Padilla said the ruling “confirmed what we knew all along: Trump broke the law in his effort to turn service members into his own national police force.”

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    Kevin Rector

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  • Boeing machinists reject new labor contract, extending more than 5-week strike

    Boeing machinists reject new labor contract, extending more than 5-week strike

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    People hold signs during a strike rally for the International Association of Machinists and Aerospace Workers (IAM) at the Seattle Union Hall in Seattle, Washington, on October 15, 2024.

    Jason Redmond | AFP | Getty Images

    Boeing machinists voted against a new labor deal that included 35% wage increases over four years, their union said Wednesday, extending a more than five-week strike that has halted most of the company’s aircraft production, which is centered in the Seattle area.

    The contract’s rejection by 64% of the voters is another major setback for the company, which warned earlier Wednesday that it would continue to burn cash through 2025 and reported a $6 billion quarterly loss, its largest since 2020.

    The strike is costing the company about $1 billion a month, according to S&P Global Ratings.

    New CEO Kelly Ortberg had said reaching a deal with machinists was a priority in order to get the company back on track after years of safety and quality problems.

    “My focus is getting everybody looking forward, get them back to work, improve that relationship,” Ortberg told CNBC’s “Squawk on the Street” earlier in the day, when asked about the strike.

    Ortberg’s laid out his vision for Boeing’s future, which could includes slimming down the company to focus on core businesses. Earlier this month, he announced Boeing will cut 10% of its global workforce of 170,000 people.

    Boeing’s more than 32,000 machinists in the Puget Sound area, in Oregon and in other locations walked off the job on Sept. 13 after overwhelmingly voting down a previous tentative agreement that proposed raises of 25%. The International Association of Machinists and Aerospace Workers union had originally sought wage increases of 40%. It is the machinists’ first strike since 2008.

    The latest proposal, announced last Saturday, included 35% raises over four years, increased 401(k) contributions, a $7,000 bonus and other improvements.

    Workers had pushed for higher pay amid a surge in living costs in the Puget Sound area. Some machinists were upset about losing their pension plan in a previous contract that they signed in 2014, but the latest proposal didn’t offer a pension.

    Boeing agreed in the new contract to build its next aircraft in the Pacific Northwest, which had also been a sticking point with unionized workers after Boeing moved all of its 787 Dreamliner production to a non-union factory in South Carolina.

    “We have made tremendous gains in this agreement. However, we have not achieved enough to meet our members’ demands,” said Jon Holden, president of IAM District 751, at a news conference Wednesday night. He said the union will push to go back to the negotiating table.

    Boeing declined to comment on the voting results.

    The labor strife is the latest in a long list of problems at Boeing, which started the year when a door plug blew out midair from a packed Boeing 737 Max 9, its best-selling plane, reigniting regulator scrutiny of the company.

    The strike began as Boeing was working to ramp up production of the 737 and other aircraft.

    The extended stoppage is also a challenge for the aerospace supply chain, which is fragile coming out of the pandemic, as the company’s web of suppliers had to train new workers quickly.

    Spirit AeroSystems last week said it would temporarily furlough about 700 workers and that layoffs or other furloughs are possible if Boeing machinists’ strike continues.

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  • Trump vows to deport millions. Builders say it would drain their crews and drive up home costs

    Trump vows to deport millions. Builders say it would drain their crews and drive up home costs

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    Construction of a KB Home single-family housing development is shown in Menifee, California, on Sept. 4, 2024.

    Mike Blake | Reuters

    Both presidential candidates promise to build more homes. One promises to deport hundreds of thousands of people who build them.

    Former President Donald Trump’s pledge to “launch the largest deportation operation in the history of our country” would hamstring construction firms already facing labor shortages and push record home prices higher, say industry leaders, contractors and economists.

    “It would be detrimental to the construction industry and our labor supply and exacerbate our housing affordability problems,” said Jim Tobin, CEO of the National Association of Home Builders. The trade group considers foreign-born workers, regardless of legal status, “a vital and flexible source of labor” to builders, estimating they fill 30% of trade jobs like carpentry, plastering, masonry and electrical roles.

    Either I make half as much money or I up my prices. And who ultimately pays for that? The homeowner.

    Brent Taylor

    President of Taylor Construction Group, Tampa, Fla.

    Nearly 11 million undocumented immigrants were living in the U.S. as of 2022, the latest federal data shows, down from an 11.8 million peak in 2007. The construction sector employs an estimated 1.5 million undocumented workers, or 13% of its total workforce — a larger share than any other, according to data the Pew Research Center provided to NBC News. Industry experts say their rates are higher in Sun Belt states like Florida and Texas, and more pronounced in residential than in commercial construction.

    For Brent Taylor, home building has been “a very, very difficult industry the past few years, and it seems to only be getting worse.” His five-person, Tampa-based business hires subcontractors to perform all the labor, and if those firms’ employees “show up on my jobsite because they work for that company, I don’t know if they’re legal or not,” he said.

    The labor pool is tight already, with the U.S. construction industry still looking to fill 370,000 open positions, according to federal data. If work crews dwindle further, “now I can only do 10 jobs a year instead of 20,” Taylor said. “Either I make half as much money or I up my prices. And who ultimately pays for that? The homeowner.”

    Rhetoric or reality?

    Trump hasn’t detailed how his proposed “whole of government” effort to remove up to 20 million people — far more than the undocumented population — would work, but he has made it central to his housing pitch. The Republican nominee claims mass deportations would free up homes for U.S. citizens and lower prices, though few economists agree. The idea has also drawn skepticism on logistical grounds, with some analysts saying its costs would be “astronomical.”

    Doubts also run high among homebuilders that Trump would deliver on his promise.

    “They don’t think it’s going to happen,” Stan Marek, CEO of the Marek Family of Companies, a Texas-based specialty subcontracting firm, said of industry colleagues. “You’d lose so many people that you couldn’t put a crew together to frame a house.”

    You’d lose so many people that you couldn’t put a crew together to frame a house.

    Stan Marek

    CEO of the Marek Family of Companies

    Bryan Dunn, an-Arizona based senior vice president at Big-D Construction, a major Southwest firm, called “the idea that they could actually move that many people” out of the country “almost laughable.” The proposal has left those in the industry “trying to figure out how much is political fearmongering,” he said.

    But while Trump has a history of floating outlandish ideas without seriously pursuing them — like buying Greenland — he has embraced other once-radical policies that reset the terms of political debate despite fierce criticism and litigation. That is especially true with immigration, where his administration diverted Pentagon money to build a border wall, banned travel from several Muslim-majority countries and separated migrant children from their parents.

    Trump has emphasized his deportation pitch on the stump, at times deploying racist rhetoric like claiming thousands of immigrants are committing murders because “it’s in their genes.” This month he accused immigrant gangs of having “invaded and conquered” cities like Aurora, Colorado, which local authorities deny, saying they need federal assistance but want no part in mass deportations. Still, recent polling has found broad support for removing people who came to the U.S. illegally.

    “President Trump’s mass deportation of illegal immigrants will not only make our communities safer but will save Americans from footing the bill for years to come,” Taylor Rogers, a Republican National Committee spokesperson for the campaign, said in a statement, referring to undocumented people’s use of taxpayer-funded social services and other federal programs.

    Trump campaign press secretary Karoline Leavitt said in a statement that the former president’s remarks about genetics were “clearly referring to murderers, not migrants.”

    Tobin said the NAHB has real concerns about the deportation proposal but is engaging with both campaigns. It has called on policymakers to “let builders build” by easing zoning and other regulatory hurdles and improving developers’ access to financing.

    We have to have a serious conversation in this country about immigration policy and reform, and we can no longer delay it.

    Jim Tobin

    CEO of the National Association of Home Builders

    “The rhetoric on immigration, it’s at 11,” Tobin said. “We have to have a serious conversation in this country about immigration policy and reform, and we can no longer delay it.”

    Marek, who has long advocated for more ways for undocumented people to work legally in construction, said reforms are decades overdue. As an employer, “I do everything I can to make sure everybody’s legal,” he said, even as the industry’s hunger for low-cost labor has created a shadow economy that he says often exploits the undocumented workers it depends upon.

    “We need them. They’re building our houses — have been for 30 years,” he said. “Losing the workers would devastate our companies, our industry and our economy.”

    ‘The math is just not there’

    There is evidence that foreign-born construction workers help keep the housing market in check. An analysis released in December 2022 by the George W. Bush Institute and Southern Methodist University found U.S. metro areas with the fastest-growing immigrant populations had the lowest building costs.

    “Immigrant construction workers in Sun Belt metros like Raleigh, Nashville, Houston, and San Antonio have helped these cities sustain their housing cost advantage over coastal cities despite rapid growth in housing demand,” the authors wrote.

    But builders need many more workers as it is. “The math is just not there” to sustain a blow from mass deportations, said Ron Hetrick, a senior labor economist at the workforce analytics firm Lightcast. “That would be incredibly disruptive” and cause “a very, very significant hit on home construction,” he said.

    Private employers in the field have been adding jobs for the past decade, with employment levels now topping 8 million, over 1 million more since the pandemic, according to payroll processor ADP. But as Hetrick noted, “the average high school student is not aspiring to do this work,” and the existing workforce is aging — the average homebuilder is 57 years old.

    Undocumented workers would likely flee ahead of any national deportation effort, Hetrick said, even though many have been in the U.S. for well over a decade. He expects such a policy would trigger an exodus of people with legal authorization, too.

    “That’s exactly what happened in Florida,” he said.

    Past as prologue

    Last year, the state’s Republican governor, Ron DeSantis, enacted a series of restrictions and penalties to deter the employment of undocumented workers. Many immigrant workers hastily left the state even before the policies took effect, with social media videos showing some construction sites sitting empty.

    “These laws show that they have no idea what we do,” said Luciano, a carpenter who is originally from Mexico and has worked on residential builds across South Florida for the past decade.

    “No one else would work in the conditions in which we work,” the 40-year-old said in Spanish, asking to be identified by his first name because he lacks legal immigration status, despite living in the U.S. for over 20 years. Workers on jobsites “have an entry time but no exit time,” often logging 70-hour weeks in rain and extreme heat, he said.

    Taylor recalled fellow Florida builders’ panic at the time of the statewide crackdown but said he reassured them, “Look, just give it six months. We don’t have enough people to enforce it, so they’re coming back.”

    Republican state Rep. Rick Roth, who voted for the measure, later conceded that Florida was unprepared for the destabilization it would cause and urged immigrant residents not to flee, saying the law “is not as bad as you heard.”

    Some workers returned after realizing the policies weren’t being rigorously enforced, Taylor said: “Sure enough, now things are more normal.”

    DeSantis’ office didn’t respond to a request for comment.

    When Arizona in 2010 enacted what were then some of the toughest immigration restrictions in the country, Dunn was working in Tempe as an executive at a construction management firm. As the legislation rolled out, he said, “a lot of people moved away, and they just never came back.”

    By the time much of the law was overturned in 2012, he said, “Arizona had a bad rap” relative to other states that “were a lot more open and just less of a hassle to go work in.”

    Dunn, a Democrat, said he’s “definitely” backing Vice President Kamala Harris, but other construction executives sounded more divided. Marek, a “lifelong Republican,” declined to share how he’s voting but noted that “a lot of Republicans aren’t voting for Trump.”

    Taylor also wouldn’t say which candidate he’s supporting but praised Trump’s ability to “get things done.”

    “There are many other issues with the economy that we are fighting daily that have nothing to do with immigration reform,” he said. “I am not a one-policy voter.”

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  • Stellantis files federal lawsuit against UAW union over strike threats

    Stellantis files federal lawsuit against UAW union over strike threats

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    Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024. 

    Nathan Laine | Bloomberg | Getty Images

    DETROIT — Stellantis is suing the United Auto Workers, escalating a monthslong battle between the transatlantic automaker and American union, CNBC has learned.

    In an internal message Friday to employees that was confirmed to be authentic, the company said it is suing the UAW as well as a local chapter in California that participated in a strike authorization request vote at Stellantis’ Los Angeles Parts Distribution Center.

    “This lawsuit would hold both the International and the local union liable for the revenue loss and other damages resulting from lost production due to an unlawful strike,” Tobin Williams, Stellantis senior vice president of North America human resources, said in the message.

    The lawsuit is intended to “prevent and/or remedy a breach of contract” by the UAW, according to a copy of the complaint that was filed Thursday in U.S. District Court in the Central District of California.

    A supermajority of UAW members at Stellantis’ Los Angeles Parts Distribution Center voted to request strike authorization from the International Executive Board if the company and union can’t reconcile, the union said Friday morning.

    The UAW did not immediately respond to a request for comment Friday afternoon regarding the lawsuit.

    United Auto Workers (UAW) President Shawn Fain speaks to the attendees during a campaign rally for U.S. Vice President and Democratic Presidential candidate Kamala Harris and her running mate Tim Walz in Romulus, Michigan, U.S., August 7, 2024. 

    Rebecca Cook | Reuters

    The dispute between the two sides centers on the union alleging Stellantis has not kept contractual obligations as part of a deal the two sides reached late last year. It comes after Stellantis has made several cuts to plant production, conducted worker layoffs and delayed potential investments outlined as part of the 2023 contract.

    The automaker has argued, including in the Friday letter to employees, that there’s language in the contract that gives it leniency to change plans based on market conditions, plant performance and other factors.

    UAW President Shawn Fain has routinely said the union will strike if needed, however Stellantis has argued that would be unlawful under the contract.

    This is breaking news. Please check back for additional updates.

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  • Latina wage gap widens to $1.3 million for full-time and part-time workers

    Latina wage gap widens to $1.3 million for full-time and part-time workers

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    San Diego city officials and activists came together to call on business and government officials to address pay inequities for Latinas in San Diego, CA on Dec. 8, 2022.

    Matthew Bowler | KPBS | Sipa USA

    Latina women working full time, year-round earn 58 cents for every dollar paid to white, non-Hispanic men, according to data collected by the National Women’s Law Center.

    Latina Equal Pay Day, which this year falls on Oct. 3, marks the additional days into the new year that Latinas must work to earn as much as the typical annual salary of white, non-Hispanic male workers.

    That gap in pay translates to a loss of nearly $1.3 million over a 40-year career. Break that down further and Latinas lose $32,070 in wages per year, or $2,672 every month, compared with the dominant cohort.

    While 58 cents per dollar is a penny improvement compared with the previous year, NWLC notes that even though wages have been increasing, so too has the total wage gap over a lifetime — which last year totaled $1,218,000.

    “The increase in lifetime losses and widening of the wage gap for all Latina workers, including part-time workers, is likely because white men’s wages are increasing at a faster rate than other demographic groups,” said Ashir Coillberg, NWLC senior research analyst.

    Assuming a Latina and her white, non-Hispanic male counterpart both begin work at age 20, NWLC notes, the wage gap means a Latina would have to work until she is 89 years old — eight years beyond her life expectancy — to be paid what a white, non-Hispanic man has been paid by age 60.

    Despite the narrow improvement for full-time workers, the gap actually widens for part-time and part-year Latina workers, falling to 51 cents on the dollar compared with 52 cents last year.

    Many groups see wage gap widen

    The wage gap varies widely for certain Latina communities, and for some in the United States it’s even more extreme.

    While full time, year-round Argentinean and Spanish Latina workers remain closest to parity at 84 cents and 81 cents, respectively, wages for Honduran, Guatemalan and Salvadoran women remained the widest at 47 cents, 48 cents and 51 cents, respectively.

    “Most other marginalized populations — and women as a whole — saw a slight widening of the wage gap this year, for both full-time, year-round workers as well as when including part-time workers,” Coillberg said.

    Guatemalan, Cuban and Spanish women saw the greatest increase in losses over a 40-year career.

    Pay disparities at all education levels

    Latinas are more likely to hold low-wage jobs, but NWLC research finds pay disparities at all education levels.

    While continued education can be a benefit to earnings potential, NWLC data suggests getting more education does not shield them from the wage gap. Latinas are typically paid less than white, non-Hispanic men with the same educational attainment and are often paid less than white, non-Hispanic men with less educational attainment.

    Some of the most educated Latinas have some of the most striking pay gaps compared to their white non-Hispanic men counterparts, according to the NWLC. For example, the center said a Latina with a professional degree stands to lose more than $2.9 million to the wage gap over a 40-year career.

    “Unequal pay means Latinas have less money to cover current expenses and forces them to miss key opportunities to build wealth and build economic security throughout their lifetimes,” the NWLC notes in the report.

    Instead of prioritizing continued education, pay equity experts are advocating for comprehensive legislative reform.

    “A comprehensive approach includes requiring equal pay for equal work, pay transparency policies from lawmakers, eliminating the subminimum tipped wage, protection from caregiver discrimination, safety from harassment and health hazards for all workers, prohibiting salary history to determine future pay, and increased access to higher-paid jobs for women,” said Noreen Farrell, Equal Pay Today chair. “That’s how you actually close the gap.”

    With the 2024 presidential election quickly approaching and both Vice President Kamala Harris and former President Donald Trump trying to woo Latina women, a key voting bloc, Farrell said the data gives insight into what that group of voters care about most: the economy.

    “The widening gap underscores the urgency of tackling this issue to ensure equitable economic opportunities for Latinas,” Farrell said. “Latinas do not have one more day to wait for equal pay.”

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  • CNBC Daily Open: Fedspeak reassures markets

    CNBC Daily Open: Fedspeak reassures markets

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    Neel Kashkari, President and CEO, Federal Reserve Bank of Minneapolis, speaks at the Milken Conference 2024 Global Conference Sessions at The Beverly Hilton in Beverly Hills, California, U.S., May 7, 2024. 

    David Swanson | Reuters

    This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

    What you need to know today

    Markets regain momentum
    U.S. markets
    rose Monday, with the S&P 500 and Dow Jones Industrial Average notching fresh closing highs. Asia-Pacific stocks mostly climbed Tuesday, with the Chinese and Hong Kong markets popping over 3% on Beijing’s announcement of policy easing measures.

    PBOC policy easing
    The People’s Bank of China Governor Pan Gongsheng on Tuesday announced a cut to banks’ reserve requirement ratio. That means banks won’t need as much cash on hand, which injects liquidity into the economy. The yields on Chinese bonds, in turn, dropped to record lows after the PBOC’s announcement.

    New property stimulus in China
    At the same press conference, the PBOC governor also said Beijing will reduce interest rates on existing individual mortgages by an average of half a percentage point, and lower the down-payment ratio for second home purchases to 15% from 25%. Hong Kong-listed shares of property companies surged in response to the stimulus.

    Revised offer for Boeing workers
    Amid a strike by Boeing workers, the company revised its contract offer, raising wages by 30% over four years, up from 25% it proposed earlier. Boeing reinstated annual bonuses and doubled a contract ratification bonus to $6,000 from $3,000. The labor union said Monday it is reviewing the offer.

    [PRO] Tech for Big Tech
    The rising tide of artificial intelligence is lifting related stocks. Specialized chips, data centers and electricity are needed to power the AI boom. Companies in those sectors have seen their stocks rise. The next to benefit from AI, according to Japanese bank Nomura, is the industry specializing in cooling of data centers.

    The bottom line

    We were treated to abundant Fedspeak on Monday.

    In an interview with CNBC, Minneapolis Fed President Neel Kashkari said, “We still have a strong, healthy labor market. But I want to keep it a strong, healthy labor market.” Kashkari’s emphasis on the strength of the jobs market suggests the Fed wants to reinforce the narrative that the economy’s not staring at a recession.

    Atlanta Fed President Raphael Bostic was more circumspect. “Progress on inflation and the cooling of the labor market have emerged much more quickly than I imagined at the beginning of the summer,” he said at a separate event.

    That Bostic was possibly surprised by the increase in the unemployment rate is an indication some Fed officials are indeed worried the jobs market isn’t as strong as it should be.

    Last, in remarks to the National Association of State Treasurers, Chicago Fed President Austan Goolsbee said that “it’s appropriate to increase our focus on the other side of the Fed’s mandate — to think about risks to employment, too, not just inflation.”  

    Goolsbee sees “many more rate cuts over the next year” because the state of employment is a “through line on economic conditions.” That suggests economic conditions need the support of additional cuts.

    Still, yesterday’s Fedspeak was sufficiently vague and didn’t seem to cause alarm.

    Major U.S. indexes ticked up. The S&P rose 0.28%, the Dow advanced 0.15% and the Nasdaq Composite climbed 0.14%. While those increases appear small, they pushed the S&P and Dow to new closing highs.

    The narrative the central bank has been on top of its game to ensure a soft landing, then, is very much intact.

    – CNBC’s Jeff Cox, Brian Evans and Alex Harring contributed to this story. 

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  • Dutch neobank Bunq goes on hiring spree, targeting digital nomads, as other fintechs slash jobs

    Dutch neobank Bunq goes on hiring spree, targeting digital nomads, as other fintechs slash jobs

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    Dutch digital bank Bunq is plotting re-entry into the U.K. to tap into a “large and underserved” market of some 2.8 million British “digital nomads.”

    Pavlo Gonchar | Sopa Images | Lightrocket | Getty Images

    Dutch challenger bank Bunq told CNBC that it plans to grow its global headcount by 70% this year to over 700 employees, even as other financial technology startups have decided to cut jobs.

    Bunq, which operates in markets across the European Union, is looking to expand into new regions including the U.K. and the United States, taking on the fintechs already in those countries, including the likes of Britain’s Monzo and Revolut, and American neobank Chime.

    Bunq said it needs corresponding talent in those regions to support its global expansion ambitions. To that end, the firm said it plans to see out the year with 735 employees globally — up 72% from its 427 members of staff at the start of 2024.

    “Bunq focusses on digital nomads who tend to roam the world,” Ali Niknam, Bunq’s CEO and co-founder, told CNBC via emailed comments.

    So-called “digital nomads” are defined as people who travel freely while working remotely, using technology and the internet to work abroad from hotels, cafes, libraries, co-working spaces, or temporary housing.

    “We’d love to be able to service our users wherever they go — given the regulatory environment we’re in, this results in us having to have a lot of extra people to make this happen,” Niknam added.

    Bunq is currently in the process of applying for banking licenses in both the U.S. and U.K. Last year, the firm submitted an application for a federal banking license. And in the U.K., Bunq is awaiting a decision from financial regulators on an application to become a licensed e-money institution, or EMI.

    The digital bank said it was actively looking to hire across sales and business development, product marketing, PR, affiliate marketing, and market analysis, as well as user support, development, and quality assurance.

    Many of these positions will be part of a “tailored digital nomad” program that allows staff to work from anywhere in the world, Bunq said.

    However, the firm stressed it’s not closing down office space and that many new hires would work in its offices, including in Amsterdam, Sofia, Istanbul, Munich, Paris, Dublin, Madrid, London, and New York City.

    A contrast from jobs cuts at other fintechs

    Over the past two years, one of the biggest stories in both the fintech and broader technology industry has been companies slashing jobs to cut back on the massive spending implemented during in the pandemic years of 2020 and 2021.

    The operating environment for fintech firms has gotten tougher, meanwhile, with inflation knocking consumer confidence and higher interest rates making it harder for startups to raise money.

    In January last year, cryptocurrency exchange Coinbase slashed 950 jobs. It was followed by payments giant PayPal, which reduced its global headcount by 2,000 people in early 2023, and then by another 2,500 jobs in early 2024.

    Meanwhile, some fintechs are looking to artificial intelligence to take on a growing number of roles.

    Swedish buy now, pay later firm Klarna, for instance, said last month that it was able to reduce its workforce from 5,000 to 3,800 over the past year from attrition alone. It added that it is looking to further cut employee numbers down to 2,000 through the use of AI in marketing and customer service.

    “Our proven scale efficiencies have been enhanced by our investment in AI, which has driven down operating expenses and improved gross profits,” the company said in first-half earnings.

    Klarna said that its average revenue per employee had risen 73% year-over-year, thanks in no small part to the internal application of AI.

    Bunq’s Niknam said he doesn’t see AI as a way to help firms reduce headcount, however.

    “We’ve been deploying AI systems and solutions years before they became mainstream, [but] in our experience AI empowers our employees to be able to do better by our users, more effectively and efficiently,” he told CNBC.

    Bunq earlier this year reported its first full year of profitability, generating 53.1 million euros ($58.51 million) in net profit in 2023. The business was last valued privately by investors at 1.65 billion euros.

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  • U.S. airlines cool hiring after adding 194,000 employees in post-Covid spree

    U.S. airlines cool hiring after adding 194,000 employees in post-Covid spree

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    A pilot performs a walkaround before a United Airlines flight

    Leslie Josephs/CNBC

    U.S. passenger airlines have added nearly 194,000 jobs since 2021 as companies went on a hiring spree after spending months in a pandemic slump, according to the U.S. Department of Transportation. Now the industry is cooling its hiring.

    Airlines are close to their staffing needs but the slowdown is also coming in part because they’re facing a slew of challenges.

    A glut of flights in the U.S. has pushed down fares and eaten into airlines’ profits. Demand growth has moderated. Airplanes are arriving late from Boeing and Airbus, prompting airlines to rethink their expansions. Engines are in short supply. Some carriers are deferring airplane deliveries altogether. And labor costs have climbed after groups like pilots and mechanics inked new contracts with big raises, their first in years.

    Annual pay for a three-year first officer on midsized equipment at U.S. airlines averaged $170,586 in March, up from $135,896 in 2019, according to Kit Darby, an aviation consultant who specializes in pilot pay.

    Since 2019, costs at U.S. carriers have climbed by double-digit percentages. Stripping out fuel and net interest expenses, they’ll be up about 20% at American Airlines this year and around 28% higher at both United Airlines and Delta Air Lines from 2019, according to Raymond James airline analyst Savanthi Syth.

    It is more pronounced at low-cost airlines. Southwest Airlines‘ costs will likely be up 32%, JetBlue Airways‘ up nearly 35% and Spirit Airlines will see a rise of almost 39% over the same period, estimated Syth, whose data is adjusted for flight length.

    Easing hiring

    Friday’s U.S. jobs report showed air transportation employment in August roughly in line with July’s.

    But there have been pullbacks. In the most severe case, Spirit Airlines furloughed 186 pilots this month, their union said Sunday, as the carrier’s losses have grown in the wake of a failed acquisition by JetBlue Airways, a Pratt & Whitney engine recall and an oversupplied U.S. market. Last year, even before the merger fell apart, it offered staff buyouts.

    Other airlines are easing hiring or finding other ways to cut costs.

    Frontier Airlines is still hiring pilots but said it will offer voluntary leaves of absence in September and October, when demand generally dips after the summer holidays but before Thanksgiving and winter breaks. A spokeswoman for the carrier said it offers those leaves “periodically” for “when our staffing levels exceed our planned flight schedules.”

    Southwest Airlines expects to end the year with 2,000 fewer employees compared with 2023 and earlier this year said it would halt hiring classes for work groups including pilots and flight attendants. CFO Tammy Romo said on an earnings call in July that the company’s headcount would likely be down again in 2025 as attrition levels exceed the Dallas-based carrier’s “controlled hiring levels.”

    United Airlines, which paused pilot hiring in May and June, citing late-arriving planes from Boeing, said it plans to add 10,000 people this year, down from 15,000 in each 2022 and 2023. It plans to hire 1,600 pilots, down from more than 2,300 last year.

    It’s a departure from the previous years when airlines couldn’t hire employees fast enough. U.S. airlines are usually adding pilots constantly since they are required to retire at age 65 by federal law.

    Airlines shed tens of thousands of employees in 2020 to try to stem record losses. Packages of more than $50 billion in taxpayer aid that were passed to get the industry through its worst-ever crisis prohibited layoffs, but many employees took carriers up on their repeated offers of buyouts and voluntary leaves.

    Then, travel demand snapped back faster than expected, climbing in earnest in 2022 and leaving airlines without experienced employees like customer service agents. It also led to the worst pilot shortage in recent memory.

    In response, companies — especially regional carriers — offered big bonuses to attract pilots.

    But times have changed. Even air freight giants were competing for pilots in recent years but demand has waned as FedEx and UPS look to cut costs.

    American Airlines CEO Robert Isom said in an investor presentation in March that the carrier added about 2,300 pilots last year and that it expects to hire about 1,300 this year.

    “We will be hiring for the foreseeable future at levels like that,” he said at the time.

    Despite the lower targets, students continue to fill classrooms and cockpits to train and build up hours to become pilots, said Ken Byrnes, chairman of the flight department at Embry-Riddle Aeronautical University.

    “Demand for travel is still there,” he said. “I don’t see a long-term slowdown.”

    Read more CNBC airline news

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  • JPMorgan Chase is giving its employees an AI assistant powered by ChatGPT maker OpenAI

    JPMorgan Chase is giving its employees an AI assistant powered by ChatGPT maker OpenAI

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    JPMorgan Chase has rolled out a generative artificial intelligence assistant to tens of thousands of its employees in recent weeks, the initial phase of a broader plan to inject the technology throughout the sprawling financial giant.

    The program, called LLM Suite, is already available to more than 60,000 employees, helping them with tasks like writing emails and reports. The software is expected to eventually be as ubiquitous within the bank as the videoconferencing program Zoom, people with knowledge of the plans told CNBC.

    Rather than developing its own AI models, JPMorgan designed LLM Suite to be a portal that allows users to tap external large language models — the complex programs underpinning generative AI tools — and launched it with ChatGPT maker OpenAI’s LLM, said the people.

    “Ultimately, we’d like to be able to move pretty fluidly across models depending on the use cases,” Teresa Heitsenrether, JPMorgan’s chief data and analytics officer, said in an interview. “The plan is not to be beholden to any one model provider.”

    Teresa Heitsenrether is the firm’s chief data and analytics officer.

    Courtesy: Joe Vericker | PhotoBureau

    The move by JPMorgan, the largest U.S. bank by assets, shows how quickly generative AI has swept through American corporations since the arrival of ChatGPT in late 2022. Rival bank Morgan Stanley has already released a pair of OpenAI-powered tools for its financial advisors. And consumer tech giant Apple said in June that it was integrating OpenAI models into the operating system of hundreds of millions of its consumer devices, vastly expanding its reach.

    The technology — hailed by some as the “Cognitive Revolution” in which tasks formerly done by knowledge workers will be automated — could be as important as the advent of electricity, the printing press and the internet, JPMorgan CEO Jamie Dimon said in April.

    It will likely “augment virtually every job” at the bank, Dimon said. JPMorgan had about 313,000 employees as of June.

    ChatGPT ban

    The bank is giving employees what is essentially OpenAI’s ChatGPT in a JPMorgan-approved wrapper more than a year after it restricted employees from using ChatGPT. That’s because JPMorgan didn’t want to expose its data to external providers, Heitsenrether said.

    “Since our data is a key differentiator, we don’t want it being used to train the model,” she said. “We’ve implemented it in a way that we can leverage the model while still keeping our data protected.”

    The bank has introduced LLM Suite broadly across the company, with groups using it in JPMorgan’s consumer division, investment bank, and asset and wealth management business, the people said. It can help employees with writing, summarizing lengthy documents, problem solving using Excel, and generating ideas.

    But getting it on employees’ desktops is just the first step, according to Heitsenrether, who was promoted in 2023 to lead the bank’s adoption of the red-hot technology.

    “You have to teach people how to do prompt engineering that is relevant for their domain to show them what it can actually do,” Heitsenrether said. “The more people get deep into it and unlock what it’s good at and what it’s not, the more we’re starting to see the ideas really flourishing.”

    The bank’s engineers can also use LLM Suite to incorporate functions from external AI models directly into their programs, she said.

    ‘Exponentially bigger’

    JPMorgan has been working on traditional AI and machine learning for more than a decade, but the arrival of ChatGPT forced it to pivot.

    Traditional, or narrow, AI performs specific tasks involving pattern recognition, like making predictions based on historical data. Generative AI is more advanced, however, and trains models on vast data sets with the goal of pattern creation, which is how human-sounding text or realistic images are formed.

    The number of uses for generative AI are “exponentially bigger” than previous technology because of how flexible LLMs are, Heitsenrether said.

    The bank is testing many cases for both forms of AI and has already put a few into production.

    JPMorgan is using generative AI to create marketing content for social media channels, map out itineraries for clients of the travel agency it acquired in 2022 and summarize meetings for financial advisors, she said.

    The consumer bank uses AI to determine where to place new branches and ATMs by ingesting satellite images and in call centers to help service personnel quickly find answers, Heitsenrether said.

    In the firm’s global-payments business, which moves more than $8 trillion around the world daily, AI helps prevent hundreds of millions of dollars in fraud, she said.

    But the bank is being more cautious with generative AI that directly touches upon the individual customer because of the risk that a chatbot gives bad information, Heitsenrether said.

    Ultimately, the generative AI field may develop into “five or six big foundational models” that dominate the market, she said.

    The bank is testing LLMs from U.S. tech giants as well as open source models to onboard to its portal next, said the people, who declined to be identified speaking about the bank’s AI strategy.

    Friend or foe?

    Heitsenrether charted out three stages for the evolution of generative AI at JPMorgan.

    The first is simply making the models available to workers; the second involves adding proprietary JPMorgan data to help boost employee productivity, which is the stage that has just begun at the company.

    The third is a larger leap that would unlock far greater productivity gains, which is when generative AI is powerful enough to operate as autonomous agents that perform complex multistep tasks. That would make rank-and-file employees more like managers with AI assistants at their command.

    The technology will likely empower some workers while displacing others, changing the composition of the industry in ways that are hard to predict.

    Banking jobs are the most prone to automation of all industries, including technology, health care and retail, according to consulting firm Accenture. AI could boost the sector’s profits by $170 billion in just four years, Citigroup analysts said.  

    People should consider generative AI “like an assistant that takes away the more mundane things that we would all like to not do, where it can just give you the answer without grinding through the spreadsheets,” Heitsenrether said.

    “You can focus on the higher-value work,” she said.

    — CNBC’s Leslie Picker contributed to this report.

    Don’t miss these insights from CNBC PRO

    Watch CNBC's full interview with JPMorgan CEO Jamie Dimon on economy, AI hype, and more

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  • Mercedes-Benz workers in Alabama vote against UAW union membership

    Mercedes-Benz workers in Alabama vote against UAW union membership

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    United Auto Workers (UAW) members and supporters on a picket line outside the ZF Chassis Systems plant in Tuscaloosa, Alabama, US, on Wednesday, Sept. 20, 2023.

    Andi Rice | Bloomberg | Getty Images

    Mercedes-Benz workers in Alabama have voted against union representation by the United Auto Workers, the National Labor Relations Board said Friday.

    The results are a blow to the UAW’s organizing efforts a month after the Detroit union won an organizing drive of roughly 4,330 Volkswagen plant workers in Tennessee. Voting started Monday and ended Friday.

    Union organizing failed with 56% of the vote, or 2,642 workers, casting ballots against the UAW, according to the NLRB, which oversaw the election. More than 90% of the 5,075 eligible Mercedes-Benz workers voted in the election, according to the results.

    The NLRB said 51 ballots were challenged and not counted, but they aren’t determinative to the outcome of the election. There were five void ballots. 

    The union and company have five business days to file objections to the election, including any alleged interference, according to the NLRB. If no objections are filed, the election result will be certified, and the union will have to wait one year to file for a union election for a similar bargaining unit.

    Mercedes-Benz in a statement said company officials “look forward to continuing to work directly with our Team Members to ensure [Mercedes-Benz US International] is not only their employer of choice, but a place they would recommend to friends and family.”

    United Auto Workers President Shawn Fain (right) and UAW Secretary-Treasurer Margaret Mock (left) lead a march outside Stellantis’ Ram 1500 plant in Sterling Heights, Michigan after the union called a strike at the plant on Oct. 23, 2023.

    Michael Wayland / CNBC

    The loss is expected to hurt the UAW in an unprecedented organizing drive launched late last year of 13 non-union automakers in the U.S. after securing record contracts with Detroit automakers Ford Motor, General Motors and Stellantis. Those agreements included significant wage increase, reinstatement of cost-of-living adjustments and other benefits.

    UAW President Shawn Fain said while the Mercedes-Benz vote was obviously not the result the union wanted, it was a valiant effort, adding the vote “isn’t a failure” but a “bump in the road.”

    “While this loss stings, I’ll tell you this, we’re going to keep our heads up, keep our heads up high. These workers have nothing to do but be proud in the effort they put forth and what they’ve done,” he said Friday during a media conference. “We fought the good fight and we’re going to continue on, continue forward. Ultimately, these workers here are going to win.”

    The Mercedes-Benz vote was expected to be more challenging for the union than the Volkswagen plant in Tennessee, where the union had already established a presence after two failed organizing drives in the past decade and where it faced less opposition from the automaker.

    Stephen Silvia, author of “The UAW’s Southern Gamble: Organizing Workers at Foreign-Owned Vehicle Plants,” noted Mercedes-Benz replaced the plant’s leader weeks ahead of the election. He said companies routinely do this, promising workers changes at their facilities in an effort to stave of organizing.

    “Companies do anti-union campaigns because they can be effective, and I think this one was effective,” said Silvia, a professor at American University in Washington, D.C. “A common piece of an anti-union campaign is firing the plant manager … That seems to have persuaded enough of the workers to vote against the union.”

    Alabama Gov. Kay Ivey, who was one of six Republican governors to condemn the union’s organizing drive, hailed the outcome of the vote.

    “The workers in Vance have spoken, and they have spoken clearly! Alabama is not Michigan, and we are not the Sweet Home to the UAW. We urge the UAW to respect the results of this secret ballot election,” she said.

    Workers at Mercedes-Benz’s Tuscaloosa plant, located about 60 miles southwest of Birmingham, have produced more than 4 million vehicles since the plant opened in 1997, including 295,000 vehicles in 2023, according to the plant’s website.

    The Alabama plant currently produces vehicles such as the gas-powered GLE and GLS Maybach SUVs as well as the all-electric EQS and EQE SUVs.

    The NLRB last week said it continues to process and investigate open unfair labor practice charges filed by the UAW against automakers, including six unfair labor practice charges against Mercedes-Benz since March.

    Fain said Friday the union would continue to move forward with those charges. He declined to say whether the union plans to challenge the election results, saying he’d “leave that” to the union’s legal team.

    The charges allege that Mercedes-Benz has “disciplined employees for discussing unionization at work, prohibited distribution of union materials and paraphernalia, surveilled employees, discharged union supporters, forced employees to attend captive audience meetings, and made statements suggesting that union activity is futile,” the NLRB said.

    The union has filed other charges against automakers Honda, Hyundai, Lucid, Rivian, Tesla and Toyota, according to the NLRB.

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  • Steve Jobs’ former intern reflects on working for the tech mogul: ‘I worked 20 yards away from him every day’

    Steve Jobs’ former intern reflects on working for the tech mogul: ‘I worked 20 yards away from him every day’

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    Chet Kapoor, chairman and CEO of DataStax.

    Datastax

    As a teen, Chet Kapoor dreamed of working for tech mogul Steve Jobs.

    One day, that dream became a reality when Kapoor was hired as an intern at software company NeXT, founded by Jobs.

    “Steve was this iconic individual and I didn’t know him … I was the guy that got coffee for the guy that made coffee,” Kapoor — who is now CEO of generative AI company DataStax — told CNBC Make It.

    “I was one step below the person that opened doors but that didn’t matter because I worked 20 yards away from him [Jobs] every day.”

    Kapoor made his mark in Silicon Valley as CEO of cloud software company Apigee, which was acquired by Google in a $625 million deal in 2016. He has also held leadership positions at firms including Google and IBM.

    However, he credits a lot of his success to his experience working as Jobs’ intern in the early days.

    Kapoor explained that he would focus on the questions that Jobs would ask in all-hand meetings more than anything else because it gave an insight into his thought process.

    “That exposure was absolutely phenomenal,” he said. “I can attribute a large portion of my success to my first two or three years at NeXT.”

    ‘This is who I want to go and work for’

    CUPERTINO, CA – APRIL 08: Apple CEO Steve Jobs points during a Q & A session during an Apple special event April 8, 2010 in Cupertino, California. Jobs announced the new iPhone OS4 software. (Photo by Justin Sullivan/Getty Images)

    Justin Sullivan | Getty

    Inspired by the book, Kapoor took computer classes and started applying to colleges in the United States. He eventually landed at Arizona State University in 1986.

    During that time, Jobs left Apple and founded a new software company called NeXT in 1985. That’s when the opportunity arose for Kapoor to fulfill his dream.

    NeXT started a program called the Campus Consultants and started hiring students to work for them part-time from their colleges — and Kapoor became one of them in 1988.

    The company asked Kapoor and a select few students to join the company as interns after they graduated, where they rotated through various odd jobs.

    “I started working for NeXT five years after I imagined that I would be working for Steve,” Kapoor said.

    Jobs cultivated a ‘strong engineering culture’

    Jobs created a very “product and design-centric” environment at NeXT, according to Kapoor.

    “Everything starts with what is the user experience. How is the user going to interact with this? That made all the difference in the world and the maniacal focus on that was absolutely amazing,” Kapoor said.

    This is reminiscent of Apple’s culture, with Jobs saying in a 1985 Newsweek interview that he enjoyed “making things.”

    “What I’m best at doing is finding a group of talented people and making things with them,” Jobs said. “My philosophy is that everything starts with a great product.”

    iPhone users just see a new pretty interface, but there’s a lot of “hardcore engineering” that happens behind the scenes, Kapoor explained.

    “Everything starts with a very strong engineering culture,” he said. “He drove a very hard, regimented schedule because otherwise, you just leave it, and it becomes a science project. He was very driven in that regard.”

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