🏦 Is The Banking System Prepared for THIS...?

Good morning. US stock futures rose in Thursday morning trading as investors continued to analyze the latest round of earnings reports.

🏦 Banks should get ready for AI, ML disruptions

📝 Our report: Banks should brace themselves for the wild ride of using AI and machine learning in their daily operations, warned a top global banking regulator. According to Bank of Spain Governor Pablo Hernandez de Cos, who chairs the international Basel Committee on Banking Supervision, there are unanswered questions on whether the use of AI or ML in banking is a net positive or negative to global financial stability.

 🔑 Key points:

• "My main message is that the use of AI in banking raises important prudential and financial stability challenges," de Cos said in a speech in Washington.

• Hernandez de Cos warned that digital innovation will further fuel cross-border and cross-sectoral financial interconnections, requiring collaboration among central banks and regulators to achieve an appropriate regulatory baseline to oversee the use of AI and ML.

• Hernandez de Cos said the Basel Committee is working to publish a more comprehensive report on the digitalisation of finance and its implications for regulation and supervision.

💡 So what: AI and ML bring both opportunities and challenges to the global banking system. On one hand, they offer improved efficiency, personalized services, and advanced risk management. On the other hand, they raise concerns about data privacy, algorithmic bias, and systemic risks. Overall, their impact depends on how effectively banks navigate these complexities and leverage the potential of AI and ML while mitigating associated risks.

Thursday - U.S. Leading Economic Indicators, Atlanta Fed President Raphael Bostic Speaks

Friday - Chicago Fed President Austan Goolsbee Speaks

📈 Investing legend Carl Icahn shares these three investing tips!

💰 Here are 6 facts about the stock market you should know!

💸 Who pays for the first date? Couples therapist weighs in!

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🦞 Seafood restaurant chain mulls bankruptcy filing

WHAT: Red Lobster is shelling out some bad news - they're dipping their toes into Chapter 11 to rework their financial sea bed. The dining chain is considering a possible bankruptcy filing to shed some long-term contracts and renegotiate a swath of leases, people familiar with the matter said.

WHY: Red Lobster traces its roots to a single restaurant in Lakeland, Florida in 1968, according to its website. The restaurant chain has gone through multiple owners and management changes in recent years. Thai Union Group Plc, which took control of the company in 2020, this year wrote down its stake in Red Lobster and said the company’s “ongoing financial requirements no longer align with Thai Union’s capital allocation priorities.”

👜 FTC preps to block takeover bid

WHAT: Looks like the U.S. Federal Trade Commission (FTC) is gearing up to crash the fashion party by blocking Coach parent Tapestry's $8.5 billion deal to snag Michael Kors owner Capri, according to rumors swirling around NYT Dealbook. The deal, which would bring together top luxury labels such as Tapestry's Kate Spade, Stuart Weitzman and Capri's Jimmy Choo and Versace, has already received regulatory clearance from the European Union and Japan.

WHY: Supermarket chain Kroger's $24.6 billion proposal to buy smaller rival Albertsons has been in a lurch since the FTC and eight states sued to block it in February, as the Justice Department takes a tougher stance on big mergers, according to new guidelines in December.

🚗 Tesla lobbies shareholders to reinstate Musk pay package

WHAT: Tesla's got its paperwork mojo working, folks! In their latest move, they're asking shareholders to hop on the Texas train by voting to shift Tesla's state of incorporation. They're throwing in a bonus request to give a thumbs-up to CEO Elon Musk's 2018 pay package.

WHY: The decision to move Tesla’s state of incorporation came after a Delaware chancery court rescinded Musk’s pay package, as the judge found it was awarded to Musk by a board that didn’t act “in the best interests” of Tesla and had “barely any evidence of negotiations at all.” Musk’s 2018 pay package was worth around $56 billion.

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