Morning Brew

Allstate's new work model is a win-win

In this week's episode of "rebrands no one asked for," Zoom is pivoting to an AI-first company. Known primarily for its video conferencing software, Zoom will now focus on AI-driven tools aimed at enhancing productivity and streamlining corporate workflows. Its AI Companion technology, integrated across its workplace platform, is designed to assist with tasks like meeting summaries, drafting emails, and preparation, ultimately aiming to reduce work hours and promote efficiency. The rebrand aligns with an industry-wide trend, as major tech firms such as Amazon, Google, Meta, and Microsoft invest heavily in AI development. Companies are leveraging AI to boost productivity, with examples like Google generating a significant portion of its new code through AI and Microsoft integrating AI models into its products. Zoom has faced multiple rounds of layoffs and struggled to stay relevant in the post-covid market. This rebranding signals a strategic pivot, underscoring its commitment to remaining competitive in the growing AI landscape. 📸 : AMC

Would you work for negative money?

Climate change is comin' for your nonfat caramel macchiato.⁣ ⁣ Arabica coffee, a premium variety, saw a 3% rise in futures on Monday, while robusta prices climbed to their highest point in almost three decades. Factors like Brazil’s prolonged drought have impacted coffee trees, threatening the next harvest despite October rains that promoted flowering. Analysts worry that poor flower fixation may further reduce yields, while strong exports this year have already led to dwindling inventories.⁣ ⁣ The US Department of Agriculture predicts Brazil’s coffee stockpiles will drop by 26% by June 2025, intensifying concerns about supply constraints. Even though broader agricultural prices have eased from previous peaks, coffee remains a standout exception, squeezing consumer budgets. Retailers and roasters have responded by increasing prices and cutting discounts, signaling potential further cost hikes for consumers.⁣ ⁣ As coffee prices soar, consumers face higher costs for everyday brews, with warnings that the trend may persist if production challenges continue.⁣ ⁣ 📸: New Line Cinema

Dave Girouard, CEO and co-founder of Upstart, joined Ann Berry on the latest episode of After Earnings to explore how AI can revolutionize the consumer credit market. Lenders can now use data to move past simple FICO scores to improve risk assessment while offering a better consumer experience. However, lessons from the Great Financial Crisis raise the question — are we ready for AI-driven underwriting? $UPST

Allstate saw Amazon and went "Couldn't be us"

A fresh episode has dropped! This week, Ann Berry chatted with Upstart CEO Dave Girouard to discuss if AI could expand Americans' access to credit. They covered: - How Upstart uses AI to assess consumer creditworthiness - Private credit funds' growing role in innovation in lending - Will traditional Wall Street firms embrace AI in underwriting? $UPST Watch now: https://lnkd.in/eNr9U8PF

Something didn’t add up for Macy’s.⁣ ⁣ Macy’s announced it would not release its Q3 earnings report as scheduled tomorrow morning after learning that one employee “intentionally” hid between $132 million and $154 million in expenses between Q4 of 2021 and Q3 of this year. The employee, who was responsible for small-package delivery expense accounting, is no longer with the company.⁣ ⁣ The retailer said there’s no indication that the accounting snafu had any impact on its cash management or vendor payments. In a preliminary Q3 release, Macy’s showed sales had dropped 2.4% to $4.74 billion, which was below estimates; sales for its owned and licensed businesses dropped 1.3%, which was better than expected.⁣ ⁣ Macy’s said it will release its full Q3 report along with its Q4 and full-year guidance by Dec. 11 as it continues to investigate the chicanery.⁣ ⁣ 📸: Getty Images

Can't wait! *said a little too gleefully*

The "broken rung" phenomenon gets broken down