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And now, news!

Matt Davis — Need2Know Chedditor

News You Need2Know

What’s the stock market up to, eh?*

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Companies mentioned in today’s newsletter

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Who exactly is the new Apple CEO, John Ternus?

After a 15-year tenure, Tim Cook is stepping down and handing the reins of Apple $AAPL ( ▼ 2.52% ) over to John Ternus. Though largely out of the public spotlight until now, the 51-year-old Ternus is a company veteran who has been with Apple for 25 years, most recently serving as the senior vice president of hardware engineering. During his impressive career at Apple, he has overseen the development of iconic products like AirPods, the Apple Watch, and the Vision Pro, and he played a key role in the company's major transition to proprietary Apple silicon.

Ternus's commitment to Apple's famous attention to detail was instilled early on. He once recalled using a magnifying glass to count the grooves on screws for an early display, wondering at the time, "What the hell am I doing? Is this normal?"

He also deeply admires Steve Jobs's appreciation for unseen craftsmanship, noting that finishing even the hidden parts of a product "perfectly exemplifies what we do here."

Despite his high-profile promotion, Ternus appears to value a grounded approach to leadership. In a recent commencement speech, he advised students to "Always assume you’re as smart as anyone else in the room, but never assume that you know as much as they do," emphasizing that this mindset brings "the humility to ask questions". As he steps into the CEO role on September 1, let’s hope he updates his LinkedIn profile, eh?

Quote of the Day

AI-driven job cuts rise on Wall Street

Wall Street banks are generating massive profits while shrinking their workforces, and AI is increasingly driving the rend. In the recent earnings season, major banks including JPMorgan Chase $JPM ( ▼ 1.26% ) , Bank of America $BAC ( ▼ 0.87% ) , Wells Fargo $WFC ( ▼ 0.51% ) , and Citi $C ( ▼ 1.03% ) shed 15,000 employees while racking up $47 billion in collective profit.

Despite initial reassurances to staff, financial leaders are changing their tune about the technology's impact. Bank of America's CEO, Brian T. Moynihan, atributed the shedding of 1,000 jobs to “eliminating work and applying technology,” specifically pointing to AI. He emphasized the technology's potential, too, saying, “AI gives us places to go we haven’t gone.”

While some executives obscure these layoffs as a “productivity and efficiency journey,” others are much more direct. Wells Fargo CEO Charlie Scharf bluntly acknowledged that AI will permanently reduce banking jobs. “These are all opportunities to do things much, much more efficiently with AI than humans have been doing,” Scharf said on the earnings call. He noted that other bank leaders “are afraid to say it because no one wants to stand up and say that we are going to have lower head count in the future,” admitting that “it’s a difficult thing to say.”

Although not that difficult, it seems.

Trump hints at helping Spirit Airlines

President Trump has openly opposed a potential merger between United Airlines $UAL ( ▼ 1.8% ) and American Airlines $AAL ( ▼ 3.84% ) , but is also championing a rescue mission for the struggling Spirit Airlines $SAVEQ ( ▲ 0.43% ) .

Irump explicitly rejected the idea of a United-American mega-merger, saying: “I know them both very well, I don’t like it.” But his stance on industry consolidation isn't entirely negative. He is actively encouraging buyers to step in and save Spirit Airlines, a budget carrier currently navigating its second bankruptcy in two years due to a failed JetBlue $JBLU ( ▼ 5.04% ) merger, engine issues, and rising fuel costs stemming from the war in Iran.

Beyond a private buyout, Trump also suggested an unconventional lifeline: federal intervention. “Spirit’s in trouble and I’d love somebody to buy Spirit,” Trump said adding, “It’s 14,000 jobs and maybe the federal government should help that one out.” 

This approach aligns with his administration's recent willingness to take government stakes in major companies like Intel $INTC ( ▲ 0.85% ) and U.S. Steel $X ( ▼ 0.02% ) .