Market Beats | Klarna CEO Warns Society Is Unprepared for AI’s Disruption; Fed’s Waller Says Job Growth Likely Turned Negative; Israel and Hamas Implement Ceasefire; JPMorgan Requires Staff to Submit Biometric Data for Entry to New Manhattan Headquarters; U.S. Justice Department Indicts New York Attorney General Letitia James; Bridgewater’s Ray Dalio Warns Surging U.S. Debt Echoes Pre–World War II Era

—— Klarna CEO Warns Society Is Unprepared for AI’s Disruption; Fed’s Waller Says Job Growth Likely Turned Negative; Israel and Hamas Implement Ceasefire; JPMorgan Requires Staff to Submit Biometric Data for Entry to New Manhattan Headquarters; U.S. Justice Department Indicts New York Attorney General Letitia James; Bridgewater’s Ray Dalio Warns Surging U.S. Debt Echoes Pre–World War II Era

1. Klarna CEO Warns Society Is Unprepared for AI’s Disruption

Klarna Group Plc Chief Executive Officer Sebastian Siemiatkowski says society has yet to confront the full implications of artificial intelligence wiping out vast numbers of white-collar jobs, from technology firms to translators.

“I feel a lot of my tech bros are being slightly, you know, not to the point on this topic,” he told Bloomberg Television. “There is a massive shift coming to knowledge work — and it’s not just in banking, it’s in society at large. Society will have to figure out what we’re going to do, because yes, new jobs will be created, but in the shorter term that doesn’t help the Brussels translator — he’s not going to become a YouTube influencer tomorrow.”

Klarna, best known for its buy-now-pay-later product, has invested heavily in artificial intelligence. Siemiatkowski declared in 2023 that he wanted to be OpenAI’s “favorite guinea pig.” That enthusiasm was partly driven by Klarna’s need to cut costs after the end of the fintech boom. The strategy allowed the company to freeze hiring for more than a year and shrink its workforce from 7,400 to about 3,000 while boosting salaries.

Yet, the company has also learned the limits of automation. Earlier this year, Klarna rehired customer service staff to ensure users could still talk to a human, and Siemiatkowski said the firm doesn’t rely much on AI for underwriting decisions.

Still, he remains confident in AI’s ability to perform many customer-facing tasks. “You can build a lot of trust by having AI perform specific types of tasks because of its consistency and quality,” he said.

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2. Fed’s Waller Says Job Growth Likely Turned Negative

Federal Reserve Governor Christopher Waller said U.S. job growth has probably been negative in recent months and that the labor market has become his biggest policy concern.

“Job growth has probably been negative the last few months,” Waller told CNBC on Friday. “The labor market is weak, and that’s the punchline for policy — that’s what we need to know.”

The September jobs report, which was due last week, has been delayed because of the ongoing government shutdown.

Waller, who was appointed to the Fed by President Donald Trump in 2020, is considered a leading candidate to succeed Jerome Powell when his term as chair expires in May 2025. He said his interview for the post “went well,” describing it as a “serious economic discussion” and stressing that “there was nothing political about it.”

On monetary policy, Waller said he favors continuing interest rate cuts but warned that policymakers should proceed cautiously. “I want to keep cutting rates, but we have to be careful,” he said.

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3. Israel and Hamas Implement Ceasefire

The Israeli military said a ceasefire in Gaza has taken effect, paving the way for the release of hostages held in the strip and activating the first phase of U.S. President Donald Trump’s peace plan for the Palestinian territory.

The Israel Defense Forces said that as of noon local time, its troops had completed a partial withdrawal, pulling back to “updated deployment lines in preparation for the ceasefire agreement and the return of hostages.”

The truce was implemented just hours after Israel’s cabinet approved the first stage of the U.S.-brokered deal, aimed at ending the two-year war with Hamas. Tens of thousands of Gazans began returning north toward the ruins of Gaza City and nearby neighborhoods, though the IDF warned civilians to stay clear of its troops.

Friday’s pullback still leaves Israeli forces in control of more than half of Gaza, and further withdrawals will depend on progress in subsequent negotiations to implement the rest of Trump’s plan.

The agreement represents the most significant diplomatic breakthrough in months to resolve the longest and deadliest conflict between Israelis and Palestinians since Hamas’s October 7, 2023, assault on Israel.

Under the deal’s first phase, Hamas will release the remaining 48 hostages — about 20 of whom are believed to be alive — in exchange for nearly 2,000 Palestinian prisoners held in Israeli jails, including 250 serving life sentences. Israel will also permit a major influx of humanitarian aid into the besieged enclave suffering from famine.

“We reached a momentous breakthrough — something that people said would never be done,” Trump said at a cabinet meeting Thursday. He added that the hostages would be released Monday or Tuesday and that he plans to travel to the Middle East “fairly soon” for an official signing ceremony. Israel’s Channel 12 News reported that he will also visit Jerusalem to address the Knesset.

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4. JPMorgan Requires Staff to Submit Biometric Data for Entry to New Manhattan Headquarters

JPMorgan Chase has told employees moving into its new multibillion-dollar Manhattan headquarters that they must share their biometric data to access the building, overturning an earlier plan for voluntary enrollment.

Workers who began operating out of 270 Park Avenue since August received emails stating that biometric access is “required,” according to internal communications seen by the Financial Times. The system allows employees to scan fingerprints or eyes instead of using ID badges to pass through lobby security gates.

The bank declined to comment. The $3 billion, 60-story skyscraper will ultimately house around 10,000 staff when it’s fully open later this year. JPMorgan says the goal is to make building entry more secure and convenient, though some employees may still receive exemptions allowing badge use — it remains unclear who qualifies.

The move follows heightened security concerns in New York corporate offices after a deadly shooting in July at 345 Park Avenue, just blocks away from JPMorgan’s new site.

“Biometrics have long been used in high-security facilities like government sites and data centers, but implementing them in large-scale commercial buildings is new,” said Dave Komendat, chief security officer at Corporate Security Advisors and former Boeing security executive. “It’s a very effective way to make sure people entering your facility are exactly who they claim to be.”

JPMorgan first announced plans to demolish its old headquarters in 2018, citing space constraints. New York Mayor Eric Adams likened the project’s ambition to a “1932 moment,” comparing it to the construction of the Empire State Building after the Great Depression. The bank is also renovating its office at 383 Madison Avenue and considering adding hotel rooms for visiting staff at the nearby 250 Park Avenue building it acquired last year.

The 2.5-million-square-foot steel-and-glass tower has been hailed by CEO Jamie Dimon as a “beautiful physical manifestation” of JPMorgan. Employees refer to 270 Park Avenue as a “monument” to Dimon’s leadership.

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5. U.S. Justice Department Indicts New York Attorney General Letitia James

The U.S. Department of Justice has indicted New York Attorney General Letitia James on two criminal counts — bank fraud and making false statements to a financial institution — following calls from President Donald Trump for legal action against her.

The charges stem from allegations that James misrepresented details on a loan application by classifying a Virginia property as a second home when it was used as a rental investment, according to the indictment. She’s scheduled to make her initial court appearance on October 24.

The move comes just days after former FBI Director James Comey — another longtime Trump adversary — was charged with lying to and obstructing Congress. Both indictments mark a dramatic escalation in the president’s pursuit of his political opponents and have intensified fears among critics that Trump is using the Justice Department as a tool of retribution, an accusation the department denies.

In a social media post last month, Trump urged U.S. Attorney General Pam Bondi to take action against both James and Comey. Bondi later wrote on X after the indictment was filed: “One tier of justice for all Americans.”

James called the charges “baseless” and described them as “a continuation of the president’s desperate weaponization of our justice system.” She said Trump’s public statements make clear that “his only goal is political retribution at any cost.”

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6. Bridgewater’s Ray Dalio Warns Surging U.S. Debt Echoes Pre–World War II Era

Bridgewater Associates founder Ray Dalio has renewed warnings that U.S. government debt is growing at an unsustainable pace, creating conditions “very much analogous” to those that preceded World War II.

“When debt rises relative to income, it’s like plaque in the arteries that begins to squeeze out spending,” the 76-year-old billionaire said in an interview with Leaders with Francine Lacqua aired Friday.

Dalio has long cautioned that America’s ballooning debt poses a “threat to the monetary order,” blaming both political parties and urging a combination of higher taxes and spending cuts to defuse what he calls the “deficit/debt bomb.” Debt held by the public reached 99% of GDP last year and is projected by the Congressional Budget Office to hit 116% by 2034 — the highest in U.S. history.

Debt isn’t the only issue, Dalio warned. Rising global conflicts and widening wealth inequality are contributing to a “very worrisome environment.”

Asked if another world war might be imminent, Dalio said a “civil war of some sort” is brewing in the U.S. and elsewhere, as “irreconcilable differences” deepen. “These conflicts will become tests of power by each side,” he said. “If we don’t worry about these things, then we have greater risks.”

Dalio founded Bridgewater in 1975 and became known for instituting a culture of “radical transparency.” He began stepping back from day-to-day operations in 2017, completing his exit earlier this year by selling his remaining stake and leaving the board.

The Westport, Connecticut-based firm, which managed $92 billion as of Dec. 31 — down from nearly $140 billion in early 2023 — is on track for its best annual gain since 2010. CEO Nir Bar Dea has spearheaded a broad restructuring, including staffing changes and asset reductions aimed at boosting performance.

Alphabet Inc.’s Google on Thursday unveiled Gemini Enterprise, a rival platform for workplace applications priced at $30 per user per month.

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7. Silver Soars to Highest Since 1980

Spot silver surged as much as 4.8% to $51.235 an ounce on Thursday — the highest level since the infamous Hunt brothers’ squeeze in 1980 — before paring gains.

The metal has climbed more than 70% this year, outperforming gold’s record rally, as investors flock to safe-haven assets amid mounting concerns over U.S. fiscal risks, an overheated stock market, and threats to the Federal Reserve’s independence. A shortage of freely available silver in London’s bullion market has further fueled the rally, pushing borrowing costs to record levels.

The tightness has upended normal market dynamics: New York silver futures, which typically trade a few cents above spot prices, fell into a steep discount of as much as $2.50 an ounce below spot. Futures dropped as much as 3.2% on Thursday despite the spot rally. According to Bloomberg calculations, borrowing costs for silver in London climbed to 11%, the highest since data began in 2002.

The squeeze has been building for months. Fears that the U.S. might impose tariffs on silver prompted traders to rush shipments to New York, depleting London inventories and reducing the metal available for lending.

Much of the remaining silver in London is locked in vaults backing exchange-traded funds, leaving limited supply for spot transactions.

“The premium in London should eventually attract metal back,” said Daniel Ghali, commodity strategist at TD Securities. “Traders can buy cheaper silver in the U.S. or China and ship it to the U.K. to capture the higher price — but for now, availability in London is critically low.”

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