Good morning. Yesterday, there was an unusual line at the grocery store across from our Manhattan office, in part because the self-checkout didn’t accept Electronic Benefit Transfer or EBT payments. Customers are confused SNAP benefits The teller explained that these issues remain open during the government shutdown. People at checkout are throwing away cartloads of food when their payments don’t go through, resulting in lost store revenue and lost productivity as workers have to put everything back, not to mention the sad fact that some SNAP recipients have no other way to purchase these items.
Consumer spending plays a huge role in the U.S. economy, accounting for about 70% of GDP, compared with less than 50% in countries such as China, Germany and Saudi Arabia. Transfers to consumers often translate into revenue for U.S. businesses, whether it’s the 250,000 stores that accept SNAP payments or hospital systems that rely on Medicaid and Medicare revenue. This does not detract from the debate about reforming such programs, but it is a reminder of the touted resilience of American consumers and The wealth effect of stocks Restricted to relatively few.
The top 10% of income earners in the U.S. right now half drive of all consumer spending. Meanwhile, credit card debt among bottom earners hit a record $1.33 trillion. 56% of households earning less than $50,000 have a monthly balance. Long shutdown——Already the longest ever— will widen the divide.
This week’s conversation with Ulta Beauty CEO Kecia Steelman of wealth The Leadership Next podcast reminds us that America’s strength comes from helping those who face great odds reach great heights. Stillman said she grew up “poor, hungry and determined” in Mediapolis, Iowa, got pregnant as a teenager and worked her way up from an $8-an-hour floor assistant. Target Operates the country’s largest beauty retailer with approximately 1,500 stores. “I started out very down-to-earth and humble, and I wouldn’t change that,” she told us in a conversation recorded at the recent Wealth Global Forum in Riyadh. She’s grateful she spent the first 12 years of her career at Target: “They really invest in you as a person and it’s where I honed my leadership skills.”
You can view our conversation apple or Spotify.
More news below.
Contact CEO Daily via Diane Brady: dianebrady@fortune.com
Hot news
Democrats win resoundingly
democrat Sweeping the three major U.S. elections Tuesday night. Zoran Mamdani Win New York City Mayoral RaceHouse Representative Mickey Sherrill wins New Jersey’s gubernatorial race, while Abigail Spanberger will become the first female governor in Virginia’s history. Mamdani’s victory represents a loss for Wall Street, whose titans sought to finance his defeat, Must now work with elected mayor. Bill Ackman, who spent $2 million to fight Mamdani, issued a settlement statement Tuesday night: “If I can help New York City, please let me know what I can do.”
Artificial Intelligence Bubble Fear
Global stock markets are expected to post another loss as investors worry. Artificial Intelligence Stock Values Are Overstated. CEOs of Goldman Sachs and Morgan Stanley Those concerns were heightened on Tuesdaywarned investors to prepare for a market downturn in the coming years.
U.S. government shuts down record
Wednesday marked the 36th day of the U.S. government shutdown, surpassing the 35-day funding freeze during President Donald Trump’s first term. as the longest ever. Speaking on Tuesday, Trump showed little interest in negotiating with Democrats, instead saying he planned to continue withholding government spending. He said SNAP food assistance, which helps 42 million Americans, would be provided “only if radical left-wing Democrats open up the government.”
IBM layoffs
IBM is the newest Fortune 500 company Announce layoffs It repositions it for the era of artificial intelligence. Big Blue will lay off thousands of jobs this quarter, but the company said the layoffs would only affect a small portion of its 270,000 employees worldwide at the end of last year.
Meet OpenAI’s Greg Brockman
Sam Altman is OpenAI’s flashy, globe-trotting CEO, while president Greg Brockman has become its shrewd operator. “He is the executive leading OpenAI’s aggressive infrastructure buildout, which has invested approximately $1.4 trillion to deploy the equivalent of 30 gigawatts of computing power,” wrote wealthSharon Goldman in new profile.
Nvidia expands operations in India
US chipmaker Nvidia will join a $2 billion deep tech alliance in India to mentor and train emerging startups in the country, Expand the company’s footprint Located in one of the fastest growing artificial intelligence markets in the world. India is nurturing its AI ambitions through a nationwide funding program and plans to host an AI Impact Summit in 2026.
market
S&P 500 Index Futures fell 0.23% this morning. It closed down 1.17% on the previous trading day. Stoxx Europe 600 Index It fell 0.34% in early trading. UK FTSE 100 Index It fell 0.06% in early trading. Japan’s Nikkei 225 Index down 2.50%. China CSI 300 up 0.19%. Korea Composite Stock Price Index down 2.85%. Indian markets are closed today. Bitcoin It fell to $102,000.
Around the water dispenser
Palantir’s “Anti-Awakening” Strategy and “Fanatical” Winning Strategy Once Again Exceeded Profit Expectations by Nina Pauley
Roelof Botha resigns as steward of Sequoia Capital, handing the role to Alfred Lin and Pat Grady Author: Ellie Garfinkel
Grab CEO Anthony Tan says drivers can upgrade to “new types of jobs” as the company prepares to launch robot buses next year by Angelica Hong
Gen Z dreams of a ‘Ralph Lauren Christmas’ at the dollar store US economy Author: Nick Lichtenberg
CEO Daily is compiled and edited by Angelica Ang and Claire Zillman.