HSBC Chief Executive Officer Georges Elhedery says that while certain roles will be displaced by artificial intelligence, the productivity gains can be reinvested. "I would like to be able to accelerate and bring forward a lot of the ambitious deliverables we have for the future," Elhedery tells Bloomberg's Francine Lacqua. "That requires investment, and that is job creation." (Source: Bloomberg)
HSBC Chief Executive Officer Georges Elhedery says that while certain roles will be displaced by artificial intelligence, the productivity gains can be reinvested. "I would like to be able to accelerate and bring forward a lot of the ambitious deliverables we have for the future," Elhedery tells Bloomberg's Francine Lacqua. "That requires investment, and that is job creation." (Source: Bloomberg)
HSBC Holdings Plc Chief Executive Officer Georges Elhedery said people will remain central to banks even as artificial intelligence becomes ubiquitous, as many CEO comments in recent weeks have rattled staffers about the future of the industry. “I need human judgment, I need human decision making, I need human accountability at the core,” Elhedery said in an interview with Bloomberg TV. While Elhe...
HSBC Holdings Plc Chief Executive Officer Georges Elhedery said people will remain central to banks even as artificial intelligence becomes ubiquitous, as many CEO comments in recent weeks have rattled staffers about the future of the industry. “I need human judgment, I need human decision making, I need human accountability at the core,” Elhedery said in an interview with Bloomberg TV. While Elhedery said that AI would allow for a revolution in the way banks served their clients with the potential for productivity gains and hyper-personalized services, he insisted that people were still key and that it could even mean more hiring in the future. Many banks have announced plans to cut jobs in recent months, as they prepare to implement AI to make tasks faster and more efficient. When Standard Chartered Plc said it planned to eliminate jobs, CEO Bill Winters sparked controversy after he said AI would lead to the replacement of what he termed “lower-value human capital.” Winters subsequently apologized for his remarks. Bloomberg has reported that HSBC is weighing cutting as many as 20,000 roles, or about 10% of its workforce, in the coming years as a result of AI. Read More: Banks Lay Groundwork for Mass Workforce Cuts as AI Takes Hold “The bank of the future means more capabilities,” Elhedery said. “I would like to be able to accelerate and bring forward a lot of ambitious deliverables we have for the future, and that requires investment, and that is job creation.” HSBC is working to integrate AI across its business and is already using it for know-your-customer compliance checks, among other functions, Elhedery said.
Brandon Moser/iStock Editorial via Getty Images There is currently a lot going on in the world of space. The upcoming SpaceX IPO has triggered a substantial re-rating among space stocks, but we have also seen the Blue Origin explosion a week ago. Those contrasting events show the opportunity as well as the risks regarding investment in space. As I discuss in this report, shares of the traditional ...
Brandon Moser/iStock Editorial via Getty Images There is currently a lot going on in the world of space. The upcoming SpaceX IPO has triggered a substantial re-rating among space stocks, but we have also seen the Blue Origin explosion a week ago. Those contrasting events show the opportunity as well as the risks regarding investment in space. As I discuss in this report, shares of the traditional prime contractors have underperformed even while they have space exposure. In this report, I discuss why Lockheed Martin ( LMT ) and Boeing ( BA ) have not seen strong price appreciation despite having exposure to space and launch services. While both companies have not benefited from the space boom, I believe both still provide compelling investment opportunities with a buy rating. Traditional Prime Contractors Miss Out on the Space Surge Stock price performance emerging space companies and defense prime contractors (Koyfin) The graph above clearly shows that emerging space stocks have tremendously benefited from the momentum provided by the upcoming SpaceX IPO, while traditional defense prime contractors have not joined the euphoria. In fact, only Lockheed Martin stock outperformed the market and was in positive territory. In my view, it does mark a shifting interest away from defense prime contractors towards emerging space companies. United Launch Alliance Provides a Weak Argument for Boeing and Lockheed to Join Space Rally United Launch Alliance is the launch services joint venture owned by Boeing and Lockheed Martin. The current portfolio is centered on the Atlas V and Vulcan Centaur, with the Atlas V being slated for retirement. While the joint venture can be seen as a reason why shares of Boeing and Lockheed Martin should have benefited, there are several reasons why I believe it should not. One reason is actually the lack of innovation. The Atlas V was designed for geostationary orbit missions. These days, however, more and more satellites are operating in low-Eart...