🚀 Retailers Expecting DEI Backlash

In partnership with

Learn AI in 5 Minutes a Day

AI Tool Report is one of the fastest-growing and most respected newsletters in the world, with over 550,000 readers from companies like OpenAI, Nvidia, Meta, Microsoft, and more.

Our research team spends hundreds of hours a week summarizing the latest news, and finding you the best opportunities to save time and earn more using AI.

Sign up with 1-Click

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Retailers are treading cautiously on DEI policies ahead of the holiday season and the 2024 presidential election, fearing backlash from consumers across the political spectrum. Many are limiting public DEI displays and backing away from events or partnerships that could invite criticism, as recent controversies with brands like Bud Light and Target have made some retailers wary of alienating customers. Industry insiders say there's a heightened sensitivity to "optics," especially in a politically charged climate, prompting some companies to pull back on DEI initiatives or even eliminate DEI roles. A survey by AlixPartners found that DEI messaging resonates less with younger consumers than assumed, with only 45% of millennials and fewer Gen Z consumers deeming it highly important. Experts suggest that while overt DEI messaging may be muted, maintaining diverse perspectives in product design and service remains essential to align with varied consumer needs.

2. Berkshire Hathaway's cash reserves hit a record $325.2 billion in Q3 as Warren Buffett continued to shed stocks, notably selling portions of Apple and Bank of America. This marks the fourth quarter of downsizing his Apple stake and follows over $10 billion gained from selling off Bank of America since July. Overall, Berkshire sold $36.1 billion in stock in Q3, with no repurchases of its own shares as Buffett held off, considering Berkshire's intrinsic value. The conglomerate’s operating earnings slipped 6% due to weaker insurance underwriting, while Class A shares are up 25% year-to-date, surpassing the S&P 500's 20.1% return. As interest rates tick back up and fiscal deficit concerns grow, Buffett’s caution on tax rates and stock holdings reflects a broader strategy amid fiscal and economic uncertainty.

3. After more than seven weeks on strike, Boeing's 32,000 unionized machinists will vote on a revised labor deal Monday, marking their third vote since the walkout began on September 13. Boeing's latest offer includes a 38% raise over four years—up from the 35% raise rejected last month but still shy of the union's original demand of 40%. With the ongoing strike halting much of Boeing's production and the cost of living rising in Seattle, union leaders warn this deal may be as good as it gets. Boeing, which has raised over $20 billion to weather the disruption, is urging workers to accept the deal and return to production. CEO Kelly Ortberg emphasized the importance of resuming work to rebuild the company's operations.

4. Headlines

   1. The head of OPEC is confident that oil prices will continue rising despite global efforts to reduce consumption.

   2. Treasury yields are down ahead of the US election.

   _{* This is sponsored content.}

Are you looking to grow your business? Here is how I can help: 

📱Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)

Learn AI in 5 minutes a day.

What’s the secret to staying ahead of the curve in the world of AI? Information. Luckily, you can join 700,000 early adopters reading The Rundown– the free newsletter that makes you smarter on AI with just a 5-minute read per day.

Sign up.

Onwards and Upwards,

Liam Gill