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Meta poaches MongoDB chief to build its new enterprise biz. (0:14) Nvidia launches the largest stock buyback in U.S. history. (0:59) Treasury yields surge as the 10-year tops 5.25%. (2:10)
This is an abridged transcript of the podcast:
Our top story so far, MongoDB (MDB) shares are plunging more than 15% after CEO CJ Desai stepped down to lead Meta Platforms’ (META) new enterprise platform.
Following the success of its recent Muse agent, along with its massive AI infrastructure buildout, Meta now plans to offer AI tools and software to enterprises.
Meta shares were down more than 4%.
Desai will serve as Meta’s newly created Chief Enterprise Platform Officer and report directly to CEO Mark Zuckerberg.
Zuckerberg said: “Initially, we will focus on bringing our full technology stack, including the Muse agent, Meta Business Agent, Muse API, Muse Code, and more to businesses and developers to help them grow.”
MongoDB’s board appointed Dev Ittycheria to serve as interim president and CEO.
Among other active stocks, Nvidia (NVDA) announced that its board of directors has increased the size of its buyback program by $150B, bringing total authorization to $235B, the largest in U.S. history.
Several major international banks have approached UBS (UBS) about a potential merger or other combination as Switzerland’s largest bank faces pressure from tougher capital requirements, according to Swiss newspaper Blick.
Interest from at least eight banks comes after Switzerland’s upper house backed stricter capital rules for UBS that could force it to hold roughly $18B in additional capital.
And Chipotle (CMG) is higher after announcing the limited return of its margarita. The restaurant chain said the “Summon the Spirits Tour” will offer $6 margaritas at one restaurant each weekend in October, stopping in Denver, New York, Dallas, Los Angeles and New Orleans as a lead-up to Boorito, Chipotle’s national Halloween promotion.
In today’s trading, rates continue to march higher, with the benchmark 10-year Treasury yield (US10Y) topping 5.25% for the first time since 2007.
The 2-year yield (US2Y) neared 4.95%, while the 30-year (US30Y) topped 5.55%.
Strategist Peter Schiff says at this rate “the yield will hit 6% by Nov. 5, just two days after the midterm elections. By then the interest rate on a 30-year mortgage will be over 8%. That’ll be a major issue for voters.”
And in the Wall Street Research Corner, AI agents designed to maximize returns for consumers could pose an unexpected risk to the banking system by automatically moving deposits in search of higher yields, according to Apollo Chief Economist Torsten Slok.
Agentic AI assistants could soon sweep household cash out of traditional checking accounts and into alternatives offering yields of 3.3% to 5.0%, compared with a national average of just 0.1% for checking accounts, Slok said.
The potential problem is scale. If households increasingly delegate decisions about where to hold cash to AI agents programmed to seek the highest available return, banks could lose a significant portion of the low-cost deposits they rely on to fund lending.
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