BLS Chief Fired Over Jobs Report & Top 10 Jobs Safe From AI

Summary

Morning Brew Daily: Episode Summary Episode Title: BLS Chief Fired Over Jobs Report & Top 10 Jobs Safe From AI
Release Date: August 4, 2025
Hosts: Neal Freyman and Toby Howell

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1. Introduction and Economic Shocker

Timestamp: [00:43] - [04:47]

Neal Freyman and Toby Howell kick off the episode by addressing a surprising downturn in the U.S. economy as revealed by the latest jobs report. The report showed that the economy added only 73,000 jobs in July, significantly below expectations. Moreover, previous months' job numbers for June and May were revised downward by nearly 260,000 jobs combined, leading to an average of 35,000 jobs added over the last three months—the slowest growth since 2010.

Neal highlights the gravity of the situation:

“If you've been finding it hard to land a job now, you know why.”
— Neal Freyman [00:44]

This downturn prompted former President Trump to react strongly, firing the Bureau of Labor Statistics (BLS) Commissioner Erica McIntyre. Experts from banks like Morgan Stanley and economists across the political spectrum criticized the move, likening it to actions seen in "banana republics" and emphasizing the damage to the integrity of crucial economic data.

Key Points:

• July job additions significantly below expectations.
• Downward revisions for May and June jobs.
• Firing of BLS Commissioner Erica McIntyre amid accusations of data manipulation.

2. Expert Analysis on Job Report Revisions

Timestamp: [04:47] - [08:53]

Toby delves into the commonality of job report revisions, explaining the challenges statisticians face in balancing timely data with precision. He notes that negative revisions can be particularly concerning as they may indicate underlying economic issues.

Toby emphasizes:

“Negative revisions can be a warning sign because you know, you don't necessarily want there to be a massive delta between what you reported and what you revised.”
— Toby Howell [06:01]

Neal adds that the BLS data is meticulously compiled over a month, making it resistant to manipulation:

“They just edit the text. There's very little ability for them to go in and fudge a number here and there.”
— Neal Freyman [07:01]

The hosts agree that the firing of the BLS Commissioner undermines trust in economic data, which is vital for both public policy and private sector decision-making.

3. Switzerland's Unexpected Tariff Hike

Timestamp: [08:53] - [12:33]

The discussion shifts to international trade, specifically Switzerland's plight following President Trump's decision to impose a 39% import tariff on Swiss goods—the highest in the world. This move caught Swiss industries off guard, especially those heavily reliant on U.S. exports like pharmaceuticals and watchmaking.

Neal comments on the severity:

“Only Laos, Myanmar, and Syria of any countries in the world had a higher tariff than Switzerland... This puts them at a massive disadvantage against their peers across Europe.”
— Neal Freyman [10:27]

Toby explains Trump's rationale, focusing on reducing the $50 billion trade deficit with Switzerland, though Swiss officials argue that closing such a gap is unrealistic given the size disparity between the two countries.

Key Points:

• Switzerland faces a crippling 39% tariff on its exports to the U.S.
• Industries like pharmaceuticals and watchmaking are particularly affected.
• Negotiations are underway with an August 7 deadline to potentially mitigate the tariffs.

4. NFL and ESPN's Major Media Deal

Timestamp: [12:33] - [14:33]

A significant agreement between the NFL and ESPN was announced, where ESPN will acquire several of the NFL's top media properties, including the Red Zone and NFL Network, in exchange for equity shares in ESPN. This deal aims to bolster ESPN's forthcoming standalone streaming platform.

Neal highlights the strategic move:

“The fact that they are acquiring a cable network from the NFL, a cable network that is flailing and not doing so well speaks to the power of the NFL and the fact that it is the most valuable media property in the country.”
— Neal Freyman [13:47]

Toby raises concerns about potential conflicts of interest:

“If the NFL has a meaningful ownership stake in the company, that could blur the line of objectivity and independence.”
— Toby Howell [14:33]

Key Points:

• ESPN acquires top NFL media properties for equity.
• The deal supports ESPN's $30/month streaming service launch.
• Potential regulatory approvals could delay the deal by up to a year.

5. AI Impact on Employment: Top 10 Jobs Safe from AI

Timestamp: [17:03] - [20:16]

In the "Winners of the Weekend" segment, Neal and Toby discuss a Microsoft report identifying the Top 10 Jobs Safe from AI. The study emphasizes that blue-collar roles requiring both physical and cognitive skills, such as dredge operators and rail track layers, are least likely to be automated. Conversely, white-collar jobs like interpreters, translators, and customer service representatives are more vulnerable to AI displacement.

Neal points out the educational implications:

“Nearly all of them require a bachelor's degree or perhaps even a graduate degree... the ones that are least vulnerable require maybe, you know, they are a skilled job, but they don't require you going to school for so long.”
— Neal Freyman [20:16]

Toby adds that while AI is transforming how white-collar workers perform their tasks, many are using AI as tools rather than replacements:

“They use it to as a sounding board to bounce ideas off of. Not necessarily like hey, fire this worker, that's not something that you can actually have an LLM do.”
— Toby Howell [19:27]

Key Points:

• Blue-collar jobs are currently the most secure from AI automation.
• White-collar jobs requiring higher education are more susceptible.
• AI is being utilized as a tool to enhance, not replace, certain job functions.

6. Back to School Shopping Trends

Timestamp: [24:06] - [25:28]

Neal and Toby explore the dynamics of the upcoming back-to-school season. According to the National Retail Federation, parents are budgeting an average of $858 for school supplies. However, factors like sales tax holidays and potential tariff impacts are influencing consumer behavior.

Toby notes:

“More than half of shoppers said they plan to buy less overall this back to School season because of tariffs.”
— Toby Howell [25:06]

Neal adds practical advice:

“States are rolling out sales tax holidays this month that could shave a few bucks off Target and Walmart.”
— Neal Freyman [24:37]

Key Points:

• Significant spending expected on back-to-school supplies.
• Sales tax holidays may provide financial relief.
• Tariffs are causing some consumers to reduce their spending.

7. Entertainment News Highlights

Timestamp: [25:28] - [26:54]

The hosts wrap up with updates from the entertainment world, including the revival of King of the Hill on Hulu, the second season of Wednesday on Netflix, and the movie sequel Freakier Friday. They also touch on innovative marketing tactics, such as McDonald's and select theaters offering playful product packaging swaps.

Toby shares a fun anecdote:

“When you order a soda at some select theaters, it comes in a bucket that looks like it contains popcorn, but the popcorn is fake.”
— Toby Howell [26:11]

Key Points:

• Revival and new seasons of popular TV shows.
• Innovative marketing strategies in the film industry.

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Conclusion

In this episode of Morning Brew Daily, Neal Freyman and Toby Howell provide an in-depth analysis of significant economic indicators, international trade tensions, the evolving landscape of employment in the age of AI, major media deals, consumer behavior during back-to-school season, and the latest happenings in entertainment. Their engaging discussions offer valuable insights for listeners seeking to understand the current state and future trends of the economy and various industries.

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Notable Quotes:

• Neal Freyman: “If you've been finding it hard to land a job now, you know why.” ([00:44])
• Toby Howell: “Negative revisions can be a warning sign because you know, you don't necessarily want there to be a massive delta between what you reported and what you revised.” ([06:01])
• Neal Freyman: “They just edit the text. There's very little ability for them to go in and fudge a number here and there.” ([07:01])
• Neal Freyman: “Only Laos, Myanmar, and Syria of any countries in the world had a higher tariff than Switzerland...” ([10:27])
• Toby Howell: “They use it to as a sounding board to bounce ideas off of. Not necessarily like hey, fire this worker, that's not something that you can actually have an LLM do.” ([19:27])

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For More Information: Listen to the full episode of Morning Brew Daily on your preferred podcast platform or visit their YouTube channel.

Transcript

[Neal Freyman]

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[Toby Howell]

And I'm Toby Howell.

[Neal Freyman]

Today a jobs report shocker showed the economy is slowing down for real.

[Toby Howell]

Then how did Switzerland end up with one of the highest tariff rates in the world? It's Monday, August 4th. Let's ride. Good morning and happy Monday. The hottest ticket in New York this weekend wasn't to a new Broadway show or an act at msg. It was to a game featuring the Brooklyn Cyclones in the Jersey Shore Blue Claws. Yeah, that's right. A high a baseball game. The fourth tier of competitive baseball in the US Was a sellout affair Saturday night because it was also seinfeld night. The 10th iteration of the event saw fans receive Kramer bobbleheads and featured an always entertaining Elaine dance contest. It also featured some boots on the ground. Reporting from our very own Neil Freyman. And Neil, you went to the game. What was your experience like?

[Neal Freyman]

Yeah, I went down to Coney island and yada, yada, yada. Now I have a back tattoo. No, Seinfeld night did absolutely live up to the hype. The first thing I have to know is the bobblehead frenzy. It is real. People were lining up for a minor league baseball game up to two hours early in order to get this Kramer bobblehead. As soon as I got mine, some guy came over five seconds later, was like, you want to sell that? Here's $20. I was like, no way. Get out of here. After the game, we checked ebay and it's now up $70. So I'm glad I kept the bobblehead. And the Elaine dance contest was absolutely incredible. I mean, I've never stayed for a minor league game past the seventh inning. And they, they staged the dance contest at the end of the game. Everyone stayed. The competitors were fantastic. So I highly recommend going next year.

[Toby Howell]

And now a word from our sponsor LinkedIn ads. Neal, when's the last time you felt like you really wasted something?

[Neal Freyman]

Oh man, I lost a whole day to this awful party in February. Completely wasted by whole evening you birthday. You know what's the worst thing to waste though? Marketing. Spend. It wastes time, money, resources, effort. The list goes on. LinkedIn ads can help reduce all that waste.

[Toby Howell]

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[Neal Freyman]

So rather than being part of the 71% of B2B ads that are a waste of money, get zero attention, make.

[Toby Howell]

Zero sales, or waste invites to birthday.

[Neal Freyman]

Parties, oh my God. Move on. LinkedIn will even give you a $100 credit on your next campaign. So you can try it for yourself. Just go to LinkedIn.com/MBD. That's LinkedIn.com MBD terms and conditions apply only on LinkedIn ads. After three months of calm, markets are rattled entering the first week of August. And that's because of some shocking developments from Friday 1st. The July jobs report was an absolute stinker. Economy added just 73,000 jobs last month, way lower than expectations, revealing a labor market that's rapidly slowing down. And that wasn't even the most concerning part. The jobs reports for the previous two months, June and May, were revised downward by nearly 260,000 jobs combined. So given those revisions, employment growth averaged 35,000 in the last three months, the slowest job growth since 2010. Outside of the pandemic, if you've been finding it hard to land a job now, you know why. If the rough jobs report was a shot, here's the chaser. President Trump, when faced with bad economic news, shot the messenger, saying without any evidence that the Bureau of Labor Statistics fudge the numbers to make him look bad, Trump sacked the agency's commissioner, Erica McIntyre. For a longtime government vet who served under administrations of both parties, banks like Morgan Stanley and economists of both the right and the left said the firing was something you'd see in a banana republic and damages the integrity of US Economic data, the most important statistics in the world. William beach, who ran the BLS during Trump's first term, called the firing, quote, totally groundless and setting a dangerous precedent after the chaotic morning The S&P 500 fell to close out its worst week since April.

[Toby Howell]

Yeah, whenever you see a revision come down the pipeline of that size, it does set off a few warning bells. But Revisions are pretty common. Whenever you're trying to measure something as big and as Dynamic as the U.S. labor market, you're going to run into unavoidable tradeoffs between doing it in a timely fashion and doing it as precise as possible. The way that these reports are created is that you go out, you ask businesses, businesses respond. But not every business responds in time. So what you do as a government statistician, you go in and fill in the gaps, use a statistical technique that basically assumes that the businesses that didn't respond would respond in a way similar to the ones that did. But as you go back and comb through the data, as more of those responses come in, you do end up with these semi large revisions. So they are pretty common. But negative revisions can be a warning sign because you know, you don't necessarily want there to be a massive delta between what you reported and what you revised. To all that being said, a lot of economists on both sides of the aisle were saying we do not want to see, as you said, the messenger being shot here because the data is largely accurate and you don't want the person responsible for reporting that data to be the one that takes the brunt of the bad news.

[Neal Freyman]

Yeah, well, William beach, who ran the BLS in Trump's first term, said it's not even possible for the commissioner to cook the data, cook the books. And that's because they don't see the report which has been compiled by bureaucrats over the course of the month until two days before. And their main job is to liven up the tech so that when people like us or other economists are reading the, the jobs report, it's not the most dry thing in the world. So they just edit the text. There's very little ability for them to go in and fudge a number here and there. And that's why you saw economists and banks come out and say, well, this is something that you'd see in China, Argentina or Greece ahead of their debt crisis, because it certainly undermines the integrity of the data that is not only used by the public sector, like Federal Reserve Jerome Powell on figuring out when to cut interest rates because of inflation or employment, but also like the private sector relies on government data so much in order to make new investments or open a new location somewhere. So that is why economists call this a four alarm fire.

[Toby Howell]

Let's just zoom out to, to last week because we call this is big economic gauntlet of data that was dropping and it painted a picture of some mounting economic pressure because earlier in the week we Saw data that show hiring rate fell to a seven month, seven month low. And then also the quits rate, which is a pretty good proxy for worker confidence, that dropped to just 2%. Then we got that GDP data that had overall strong numbers. But when you looked into the actual details, it belied some underlying softness, mainly with the fact that private sales to private domestic purchasers, which is again, a proxy for consumer and business demand, that fell to its weakest pace since 2022. And then the Fed's preferred inflation gauge, the PC index, showed price increases were accelerating in June. And then everything culminated with that no good, very lousy jobs report. So you do have some softening economic growth here. You do have inflation ticking up a little bit. And you have a weakening job market, which puts Jerome Powell's decision to hold rates steady into a little bit of a different light. Now, maybe we'll look back on that and say, was it, was he too late with cutting rates? Is the job market really softer than we were expecting? Those are the questions that we're going to have until, you know, the next Fed meeting.

[Neal Freyman]

Yes, some very stark statistics here because there's really one industry holding up the job market and making it in the green at all, which is health care. Without health care job growth, the last three months of payroll gains are all negative. Negative 53,000 in May, negative 45,000 in June and negative 300 in July. So outside of the health care industry, job growth really is anemic. And that's why investors are now betting on a rate cut. In September, there was 40% chance that Powell would cut rates in September. Earlier in the week after the jobs report, that number shot up to 91%. Chance we'll get a lower rate cut.

[Toby Howell]

Let's move on. Switzerland is not often a country that makes a lot of headlines unless you're unusually plugged into the chocolate or watch business. But suddenly they've been thrust to the forefront of the global trade war after President Trump's shocking decision to levy a 39% import tariff against Swiss goods, one of the highest rates in the world. The Swiss were completely caught off guard by the announcement last week, expecting a deal much closer to that of the European Union, who got a baseline tariff of between 10 and 15%. Swiss markets were closed on Friday because of a national holiday. So the fallout hasn't hit in full yet. But the London listed company watches of Switzerland fell nearly 10% after the rate was announced, showing that companies listed on the Swiss exchange, companies like Novartis, Roche and Nestle, could be in for a rough go of it today. Switzerland's economy is particularly exposed to these tariffs because the US Is its top destination for exports, with around a sixth of Switzerland's goods finding its way to the U.S. its biggest industry is pharmaceuticals, which could be exempt from the 39% tariff, but is facing down criticism within Switzerland for sparking the ire of Trump. Some switch watchmaking execs, for instance, said their country is being quote, held hostage by the pharma industry that had irritated Trump with their high drug prices. Neal, there is still time to make a deal before the August 7 implementation deadline of these tariffs. But the odd combination of an outsized trade deficit with the US and the inability to strike a, quote, big deal that Trump so enjoys condemn Switzerland to an extremely punitive tariff rate.

[Neal Freyman]

They are absolutely freaking out over there. Only Laos, Myanmar, and Syria of any countries in the world had a higher tariff than Switzerland. Those had tariffs at 40 to 41%, Switzerland at 39%. The tabloids are calling it Switzerland's greatest defeat since 1515 when it lost a battle against the French. So the knives are out. They are going after the president and figuring out what the hell they did during these negotiations to get a tariff rate that is so much higher than the European Union at 15%, it puts them at a massive disadvantage against their peers across Europe. UK has a 10% tariff. So something happened here in the negotiations that draw, that drew Trump's, you know, hatred or anger against the Swiss. And chocolate makers, pharmaceutical companies, and watchmakers are looking at a 39% tariff. And they're saying, well, we're going to be at a huge disadvantage. Yeah.

[Toby Howell]

Trump sees trade deficits, which is when a country sells more to the US Than it buys, as a problem for the United States. Inherently. It's a very black and white view in his mind. And so he looks at the Swiss trade deficit in the US last year, it was nearly $50 billion. But if you actually toss in services, it drops down to $20 billion or $22 billion. So he looks at that and says, oh, they need to be buying more of our goods than we are buying of their goods. But then a lot of people within Switzerland saying, like, dude, we are a country of 9 million people. The US has over 300 million people. Even if we all bought, you know, Harley Davidson, even if we all bought bourbon, even if we all bought steak every single day, we could never close the goods gap simply because of our size. And they also point to the fact that we have set out and made these pledges that Trump so likes to see. Switzerland was looking in the range of an 100 in $50 billion investment pledge, which is one of the biggest relative to the size of its country. So they're saying, hey, like we're doing everything we can. We're just a small country, so it's very hard to close that gap with.

[Neal Freyman]

The US so they still have until August 7th in order to hopefully make an emergency deal for them. Maybe they'll they'll send in Roger Federer as an emergency trade emissary.

[Toby Howell]

Moving on. NFL Red Zone is famous for bringing fans seven hours of commercial free football. But now ESPN is stepping in to bring fans that sacred offering. According to the Athletic, the NFL and ESPN reportedly agreed to a blockbuster deal on Friday that would send many of the league's top media properties over to the worldwide leader in sports in exchange for equity in espn. That means ESPN would get access to Red Zone, AKA Football Nirvana, as well as the NFL Network. Seven more regular season games. In the league's fantasy football business, the NFL will get up to 10% of equity in ESPN, an agreement potentially worth billions of dollars. The timing of the deal lines up with ESPN's plans to roll out its standalone streaming platform later this fall. There's no exact launch date yet for the service, which will just be called espn, but it's coming soon and would be bolstered by this latest pact as ESPN tries to entice cable cutters to sign up for the $30 a month streamer. Neal, there is still a long way to go before this deal actually becomes a reality, and mainly because it would also need the blessing of regulators, which could take up to a year. But if regulators do sign off, the deal would take effect next season, lining up with a huge moment for ESPN when it would also air its first Super Bowl.

[Neal Freyman]

Yeah, pretty interesting deal here because this is ESPN and Disney, its parent company, are kind of zigging where other companies are zagging in their same space. Warner Brothers and Comcast. Their big moves recently has been to shed cable networks because they are in a no growth business, which is what CEO Bob Iger said just two years ago. So the fact that they are acquiring a cable network from the NFL, a cable network that is flailing and not doing so well speaks to the power of the NFL and the fact that it is the most valuable media property in the in the country, perhaps in the world. So that's why ESPN is making this deal needs it wants more tentacles in in the NFL and it also wants to bolster this streaming service $30 a month coming in a few weeks.

[Toby Howell]

Ironically, even though the NFL is just this absolute ratings juggernaut, it's media properties the show puts on to talk about the NFL kind of stink and never really got off the ground. They've been trying to make this work. NFL Network was started back in 2003 but just never really gained the foothold they are looking at. So maybe they think that ESPN will do better kind of running it as a sub network under their main sports brand. But a lot of fans have been calling out the fact that this is definitely a conflict of interest. Some people said like hey, would ESPN do the same level of in depth reporting on a critical story to the NFL? If the NFL has a meaningful ownership stake in the company, that could blur the line of objectivity and independence. Call it the separation of church and state. Now they are under the same umbrella here. So it seems like a win win for both the NFL and espn. But fans could be the ones you know that are losing here because of that blurring line. Up next, let's talk about our winners of the weekend.

[Neal Freyman]

You know what's even harder than waking up at 4 in the morning trying to start up a new business?

[Toby Howell]

Don't I know it. I've been cooking on this pickleball shoe idea for two years now. It ain't for the faint of heart.

[Neal Freyman]

That's why finding the right tools to help you build and simplify every process along the way can be a huge game changer for millions of businesses.

[Toby Howell]

That tool is Shopify.

[Neal Freyman]

From ready to use templates to AI assistants Get the word out like you have a full marketing team behind you. Shopify helps accelerate your content creation and leverage seamless workflows to get everything completed on time.

[Toby Howell]

And when it comes to commerce, Shopify's expertise ranges from managing inventory to international shipping to processing returns. If you're ready to sell, you're ready to Shopify.

[Neal Freyman]

Sign up for your $1 per month trial and start selling today at shopify.com morning brew that's shopify.com morning brew shopify.com/morning.

[Toby Howell]

Brew this message is a paid partnership with Apple Card. I'm a person who really appreciates simplicity and when it comes to credit card rewards, the simpler the better. That's one of the many reasons I have an Apple Card. The rewards are super straightforward. I earn up to 3% daily cash back on my everyday purchases. There are no points to calculate, no limits or deadlines. Plus it's super easy to access my card and make payments from the Wallet app of my iPhone. If that sounds like the kind of simplicity you want in a credit card, apply for Apple Card in the Wallet app on your iPhone. Subject to credit approval. Apple Card issued by Goldman Sachs Bank USA Salt Lake City Brands terms and.

[Neal Freyman]

More@Apple card.com welcome to winners of the Weekend, the segment where Toby and I picked two things that partied in Bushwick until sunrise. I won the pre show Junior Mint toss so I get to go first. And my winner is Dredge Operators because you folks are Most likely to still have a job when the rest of us Are replaced by AI A new Microsoft report examined which jobs were most vulnerable to AI based on how much AI is currently being used for that kind of work and how effective it is at those tasks. The list created send a clear message. The jobs least likely to be impacted by AI were blue collar physical labor roles like dredge operators, rail track layers, loggers, sanders, motorboat drivers, and other positions that require both your brains and your hands. All the jobs most at risk involve just your brain. The most vulnerable position was interpreters and translators, followed by historians, passenger attendants, sales and customer service reps, and writers and authors. Microsoft stressed that it wasn't creating a list of jobs that will definitively be replaced, instead analyzing a job's tasks that are most closely aligned with a large language model's current skills. Still, at a time when CEOs are openly bragging about lowering headcount and costs after introducing AI, it's easy to see which sectors of the economy are mass jobs cuts could come from and is coming for the desk jobs, not the plumbers.

[Toby Howell]

Yeah, this was to be expected. Of course, blue collar jobs are going to have kind of a new sheen to them, a new allure, because they can't be replaced by AI in its current iteration. But I do want to dig into the methodology of this report a little bit more. They were looking at work activities that generative AI was either completing or providing instructions for. And that latter is kind of an interesting development with how AI is being used. A lot of workers sometimes ask them, ask these AI apps to complete a task for me, like write this email. But most of them are using them as coaches or you know, sounding boards, figuring out the most effective way to do that job. And that's something I think is reflected in some of my friends that I've talked to is like they use it to if you have to, you know, fire a worker or something like that, they use it to as a sounding board to bounce ideas off of. Not necessarily like hey, fire this worker, that's not something that you can actually have an LLM do. So even though yes, the big headline takeaway here is that blue collar jobs are obviously not at risk to being replaced by AI. The sub headline too was just how interesting white collar workers are actually using AI.

[Neal Freyman]

And my sub sub headline is that the importance of getting a degree could be vanishing very quickly because according to Microsoft, they said in terms of education requirements, we find higher applicability for occupations requiring a bachelor's degree than occupations with lower requirements. So if you go down the list of the jobs are most vulnerable to AI, nearly all of them require a bachelor's degree or perhaps even a graduate degree. While the ones that are least vulnerable require maybe, you know, they are a skilled job, but they don't require you going to school for so long. So if I'm a college or higher educational institution looking at this, I'm thinking I might have to revamp my pitch or my value prop to incoming students to say, you know, we are going to prepare you for the economy because right now it looks like we are preparing you to get your job replaced.

[Toby Howell]

My winner of the weekend is Matt dfk. Because this little known AI researcher is earning money that neither Steph Curry or J. Robert Oppenheimer can wrap their heads around. Metta recently offered JK250 million dollars over four years, good for an average of 62 and a half million dollars a year. To put that into context, Steph Curry's most recent four year deal with the Golden State warriors is worth the $35 million less than what DK, who is not the greatest shooter of all time, is getting paid. Even the greatest tech and science achievements of our time haven't warranted salaries even close to what AI engineers are getting paid right now. Thomas Watson Senior, the legendary CEO of IBM, received the third highest salary in America during his time leading the 20th century's most dominant tech company. His salary was worth just $12 million a year in today's dollars, less than a 6 of what DFK is raking in. Zoom out to one of the greatest collective research undertakings in world history and you still don't sniff AI numbers. J. Robert Oppenheimer, who led something called the Manhattan project, earned approximately $190,000 in today's dollars. DFK, who is 24 I might add, is set to earn 327 times what Oppenheimer made while developing the atomic bomb. Rather than alter the course of human history, DFK created a startup that makes models good at juggling images, sound and text. But the big tech companies doling out these salaries do think the race to achieve artificial general intelligence can alter the course of human history and make potentially trillions of dollars in the process. So they are betting that these pay packages will end up being justified. Still, Neil, it's hard to fathom salaries of this size. There is simply no historical context. And even when you get into the upper echelons of athletics in science, Ars.

[Neal Freyman]

Technica said his compensation shattered every historical precedent for scientific and technical compensation we can find on record. Just look at Neil Armstrong did something pretty impressive, pretty, pretty amazing scientific or technical achievement by becoming the first person to walk on the moon. His annual salary was $244,000 in today's money. So met his new AI researcher. This 24 year old guy is going to make more in three days than Armstrong made in a year for taking that one giant leap for mankind. The reason they're getting all of this money is because Zuckerberg thinks that these guys who are able to manipulate, you know, teach AI to learn how to address images and text will be a civilization altering scientific breakthrough. Which is. And there's just not many of them. In order to become a good AI researcher, you need a ton of computing power. There's only so many labs or places around the world where you're able to access that computing power. So it's a very small group of people, very specialized group of people, and they're commanding insane salaries. It's Monday, so here are the big events you need to know to stay ahead in the week ahead. Earnings season rolls on with some intriguing reports from every sector of the economy. Disney, Uber and McDonald's will tell us the health of the American consumer. AMD and Super Micro are a key test for the AI revolution. And Eli Lilly and Nova Nordisk will discuss whether the boom in weight loss drugs still has legs. But the most closely watched report may be this afternoon with Palantir, the AI software giant that has soared over 100% so far in 2025 to become one of the top 20 most valuable public companies.

[Toby Howell]

I'm looking forward to the drug makers gauntlet, honestly, because Novo Nordisk has obviously fallen off a cliff recently. Curious to see also how drug makers are thinking about tariff exemptions too. And then I just tried the snack wrap from McDonald's. I know I'm a little late on this. I did it yesterday and it was good. So I am curious to see if McDonald's get a little bump. Although I did have stomach issues later in the day. Maybe that will affect the earnings. Maybe it won't.

[Neal Freyman]

I hate to be the bearer of bad news, but Back to School week shopping kicks off for real this week. According to the National Retail Federation, parents of children in kindergarten through high school are budgeting an average of $858 for spending on things like electronics, clothes, pens and books this year so their kids can have the spiffiest three ring binder in homeroom. There's a silver lining to Back to School. It's that states are rolling out sales tax holidays this month that could shave a few bucks off Target Hall. So be sure to look up when your state is giving your wallet a break.

[Toby Howell]

Yeah, both those sales tax breaks are coming, but also Walmart and Target, they're flying, freezing or lowering their prices as well because KPMG did this kind of consumer survey and they found that more than half of shoppers said they plan to buy less overall this back to School season because of tariffs. So a lot of factors are going on where you have one side of states and retailers trying to lure those back to school shoppers out and then back to school shoppers saying, hey, we're not buying because we're afraid of tariffs. So we'll see kind of which side wins out.

[Neal Freyman]

What was your favorite school supply to get?

[Toby Howell]

I well, I loved the pens and the pencils. I love mechanical pencils. So that was like a big deal to get like the best ones. And then whatever those notepads with the shiny like covers on them were that you could kind of scratch and make a noise. I don't even know what they're called, but that's what leaves a lasting impression in my mind. I feel like you were a binder guy, though.

[Neal Freyman]

I do love a binder. I mean, the thing I remember most about back to school shopping is I would get all of this new fancy stuff that I was super excited about and then I would never use it. It's like, oh, you actually expect me to take notes in sixth grade? No. Thanks. All right. In the entertainment world, the iconic series King of the Hill is returning today for a 10 episode revival on Hulu. The animated series ran for 13 seasons beginning in 1997 and was created by Mike Judge, who was responsible for Office Space in Silicon Valley, and Greg Daniels, who developed the US Adaptation of the Office. Also, the hit show Wednesday returns to Netflix on Wednesday for its second season. And on Friday, Freakier Friday hits theaters. The sequel to the 2003 classic starring Jamie Lee Curtis and Lindsay Lohan.

[Toby Howell]

Another I'm going to call it a comedy. Another big screen comedy coming down the pipeline. We got Naked Gun doing well at the box office, happy Gilmore 2 breaking streaming records. So it does feel like the comedy pipeline is being filled back up again. But then also, you know how movie theater popcorn buckets have become a really big marketing stunt? Freakier Friday has a great one. When you order a soda at some select theaters, it comes in a bucket that looks like it contains popcorn, but the popcorn is fake. There's actually a straw hidden inside. And then when you order popcorns, it comes in a soda cup. Again, you flip open the soda cup and there's popcorn inside. So if you get it, they're switching. Bodies are switching right there. So I do like that one. I am a sucker for a good movie theater popcorn gimmick.

[Neal Freyman]

I'm glad that's what we're we're innovating in. Okay, that is all the time we have. Thanks so much for starting your morning with us us and have a wonderful start to the week. If you have any thoughts or feedback on today's show, send a note to Morning Brew daily at Morning Broadcom. Let's roll the credits. Emily Milian is our executive producer. Raymond Lu is our producer. Our associate producers are Olivia Graham and Olivia Lake. Hair and makeup is going back to school like Rodney. Change your field. Devin Emery is our president and our show is a production of Morning Brew.

[Toby Howell]

Great show, Danielle. Let's run it back tomorrow. Foreign.

[Neal Freyman]

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[Toby Howell]

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[Neal Freyman]

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[Toby Howell]

It's your gateway to B2SMB marketing success. Learn more at medialabs intuit.com that's medialabs intuit.com.