Hello, N2K’ers!

This week’s world famous News Haiku^TM competition challenges you to base a haiku on a new word or expression from Merriam Webster’s dictionary. 

Email me by Thursday at noon ET with your entry! *And of course, your submissions to this competition are subject to Cheddar’s terms of service. But you knew that already, didn’t you?*

Now let’s talk about today’s news you Need2Know, shall we?

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Zoom CEO predicts AI could spawn 3-day week

• Electronic Arts goes private for $52.5 billion

• Look out! New tariffs on drugs, furniture, movies

• Government shutdown looms

• Jaguar Land Rover shut down by cyberattack

• New show alert: The Business of Defense

What’s the stock market up to, eh?

$SPX ( ▲ 0.26% ) $DJI ( ▲ 0.15% ) $NDX ( ▲ 0.48% )

Companies mentioned in today’s newsletter

$ZM ( ▼ 1.08% )  $EA ( ▲ 4.5% ) Jaguar Land Rover

Zoom CEO predicts AI could spawn 3-day week

Imagine a world where your workweek ends on Wednesday, leaving you with four full days for rest, hobbies, family, your other, secret family, and something called [checks notes] personal growth. All while still getting paid the exact same salary and enjoying no drawbacks whatsoever as a result.

Yeah, right. Still, Zoom CEO Eric Yuan envisions the first half becoming a reality, thanks to the transformative potential of [checks notes] something called AI.

“AI will take over mundane and repetitive tasks, allowing humans to focus on more important tasks,” he said. This shift, he explained, wouldn’t simply free up time but would “revolutionize how we approach work.”

The concept of AI enhancing productivity and reshaping work isn’t precisely new. Other tech leaders, like Bill Gates, have also speculated about AI dramatically reducing the hours required for traditional jobs. Gates, whose net worth is $106 billion, has even suggested the possibility of a two-day workweek within the next decade. But which brave tech CEO will suggest a zero-day week? (Oh, wait, see the next story.)

Still, there are indeed challenges to address. Yuan’s vision comes with concerns over potential job losses, particularly in entry-level white-collar roles. Anthropic CEO Dario Amodei recently warned that AI could eliminate up to 50% of such jobs, a sobering reality for Gen Z workers, but certainly not us Gen X workers.

Are you worried AI is going to lead to you losing your job? Or do you expect your robot overlords to care about your “personal growth?” Let us know in today’s poll 👇🏻

Song of the day: Jay Worthy, ‘Reckless’

West Coast smoothness is the flavor of Jay Worthy’s latest single, “Reckless,” and I think we could all use a bit of West Coast smoothness to start our Tuesday, don’t you?

Electronic Arts goes private for $52.5 billion

Yes, video games are for the emotionally stunted. That’s why I spent most of January playing “Indiana Jones and the Great Circle” on my nephew’s XBox. On the other hand, they’re huge money, because who among us is able to deal with the real world these days?

Electronic Arts, the iconic video game maker behind classics like “Madden NFL,” “Battlefield,” and “The Sims,” is officially being acquired for $52.5 billion in what may be the largest private equity buyout ever… so far.

Silver Lake Partners, Saudi Arabia’s Public Investment Fund, and Affinity Partners have teamed up to pay EA’s shareholders $210 per share, a $25 premium on its pre-announcement share price. When factoring in EA’s debt, the deal’s total value swells to $55 billion, eclipsing the $32 billion record set in 2007 for Texas utility TXU.

For EA, this marks the end of its 36-year journey as a publicly traded company. CEO Andrew Wilson, who has led since 2013, will remain at the helm as EA transitions to private ownership. Affinity Partners CEO Jared “You May Know My Father-in-Law” Kushner expressed excitement about the acquisition, calling EA an “extraordinary company” with the “ability to create iconic, lasting experiences.” In his own words, “I couldn’t be more excited about what’s ahead.”

They’re also gambling on AI being able to replace a bunch of human labor so they can improve the company’s profitability. Whatever happened to those four-day weekends?

Today on the ‘gram: Melts in your mouth, not on your feet

Post of the day: Bad Bunny at the Super Bowl

Quote of the Day

Look out! New tariffs on drugs, furniture, movies

President Donald Trump has unveiled new tariffs on consumer goods, including upholstered furniture, kitchen cabinets, and some pharmaceutical drugs, with rates ranging from 25% to 100%. These measures, set to begin on October 1, could bring significant price increases on imports while boosting domestic industries, experts say.

The furniture industry, already experiencing price hikes due to previous tariffs, will likely feel the brunt of these new policies. “You’re certainly going to see more impact on furniture prices. It’s going to be hard on the margins for the furniture wholesalers and retailers,” Jason Miller, a supply chain management professor at Michigan State University told ABC news. The personal consumption expenditure index, a key inflation measure, has already shown furniture prices jump 4.7% over the past year.

Meanwhile, pharmaceutical tariffs could be less impactful due to exemptions for companies building U.S.-based manufacturing plants. Experts believe the effects on drug prices will be limited. “I’m less concerned about the pharma tariff,” said Omar Sharif, star of Doctor Zhivago and world famous bridge player founder of Inflation Insights.

Domestic manufacturers are enthusiastic about the tariffs. Perry Miller, president of the American Kitchen Cabinet Alliance, said: “President Trump’s 50% tariff on all kitchen cabinet imports will allow us to hire thousands of new workers.” However, consumers may prepare for rising costs in the months ahead.

On Monday, Trump announced a 100% tariff on movies made outside America. Details remain scant.

Should you check your 401(k) today?

👍️ 

Sure. It’s not been a terrible start to the week, but not great, either.

Government shutdown looms

The clock is ticking in Washington as the U.S. government faces the threat of a shutdown if Congress cannot pass a funding deal by midnight tonight. At the heart of the standoff are disagreements over healthcare funding and spending priorities, with President Trump and congressional leaders locked in a high-stakes showdown.

Democrats are fighting to extend tax credits under the Affordable Care Act, which are set to expire by year-end. "We believe that simply accepting the Republican plan to continue to assault and gut healthcare is unacceptable," said House Democratic leader Hakeem Jeffries. With 24 million Americans relying on these credits to keep healthcare costs down, the issue has become a rallying cry for Democrats.

Meanwhile, Senate Republican leader John Thune urged caution, emphasizing the need for a temporary solution first. "Major decisions should not be made in haste," Thune wrote in a Washington Post op-ed (remember those?!) criticizing Democrats for threatening a government shutdown to push their healthcare agenda.

Democrats have responded by saying, effectively, that “later is a lie.”

Jaguar Land Rover shut down by cyberattack

Jaguar Land Rover has been grappling with the fallout of a significant cyberattack that forced it to shut down production in its factories across the UK, Slovakia, India, and Brazil. With production halted for nearly a month, the ripple effects on its workers, suppliers, and the broader supply chain have been profound.

The financial toll is staggering. David Bailey, professor of business economics at the University of Birmingham, estimates that the downtime could result in £1.7 billion in lost revenues and approximately £120 million in profit losses.

The UK government has intervened with a loan guarantee worth £1.5 billion, provided through UK Export Finance, aiming to protect jobs and support suppliers. Business Secretary Peter Kyle stated the funding would “help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK.”

With limited production restarts planned, JLR’s recovery may take months, leaving workers and suppliers in continued uncertainty.

Poll of the day: Three-day workweek?

Poll of the day: Flippin’ heck

We asked: How do you feel about home-flipping?

You answered:

🟨⬜️⬜️⬜️⬜️⬜️ I think it's a great way for entrepreneurial people to make some money. (112 votes)

🟩🟩🟩🟩🟩🟩 It worries me that, with a housing shortage, too many homes that sell in America go to investors. (480 votes)

592 Votes via @beehiiv polls

New show alert: The Business of Defense

The global defense industry represents a staggering $2.5 trillion market, with the United States alone investing nearly $1 trillion in its military capabilities. From company boardrooms to Pentagon briefings, the decisions made today are reshaping how nations protect themselves and project power.

On October 9 at 8 p.m. ET, wherever you watch Cheddar, we'll take you inside this high-stakes world. We'll meet the industry's most influential players, explore cutting-edge innovations in AI. We examine the next generation of smart tanks, ships, precision-guided missiles, and reveal the breakthrough technologies that are redefining modern warfare.