🪓 The Global Economy Is Facing THIS Risk...

Good morning. US stock futures inched higher in Tuesday morning trading as investors awaited a key inflation report.

💰 IMF exec: Global GDP at risk of “fragmentation”

📝 Our report: Gita Gopinath, the International Monetary Fund's First Deputy Managing Director, is here with a friendly heads-up: if the global economy continues down the path of "fragmentation" a "new Cold War" could be triggered given the shifting grounds of bilateral trade.  

 🔑 Key points:

• Gopinath told the International Economic Association in Medellin, Colombia, that losses could reach 2.5% to 7% of global gross domestic product if the world economy fragmented into two blocs, seen as predominantly the U.S. and Europe in the West and China and Russia in the East.

• Around 3,000 trade-restrictive measures were imposed last year around the world - nearly three times the number imposed in 2019.

• Such fragmentation has potential serious consequences that could outweigh greater domestic economic resiliency and security, Gopinath said.

💡 So what: Preventing global economic fragmentation is crucial for several reasons. Firstly, a connected and integrated global economy fosters economic growth, trade, and innovation, benefiting countries and businesses alike. Secondly, economic interdependence can promote peace and stability. When nations are economically linked, they have a vested interest in avoiding conflicts that could disrupt trade and financial systems.

Tuesday - US Consumer Price Index

Wednesday - FOMC Interest Rate Decision, Fed Chair Powell Speaks

Thursday - Initial Jobless Claims (wk end Dec 8)

Friday - No Major Economic News

 📈 Bill Ackman shares his three investing “commandments”

🫰🏽 Here’s what you need to know about opportunity cost

💵 Is this the new billionaire’s playground?

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🎮 Alphabet takes an L

WHAT: In a California courtroom showdown, a federal jury declared Google's mobile app store the unrivaled monarch of the Android software realm for app distribution and payments, dealing a blow to the technology giant in a high-stakes antitrust battle with Epic Games. The ruling could potentially jeopardize billions of dollars of revenue generated by Google’s app store.

WHY: Epic sued Google three years ago, claiming the tech company monopolized the Android app distribution market for more than a decade by striking side deals with rivals and using its resources to thwart competition.

🤖 US questions chipmaker over sales to China

WHAT: The Biden administration is having a chat with Nvidia Corp about selling AI chips to China, but it's making sure to keep the really fancy semiconductor goodies out of reach. U.S. Commerce Secretary Gina Raimondo, speaking in an interview with Reuters, said the US “cannot allow Nvidia to ship the most sophisticated, highest-processing power AI chips, which would enable China to train their frontier models"

WHY: Raimondo sent a warning to chips companies on AI chips at a forum recently in California saying traditionally Commerce drew a "cutline" and companies like Nvidia would create a new chip "just below" that line.

🤖 Microsoft to work with unions on “AI alliance”

WHAT: Microsoft is joining forces with labor unions to host a grand AI chat—a tech tête-à-tête, if you will—discussing the impact of artificial intelligence on the working class. The software giant is forming an alliance with the American Federation of Labor and Congress of Industrial Organizations, which comprises 60 labor unions representing 12.5 million workers to provide labor leaders and workers with formal training on how artificial intelligence works.

WHY: The initiative marks the first formal collaboration on AI between labor unions and the technology industry and coincides with growing concerns that artificial intelligence could displace workers.

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