💰 Is The World Drowning In Debt?

Good morning. US stock futures moved higher in Wednesday morning trading as investors geared up for private payroll data while analyzing the latest corporate earnings.

💸 UN sounds alarm on global debt level

📝 Our report: Global public debt hit a whopping $97 trillion last year, the UN reported, with developing countries owing about a third of that — crimping their ability to pay for basic government services like health care, education and climate action. In its report entitled “A World of Debt," the UN Trade and Development agency, formerly known as UNCTAD, said high interest payments are outstripping growth in essential public spending.

 🔑 Key points:

• “Developing countries must not be forced to choose between servicing their debt or serving their people,” the report said. “The international financial architecture must change to ensure a prosperous future for both people and the planet.”

• In the developing world, which is home to 3.3 billion people, 1 in 3 countries spends more on paying interest than on programs in “critical areas for human development” such as health care, education and climate action.

• The United States, according to the report, led the world with more than $33 trillion in public debt last year, trailed by China at nearly $15 trillion and Japan at $10.6 trillion. Egypt, Mexico, Brazil and India joined China among developing countries with the most public debt.

💡 So what: The implications of global public debt reaching a record high of $97 trillion are multifaceted, affecting economic stability and development, particularly in developing countries which owe about one-third of this debt. High debt levels strain government budgets, diverting resources from essential services like healthcare and education, and increasing the risk of default, which can destabilize global financial markets. Additionally, high debt can impact sovereign credit ratings, raising borrowing costs and creating a cycle of higher debt and interest payments, posing significant ethical concerns about intergenerational equity and the sustainability of current fiscal policies.

Wednesday - US Trade Deficit

Thursday - No Major Economic News

Friday - Consumer Credit, US Unemployment Rate

📈 Joel Tillinghast shares the 5 traits of successful investors

💰 Are you saving enough for your retirement?

👨🏽‍💼 8 signs it might be time to leave your job

 📈 Get 5.1% APY For Your Extra Cash

Many of you ask where we’re putting our extra cash to earn the highest interest while still having access to it.

I’ve looked through plenty of high yield options and my top pick is Moomoo. It’s offering one of the highest yields available today at 5.1% APY.

And the best part? No minimum deposits, no cap on interests, and you can withdraw your cash at anytime.

Moomoo is offering Daily Market Briefs subscribers a limited-time deal: earn 5.1% APY on your cash and get up to 15 free stocks.

PS: Despite the funny name, Moomoo is a registered broker dealer with the SEC and is a member of SIPC meaning you’re insured up to $500,000.

🖥️ Microsoft makes moves to resolve EU antitrust concerns

WHAT: Microsoft's President Brad Smith hinted that the company plans more moves to settle the EU's antitrust probe into Teams, despite likely facing charges. The European Commission launched an investigation into Microsoft's tying of Office and Teams last year, following a 2020 complaint by Salesforce-owned Slack, a competing workspace messaging app.

WHY: Microsoft in April said it would sell its chat and video app Teams separately from its Office product globally, months after it unbundled the two products in Europe in a bid to avert a possible EU antitrust fine.

📺 Canada ramps up tax on online streaming services

WHAT: Canada's telecoms regulator has decreed that major streaming services must chip in 5% of their Canadian earnings to bolster the domestic broadcasting system. The Canadian Radio-television and Telecommunications Commission (CRTC) said the money would be used to boost funding for local and aboriginal broadcasting. The measure would raise roughly C$200 million ($146 million) a year, they said.

WHY: The measure was introduced under the auspices of a law passed last year designed to make sure that firms like Netflix and Alphabet Inc-owned YouTube make more of a contribution to Canadian culture.

🤖 Tech company spends big on AI startups

WHAT: Cisco Systems is betting a cool $1 billion on startups crafting "secure and reliable" AI services, aiming to level up its game in the AI arena. “AI is reshaping every industry across the globe at an unprecedented pace. Some of the investments that we’re going to make will be followed by some partnership agreements” Cisco’s Chief Strategy Officer Mark Patterson said in an interview.

WHY: Like other Silicon Valley mainstays, Cisco is looking for ways to tap into the frenzy of interest in AI computing. It’s already incorporated the software into some products, including its well-known Webex conferencing service, and has announced a tie-up with Nvidia to sell products based on that company’s chips.

✏️ DMB Insider Quiz ✏️

🧑‍💻 We read your emails and poll replies daily.

Hit reply and let us know what you want more of!

See ya next time, Daily Market Briefs