🇨🇳 China's tough break

Meta and IBM formed a clique set on slowing down AI | China's credit outlook was downgraded | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for December 6th in 3:09 minutes.   🚀 Thousands of you joined our [Modern Investor Summit]( yesterday to glean investing insights from the likes of Ray Dalio. Now it's JPMorgan CEO Jamie Dimon's turn: join us to dig into risk management, 2024 outlooks, and stock screeners before ending the day with one of the biggest names in finance. [Grab your free ticket]( Today's big stories - Meta and IBM started an alliance that could change the pace of AI development - JPMorgan Asset Management sees a recession just around the corner – [Read Now]( - Moody’s pulled its outlook for China’s credit rating down a notch Extra Open AI [Extra Open AI] What’s going on here? Tech titans IBM and Meta formed an AI [alliance](, set on pushing back the veil that’s shrouding the tech’s development. What does this mean? AI has the potential to save the world, end the world, and make a lot of important leaders very rich. So concerned that some of the biggest companies in the space may be less than laser-focused on the first one, some of the smartest minds have come together with a mission to develop AI solutions safely, slowly, and openly. The “safety squad” includes tech heavyweights like IBM, Intel, Oracle, and Meta along with acclaimed institutions like Harvard and Imperial College London, all hoping that the whole will be greater than the sum of its parts – for the world’s sake. That leaves Microsoft-backed OpenAI, Tesla, Alphabet, and Amazon on the outcasts’ table for once, but there’s no guarantee that the tortoise will beat the hares in this race. Why should I care? Zooming out: Let’s take things slow. The alliance’s finer details haven’t been hammered out yet, but that’s right on brand for a group advocating for a slower approach. So is the committee format as a whole: it takes a lot longer for a group of companies with different individual backgrounds to reach a consensus than it does for a room of stereotypical tech heads to agree. And with much of the world concerned that AI developers’ breakneck speeds could end in a crash, this slow-and-steady force may attract quite the fan club. For markets: More is more. Despite being a slow burner for decades, AI became this year’s most popular theme overnight when ChatGPT launched. And it brought its reliable buddies along for the ride: a gaggle of high-tech chipmakers, including market darling Nvidia. The more the merrier, as far as they’re concerned, since that gang of suppliers stands to win a new customer every time an AI competitor comes along. You might also like: [2024’s not even here, and Wall Street’s already revising its stock forecasts](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Extra Open AI&utm_campaign=daily-global-06-12-2023&utm_source=email) Analyst Take JPMorgan Asset Management Says It's Too Soon To Celebrate [JPMorgan Asset Management Says It's Too Soon To Celebrate]( By Russell Burns, Analyst By now, you might’ve thought we’d be deep in the clutches of [the global recession]( that everyone’s been warning about. The fact that we’re not – while [a big relief]( – maybe shouldn’t have you popping any champagne corks just yet. In its 2024 outlook, JPMorgan Asset Management says the recession hasn’t been averted: it [just hasn’t started yet](. That’s today’s Insight: [the coming recession and the assets you may want to own when it comes](. [Read or listen to the Insight here]( SPONSORED BY IG 2024 could be the stock market’s year Folk huddle together this time of year, eagerly awaiting whatever surprises await them. But we’re not talking about kids under the tree waiting for presents: investors were the ones on tenterhooks this time, watching as the third quarterly results season unfolded. After all, while individual results can show investors which companies and industries are thriving, [the season as a whole]( can indicate the state of entire markets and economies. This time around, US companies held their own despite a topsy-turvy backdrop, and [IG reckons that sets the stage for stocks to climb by over 11% in 2024](. [Discover why IG’s optimistic about stocks](. DisclaimerYour capital is at risk. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. [Find Out More]( When you support our sponsors, you support us. Thanks for that. The Half Of It [The Half Of It] What’s going on here? Ratings agency Moody’s just downgraded China’s credit outlook to [negative](, doubtful that the weakening economy can balance out heavy debt. What does this mean? China’s embattled property market has been weighing on the economy ever since the government cracked down on the sector’s debt two years ago. Evergrande’s infamous default led to cracks across the industry, which, in turn, undermined everyday savers’ confidence in the value of their homes. And because that’s most folks’ biggest asset, Chinese shoppers have been curbing their economy-fueling spending and saving instead. What’s more, global economies – contending with inflation and inflation-fighting interest rates – are ordering less from China’s factories. Take all that together, and you can see why Moody’s doubts China’s ability to bring home the bacon and pay off its piling debts. Why should I care? For markets: Markets can be a step ahead. Moody’s targeted the US last month, citing the government’s eye-watering borrowing as a reason to downgrade its credit outlook. But just like with China, a worse outlook doesn’t mean that a country’s credit rating is automatically lower – in fact, it’s pretty rare for the rating itself to be downgraded. Mind you, when markets catch wind of a possible downgrade, they can fall pretty fast. That's worth keeping in mind, because by the time the downgrade actually comes, most investors will have probably factored it all in anyway. Zooming out: Everyone needs something to aspire to. China is expected to announce its economic targets for next year later this month, which investors will use to measure the country’s progress going forward. Problem is, it would take a miracle to resolve the property market’s problems anytime soon, so China needs to find another industry capable of pumping money into the economy. Or, more likely, it’ll have to borrow cash to get the job done itself. You might also like: [Why government bonds could see you through the good times and the bad.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Half Of It&utm_campaign=daily-global-06-12-2023&utm_source=email) SPONSORED BY AJ BELL MONEY MATTERS The gender investment gap still exists. Let’s change that. It’s a tired old stereotype that men are more wealthy than women. Unfortunately, stereotypes are often based on fact… AJ Bell has done some research and found that, on average, women have less in savings, investments, and pensions than men do. That’s pretty disappointing given it’s nearly 2024. In protest, AJ Bell started [Money Matters](: its campaign to help close the gender wealth gap. And the firm noticed a few financial pitfalls that disproportionately affect women along the way. [To find out where those pitfalls lie, read AJ Bell’s report](. The first step to fixing anything is identifying what’s wrong, after all – and it’s beyond time to address the things that negatively impact women’s finances. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 💬 Quote of the day "The first wealth is health." – Ralph Waldo Emerson (an American essayist and philosopher) [Tweet this]( SPONSORED BY EUREKA LITHIUM Fuel the electric future The clean energy transition is well underway, especially in the [electric vehicle industry](. That’s just what the planet needs. What we can’t afford, though, is to run out of [lithium]( – a key electric battery ingredient – just when we’ve started to turn our backs on fossil fuels. [Eureka Lithium (OTC:UREKF)]( is on a mission to stop that from happening: the company is on the hunt for undiscovered, [top-quality lithium districts in Nunavik](, an under-explored region in Quebec. Lithium should be in demand for decades to come. Plus, with international trade looking less reliable by the day, [securing supply within the US and Canada]( is more important than ever. So if you [want a foot in the electric future](, this could be the opportunity for you. Eureka, indeed. [Find Out More]( Disclaimer This content is for US investors only, if you are not a US investor please ignore this content. This content is a paid advertisement for Eureka Lithium from Sideways Frequency and Finimize. This is not Finimize editorial content. Finimize received a fixed fee for producing, hosting and promoting this content on behalf of Eureka Lithium, totaling $16,000. Other than the compensation received for this service, Finimize and its principals are not affiliated with either Sideways Frequency or Eureka Lithium. Finimize and its principals have no ownership in Eureka Lithium. The content on this page should not be taken as advice, an endorsement, or a recommendation from Finimize and its principals to buy or sell any security. Finimize and its principals have not evaluated the accuracy of any claims made on this page. Finimize and its principals recommend that investors do their own independent research and consult with a qualified investment professional before buying or selling any security. Investing is inherently risky and capital is at risk. Past performance is not indicative of future results. When you support our sponsors, you support us. Thanks for that. 🎯 On Our Radar 1. Love doesn't need to cost a thing. Here's how to [write the perfect love poem](. 2. 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