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- š Tesla and Microsoft in trouble?
š Tesla and Microsoft in trouble?
and AI is getting regulated
Morning Download
Personal finance + economics + markets
Good morning, investors! December is turning out to be a good month but experts are divided about next year.
Fun fact: The top three sectors in the S&P 500 are Information Technology, Health Care and Communication Services, totaling about 50 per cent of the index.
Today we cover:
AI will now get regulated.
Tesla and other big companies are in trouble.
Why have multiple credit cards.
Follow us on Twitter for more.
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š Economy and News
EU agrees landmark deal on regulation of artificial intelligence
European Union officials have reached a provisional deal on the world's first comprehensive laws to regulate the use of AI.
Negotiators talked for over 36 hours to reach the deal that will impact both big and small AI systems such as ChatGPT.
These new rules will restrict use of facial recognition technology and ban AI for 'social scoring'. Moreover, it outlaws the exploitation of vulnerable groups through the use of AI. Other big economies, such as the US, may also take such drastic steps in the future. However, these will not come into effect until at least 2025.
Global hits:
Paramount shares jump after reports of takeover interest.
Starbucks tells union it wants to resume contract talks in January.
Chinaās November consumer prices fell the fastest in 3 years in November.
The US economy notched another solid month of job growth, adding 199,000 jobs in November.
š Stocks
S&P 500 4,604.37 (+0.41%)
DJIA 36,247.87 (+0.37%)
NASDAQ 16,084.69 (+0.38%)
BRENT CRUDE 75.45 (+2.48%)
* Prices as of Dec 11th, 12:20 AM UTC
Will 2024 bring trouble for Tesla, Microsoft, McDonalds, and More?

This year has proven to be one of the best for stocks but it seems 2024 will bring some new challenges.
Tesla is facing increasing pressure across Scandinavian countries to agree on a collective bargaining agreement with Swedish employees. The company has lost its Sweden court case and now the Finnish transport workersā union AKT confirmed that workers will will cease loading Tesla equipment on their way to Sweden from Dec. 20.
In addition, one of Denmarkās largest pension funds announced plans to sell its holdings of Tesla stock due to the companyās decision to not give into the demands of unions.
There are problems in the US as well. UAW has launched a bid to unionize Tesla in the US. These issues can put the company into trouble, which is already facing criticism due to delays associated with Cybertruck.
On the other hand, companies like Microsoft and Nvidia are facing challenges due to increased scrutiny related to AI. FTC has expanded investigative powers over AI. Also, Nvidia might not be able to meet revenue expenses due to its inability to cater to the Chinese market. Similarly, Microsoft and other big tech involved in AI may face challenges with countries now regulating AI. Plus, the UK is considering an antitrust probe into OpenAIās partnership with Microsoft.
Other than this, retail and food companies such as Walmart and McDonaldās may also have a turbulent 2024. Low-income consumers are spending less and retail and food companies are already lowering guidance. Furthermore, McDonald's has aggressive expansion plans, which historically havenāt worked out well for the company.
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šµ Personal Finance
Should you have more than one credit card?
Cash might offer some benefits but you canāt survive without a credit card in todayās economy, especially since they come with great perks. But, how many cards should one have?
Either have none or have more than one.
With no credit card, youāll be in better control of your credit score. Conversely, with multiple credit cards, you will enjoy some amazing benefits.
āMultiple credit cards help you afford your everyday purchases but also your emergency expenses. You can rely on credit when you run into an unexpected expense, but with two cards you can prevent that large expense from hurting your credit score,ā said CNBC.
The article highlights the benefits of having multiple cards, including more rewards, increased credit limits, and higher flexibility.
Hereās what Equifax says about having multiple credit cards:
āIt's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit.ā
But, donāt blindly follow these tips because having multiple cards can be problematic as well.
Letās first talk about other benefits. More credit cards can be effective in lowering your debt to credit ratio, which directly impacts credit scores.
Having more than one credit card can boost your credit score by lowering your credit utilization ratio, which is the amount of credit you're using compared to the amount of credit available. Most lenders prefer to see it at 30 percent or lower.
But, as stated above, having multiple cards can be problematic as well. The more credit cards you have, the harder it gets to manage funds. Plus, it increases the risk of going over your budget. Also, you may end up paying a lot in annual charges. So, always play smartly and remember that how you use the cards matters more than how many you have.
What do you like the most about your credit card? |
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Nothing in this newsletter is financial advice. Always do your own research and think for yourself.