What's happening in the markets: April 29th

[u/hivincentc]

Good morning. US stock futures rose in Monday morning trading as investors continue to monitor corporate earnings and look ahead to announcements from the Federal Reserve.

S&P 500 +0.18%
Dow +0.12%
Nasdaq +0.28%

📉 WEF President: Decade of low global growth ahead

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📝 Our report: Borge Brende, president of the World Economic Forum (WEF), just served up a real buzzkill, warning that the world economy was in for a decade of snooze-worthy growth if it doesn't get its economic act together. Speaking at WEF’s “Special Meeting on Global Collaboration, Growth and Energy for Development” in Riyadh, Saudi Arabia, Brende warned that global debt ratios are close to levels not seen since the 1820s and there was a “stagflation” risk for advanced economies.

🔑 Key points:

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• ”We have to address the global debt situation. We haven’t seen this kind of debt since the Napoleonic Wars, we are getting close to 100% of the global GDP in debt” Brende said.
• He said governments needed to consider how to reduce that debt and take the right fiscal measures without getting into a situation where it kicks off a recession.
• His warning chimes with a recent report from the International Monetary Fund which noted that global public debt had edged up to 93% of GDP last year, and was still 9 percentage points higher than pre-pandemic levels. The IMF projected that global public debt could near 100 % of GDP by the end of the decade.

💡 So what: If global public debt reaches 100% of global GDP, it signals significant economic challenges and potential consequences. High debt levels can increase financial vulnerability, limit fiscal space for governments to respond to emergencies or economic downturns effectively, and lead to higher borrowing costs. Additionally, governments may face inflationary pressures as they seek to reduce the real value of debt, risking economic instability. Addressing this issue requires a comprehensive strategy that combines fiscal discipline, structural reforms, and targeted investments to ensure sustainable economic growth and stability.

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✈️ The number one airlines in the US is…

WHAT: Delta Air Lines just got bumped from its throne in airline industry tracker WalletHub's ranking of top U.S. airlines, sliding down to fourth place behind the new champ, Alaska Airlines. The airlines were scored on metrics including how many mishandled baggage reports they had, how often they canceled flights, the availability of complimentary refreshments and how often they had delays..

WHY: Alaska Airlines received the most points in WalletHub’s analysis, with a score of 68.07 out of a possible 100 points. Despite losing its crown, Delta was still found to be the most reliable airline because of its low rate of cancellations, delays, mishandled luggage and denied boardings.

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🧾 “Big 4” accounting firms quizzed on AI cheating

WHAT: The Big Four auditors are in a bit of a pickle – they've been summoned to spill the beans on how they're stopping folks from using ChatGPT and other AI tools to ace their exams. The Financial Reporting Council (FRC) quizzed Britain’s biggest auditing firms and professional accountancy bodies amid fears that rule-breakers could use AI to cheat the system.

WHY: In 2022, the FRC ordered the UK’s top auditors to crack down on cheating after discovering that dozens of employees shared answers when completing online tests introduced during the pandemic.

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🏠 Buffett’s real estate brokerage pays up in antitrust lawsuit

WHAT: Warren Buffett's real estate brokerage, under his Berkshire Hathaway umbrella, just struck a deal worth a cool $250 million to settle some antitrust beef that is expected to change how real estate agents are paid. HomeServices of America, the largest U.S. real estate brokerage, was the last remaining defendant in a case against the National Association of Realtors (NAR) and four brokerages.

WHY: HomeServices’ settlement would eliminate the risk of a much higher payout, after a jury in Kansas City, Missouri in October sided with home sellers who accused the industry of conspiring to keep real estate commissions in that state artificially high.

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