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US debt interest payments top $1 trillion

The United States government’s cost of servicing its national debt surpassed the $1 trillion mark in 2023, according to data from the Federal Reserve. 

This staggering figure was driven by soaring interest rates and a record $34 trillion debt burden. Over the past decade, debt interest payments have more than doubled, fueled by massive government spending during the pandemic crisis.

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What’s going on?

• CSIS Report Says China Interfered In 2019 Elections Because of Huawei Exec Meng Wanzhou (theDeepDive)

• Citi Trims Fed Bet for 2024, Still Sees 100 Basis Points of Cuts (Bloomberg)

• Militants Launch Mortars at US Troops Constructing Gaza Aid Pier (theDeepDive)

• Elliott takes $1 billion stake in Anglo American as miner faces takeover interest (CNBC)

• ByteDance Prefers To Shutdown TikTok Rather Than Sell (theDeepDive)

• B.C. asking federal government for help reining in public drug use after decriminalization project (Globe)

• DEEP DIVE: Documents Reveal Green Party Manipulated Germany To Push Nuclear Phase-Out (theDeepDive)

• Fed’s Preferred Core Inflation Gauge Rose at Brisk Pace in March (Bloomberg)

• Canada To Spend $5 Billion Supporting Honda’s Investment In EV Manufacturing (theDeepDive)

• The Trudeau government’s promise of 3.87 million new homes is next to impossible (Globe)

What’s the latest?

• Copper Runs: Copper prices have surged to US$10,000 a ton for the first time in two years, driven by concerns about insufficient supply to meet the demand from emerging green industries. This significant price milestone reflects the market's potential shift into a deficit due to a historic squeeze on mined ore supplies. While investor optimism about future demand is growing, there's notable softness in Chinese demand, creating a market tension evident in trading activities on the London Metal Exchange.

• Canada Life Sanctions: The Canadian government has started imposing sanctions on Canada Life due to issues following the transition of the public service health insurance plan from Sun Life to Canada Life on July 1, 2023. Since the transition, beneficiaries have experienced extensive delays and issues with claims, such as long waits and unexplained denials. The $514-million contract allowed a six-month evaluation period before penalties could be enforced.

• Anglo Rejection: Anglo American, a leading U.K.-based mining company, has rejected a substantial takeover offer from BHP Group valued at 31 billion pounds (approximately US$39 billion). The proposal, deemed "unsolicited" and "highly conditional" by Anglo American, aimed to establish the world’s largest copper miner, controlling about 10% of the global market.

• RCMP Strength: The RCMP's federal policing capabilities are facing significant challenges, according to a report by the independent Management Advisory Board. The report, which emerged from over a year of examination, indicates that key areas such as foreign interference, terrorism, and financial crime are at risk due to current operational sustainability issues. The board highlights that without substantial changes and increased support from the federal government, the RCMP's ability to ensure the safety and security of Canadians could be compromised.

• Google Earnings: Alphabet Inc. surpassed analyst expectations for first-quarter revenue, achieving $67.6 billion, buoyed by its cloud computing growth and artificial intelligence initiatives. The company's first dividend declaration and a $70 billion stock repurchase plan further fueled a 12% premarket share price surge.

High grade Swedish gold

The stock market and stuff

• Meta sparks tech selloff as AI splurge spooks Wall Street (Reuters)

• Alphabet soars on strong earnings, first-ever dividend, $70 billion buyback (CNBC)

• Cobalt Prices Under Pressure from Surging Chinese Output (theDeepDive)

• IBM Plots $730 Million Expansion of Canadian Semiconductor Site (Bloomberg)

• Exxon stock falls as earnings miss on lower natural gas prices and squeezed refining margins (CNBC)

In the juniors

• Silvercorp Metals to Acquire Adventus Mining For $200 Million (theDeepDive)

• Abitibi Metals Extends High-Grade Central Lens in Infill Drilling at the B26 Polymetallic Deposit (JMN)

• Marathon Digital Expands Hash Rate Target To 50 EH/s By Year End (theDeepDive)

FULL DISCLOSURE: ATHA Energy is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ATHA Energy. The author has been compensated to cover ATHA Energy on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.