Finimize - 🌎 Woe is the global economy

The UK's the worst of a bad bunch | Inditex might be ready to shop |

Hi Reader, here's what you need to know for June 9th in 3:15 minutes.

🎮 We’re not playing around with this next event. Join Digital Development Management’s John Sutyak for How To 1UP Your Portfolio With Video Games on Thursday, and find out how to take your investments all the way to boss level. Grab your free ticket

Today's big stories

  1. Two major economic organizations lowered their growth expectations for this year
  2. With signs emerging that stocks might be about to rally, here are the ones that could benefit most – Read Now
  3. Inditex reported booming quarterly profits

Dark Days

Dark Days

What’s Going On Here?

Not one, but two major intergovernmental economic organizations slashed their forecasts for global economic growth this week.

What Does This Mean?

The OECD and the World Bank weren’t exactly in good spirits when they gave their 2022 forecasts in December and January, and it goes without saying that a lot’s happened since then. Just a recap in case you’ve been off the grid: the Ukraine war has driven up the price of energy and food across the world, while China’s zero-Covid policy has disrupted international trade. So things were only going to go one way: the OECD has now downgraded its global economic forecast from 4.5% to 3%, and the World Bank from 4.1% to 2.9%. Both of them put it down to skyrocketing prices, with the OECD even near-doubling its inflation forecast for its member countries in 2022.

Why Should I Care?

The bigger picture: Brits are in the…
As for next year, the OECD is expecting the global economy will grow just 2.8%. But its outlook for one country is particularly dire: the organization doesn’t think the UK economy will grow at all. That’s because its inflation rate is higher than most other advanced economies, meaning it’ll need to raise interest rates faster to keep prices under control. That and rising taxes will put a dampener on spending, which could cripple the UK’s growth. In fact, only Russia – hobbled by sanctions – is set to perform worse among the G20.

Zooming out: It could be worse.
The OECD did say that it was more hopeful that we wouldn’t see stagflation – the combination of high inflation, low growth – on the scale that we did in the 1970s, when an oil price surge led to runaway prices and severe unemployment. It pointed out that developed economies are driven more by services than by energy these days, while central banks – now mostly independent from governments – are freer to make tough decisions to tackle inflation.

Copy to share story: https://www.finimize.com/wp/news/dark-days/

🙋 Ask a question

Analyst Take

Is This The Rally You’ve Been Waiting For?

Is This The Rally You’ve Been Waiting For?
Photo of Carl Hazeley

Carl Hazeley, Analyst

It’s hard not to feel like we’re in a state of limbo right now.

After all, we’re just waiting to see if some bleak economic news will suddenly drive stocks even lower than the 13% they’ve already fallen this year.

Or maybe we’re hoping for something to suggest there’s life in the old stocks yet, giving us a glimmer of hope for some much-needed gains.

Well, it turns out there might already be a few encouraging signs, as well as a handful of stocks that could benefit most if this bounceback does come to pass.

So that’s today’s Insight: the signs of life in the stock market, and the stocks and ETFs you could buy into to profit.

Read or listen to the Insight here

SPONSORED BY Q.AI

Same markets, less risk

Predicting market movements is hard, and profiting from them is even harder.

That’s why Q.ai is rolling out “pair trades”, which combine long and short positions to allow you to profit based on their relative price changes, not overall market conditions.

Q.ai’s Gas Spike Kit, for one, goes long on gasoline and bets against crude oil. So it doesn’t matter if the market rises or falls: all that matters is the relationship between gasoline and crude.

This is all because Q.ai prides itself on being the app for modern investors, giving you easy access to Wall Street strategies and one-tap trades.

Find out more about pair trading today: check out Q.ai.

Discover Q.ai

All displayed performance are hypothetical returns and do not include advisory fees or transaction costs . This information is being furnished solely for informational purposes ONLY. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. No representation or warranty can be given with respect to the accuracy or completeness of the information, and is subject to updating, revision, and amendment. Past performance is not a guarantee of future performance returns. This material does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell, any security. This does not constitute and must not be construed as investment advice. Q.ai offers advisory services through Quantalytics Investment Advisors, LLC (“QIA”), a registered investment adviser. Advisory services are only offered to clients or prospective clients of QIA. Investing involves risk and possible loss of principal capital. Potential investors must rely upon their own examination of the merits and risks involved.

Moneybags

Moneybags

What’s Going On Here?

Inditex – the world’s biggest clothing house – announced on Wednesday that it finally made more in profit last quarter than it did before the pandemic.

What Does This Mean?

Let’s face it, the dream is over: you had no choice but to start wearing pants – or as we call them, leg prisons – once lockdowns came to an end. So you’ve been rushing in your droves to the likes of Massimo Dutti, Pull&Bear, and fast-to-market brand Zara, which helped parent company Inditex bring in 36% more revenue and 80% more profit last quarter than the same time in 2021 (tweet this). Demand was so high, in fact, that Inditex was able to navigate two potentially disastrous pitfalls. For one thing, it was able to offset the 24% rise in operating costs by upping its prices without losing customers. And for another, its strong showing in the UK, the US, and Europe made up for the closure of over 500 stores in Russia – its second-biggest market by real estate.

Why Should I Care?

Zooming in: If you can’t beat ‘em, buy ‘em.
Despite a tough time during the pandemic, Inditex has now amassed a cash pile of around $10 billion. And while hoarding cash has always been part of its playbook, analysts are speculating that it could be eyeing a big purchase in the form of struggling German online retailer Zalando. That could be a shrewd move, both because it would eliminate a competitor and allow Inditex to profit from the company’s digital know-how. It wouldn’t break the bank either: Zalando’s shares have halved in value since January.

The bigger picture: Inditex goes shabby chic.
Fast fashion and the environment aren’t exactly happy bedfellows, but Inditex is trying to change that: the company agreed last month to buy 30% of the recycled fiber produced by Finland’s Infinited Fiber Company for three years in a deal worth $100 million. It’s all part of a broader push toward more sustainable materials that should see Inditex making outfits entirely out of clothing waste from 2024.

Copy to share story: https://www.finimize.com/wp/news/moneybags/

🙋 Ask a question

💬 Quote of the day

“Everybody talks about the weather, but nobody does anything about it.”

– Charles Dudley Warner (an American essayist and novelist)
Tweet this

SPONSORED BY THE ASCENT

That’s what we call a credit card

Plenty of cards give you one good reward. This card gives you three.

  1. Unlimited cash rewards. You can earn unlimited cash rewards when you spend on your card, no strings attached.
  2. 0% APR. Yup, you’ll pay no interest on purchases during your first 15 months.
  3. $200 sign up bonus. You’ll pocket that if you spend just $1,000 in your first 3 months.


And you can get all that for a $0 annual fee: apply today.

Read More

When you support our sponsors, you support us. Thanks for that.

🌎 Finimize Live

🎉 Coming Up This Week

All events are in UK time.

🌿 Why The Weed Industry Is Growing So Fast: 12pm, June 9th
🎮 How To 1UP Your Portfolio With Video Games: 5pm, June 9th
🤔 Should You Invest In Bonds?: 5pm, June 10th
🏦 What’s Next For The Banking Sector?: 1pm, June 13th
🎨 What Will Lead To Mass Adoption Of NFTs?: 5pm, June 13th
🎉 How To Invest Early In Polkadot Projects: 12pm, June 14th
🌍 How And Where To Invest In Africa: 5pm, June 14th
🚀 Finimize NFT Fest: 12pm, 15th June
🏡 Real Estate In The Metaverse with Unstoppable Domains: 1pm, June 15th
💻 The Path To Achieving Mass Adoption Of Web 3.0 with Unstoppable Domains: 4pm, June 15th
🌿 Is The Grass Greener For Cannabis Investors?: 5pm, June 16th
📉 What To Do In A Declining Market?: 7pm, June 16th

💪 And Then After That…

😎 The Impact Of Web3 On Music, Culture, And Community: 12pm, June 17th
👉 Mining Crypto With IoT Devices: 6pm, June 17th
♻️ The Pros And Cons Of Investing In Green Energy Today: 12pm, June 21st
⛔️ How Not To Invest In The Next Luna: 1pm, June 22nd
🥕 Investing In The Rise Of Plant-Based Food: 1pm, June 23rd
🤗 Investing In Metaverse Opportunities: 5pm, June 23rd
♻️ Analysing Emerging Trends In Green Stocks: 5pm, June 27th
🇺🇸 How To Prepare For A Recession: 1pm, June 29th
🏠 Blockchain And Real Estate: What’s Next?: 6pm, June 29th
🏘 How To Diversify Your Crypto Investments Through Commercial Real Estate: 6pm, August 3rd
🏡 Tokenizing Real Estate: 6pm, September 13th

🎯 On Our Radar

  1. Sorry, Apple. The EU says you need to change your chargers.
  2. No more “hiding the crazy”. This piercing addict is loud and proud.
  3. Robots are cloning animals now. How could this possibly go wrong?
  4. California needs more goats. At least if the state wants to fix its wildfire problem.
  5. Minimalism is out.Carnivalcore” is in.
❤️ Share with a friendYour Referrals: 0

Thanks for reading Reader. If you liked today's brief, we'd love for you to share it with a friend.

Share your unique link:

https://finimize.com/invite/?kid=177ZWC

You stay classy, Reader 😉

We’d love to hear your thoughts. Give feedback

Want to advertise with us too? Get in touch

Image Credits:

Image credits: Mariola Anna, SOzornina Kseniia - Shutterstock | aperturesound, StockStyle, Nuchylee - Shutterstock

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

😴

Crafted by Finimize Ltd. | Bow Bells House, Bread Street, London, EC4M 9HH

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021

View Online

Older messages

📉 Target goes from bad to worse

Tuesday, June 7, 2022

Target's hoarding came back to bite it | Apple finally made its move | TOGETHER WITH Hi Reader, here's what you need to know for June 8th in 3:11 minutes. ♻️ In case you hadn't noticed,

😬 Elon’s got a bad feeling about this

Monday, June 6, 2022

No one's going public | China's raring to go | TOGETHER WITH Hi Reader, here's what you need to know for June 7th in 3:10 minutes. 💥 The Finimize NFT Fest is less than two weeks away, so

🔥 The Delorean gets back to the future

Wednesday, June 1, 2022

We need more EVs, stat | Slack isn't slacking | TOGETHER WITH Hi Reader, here's what you need to know for June 2nd in 3:06 minutes. 🇬🇧 We're celebrating not one, but two public holidays at

⚔️ The FTSE gets cut-throat

Tuesday, May 31, 2022

Gold Fields is exploring pastures new | The FTSE can't be reasoned with | TOGETHER WITH Hi Reader, here's what you need to know for June 1st in 3:13 minutes. 💪 Harnessing the power of web3

🤝 Russia has friends in high places

Monday, May 30, 2022

Oil pays dividends | British homebuyers can dream again | TOGETHER WITH Hi Reader, here's what you need to know for May 31st in 3:08 minutes. ☘️ Helping the planet can really pay off – literally.

You Might Also Like

Cashless Chronicles? - Issue #461

Friday, March 29, 2024

The digital finance era unfolds, charting new paths for global economies. March 29, 2024 FinTech Weekly presents a panorama where each thread weaves into the broader narrative of digital finance's

🤝 Amazon doubled down on AI

Thursday, March 28, 2024

China's green energy goodies are too cheap for the US | Amazon doubled down on Anthropic | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 29th in 3:12 minutes. 🌞 As

🤝 Amazon doubled down on AI

Thursday, March 28, 2024

China's green energy goodies are too cheap for the US | Amazon doubled down on Anthropic | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 29th in 3:12 minutes. 🌞 As

China’s ‘lost decade’

Thursday, March 28, 2024

Bloomberg Evening Briefing View in browser Bloomberg Ray Dalio has a warning for China. The hedge fund titan says the country should cut its debt and ease monetary policy or face “a lost decade.” China

Looking to buy a home? Good news.

Thursday, March 28, 2024

Don't miss out on lower mortgage rates ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

This woman made investing history

Thursday, March 28, 2024

And so can you. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

The Simple Solution Worth Billions to Walmart and Amazon

Thursday, March 28, 2024

The following is a third-party sponsored message. It should not be considered a recommendation or endorsement by HS Dent Publishing. Dear Investor, In warfighting, there's a saying: "Amateurs

Markup matters: monetary policy works through aspirations

Thursday, March 28, 2024

Tim Willems and Rick van der Ploeg Since the post-Covid rise in inflation has been accompanied by strong wage growth, interactions between wage and price-setters, each wishing to attain a certain

🇯🇵 Japan's latest low

Wednesday, March 27, 2024

Visa and Mastercard cut merchants some slack | Japan's yen hit a 30-year low against the US dollar | Finimize TOGETHER WITH Hi Reader, here's what you need to know for March 28th in 3:14

‘Out of the blue’ correction

Wednesday, March 27, 2024

Bloomberg Evening Briefing View in browser Bloomberg With a number of market watchers warning of a bubble, traders are increasingly on the lookout for signs of the cliff's edge. But if you ask